Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
ITC Hotels, now operating as an independent, debt-free listed entity, plans "accelerated growth" under Managing Director Anil Chadha. With 4,000 rooms in 45 properties in its pipeline, the chain aims to expand from 13,000 rooms in 140 hotels to 18,000 rooms in 200 hotels by 2030, focusing on asset-light managed properties. Backed by INR 1,500 crore from ITC Ltd, the company is poised for growth in India and internationally with new projects in Nepal and Sri Lanka. ITC Hotels' revenue mix has shifted post-pandemic, with room rentals contributing 52%. The brand remains bullish on India's growing demand and infrastructure development.
ITC Hotels, India's second-largest hospitality player, is set to achieve "accelerated growth" as it begins operations as an independent listed company. Earlier this week, the company's shares were credited to the demat accounts of eligible ITC shareholders, marking a new chapter in its history. Managing Director Anil Chadha expressed confidence that the demerged, debt-free entity will be more agile and attract significant investments. Advertisement
Chadha highlighted that ITC Hotels is well-positioned across luxury and premium segments with its six distinctive brands. Over the past two years, the company has launched 30 properties and plans to maintain this momentum, with 4,000 rooms in 45 properties currently in the pipeline. By 2030, ITC Hotels aims to expand its portfolio from 13,000 rooms in 140 hotels to over 18,000 rooms in 200 hotels, adopting an asset-light approach prioritising managed properties.
Tracing its journey, ITC Hotels opened its first property in Chennai 50 years ago and expanded to cities like Agra and Delhi. In comparison, competitors such as the Taj Group, Marriott International, and Radisson currently have larger portfolios, but ITC Hotels remains focused on unlocking value and enhancing growth. Internationally, the company plans to establish two new hotels in Nepal and expand its presence in Sri Lanka.
The parent company, ITC Ltd, has committed INR 1,500 crore to the demerged entity and retains a 40% stake. Additionally, it will continue to receive royalties for iconic restaurant brands like Bukhara, Dum Pukht, and Dakshin. ITC Ltd also holds stakes in Oberoi Hotels' parent company EIH and other hospitality ventures.
Chadha emphasised that 80% of the pipeline hotels are brownfield projects, which are more likely to materialise than greenfield ones. The company is shifting its property mix from 45% owned and 55% managed properties to 35% owned and 65% managed. Future growth is expected from the upscale and economy segments.
The company's food and beverage (F&B) segment has been a cornerstone of its success, with pre-pandemic revenues equally split between room rentals and F&B. However, increased tariffs since late 2021 have resulted in room rentals now contributing 52% of revenue, while F&B accounts for 40%, and other services, including banquets and spas, make up the remaining 8%.
Chadha remarked that the Indian hospitality sector is experiencing heightened demand across segments, buoyed by the country's economic growth and infrastructure development. He noted that venues like Delhi's Bharat Mandapam and Mumbai's Jio Centre are attracting visitors for events and expos, creating opportunities for leisure tourism. ITC Hotels is optimistic about the next phase of growth, driven by these trends and its strong operational foundation.
With robust infrastructure development across the country and a growing appetite for tourism, ITC Hotels is well-prepared to seize emerging opportunities and maintain its competitive edge in the industry.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
