ITC Hotels has officially made its debut on the stock exchanges today, January 29, 2025, marking a significant milestone in India's hospitality sector. This new entity, now 60% owned by shareholders, emerges from a strategic demerger from ITC Limited, aiming to enhance its independent operations and capitalize on the booming tourism market.
The Demerger Journey
The journey began when ITC Limited decided to separate its hotel business to unlock shareholder value. On January 6, 2025, the demerger took effect, allowing ITC shareholders to receive one share of ITC Hotels for every ten shares they held in the parent company. This move was designed to streamline operations and focus on growth opportunities within the hospitality sector. Following this separation, ITC retains a 40% stake in ITC Hotels while shareholders hold the remaining 60% directly.
A Growing Hospitality Leader
ITC Hotels is now positioned as India’s second-largest hotel chain, boasting over 140 properties across 90 destinations. With approximately 13,000 rooms, the chain operates under an asset-light model, where about 55% of its hotels are managed through contracts, allowing for rapid expansion without heavy capital investment. The company aims to grow its portfolio to over 200 hotels by 2030, tapping into the increasing demand for luxury and sustainable accommodations in India.
Commitment to Sustainability
One of the standout features of ITC Hotels is its commitment to sustainable hospitality. All properties are LEED® Platinum certified, reflecting their dedication to environmentally friendly practices. This aligns with their philosophy of "Responsible Luxury," ensuring that guests enjoy high-quality services while minimizing ecological impact.
Market Reception
Upon listing, shares of ITC Hotels debuted at Rs 188 on the BSE and Rs 180 on the NSE, indicating strong market interest. Analysts are optimistic about the company's future, citing its robust financial health and strategic focus on growth in domestic tourism as key drivers for success.
What Lies Ahead
As ITC Hotels embarks on this new chapter as an independent entity, it aims to leverage its heritage of Indian hospitality combined with modern amenities. The company plans to enhance guest experiences while expanding its footprint across India and potentially beyond.In summary, ITC Hotels' listing marks not just a new beginning for the company but also a promising opportunity for investors looking to be part of India's vibrant hospitality landscape. With a strong foundation and ambitious growth plans, ITC Hotels is set to make a significant impact in the industry.
With inputs from agencies
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