ITC considers 'alternative' structure for its hospitality business

Under the REIT structure, ITC can move one or more of its hotel properties into a trust structure and list it separately

Conglomerate ITC may be evaluating real estate investment trust (REIT) as an ‘alternative’ structure, among other options, for its hospitality business as it continues to explore ways to enhance value for stakeholders.

A report from Japanese broking firm Nomura said that divestment of hotels business was on the cards and ITC was evaluating various alternative structures, such as REIT, joint venture, etc, to ensure that it was cost and tax-effective. The report mentioned that the takeaways were from meetings with the ITC management at Nomura’s conference in Singapore.

In response to a query from Business Standard, ITC said that it