ITC Hotels Ltd. has announced its audited financial results for the fourth quarter and full year ended 31 March 2025, marking the company’s strongest performance to date since its demerger from ITC Limited
For Q4 FY25, the company reported revenue of ₹1,017 crore, reflecting a 17% year-on-year increase. Profit after tax (PAT) rose by 44% to ₹264 crore. EBITDA margins expanded by 350 basis points, reaching 40%. For the full fiscal year, revenue stood at ₹3,333 crore and PAT at ₹698 crore.
In the past 24 months, the company executed 54 hotel signings and opened 30 new hotels across its brand portfolio. ITC Hotels Ltd. currently operates over 140 properties with more than 13,300 rooms under six distinct brands: ITC Hotels, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage.
Strategic Developments and Corporate Restructuring
Effective 1 January 2025, the Hotels Business of ITC Ltd. was demerged and vested into ITC Hotels Ltd., following approval by the Hon’ble National Company Law Tribunal, Kolkata. The equity shares of ITC Hotels Ltd. were listed on the National Stock Exchange and BSE on 29 January 2025. Comparative financials for FY24 have been restated in accordance with the Scheme of Arrangement.
Operational Performance and Expansion
The company saw robust growth across its core revenue streams:
- Room revenue benefited from strong average daily rates (ADR) of approximately ₹12,500 and occupancy levels of 73%.
- Food and beverage (F&B) revenue grew significantly, driven by enhanced culinary offerings and strong performance in banqueting and event catering.
- EBITDA margin for FY25 stood at 36%, supported by improved RevPAR, F&B growth, higher management fees, and operational efficiencies.
The company continued executing its “asset-right” strategy, focusing on management and franchise models to expand its footprint with reduced capital intensity. Notably, presence has expanded into Tier 2 and Tier 3 cities, with a pipeline of 50 hotels representing over 4,500 keys. ITC Hotels Ltd. targets a portfolio of 220 operational hotels with over 20,000 keys by 2030.
Ongoing developments include new hotel projects in Puri, Bhubaneswar, and Visakhapatnam. Additionally, the company opened its first international property, ITC Ratnadipa in Colombo, Sri Lanka, in April 2024, which turned EBITDA positive by Q3 FY25.
Sustainability and Recognition
ITC Hotels Ltd. was awarded the USGBC Leadership Award for Organizational Excellence 2024, becoming the first Indian hotel chain to receive this recognition. The company holds the highest number of LEED Platinum certified hotels globally—23 in total—including 12 LEED Zero Carbon and 8 LEED Zero Water certified properties.
The company has consistently exceeded 2030 emission reduction targets for four consecutive years and continues to align with COP21-aligned 2050 emission benchmarks across multiple properties.
Industry Outlook
The Indian hospitality sector remains poised for growth, supported by macroeconomic fundamentals, infrastructure investment, and a projected real GDP growth of 6.5% for FY25, according to the Ministry of Statistics and Programme Implementation. Room demand in India is expected to outpace supply, with improving foreign tourist arrivals and rising domestic consumption driving long-term momentum.
Board Approval
The financial results for the year ended 31 March 2025 were approved by the Board of Directors at its meeting held on 15 May 2025.
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