ITC Hotels Reports Q1 Growth and Expands Portfolio with Ahmedabad Acquisition

Financial Performance Shows Year-on-Year Growth

ITC Hotels Limited reported consolidated revenue from operations of ₹936 crore for the first quarter of FY27, reflecting a year-on-year increase of 15%. EBITDA rose 19% to ₹292 crore, while profit after tax increased 36% to ₹182 crore. Revenue excluding branded residences grew 10%, supported by improvements across core segments.

Growth Momentum Continues for ITC Hotels with New Acquisition

The quarter was affected by global uncertainties, including disruptions linked to the West Asia conflict, which impacted travel sentiment and foreign tourist arrivals, particularly in April 2026. However, demand conditions improved in May and June, leading to a recovery in occupancy and room rates.

The company indicated that India’s economic outlook remains stable, supported by domestic demand, infrastructure development, and increasing discretionary spending. These factors continue to provide a favourable long-term outlook for the hospitality sector, particularly in major urban centres.

Expansion Strategy and Portfolio Growth

As part of its expansion plans, ITC Hotels completed the acquisition of The Zuri Kumarakom Kerala Resort & Spa and has initiated renovations to reposition the property under the ITC Hotels brand by the third quarter of FY27.

During the quarter, the company signed eight new hotels across Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur, and Zirakpur. This has expanded its managed portfolio to over 200 hotels with approximately 16,000 keys. Internationally, ITC Ratnadipa reported positive EBITDA while maintaining its RevPAR position, alongside continued progress in residential unit handovers.

Sustainability and Environmental Initiatives

The company continued to advance its sustainability efforts with the commissioning of a 1.5 MWp solar power plant at ITC Grand Bharat, increasing its renewable energy capacity.

ITC Royal Bengal received LEED Zero Water certification, while Welcomhotel Vadodara achieved LEED Platinum certification. These developments reflect ongoing efforts to improve environmental performance and resource efficiency across its portfolio.

Ahmedabad Acquisition Strengthens Owned Assets

ITC Hotels has also signed a definitive agreement to acquire a 100% stake in GHK Hospitality and Infrastructures Ltd, which owns Welcomhotel Ahmedabad, a 130-room hotel located in Ahmedabad. The property is currently operated by the company under an existing agreement.

The acquisition, valued at ₹155 crore on a debt-free and cash-free basis, is expected to be completed within the current quarter. The hotel includes approximately 8,500 square feet of banqueting space, dining facilities, and a rooftop pool. The company stated that acquiring an operational asset will reduce development timelines and support portfolio expansion.

The hotel is located on Ashram Road overlooking the Sabarmati Riverfront and is in proximity to Sardar Vallabhbhai Patel International Airport and Narendra Modi Stadium. Ahmedabad continues to develop as a commercial and industrial hub, supported by infrastructure and projects such as GIFT City and Dholera Special Investment Region.

Anil Chadha, Managing Director of ITC Hotels Limited, said, “The acquisition of this Hotel will mark another milestone in pursuit of the Company’s growth aspiration by adding another owned property in one of the fastest growing urban centres of India. Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset. Ahmedabad continues to be one of India’s most dynamic commercial and industrial centres, supported by significant infrastructure investments, strong long term demand fundamentals, and a diversified demand base.

The hotel’s prime location, established brand positioning and consistent occupancy levels provides an attractive opportunity to enhance yields and cash flow generation over the long term.”