ITC Hotels Ltd stands as India's third largest hotel chain and represents one of the most compelling investment opportunities in the country's rapidly expanding hospitality sector. ITC Hotels is an Indian hospitality company that operates and manages hotels, having successfully transitioned from being a subsidiary of ITC Limited to an independent entity following its demerger in January 2025.
ITC Hotels is recognized as one of India's leading and fastest-growing hospitality chains, with a strong commitment to 'Responsible Luxury'. The company operates an extensive portfolio of over 140 hotels in more than 90 destinations, making it a dominant force in the Indian hospitality landscape. With over 140 properties and 13,300 rooms under six brands—including ITC Hotels, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage—the company is among India's fastest-growing hotel chains.
The company's strategic positioning is further enhanced by its franchise agreement to operate most of its hotels as part of The Luxury Collection of Marriott International, providing access to a global distribution network and premium brand recognition. This partnership allows ITC Hotels to leverage international hospitality standards while maintaining its distinct Indian identity.
As of July 2025, the market cap of ITC Hotels Ltd (ITCHOTELS) is ₹45,946.65 Cr as of 4th July 2025, reflecting strong investor confidence in the company's growth prospects. The company has demonstrated remarkable financial resilience, with the company being almost debt free, providing a solid foundation for future expansion.
For the financial year 2025, ITC Hotels delivered exceptional performance across key metrics. For the full fiscal year, revenue stood at ₹3,333 crore and PAT at ₹698 crore. The fourth quarter of FY25 was particularly strong, with the company reporting revenue of ₹1,017 crore, reflecting a 17% year-on-year increase and profit after tax (PAT) rising by 44% to ₹264 crore.
- Revenue: ₹3,333 crore (full year)
- PAT: ₹698 crore (full year)
- Q4 FY25 Revenue: ₹1,017 crore (17% YoY growth)
- Q4 FY25 PAT: ₹264 crore (44% YoY growth)
- EBITDA Margin: 36% (FY25), expanding to 40% in Q4 FY25
The company's operational metrics demonstrate strong market positioning and pricing power. Performance in the fourth quarter of fiscal year 2025 (ended March 31, 2025) saw occupancy levels rise to 79% and ADR increase to approximately ₹15,000. This performance significantly outpaced industry benchmarks, with a 14% year-on-year increase in Average Room Rates (ARR), reaching Rs 15,000, along with a 200 basis point improvement in occupancy to 79%. This strong performance led to a 17% growth in Revenue Per Available Room (RevPAR).
Room revenue benefited from strong average daily rates (ADR) of approximately ₹12,500 and occupancy levels of 73% for the full year, while food and beverage (F&B) revenue grew significantly, driven by enhanced culinary offerings and strong performance in banqueting and event catering.
ITC Hotels has established itself as a global leader in sustainable hospitality practices. A key achievement includes being the first Indian hotel chain to receive the USGBC Leadership Award for Organizational Excellence in 2024. The company's commitment to environmental responsibility is further evidenced by leading globally in sustainability, with 23 LEED Platinum certified hotels, including 12 properties certified as LEED Zero Carbon and 8 as LEED Zero Water, as of early 2025.
The company is executing an ambitious expansion strategy focused on asset-light growth. The company continued executing its "asset-right" strategy, focusing on management and franchise models to expand its footprint with reduced capital intensity. This approach has enabled presence expansion into Tier 2 and Tier 3 cities, with a pipeline of 50 hotels representing over 4,500 keys.
Looking ahead, ITC Hotels Ltd. targets a portfolio of 220 operational hotels with over 20,000 keys by 2030. The company is also investing in strategic infrastructure projects, with the company's board approving a capital expenditure of ₹328 crore to develop a new hotel in Visakhapatnam, Andhra Pradesh, with the property expected to feature around 200 rooms and is set to be completed by 2029.
The Indian hospitality sector presents significant long-term growth opportunities. The Indian hospitality sector remains poised for growth, supported by macroeconomic fundamentals, infrastructure investment, and a projected real GDP growth of 6.5% for FY25. Room demand in India is expected to outpace supply, with improving foreign tourist arrivals and rising domestic consumption driving long-term momentum.
The Indian economy remains a bright spot amidst a global slowdown and is expected to sustain its position as the fastest growing large economy. As per the second advance estimates released by MOSPI, India's real GDP is projected to have grown by 6.5% in FY25 and is expected to grow at a similar pace in FY26.
The company's shares have shown resilience in the market, with the 52-week high of ITC Hotels Ltd (ITCHOTELS) being ₹227.25 and the 52-week low being ₹155.10. The stock trades at a P/E ratio of 72.41, reflecting growth expectations and premium valuation typical of market leaders in the hospitality sector.
ITC Hotels represents a compelling investment opportunity for investors seeking exposure to India's growing hospitality sector, backed by strong operational performance, sustainable business practices, and a clear strategic vision for expansion across the country's evolving hotel landscape.
