ITC Hotels Q1 Results: Net profit jumps 35% to Rs 180 crore; acquires GHK Hospitality for Rs 155 crore

ITC Hotels reported a strong performance for the June quarter on Thursday, with net profit rising 35.5% year-on-year to Rs 180 crore for the first quarter of FY27 compared with Rs 133 crore in the corresponding quarter last year.

The company’s revenue from operations came in at Rs 936 crore, marking a sharp 14.8% jump from Rs 815 crore posted in the same quarter of the previous fiscal, the company said in a regulatory filing in the afternoon.

EBITDA or earnings before interest, tax, depreciation and amortization rose 19.6% to Rs 292.3 crore during the quarter, compared with Rs 244.5 crore in the year-ago period. EBITDA margin improved to 31.2% from 30% in the corresponding quarter last year, reflecting an expansion in operating profitability.

ITC Hotels Q1 highlights

Excluding branded residences, revenue from operations grew 10% year-on-year during the June quarter. Room revenue increased 8% from a year ago, supported by strong demand from the retail segment, which offset the high base created by the MICE and weddings business in the corresponding period last year.

The company reported a 4% increase in average daily rates (ADR), while occupancy improved by 290 basis points year-on-year, resulting in an 8% growth in Revenue Per Available Room (RevPAR). ITC Hotels also maintained a 33% RevPAR premium over the industry, reflecting the strength of its brands and sustained customer preference.

Revenue from the food and beverage (F&B) business rose 11% year-on-year, led primarily by speciality restaurants and banqueting. Meanwhile, management fee income grew 35% from the year-ago period, supported by strong performance at managed hotels in leisure destinations and the stabilisation of properties that were commissioned during the previous year

ITC Hotels Rs 155-crore acquisition

Alongside its first quarter earnings, ITC Hotels also announced the strategic acquisition of a hotel in Ahmedabad's commercial hub. The company has entered into a definitive agreement to acquire a 100% stake in GHK Hospitality and Infrastructures Ltd (GHK), which owns Welcomhotel Ahmedabad. The property is currently being operated by ITC Hotels under an Operating Services Agreement.

The acquisition will be completed at an enterprise value of Rs 155 crore on a debt-free and cash-free basis, subject to customary adjustments under the definitive agreement. The company expects to complete the transaction within the current quarter.

The company said the acquisition will further strengthen its owned hotel portfolio in Ahmedabad by expanding its presence across multiple hospitality segments and price points.

It added that acquiring the operational property is expected to reduce time-to-market and improve capital efficiency compared with a greenfield project, while enabling it to benefit from the city's growing demand driven by corporate activity, industrial corridors, MICE events and sports events. ITC Hotels also expects the transaction to be earnings per share (EPS) accretive in the first full year of operations after the acquisition.
ITC Hotels share price dipped 5% to Rs 174 on the NSE following the announcement.

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