ITC Hotels delivered a strong performance in Q1 FY26 despite disruptions in May 2025, with standalone revenue rising 20% to ₹783 crore and PAT increasing 47% to ₹150 crore

Consolidated revenue stood at ₹860 crore, up 20%, and PAT rose 53% to ₹134 crore. The portfolio has expanded to over 200 hotels, including 143 operational and 58 in the pipeline, with 55 signings and 25 openings in the last 24 months. The refreshed ‘Club ITC’ loyalty programme was launched, and the brand was ranked #5 in India by ‘Great Place to Work’—the only Indian hospitality company in the Top 10.

Macro Economic Context

Amidst rising uncertainties in the global economy marked by geopolitical tensions and evolving trade dynamics, India’s long term growth story remains intact, backed by strong macroeconomic fundamentals.

As per IMF’s projections for FY26, the Indian economy is expected to sustain its position as the fastest growing large economy. The positive outlook is anchored on strong domestic demand, rising urbanisation, favourable demographics and sustained growth of the services sector, which are expected to continue driving expansion. 

While the geopolitical developments in May’25 had temporarily affected business in certain locations, the hospitality sector bounced back progressively thereafter. A favorable demographic profile, steady domestic demand and rising consumption levels augur well for the hospitality industry in India. Aggregate room demand in India is expected to grow ahead of supply over the next few years. Further, Government’s thrust on enhancing infrastructure and connectivity, boosting employment & promoting the tourism sector and the potential for growth in foreign tourist arrivals are expected to continue fueling growth in the Indian Hospitality industry.

Performance highlights – Standalone

The Company is amongst the fastest growing hospitality chains in the country with 140+ properties and over 13,400 rooms under six distinctive brands – ‘ITC Hotels’ in the Luxury segment, ‘Mementos’ in the Luxury Lifestyle segment, ‘Welcomhotel’ in the Upper Upscale segment, ‘Storii’ in the Boutique Premium segment, ‘Fortune’ in the Mid-market to Upscale segment and ‘WelcomHeritage’ in the Leisure & Heritage segment.

The Company delivered a robust performance during the First Quarter of FY25-26, anchored on its commitment to operational excellence and customer satisfaction. 

• Room Revenues delivered strong growth driven by superior performance across Retail, MICE and Wedding segments. 
  • The ADRs for the quarter grew by 9% and Occupancy by 275 bps, resulting in overall RevPAR growth of 13%. The Company demonstrated its supremacy over the market and commanded a RevPAR premium of 34% over the Industry*
    (*Luxury, Upper-Upscale & Upscale)

• Food & Beverages (F&B) Revenue also recorded robust growth of 13% driven by Banqueting and Outdoor catering. The Business continued to delight its guests through innovative culinary offerings and strategic refresh of F&B outlets. The Business’s signature F&B Brand ‘Avartana’, made an international debut with a pop-up event in France in April’25, showcasing its innovative approach to regional heritage cuisine. 
• EBITDA margin stood at 32% and expanded by 130 bps on a comparable basis, driven by higher RevPARs, growth in F&B revenue, higher management fees, structural cost interventions and operating leverage.
• The Company achieved a key milestone, crossing 200 hotels mark – with 143 operational and 58 hotels in pipeline. During the quarter, the Company signed 8 hotels with appx. 700 keys in aggregate; at key locations viz. Bodhgaya, Dehradun, Goa, Lucknow, Manesar, Mysore, Ranthambore and Vrindavan. 
  • The Company’s ‘Asset-Right’ strategy envisages driving accelerated capital-efficient growth by focusing on strong partnerships with asset owners, leveraging brand credentials and providing operational expertise. The Company’s presence has expanded to Tier 2 and 3 cities, where demand for premium hospitality is rapidly increasing. 
  • The Business continues to witness growing interest amongst property owners to partner with its iconic brands resulting in healthy generation of leads and pipeline of management contracts. The Company has a robust pipeline of 58 Hotels with over 5300 keys with high salience of brownfield assets. 
  • The Company is targeting to reach 220 operational hotels and over 20,000 keys by 2030. 
  • The Company continues to make progress towards scaling its portfolio of Owned hotel rooms with investments in greenfield hotel projects at Puri and Vishakhapatnam and addition of a new block at its existing hotel at Bhubaneshwar. 

• The Company launched its first international property ITC Ratnadipa in April 2024 at Colombo, Sri Lanka. The hotel, providing discerning business and leisure travellers the ultimate luxury hospitality experience, is scaling up well. Within a short span of time, the hotel has acquired market leadership. 
• The Company launched its all-new Club ITC loyalty programme. This reimagined programme is designed to offer a seamless and elevated experience across every touchpoint. The refreshed programme inter-alia introduces a tier-based earning system, an upgraded digital interface, ensuring members enjoy instant gratification and a milestone-based rewards system, making every interaction more delightful. Further, the signature Culinaire programme is now seamlessly integrated with Club ITC, enriching the customer experiences. 
• During the Quarter, ITC Grand Bharat, Gurugram, was awarded with the LEED® ZERO Water certification. ‘ITC Hotels’ – a global exemplar in sustainability takes immense pride with largest number of LEED Platinum® certifications in the world wherein 23 of its hotels have this highest recognition; 12 hotels being LEED® Zero Carbon certified (first 12 in the world) and 9 hotels being LEED® Zero Water certified hotels (first 9 in the world). 

The Board of Directors, at its meeting on 16^th July 2025, approved the financial results for the Quarter ended 30th June 2025.

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