ITC Hotels hits 200-property mark; Q1 net profit up 54% at ₹133 crore

Revenue from operations grows 15 per cent year-on-year to Rs 815.5 crore; hotel chain plans to add over 7,000 keys through 2030 with brownfield asset focus

Hospitality chain ITC Hotels reported a 54 per cent year-on-year hike in its net profit to ₹133 crore in the first quarter of financial year 2025-26 (Q1FY26), despite geopolitical developments impacting the sector.

 

The company’s portfolio expanded to over 200 hotels, including 143 operational, amounting to over 13,400-odd keys across the country and in Sri Lanka.

 

The company, which recently demerged from consumer goods giant ITC Limited, had reported a net profit of ₹86.5 crore in the same period last year. Its revenue from operations grew 15 per cent to ₹815.5 crore from ₹705.8 crore in the same period last year.

 

Meanwhile, its profit before interest, depreciation and tax (PBIDT) rose 33 per cent to ₹293 crore in Q1FY26 from ₹213 crore in the same period last year.

 

"While the geopolitical developments in May had temporarily affected business in certain locations, the hospitality sector bounced back progressively thereafter. A favourable demographic profile, steady domestic demand and rising consumption levels augur well for the hospitality industry in India,” stated a post-earnings-release from the company.

 

Room revenues delivered a strong growth driven by superior performance across retail, MICE and the wedding segments. During the quarter, the chain signed eight hotels with approximately 700 keys at key locations, including Bodhgaya, Dehradun, Goa, Lucknow, Manesar, Mysore, Ranthambore and Vrindavan. 

 

“The average daily rates (ADRs) for the quarter grew by 9 per cent and occupancy by 275 bps, resulting in overall revenue per available room (RevPAR) growth of 13 per cent. The company demonstrated its supremacy over the market and commanded a RevPAR premium of 34 per cent over the Industry,” the release added.

 

Revenue from the food and beverages segment saw a growth of 13 per cent in the quarter driven by banqueting and outdoor catering.

 

Of the total revenue, the hotels segment made a contribution of ₹800.5 crore, while golfing and other ancillary services contributed ₹10.06 crore.

 

“Aggregate room demand in India is expected to grow ahead of supply over the next few years,” the release further stated. This is due to strong domestic demand, rising urbanisation, favourable demographics and sustained growth of the services sector, which are expected to continue driving expansion.

 

With a focus on management and franchising contracts to add keys to its portfolio, only 42 per cent of its current portfolio is owned.

 

The company has a pipeline of 58 hotels with over 5,300 keys having high salience of brownfield assets to reach a portfolio of 220 operational hotels, with over 20,000 keys by 2030. This will change the owned/managed mix to 30-70 per cent going forward.