ITC Hotels Q4 Results are finally out, and they paint a strong picture of resilience and growth. The company has reported a 20.5% jump in net profit, touching ₹259 crore for the January-March quarter. This marks its second quarterly report after demerging from ITC Ltd. Even in a competitive hospitality landscape, ITC Hotels has not only expanded its margins but also unveiled bold future plans, including a brand-new luxury hotel in Visakhapatnam with a budget of ₹328 crore.
Solid Financial Growth Despite Challenging Macros
The hospitality sector is recovering steadily, and ITC Hotels is clearly riding the wave. Its Q4 revenue stood at ₹1,061 crore, showing a 4.5% year-on-year growth from ₹1,015 crore. EBITDA also saw a healthy 8.4% boost, climbing to ₹413 crore. More impressively, operating margins expanded by 140 basis points to 38.9%. These numbers signal efficient cost control and strong customer traction—something not every hotel chain can claim in today’s inflationary environment.
Big Bet on Andhra Pradesh: ₹328 Cr Investment
A major highlight this quarter was ITC Hotels’ decision to invest ₹328 crore in a new property in Visakhapatnam. This hotel will feature nearly 200 keys and is expected to be operational by 2029. The move strengthens the brand’s already notable presence in Andhra Pradesh, where it currently manages two hotels under contract. What’s commendable is that the entire capital expenditure will be funded through internal accruals, reflecting the company’s robust balance sheet and long-term vision.
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Aggressive Expansion Targets: 200+ Hotels by 2030
As of now, ITC Hotels operates 140 properties with around 13,000 keys. Nearly 45% of these are owned, while the rest are managed. The company has set an ambitious target—200+ hotels and 18,000+ keys by 2030, with a shift towards a more asset-light model. They aim for 65% of their portfolio to be managed properties, enabling faster expansion with minimal capital outlay. This strategy mirrors global trends and could improve return on capital over time.
Market Reaction: Stock Gains Ground
Following the earnings announcement, shares of ITC Hotels bounced back from early lows and are now trading 0.54% higher at ₹203.26. Investors appear optimistic about the company’s growth story and long-term expansion pipeline. With solid financials and strategic clarity, ITC Hotels is positioning itself as a strong contender in India’s post-pandemic hospitality boom.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
