ITC Hotels Reports Highest Ever Q2 Income, Expands Growth Pipeline

Strategic Insights -

ITC Hotels has achieved a significant milestone by reporting its highest ever Q2 income at Rs 885 crore, a 13% increase from the same period last fiscal. The company has also registered its highest Q2 profit at Rs 133 crore, a 74% jump from last fiscal. This growth is attributed to the expansion of its growth pipeline, which now comprises about 5,900 keys across 60 hotels. ITC Hotels has also launched a new premium brand, Epiq Collection, to accelerate growth in the premium segment. The company's portfolio currently stands at 207 hotels, with 146 operational and 61 in the pipeline.

Key Takeaways:

  • ITC Hotels reported its highest ever Q2 income at Rs 885 crore, a 13% increase from the same period last fiscal.
  • The company registered its highest Q2 profit at Rs 133 crore, a 74% jump from last fiscal.
  • ITC Hotels has launched a new premium brand, Epiq Collection, designed to accelerate growth in the premium segment.
  • The company's growth pipeline expands to about 5,900 keys with over 60 hotels.
  • ITC Hotels has signed new hotels in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam during the quarter.
  • During H1, 15 hotels were signed with about 1,500 keys, while four new openings added 281 operational keys.
  • The company continues to invest in greenfield hotel projects at Puri and Vishakhapatnam and addition of a new block at its existing hotel at Bhubaneshwar.
  • The Indian hospitality sector faced "seasonal softness" in July & August but demand "rebounded" in Sept with longer weekends and early festive activity.
  • Supply-demand mismatch in the hospitality sector is expected to persist in the medium to long term, with demand pacing available inventory.
  • ITC Hotels commanded a 40% revenue per available room (RevPAR) premium over the Industry.
  • Food & beverage (F&B) revenue grew 5%.

Statistics:

  • Q2 income: Rs 885 crore (13% increase from same period last fiscal)
  • Q2 profit: Rs 133 crore (74% jump from last fiscal)
  • Total hotels: 207
  • Operational hotels: 146
  • Hotels in pipeline: 61
  • Growth pipeline: about 5,900 keys with over 60 hotels
  • H1 hotel signings: 15 hotels with about 1,500 keys
  • New openings: 281 operational keys
  • Epiq Collection properties: 2 (Puri and Tirupati) with 319 rooms

Sources:

  • ITC Hotels press release (date not mentioned)
  • Times of India (date not mentioned)