ITC Hotels Q4 Results: Profit Jumps 20%, Plans ₹328 Cr Vizag Expansion

the recently demerged hospitality arm of conglomerate ITC Ltd., reported robust financial results for the quarter ended March 2025, driven by improved operational performance and strategic growth plans.

In what marks its second quarterly report post-demerger, the company announced a 20.5% rise in net profit, reaching ₹259 crore, compared to the same period last year. Revenue also saw a modest 4.5% uptick, climbing to ₹1,061 crore from ₹1,015 crore in the year-ago quarter.

Operationally, EBITDA increased 8.4% year-on-year to ₹413 crore, while EBITDA margins expanded by 140 basis points, standing at an impressive 38.9%, up from 37.5% last year. The company credited disciplined cost management and improved occupancy across key destinations for the healthy margin growth.

Major Expansion Announced for Visakhapatnam

In a move that signals long-term confidence in India’s hospitality sector, ITC Hotels also announced a major capital investment in Andhra Pradesh. The company’s board has approved a ₹328 crore capital expenditure for the development of a new hotel in Visakhapatnam, one of the state’s fastest-growing urban centers.

The new property, expected to be completed by 2029, will feature nearly 200 rooms. It will add to ITC’s existing footprint in the city, where it already operates two hotels through management contracts. The project will be fully funded through internal accruals, reaffirming the company’s strong balance sheet.

Aggressive Growth Targets by 2030

As part of its expansion roadmap, ITC Hotels currently operates 140 hotels with approximately 13,000 keys, of which 45% are owned. The brand has set an ambitious goal to reach 200+ hotels with over 18,000 keys by 2030, while aiming to shift toward a 65% managed portfolio model, focusing on asset-light growth.

This approach is in line with industry trends, where hospitality chains are increasingly favoring management and franchise models to scale quickly without heavy capital outlay.

Market Reaction

Shares of ITC Hotels saw an upward move following the earnings release and project announcement. The stock, which had dipped earlier in the day, recovered to trade 1.1% higher at ₹204.26 by Thursday afternoon.

Looking Ahead

With a strong quarter behind it and a clear long-term vision ahead, ITC Hotels appears well-positioned to capitalize on India’s growing travel and tourism demand. The company’s blend of owned assets, premium branding, and asset-light expansion could be a key differentiator in an increasingly competitive sector