ITC Hotels Makes Ambitious Plans Ahead of Business Demerger and Listing

Mumbai, November 30, 2024: ITC Hotels, a subsidiary of FMCG giant ITC Limited, has shared its ambitious plans for the coming years ahead of its business demerger and listing. The company's hotels segment will become a separate entity, listed on the bourses after being demerged from the parent company.

As part of this scheme, eligible shareholders of ITC Limited will be given shares of ITC Hotels Limited if they own the stock as on the record date, which will be announced by the company in due course. The ratio for the demerger has already been declared, where for every 10 shares held in ITC Limited, shareholders will receive one share of ITC Hotels Limited.

ITC Hotels currently operates 140 hotels with around 13,000 keys and plans to take this number to 200+ with 18,000+ keys. Launching its businesses in 1975, the company is present in over 90 destinations worldwide and recognized as the greenest hotel chain globally. The ITC Hotels segment owns six distinct hotel brands, including ITC Hotels, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage.

The hotels business of ITC registered a 15 per cent year-on-year jump in the July-September 2024 quarter to Rs 3,103 crore with a 25 percent rise in EBITDA to Rs 1,066 crore. Notably, the company has added 28 managed hotels over the past two years and aims to open one hotel every month for the next 24 months.

Global brokerage firm Jefferies is bullish on ITC Hotels, predicting that ITC Limited will demerge its hotels business in Q4 FY2025, with ITC Hotels shares listing subsequently on the NSE and BSE.