Accor Announces Soaring Profits and Expansion in 2023

Accor Announces Soaring Profits and Expansion in 2023

By Author

Published on February 26, 2024

In a remarkable year of growth and expansion, Accor, a leading name in the global hospitality industry, has reported a 19.69% increase in total revenue for 2023, amounting to €5.05bn. This financial success story is further underscored by a significant jump in net profit to €633m, reflecting a 57.46% rise compared to the previous year.

The hotel giant's operational efficiency shines through with its EBITDA soaring to €1bn, a substantial improvement from €675m in 2022. These impressive figures are indicative of Accor's robust performance across all sectors and geographical regions, demonstrating the strength and appeal of its brand portfolio.

image

2023 also marked a year of aggressive expansion for Accor, with the addition of 291 hotels to its network. This expansion has brought in 41,000 new rooms, contributing to a net growth of 2.4% over the last 12 months. As of December 2023, Accor's portfolio boasts 821,518 rooms across 5,584 hotels, with an ambitious pipeline of 225,000 rooms in 1,315 hotels set for future development.

image

Accor's Chairman and CEO, Sébastien Bazin, attributed this success to the group's dedicated teams and highlighted the effectiveness of its asset-light model, strong brand desirability, and financial discipline. The company's future looks bright, with anticipated compound annual growth rates (CAGR) for RevPAR between 3% and 4% and EBITDA between 9% and 12% from 2023 to 2027.

This year's achievements reinforce Accor's position as a leader in the hospitality sector, promising continued growth and innovation in the years to come.


Vikram Kamats Hospitality Limited Raises ₹28 Crore Equity to Accelerate Growth and Nationwide Expansion of VITS Hotels

Vikram Kamats Hospitality Limited Raises ₹28 Crore Equity to Accelerate Growth and Nationwide Expansion of VITS Hotels

By Author

Published on January 17, 2025

Vikram Kamats Hospitality Limited (VKHL), formerly known as Vidli Restaurants Limited, has successfully raised ₹28 crore through a preferential allotment. Known as a leader in the pure vegetarian South Indian premium dining segment and mid-market hotel industry, VKHL is set to further cement its presence with this latest funding initiative.

The total capital of ₹28 crore was secured from a mix of renowned investors, including:

  • Mrinalini Jaisinghani (part of the Polycab Group)

  • Nabs Vriddhii LLP (part of the Sattva Group)

  • The Golden Bird Fund, a notable foreign portfolio investor

  • Green Portfolio Fund Management

This strategic fundraising initiative is poised to accelerate the expansion of the VITS Hotels brand, a mid-market hotel chain renowned for providing exceptional service and a homely experience for travelers. With more than 25 properties across India, VITS Hotels has become synonymous with premium comfort hospitality, appealing to both leisure and business travelers.

Expanding the Horizons of Mid-Market Hospitality

Expressing his gratitude and excitement, Dr. Vikram Kamat, Managing Director of Vikram Kamats Hospitality Limited, stated:

“Since 2016, we have provided excellent returns to our investors despite market fluctuations by focusing on a profitable business and strategic expansion. This funding demonstrates the continued trust of marquee investors and family offices in us. We will pursue an asset-light growth strategy by adding new VITS Hotels and Kamats Restaurants across India.”

Founded in 2007 by Dr. Vikram Kamat, VKHL is the flagship company of the VITSKAMATS Group, a diversified hospitality chain listed on the Bombay Stock Exchange (BSE ID: KAMATS & BSE Code: 539659). While VKHL primarily focuses on the Kamats Restaurant and VITS Hotels business, its subsidiary, Vitizen Hotels Ltd., operates hotel properties under lease, franchise, and management models.

The Road Ahead

With this latest infusion of funds, VKHL is poised to unlock new opportunities and redefine mid-market hospitality in India. The company remains committed to quality, innovation, and customer satisfaction while emphasizing sustainable growth.

Dr. Kamat’s leadership has been instrumental in setting new benchmarks for the Indian hospitality industry, delivering memorable guest experiences, and driving operational excellence.

About Vikram Kamats Hospitality Limited

Established in 2007 by hospitality visionary Dr. Vikram Kamat, Vikram Kamats Hospitality Limited (VKHL) is the driving force behind the VITSKAMATS Group. VKHL’s portfolio includes the Kamats Restaurants and VITS Hotels chain, an expanding network of mid-market hotels and resorts across India. Known for blending comfort, quality service, and exceptional dining, VITS Hotels caters to both business and leisure travelers.

