ITC Hotels sees hospitality as growth engine amid strong domestic travel

ITC Hotels Chairman Sanjiv Puri said rising domestic travel and experience-led tourism are driving hospitality growth, with the company targeting 250 hotels over five years

Indian spending on domestic travel is transforming hospitality from a cyclical opportunity into a strategic growth engine despite headwinds from the West Asia crisis, which continues to affect energy security, trade and travel, ITC Hotels Chairman Sanjiv Puri said at the company's annual general meeting on Wednesday.

 

Puri said India's young and aspirational population is shifting towards experience-led tourism, as post-pandemic domestic tourism surged to more than 4 billion visits from pre-pandemic levels of around 2.3 billion. He added that spending by domestic tourists is expected to nearly double from ₹19 trillion to ₹36.5 trillion by 2036.

 

"This continued momentum in domestic travel is transforming Indian hospitality from a cyclical opportunity to a strategic growth engine," Puri said.

 

 

ITC's pipeline of 78 hotels with more than 8,000 keys supports the company's ambition to expand its portfolio to 250 hotels and more than 22,000 keys over the next five years, Puri said. He added that ITC is developing new properties in Puri, Visakhapatnam and Delhi, while expanding its hotel in Bhubaneswar to add nearly 670 rooms to its portfolio.

 

Puri said the company is also pursuing inorganic growth through the acquisition of a new property in Kerala and the signing of another in Ahmedabad.

 

Further, he said the company has recently signed agreements for properties in Ayodhya, Bodh Gaya, Gandhinagar, Guwahati, Jaipur, Rajgir, Shahjahanpur and Shirdi to strengthen its presence across key destinations.

 

Currently, the company operates around 150 hotels with more than 14,200 keys across India, Sri Lanka and Nepal. Its total income in FY26 grew 19 per cent to ₹4,331 crore, while net profit rose 29 per cent.

 

"This strong performance reflects disciplined execution, smart revenue management and operational excellence focused on superior guest experiences," Puri said.

 

"Digital and AI technologies are at the core of your company's strategy to transform guest experiences, enhance operational efficiencies, enable sharper revenue management and seamless solutions," Puri said, adding that the company continues to invest in cloud-first digital architecture, artificial intelligence (AI) and integrated data capabilities across its growing network.

 

"Travel and tourism are powerful drivers of economic growth and contribute significantly to regional development. It is a large employment multiplier with opportunities that span hospitality, restaurants, travel and logistics, digital platforms and on-ground support with qualified tour guides, among others," he said, adding that by 2036 the sector will contribute 7 per cent to the nation's GDP and account for 13 per cent of employment, creating more than 15 million additional jobs.