ITC Hotels posted resilient Q2, improved RevPAR, margins, expanded portfolio, launched Epiq, advanced sustainability initiatives
ITC Hotels has reported its financial and operating performance for the quarter ended 30 September 2025. The Board of Directors approved the results at its meeting held on 24 October 2025.
Macro environment
During the quarter, India’s economy remained resilient amid global uncertainty and evolving geo-political dynamics. Headline inflation eased to 1.5% in September, aided by lower food prices. Air passenger traffic in July and August declined by 2% year-on-year due to capacity reductions and adverse weather. The Reserve Bank of India raised its GDP growth estimate for FY25–26 to 6.8% (from 6.5%). Hospitality demand softened seasonally through July–August, influenced by heavy monsoons and fewer auspicious wedding dates, before rebounding in September on the back of long weekends and early festive activity. Recent GST rationalisation and monetary easing are expected to support consumer spending. Structural demand, particularly in premium and leisure segments, continues to outpace supply.
Standalone performance highlights
Retail, corporate, and MICE segments supported room revenue growth. Average Daily Rate increased 6% and occupancy expanded by 254 bps, delivering 9% standalone RevPAR growth. On a consolidated basis, RevPAR increased by 11% compared to the prior year. The Company maintained an estimated 40% RevPAR premium versus the industry.
Food & Beverage revenue grew 5% on a high base (two-year CAGR: 10%), led by outlets and banqueting. The quarter included the relaunch of “Edo” at ITC Gardenia. Revenue from weddings was lower, given fewer auspicious dates in the period.
EBITDA margin for the quarter was 31%, up 215 bps on a comparable basis, reflecting mix improvement in Rooms and F&B, higher management fees, structural cost measures, and operating leverage.
Portfolio development and brand update (ITC Hotels)
ITC Hotels announced a new premium brand, Epiq Collection – Member ITC Hotels’ Group, focused on conversions of high-quality hotels alongside select owned and managed developments. Initial projects are underway in Puri and Tirupati. Epiq Collection Puri (118 rooms, owned) and Epiq Collection Tirupati (201 rooms, managed) are scheduled to open over the next two years and will participate in the Club ITC programme. The Company targets approximately 1,000 keys under Epiq Collection in the medium term.
The portfolio now stands at 207 hotels (146 operational; 61 in the pipeline). In H1 FY25–26, 15 hotels were signed (~1,500 keys) and four openings added 281 operational keys. During the quarter, new signings were concluded in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam. The Company entered Kerala operations with Fortune Kochi, with upcoming openings planned in Wayanad (Storii) and Kakkanad (Fortune). In Bihar, Welcomhotel Bodh Gaya commenced operations in October 2025, and a new luxury hotel has been signed in Patna under the ITC Hotel brand.
Aligned with its asset-right approach, growth continues through capital-efficient partnerships and a deeper presence in Tier-2 and Tier-3 cities. Investments are progressing in owned greenfield projects at Puri and Visakhapatnam, and through an additional block at the existing hotel in Bhubaneswar.
International operations
ITC Ratnadipa, Colombo, launched in April 2024, continued to demonstrate market leadership in RevPAR during the quarter and turned EBITDA positive. Sri Lanka’s tourism recovery remained on track, with foreign arrivals in the first nine months of 2025 exceeding 1.73 million, comparable with 2018 levels.
Sustainability and operations
ITC Grand Chola, Chennai, was ranked #1 in Sustainability Magazine’s list of Top 10 Sustainable Hotels. ITC Maurya, New Delhi, obtained an AA+ rating as a BRI-verified building. Across the portfolio, 23 hotels hold LEED Platinum® certification; 12 are LEED® Zero Carbon certified; and 9 are LEED® Zero Water certified. During the quarter, a 3.3 MW windmill in Gujarat was commissioned to increase the share of renewable electricity in overall consumption.
Loyalty programme
The Company launched the reimagined Club ITC loyalty programme. Enhancements include a tier-based earning structure, an upgraded digital interface, instant-gratification benefits, and milestone-based rewards. The Culinaire dining programme has been integrated into Club ITC.
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