Marriott Sets Quarterly Dividend: What Shareholders Need to Know

By Author

Published on February 11, 2024

Marriott International, Inc., a global leader in hospitality with a vast portfolio spanning nearly 8,800 properties across over 30 brands in 139 countries, has declared a quarterly cash dividend for its shareholders. In a recent announcement from its headquarters in Bethesda, Maryland, the company's board of directors confirmed a dividend of 52 cents per share of common stock.

This dividend is slated for payment on March 29, 2024, to shareholders who are on record by the close of business on February 22, 2024. This move underscores Marriott's commitment to providing value to its shareholders and confidence in the company's financial health and future prospects.

About Marriott International

Marriott International is not just about offering hotel and resort accommodations; it's about creating experiences. With a rich history and a dynamic portfolio that includes more than 30 leading brands, Marriott is a name synonymous with quality hospitality and innovative guest services. The company also operates Marriott Bonvoy®, an award-winning travel program that enriches the journey of its members.

For those looking to dive deeper into Marriott International's offerings or stay up-to-date with the latest company news, the official website (www.marriott.com) and the Marriott News Center (www.marriottnewscenter.com) are valuable resources. These platforms offer insights into Marriott's strategic direction, operational achievements, and contributions to the hospitality industry.

Additionally, Marriott encourages stakeholders, including investors and media, to engage with the brand through its social media channels on Facebook, X, and Instagram (@MarriottIntl), as well as to subscribe to updates via its investor relations and news center websites. While these online resources provide comprehensive information, they are intended for informational purposes and are not incorporated into official financial documents or press releases.

This dividend declaration not only highlights Marriott International's solid financial footing but also its dedication to maintaining a transparent and rewarding relationship with its investors and the broader community interested in the company's growth and success in the hospitality industry.

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

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

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.

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.

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