Raining milestones for ITC Hotels

By
Devender Grover
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0
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From record-breaking room revenue to global expansion and green milestones, ITC Hotels continues to redefine hospitality excellence in FY25-26.

ITC Hotels has kicked off FY25-26 on a high note, delivering strong growth across its operations. With 140+ properties under six distinct brands, the group recorded impressive gains in room revenue, F&B, and RevPAR. Strategic expansion, a refreshed loyalty program, and global recognition for sustainability are shaping its journey as one of India’s fastest-growing hospitality chains.

Performance Highlights – Standalone

The Company is amongst the fastest-growing hospitality chains in the country with 140+ properties and over 13,400 rooms under six distinctive brands – ITC Hotels in the Luxury segment, Mementos in the Luxury Lifestyle segment, Welcomhotel in the Upper Upscale segment, Storii in the Boutique Premium segment, Fortune in the Mid-market to Upscale segment, and WelcomHeritage in the Leisure & Heritage segment.

The Company delivered a robust performance during the First Quarter of FY25-26, anchored on its commitment to operational excellence and customer satisfaction.

Strong Growth in Room Revenue and F&B

  • Room Revenues delivered strong growth driven by superior performance across the Retail, MICE, and Wedding segments.
  • The ADRs for the quarter grew by 9% and Occupancy by 275 bps, resulting in an overall RevPAR growth of 13%.
  • The Company commanded a RevPAR premium of 34% over the industry average.
  • Food & Beverages Revenue recorded robust growth of 13%, driven by Banqueting and Outdoor Catering.
  • The Business continued to delight guests through innovative culinary offerings and strategic refresh of F&B outlets.
  • The signature F&B brand ‘Avartana’ made an international debut with a pop-up event in France in April’25, showcasing its innovative approach to regional heritage cuisine.

Financial and Operational Milestones

  • EBITDA margin stood at 32%, expanding by 130 bps on a comparable basis, driven by higher RevPARs, growth in F&B revenue, higher management fees, structural cost interventions, and operating leverage.
  • The Company achieved a key milestone of crossing 200 hotels, with 143 operational and 58 hotels in the pipeline.
  • During the quarter, the Company signed 8 hotels with approximately 700 keys at key locations such as Bodhgaya, Dehradun, Goa, Lucknow, Manesar, Mysore, Ranthambore, and Vrindavan.

Strategic Expansion and Asset-Light Growth

  • The Company’s ‘Asset-Right’ strategy focuses on capital-efficient growth through strong partnerships with asset owners, leveraging brand credentials, and operational expertise.
  • The presence has expanded to Tier 2 and Tier 3 cities, where demand for premium hospitality is rising rapidly.
  • The Company has a robust pipeline of 58 hotels with over 5300 keys, largely brownfield assets.
  • The goal is to reach 220 operational hotels and over 20,000 keys by 2030.
  • The Company is also scaling its portfolio of owned hotel rooms with greenfield projects in Puri and Vishakhapatnam, and a new block at its existing hotel in Bhubaneshwar.

International Expansion and Sustainability Achievements

  • The Company launched its first international property – ITC Ratnadipa in April 2024 in Colombo, Sri Lanka. Within a short time, the hotel has acquired market leadership, offering luxury hospitality for both business and leisure travellers.
  • A new Club ITC loyalty programme was launched, introducing a tier-based earning system, an upgraded digital interface, and milestone-based rewards. The Culinaire programme is now integrated into Club ITC for enhanced member experiences.
  • ITC Grand Bharat, Gurugram, received the LEED® ZERO Water certification.
  • ITC Hotels now boasts:
    • 23 LEED Platinum® certified hotels – the most globally
    • 12 LEED® Zero Carbon certified hotels – first 12 in the world
    • 9 LEED® Zero Water certified hotels – first 9 in the world

Governance Update

The Board of Directors, at its meeting on 16th July 2025, approved the financial results for the quarter ended 30th June 2025.

