ITC Hotels Ltd reported a strong start to FY27, posting double-digit growth across key financial metrics while continuing to expand its portfolio through its asset-right strategy.

During the first quarter, the company recorded consolidated revenue from operations of ₹936 crore, up 15% year-on-year. EBITDA increased 19% to ₹292 crore, while profit after tax (PAT) rose 36% to ₹182 crore, reflecting steady operational performance despite a challenging business environment.

The company said the quarter was impacted by uncertainty arising from the West Asia conflict, which affected international air travel and contributed to inflationary pressures. Demand remained subdued during April due to weaker foreign tourist arrivals, but travel sentiment improved significantly in May and June, leading to a strong recovery in occupancy and room rates.

Excluding branded residences, revenue from operations grew 10% year-on-year, supported by an 8% increase in room revenue, driven primarily by the retail segment. The company reported a 4% growth in Average Daily Rate (ADR), while occupancy improved by 290 basis points, resulting in an 8% year-on-year growth in RevPAR.

ITC Hotels maintained a 33% RevPAR premium over the industry, highlighting the continued preference for its brands and guest experience.

The company's food and beverage (F&B) revenue grew 11%, led by specialty restaurants and banquet business. Meanwhile, management fees increased 35% year-on-year, supported by strong performance at managed hotels in leisure destinations and the stabilisation of properties added over the previous year.

Operational efficiencies also improved during the quarter, with EBITDA margin (excluding branded residences) expanding by 125 basis points to 31%, driven by growth across rooms, F&B, management fees and ongoing cost management initiatives.

Among its operational highlights, ITC Ratnadipa reported positive EBITDA while retaining its leadership in RevPAR. The company also continued the phased handover of Sapphire Residences, with 16 apartments handed over so far.

As part of its asset-right growth strategy, ITC Hotels completed the acquisition of Kumarakom Resort & Spa and has begun a comprehensive renovation programme. The property is expected to reopen under the ITC Hotels luxury resort and spa brand by the third quarter of FY27.

The company also strengthened its development pipeline by signing eight new hotels across Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur and Zirakpur. It further marked the signing of the 25th Storii property at Amchong Tea Estate, Guwahati, while the opening of Fortune Bhimtal expanded its presence in the growing leisure travel segment.

On the sustainability front, ITC Hotels commissioned a 1.5 MWp captive solar plant at ITC Grand Bharat, increasing its total installed renewable energy capacity to 52.4 MW.

The company also strengthened its environmental credentials with ITC Royal Bengal becoming its 13th hotel to receive LEED Zero Water Certification, while Welcomhotel Vadodara achieved LEED Platinum Certification, taking the total number of LEED Platinum-certified hotels in its portfolio to 24.

Looking ahead, ITC Hotels said the outlook for India's hospitality sector remains positive, supported by the country's strong economic growth, infrastructure development, rising discretionary spending and favourable demand-supply dynamics, particularly across Tier I cities.