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Informist, Thursday, Jul. 16, 2026

 

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--ITC Hotels Apr-Jun consol net profit INR 1.80 bln 
--ITC Hotels Apr-Jun consol revenue INR 9.36 bln 
--ITC Hotels Apr-Jun consol net profit INR 1.80 bln vs INR 1.33 bln yr ago 
--ITC Hotels Apr-Jun consol revenue INR 9.36 bln vs INR 8.16 bln yr ago 
--ITC Hotels to buy GHK Hospitality for enterprise value INR 1.55 bln 
--ITC Hotels aim to complete GHK Hospitality acquisition in Jul-Sept 
--ITC Hotels: GHK Hospitality acquisition to help expand into Ahmedabad 
--ITC Hotels Apr-Jun consol EBITDA INR 2.92 bln, up 19% on year 
--ITC Hotels Apr-Jun consol EBITDA margin 31%, up 123 bps on year 
--ITC Hotels Apr-Jun revenue per available room INR 8,380, up 8% on yr 
--ITC Hotels Apr-Jun room occupancy 74% vs 71% year ago 
--ITC Hotels new signings at 8 in Apr-Jun 
 

 

By Avishek Rakshit

 

KOLKATA – ITC Hotels Ltd. Thursday reported over 35% growth in its net profit for the June quarter at INR 1.80 billion. Its revenue from operations rose nearly 15% on year to INR 9.36 billion during the quarter under review. 

 

However, compared to the trailing quarter, revenue fell over 25%, the steepest on-quarter fall for the company since its demerger and listing on January 2025. The net profit fell nearly 43% on quarter, the second time the hotelier saw a sequential profit decline since its listing. 

 

The company's revenue from hotels business rose a little over 10% on year in the June quarter to INR 8.81 billion and that from branded residences division was at INR 377.7 million in the June quarter. In the corresponding quarter of the last financial year, ITC Hotels had not entered the branded residences business.

 

Gross sales from the hotels business increased nearly 23% on year to INR 1.77 billion in the quarter under review and that from branded residences was INR 132 million. 

 

The company's total expenses in the June quarter increased over 11% on year to INR 7.50 billion, primarily owing to a 21% surge in finance costs and a 3% increase in employee benefit expenses. Being a services sector, employee costs account for the largest cost overhead for the company, accounting for 26% of the total costs. Depreciation and amortisation expenses – the second-largest cost overhead – rose nearly 2% on year to over INR 1 billion in the June quarter.

 

In a statement, ITC Hotels said that after the outbreak of US-Israel's war on Iran, demand softened in April driven by uncertainty around air travel, which was reflected in weak foreign tourist arrivals. However, as travel sentiment improved, occupancy and room rates witnessed a swift recovery in May and June. 

 

ITC Hotels' room revenue grew 8% on year to INR 8,380 per available room in the June quarter, led by strong performance in the retail segment which offset a high base effect. ITC Hotels saw higher demand in the meetings, incentive, conferences and exhibitions segment and the weddings segment in the corresponding quarter of the last financial year, which created a high base for the company.

 

Average daily rates, which is a key performance metric for a hotel, which measures daily rental income per room in a hotel, increased 4% on year and room occupancy improved by 290 basis points on year to 74%. 

 

This led to revenue per available room – another key performance metric for hotels which measures a hotel's ability to generate revenue from its total room inventory – to increase 8% on year to INR 8,380. In the statement ITC Hotels said it maintained a 33% premium on revenue per available room as compared to the industry. 

 

Revenue from food and beverages grew 11% on year, led primarily by speciality outlets and banqueting and its management fees during the quarter grew 35% on year owing to strong performance of managed hotels at leisure locations and stabilisation of managed properties commissioned during the previous year. ITC Hotels signed eight new properties during the June quarter. 

 

As a result, ITC Hotels' consolidated earnings before interest, tax, depreciation, and amortisation increased 19% on year to INR 2.92 billion and its EBITDA margin expanded by 123 basis points to 31%. 

 

ACQUISITION IN AHMEDABAD

On an expansion spree, ITC Hotels signed a definitive agreement that will enable it to purchase the 130-room Welcomhotel in Ahmedabad from GHK Hospitality and Infrastructures Ltd. Welcomhotel is a hotels brand owned by ITC Hotels and currently, Welcomhotel Ahmedabad is being operated by ITC Hotels under an operating services agreement, while the asset is owned by GHK Hospitality. 

 

The INR 1.6-billion agreement enables ITC Hotels to fully own the operating Welcomhotel in Ahmedabad directly and the acquisition is set to be completed in the ongoing quarter. 

 

In a separate statement, ITC Hotels said this upper upscale business hotel it is acquiring has spacious rooms, 8,500 square feet of banqueting spaces, a restaurant serving Indian and global cuisines, and a rooftop swimming pool. 

 

Shares of ITC Hotels slipped more than 5% to an intraday low of INR 173.25 on the National Stock Exchange after the company announced its June quarter financial performance during trading hours Thursday. Eventually, its shares closed 5.1% lower at INR 174.12 on the bourse.  End

 

Edited by Avishek Dutta

 

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