In Brief 

ITC Hotels Redefines Growth: Blending Scale, Luxury, and Sustainability

India’s hospitality landscape is undergoing rapid transformation, and ITC Hotels has placed itself firmly at the centre of this change. With more than 140 properties under six distinctive brands, the group has opened FY25-26 on a high note, reporting strong growth across its businesses while advancing ambitious expansion and sustainability goals.

From luxury palaces to boutique retreats, ITC Hotels’ portfolio now stretches across the country — and increasingly, beyond its borders. Its journey reflects a careful balance of heritage and modernity, scale and sophistication, growth and green responsibility.

Momentum Across Operations

The April–June quarter underscored the brand’s strong operational rhythm. Room revenue rose sharply, supported by demand in retail travel, weddings, and MICE (Meetings, Incentives, Conferences, and Exhibitions).

Average daily rates (ADR) climbed 9%, while occupancy gained 275 basis points, combining to lift revenue per available room (RevPAR) by 13%. Notably, ITC Hotels continues to command a 34% RevPAR premium over the industry average — an indicator of its pricing power and brand equity.

Food and beverage revenue grew 13%, propelled by banquet business and outdoor catering. Innovation remained at the forefront: Avartana, the group’s signature southern Indian culinary concept, made its international debut at a pop-up in France, showcasing India’s regional cuisine with a contemporary flair.

Operational excellence translated into stronger margins as well. The group reported an EBITDA margin of 32%, up 130 basis points year-on-year, driven by higher room and F&B revenues, increased management fees, and cost efficiencies.

Crossing the 200-Hotel Milestone

ITC Hotels reached a key landmark this quarter — over 200 hotels in its system, with 143 already operational and 58 under development.

The company signed eight new properties during the period, adding nearly 700 keys across destinations such as Bodhgaya, Dehradun, Goa, Lucknow, Manesar, Mysore, Ranthambore, and Vrindavan. This expansion aligns with its strategy to capture emerging demand in both established and tier-two markets.

Its ‘Asset-Right’ model — emphasising management contracts and partnerships with property owners — continues to drive capital-efficient growth, while select greenfield investments, including hotels in Puri and Visakhapatnam, strengthen its owned portfolio.

By 2030, ITC Hotels aims to operate 220 hotels with over 20,000 rooms, consolidating its presence in metros, leisure hubs, and rising secondary cities.

Global Foray and Loyalty Evolution

April 2024 marked a milestone in the group’s global ambitions with the launch of ITC Ratnadipa in Colombo, Sri Lanka. The luxury property has quickly gained market traction, establishing ITC Hotels’ credentials as a player capable of competing on an international stage.

Customer engagement is also evolving. The refreshed Club ITC loyalty programme introduces tier-based rewards, milestone benefits, and a redesigned digital interface. Its integration with the popular Culinaire dining membership ensures added value for frequent travellers and diners alike.

Sustainability as a Differentiator

Perhaps the most distinctive element of ITC Hotels’ journey is its global leadership in sustainability. No other hospitality group in the world has achieved as much in green certifications:

  • 23 hotels LEED® Platinum certified — the highest worldwide
  • 12 hotels LEED® Zero Carbon certified — the first 12 globally
  • 9 hotels LEED® Zero Water certified — the first 9 worldwide

Most recently, ITC Grand Bharat, Gurugram, joined this elite league by achieving LEED® Zero Water certification, further strengthening the brand’s positioning as a pioneer of responsible luxury.

Looking Ahead

With a strong start to FY25-26, ITC Hotels is charting a trajectory that combines financial strength with long-term vision. Its ability to grow and scale while retaining its focus on culinary innovation, guest experience, and sustainability places it in a unique position in India’s competitive hospitality market.

As travel rebounds and premium hospitality demand spreads to newer geographies, ITC Hotels is not only expanding its footprint but also redefining what Indian luxury means — rooted in tradition, powered by innovation, and guided by responsibility.

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