VKHL also holds a majority stake in Vitizen Hotels Ltd., which operates its hotel properties under lease, franchise, and management models. Focused on sustainable growth and innovation, the company aims to set new benchmarks in the Indian hospitality industry by ensuring every guest’s experience is both enriching and memorable.

With this successful fundraising, VKHL is poised to achieve significant growth, expanding its footprint across India and reinforcing its position as a leader in mid-market hospitality.


ITC Allots 125.11 Crore Shares of ITC Hotels to Shareholders

ITC Allots 125.11 Crore Shares of ITC Hotels to Shareholders

By Manu Vardhan Kannan

Published on January 17, 2025

ITC Ltd. has taken a significant step in reshaping its hospitality business by allotting 125.11 crore equity shares of ITC Hotels to its shareholders. This development finalizes the demerger of ITC Hotels as an independent entity and is part of the conglomerate’s strategy to unlock value and focus on a sharper capital allocation approach.

The decision, made during a Board meeting on January 11, 2025, follows a scheme of arrangement under Sections 230 to 232 of the Companies Act, 2013. As per ITC’s exchange filing, “The Board of Directors of ITCHL...has allotted 125,11,71,040 equity shares of INR 1 each to the shareholders of the company as of the record date, January 6, 2025.”

Strategic Implications of the Demerger

Effective January 11, 2025, ITC Hotels ceased to be a subsidiary of ITC Ltd., with plans to list the newly issued shares after securing regulatory approvals. Until then, these shares will remain frozen. ITC will retain 40 percent of the hotel business, while the remaining 60 percent will be distributed among existing ITC shareholders.

ITC’s demerger is expected to attract investors and strategic partners aligned with the hospitality sector's specific needs. The move also enhances shareholder value by providing a direct stake in ITC Hotels, which will now benefit from independent market-driven valuation.

India’s Second-Largest Hotel Chain

With a portfolio of 140 properties, ITC Hotels has emerged as India’s second-largest hotel chain. Its offerings range from iconic luxury hotels such as ITC Grand Bharat to premium brands like WelcomHotel, catering to diverse travelers across major cities and tourist destinations.

The company’s transition aligns with ITC’s “asset-right” strategy, focusing on optimized capital allocation within its hospitality arm. This demerger is expected to position ITC Hotels for greater growth, providing opportunities for strategic collaborations and enhancing its market presence.

Broader Impact on ITC

Beyond hospitality, ITC Ltd. remains a diversified conglomerate with a strong presence in FMCG, packaging, and paperboards. Its brands, including Aashirvaad, Sunfeast, and Classmate, continue to dominate their respective markets, demonstrating ITC’s leadership across multiple sectors.

The market anticipates ITC Hotels’ stock to be listed on exchanges by mid-February, pending approvals, setting the stage for a significant milestone in the Indian hospitality industry.


ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

By Nishang Narayan

Published on January 8, 2025

Following the demerger of ITC Hotels from its parent company, ITC Ltd., domestic brokerage firm Nuvama has predicted a passive outflow of approximately USD 180 million. This corporate action will have a notable impact on major indices such as Nifty50 and Sensex, with expected passive outflows of USD 110 million and USD 70 million, respectively.

Nuvama's analysis suggests that assuming ITC’s share price remains stable around INR 260 at the time of exclusion, the passive flow for Nifty50 will amount to USD 110 million (with a weight of 23 basis points), while Sensex will experience an outflow of USD 70 million (with a weight of 28 basis points).

A special price discovery session was held to adjust ITC’s share price, resulting in an INR 26 adjustment on NSE and INR 27 on BSE as the stock began trading ex-demerger on January 6. The demerger ratio of 1:10 (one share of ITC Hotels for every 10 shares of ITC Ltd.) has led to the valuation of ITC Hotels at approximately INR 260 on the Nifty50 indices and INR 270 on BSE indices.

image

Until ITC Hotels is officially listed separately, it will be treated as a "dummy entity" with a fixed price, and the stock will be held at this value temporarily. According to Nuvama, ITC Hotels is expected to be listed within the next 30-40 days. Following the listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective at the opening on the listing date, with a three-day adjustment period. If the stock hits circuit limits, the exclusion will be postponed by two trading days for each occurrence.

Nuvama also noted that ITC Hotels may qualify for inclusion in the MSCI Global Small Cap Indexes, but this will only happen if the stock is listed within 20 working days after the record date of the demerger.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.