Sanjiv Puri, Chairman, ITC Hotels Ltd.: “ITC Hotels is committed to achieving new global benchmarks in hospitality while staying rooted in its vision of sustainability and inclusivity”. File photo
| Photo Credit: PTI
ITC Hotels, the new entity formed consequent to the demerger of ITC’s hospitality business, got listed on the stock exchanges on Wednesday, and with it, also announced plans to expand its portfolio to over 200 hotels in five years.
The expansion, as part of an asset right strategy, will have it expand its footprint across India and in proximal markets.
From the more than 140 properties with 13,000 keys across 90 plus locations it operates now, the plan is to expand the portfolio to more than 200 hotels with 18,000 keys in next five years, with approximately two-third salience of managed properties, the new pure play hospitality player said.
As many as 30 hotels were launched since 2023 and the robust target is to add at least one hotel a month on an average over the next 24 months, it said.
‘ITC Ltd. to retain 40%’
The well-diversified ITC Ltd. will retain a 40% stake in ITC Hotels, with the remaining 60% distributed among existing shareholders of the parent firm.
The new entity, while accelerating its independent growth trajectory, will also continue to leverage ITC Ltd.’s institutional strengths, globally acclaimed sustainability credentials, high-quality talent pool, digital capabilities, robust governance and sourcing of quality products.
ITC Hotels said it had debuted with zero-debt balance sheet and a cash/cash equivalents of ₹1,500 crore to cater to planned growth and contingency requirements.
The debut on the bourses was rather tepid with the stock listing at ₹188 on the BSE and ending the day 5% lower at ₹178.60 each. On the NSE, the shares opened at ₹180 and closed 3.53% lower at ₹173.65 apiece.
“Listing of ITC Hotels marks not just a new chapter for the ITC Group’s hospitality business but a bold step forward in our commitment to creating enduring value for all stakeholders. ITC Hotels is committed to achieving new global benchmarks in hospitality while staying rooted in its vision of sustainability and inclusivity… future promises exciting opportunities to expand, innovate and redefine luxury experiences,” Chairman Sanjiv Puri said in a statement.
“ITC Hotels is ready to take bold strides as an independent, agile and pure play hospitality entity. We aim to be a global leader in Indian hospitality,” the firm’s managing director Anil Chadha said.
Published – January 29, 2025 12:53 pm IST