ITC Hotels – the new entity formed after the demerger of the hotels business from diversified conglomerate ITC Ltd, which listed on the stock exchanges on Wednesday – said it plans to expand its portfolio to over 200 hotels over the next five years.
At present, ITC Hotels operates a portfolio of over 140 properties with more than 13,000 keys in over 90 locations.
The new pure-play hospitality company stated that it will continue to pursue its asset-right strategy to expand its footprint across India and in nearby markets.
"Debuting with a zero-debt balance sheet and cash/cash equivalents of Rs 1,500 crore to cater to planned growth and contingency requirements, ITCHL is now listed for trading on the stock exchanges," ITC Hotels said.
ITC Ltd retains a 40 per cent stake in ITCHL, while the remaining 60 per cent is distributed among existing shareholders.
"This strategic shareholding structure positions ITCHL to deliver long-term value to all stakeholders while accelerating its independent growth trajectory," ITC Hotels said.
Currently, ITC Hotels operates a portfolio of over 140 properties with more than 13,000 keys in over 90 locations. It plans to expand its portfolio to over 200 hotels with over 18,000 keys over the next five years, with approximately two-thirds of properties being managed.
It has launched 30 hotels within 24 months recently (as of December 31, 2024), and has a robust target of adding at least one hotel a month on average over the next 24 months, it added.
ITC Hotels shares decline 5% on BSE
Shares of ITC Hotels Ltd, the demerged hotels business of FMCG conglomerate ITC Ltd, on Wednesday slipped by up to 5 per cent in its debut on the stock exchanges.
The stock listed at Rs 188 apiece on the BSE, while on the NSE it began trading at Rs 180. It declined 5 per cent to settle at Rs 178.60 – the lower circuit limit – on the BSE.
On the NSE, the stock dropped 4.52 per cent to settle at Rs 171.85. In intra-day trading, it slumped 5 per cent to hit the lower circuit limit of Rs 171.
The firm's market valuation stood at Rs 37,169.71 crore.
In traded volume terms, 7.13 lakh shares of the firm were traded on the BSE and 248.95 lakh shares on the NSE.
Shares of ITC dipped 0.55 per cent to Rs 432.85 on the BSE. The demerger of ITC's hotel business came into effect on January 1, 2025, with January 6 fixed as the record date. The move separated ITC Hotels from the parent entity.
Following this, the equity shares of ITC Hotels will be listed and admitted to dealings on the exchange with effect from January 29, 2025, according to a circular by the National Stock Exchange (NSE).
Separately, ITC, in a regulatory filing, informed that ITCHL received approval from the National Stock Exchange of India Ltd and BSE Ltd for listing and trading of its equity shares effective January 29, 2025.
On January 6, the BSE and NSE conducted a special trading session to discover the price for ITC hotels business post demerger.
"Debuting with a zero-debt balance sheet and a cash/cash equivalents of Rs 1,500 crore to cater to planned growth and contingency requirements, ITCHL is now listed for trading on the stock exchanges," ITC Hotels said.
ITC Ltd retains a 40 per cent stake in ITCHL, while the remaining 60 per cent is distributed among existing shareholders.
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