ITC Hotels has reported a landmark achievement in its financial performance for the fiscal year 2023-24, surpassing the INR 1000-crore mark in EBITDA for the first time. The hotel division’s earnings before interest, taxes, depreciation, and amortization (EBITDA) reached INR 1049.88 crore, reflecting the successful implementation of its asset-right strategy.

Financial Milestones

For the fiscal year, ITC Hotels recorded a segment revenue of INR 2989.50 crore. The segment profit before interest and taxes (PBIT) stood at INR 753.77 crore, showing a robust growth of approximately 39% compared to the previous year.

Strategic Expansion

The hotel division's "asset-right" strategy has been pivotal in this success. In the last two years, ITC Hotels opened 25 properties, with 24 being managed properties across various segments. This strategy involves expanding primarily through management contracts, optimizing existing assets, and introducing new revenue streams.

Diverse Brand Portfolio

ITC Hotels operates across six distinct brands, managing 130 hotels with a total of 12,000 rooms:

• ITC Hotels (Luxury)

• Mementos (Luxury Lifestyle)

• Welcomhotel (Upscale)

• Storii (Boutique Premium)

• Fortune (Mid-market to Upscale)

• WelcomHeritage (Leisure & Heritage)

New Brands and Growth

The introduction of new brands, Mementos and Storii, has furthered ITC’s market presence. The Welcomhotel brand now boasts 25 hotels and over 2,700 keys, while the Fortune brand maintains its leadership in the mid-market to upscale segment with 51 properties and over 3,800 rooms. WelcomHeritage continues to offer authentic experiences with 38 hotels and over 1,000 rooms.

Future Outlook

ITC Hotels aims to sustain growth by leveraging its asset-right strategy, increasing the number of management contracts, and enhancing consumer experiences. The focus will remain on sweating existing assets, expanding the footprint through management contracts, and exploring new revenue avenues to drive the next phase of growth and value creation.