ITC Hotels evaluates Dubai, other overseas markets for luxury hotel expansion

ITC Hotels is evaluating multiple opportunities to operate luxury and premium hotels in Dubai as the group looks to revive tourism and business activity amid the ongoing US-Iran conflict, the company’s managing director Anil Chadha told Times of India’s Saurabh Sinha.

The second-most valuable Indian hotel company by market capitalisation is also looking to expand in other “proximal” international markets. ITC Hotels currently operates a property in Sri Lanka and is set to open a hotel in Nepal shortly.

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“We are in early-stage evaluation for suitable opportunities for management contracts in international destinations. The Middle East, along with proximal markets, is under review given the emerging business opportunities in this space,” Chadha said.

Tourist flows to West Asia have been hit since the conflict in the region began on February 28. However, ITC Hotels sees potential for growth once hostilities end and travel demand recovers.

The expansion is part of the company’s broader “asset-right” strategy, under which it plans to reach 250 operational properties by 2031, primarily through managed hotels. At the same time, ITC Hotels plans a “calibrated increase in owned assets”, Chadha told the publication.

“We have built a strong momentum over the last three years with 87 hotel signings and 43 hotel openings, laying the foundation for 250 operational hotels with 22,000 keys by 2031,” he added.

While its managed business will continue to scale through brand-led expansion and management contracts, the company is also strengthening its owned portfolio through greenfield developments and strategic acquisitions, Chadha said. The “twin-track approach” is aimed at generating higher management fees, improving earnings quality and enhancing shareholder value.

ITC Hotels currently has a pipeline of 77 hotels with nearly 8,000 keys and is seeing a steady shift towards premium and luxury offerings.

“We are pursuing a multi-engine growth strategy that combines rapid network expansion, a sharper focus on premium hospitality and selective inorganic growth,” Chadha said.

By 2031, the company plans to increase its owned portfolio to 7,500 keys from about 5,700 currently. Its managed portfolio is expected to rise to 15,000 keys from around 8,600.

“Our strategy is not just adding hotels, but the focus is on strengthening presence in high-potential markets; increasing the share of premium assets; expanding management fee income and building a larger, more resilient hospitality platform,” the MD said.

In recent quarters, ITC Hotels has also pursued acquisitions, adding three properties — one each in Delhi-NCR, Ahmedabad and Kumarakom in Kerala.

The company is also expanding beyond the major metros into emerging business, leisure and travel destinations. “We are going beyond the metros, into the new growth corridors of high-potential business, leisure and emerging travel destinations,” Chadha said.

Recent additions include seven hotels in Madhya Pradesh, four in Kerala, three in Bihar and two in Assam. The company has also entered the Northeast with a property in Sikkim.

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ITC Hotels income rises 19%, PAT up 29%

ITC Hotels reported strong financial performance in FY26, with total income rising 19% to more than Rs 4,331 crore and profit after tax increasing 29%.

The performance was driven by disciplined execution, revenue management and operational efficiencies, alongside a focus on improving guest experiences, said Sanjiv Puri, Chairman at ITC Hotels.

The company signed 63 hotels and opened 29 properties over the past 24 months, underlining the pace of expansion under its asset-right strategy.

India’s tourism opportunity

Puri stressed on India’s tourism sector, saying that it is emerging as a strategic growth engine, helped by rising incomes, urbanisation, infrastructure investment and a growing appetite for experience-led travel.

Domestic tourism has surged to more than 4 billion visits, significantly above the pre-pandemic level of around 2.3 billion, he said. Domestic visitor spending is expected to nearly double from Rs 19 trillion in 2026 to Rs 36.5 trillion by 2036, he added.

India currently accounts for less than 1.5% of global international tourist arrivals, with nearly 55% of those arrivals being NRIs. Puri believes that the country has the potential to attract 100 million inbound visitors by 2047, provided it develops its tourism infrastructure and destinations at scale.

250 hotels, 22,000 keys targeted

ITC Hotels currently operates around 150 hotels with more than 14,200 keys across India, Sri Lanka and Nepal. The company is targeting a network of 250 hotels and more than 22,000 keys over the next five years.

Puri said a pipeline of 78 hotels with more than 8,000 keys supports this expansion target. The company plans to continue investing selectively in new properties while pursuing management contracts that fit its strategic objectives.

ITC Hotels is developing new properties in Puri, Visakhapatnam and Delhi, besides expanding its Bhubaneswar hotel. Together, these projects are expected to add nearly 670 rooms.

The company is also pursuing inorganic growth, including the acquisition of a new property in Kerala and the signing of another property in Ahmedabad. It has recently signed agreements for hotels in Ayodhya, Bodh Gaya, Gandhinagar, Guwahati, Jaipur, Rajgir, Shahjahanpur and Shirdi, Puri said at the recent Annual General Meeting (AGM) of the company.

The additions will strengthen the company’s presence in pilgrimage, heritage, weddings, leisure, wellness and emerging business travel markets.

AI, digital technology to reshape hotel operations

Digital and artificial intelligence technologies are becoming central to ITC Hotels’ strategy, with the company investing in cloud-first architecture, AI and integrated data capabilities across its network. The technologies are being deployed to improve guest experiences, increase operational efficiency, sharpen revenue management and provide more seamless services, Puri said.

The company is also strengthening its loyalty platform, Club ITC, across hotel stays, dining, celebrations and wellness, with a focus on more personalised customer engagement.

(With inputs from TOI)