ITC Hotels Aims for 250 Properties by 2031 with Premium Strategy

ITC Hotels is embarking on an ambitious expansion, aiming to grow its portfolio to 250 hotels and 22,000 rooms by 2031, as outlined by Managing Director Anil Chadha. This significant growth is underpinned by a strategic pivot towards premiumisation and an asset-light operational framework.

The company intends to increase the premium segment of its properties from the current 40-42% to a projected 50-55%. This strategic shift is designed to enhance management fees and improve overall revenue realization across the board.

Strategic Pillars for Growth

A core element of this strategy is transitioning to an asset-light model, targeting a 33:67 ratio of owned to managed assets within the next five years. This operational adjustment is expected to significantly boost financial performance.

• Projected management fees are set to climb from Rs 135 crore in FY25 to approximately Rs 350 crore.
• In the last three years, ITC Hotels has signed 87 new properties.
• Over the past two years, the company has successfully opened 29 hotels, demonstrating active portfolio expansion.

Domestic and Global Footprint

Domestic expansion will concentrate on the Storii, Welcome, and Fortune brands, targeting emerging hotspots. These include a strategic focus on tier-2 and tier-3 cities across India, where infrastructure development and increased air traffic are creating new demand.

• Key domestic expansion regions include Kerala, Himachal Pradesh, Madhya Pradesh, Bihar, and the Northeast.
• Internationally, ITC Hotels is actively exploring opportunities in proximal markets such as Sri Lanka, Nepal, and Dubai, with negotiations for a Dubai property in final stages.

Chadha firmly stated that ITC Hotels will avoid the sub-Rs 5,000 per night segment, emphasizing strong domestic demand for premium, experience-driven accommodations. Some Storii hotels already command rates up to Rs 20,000 per night, reinforcing the viability of their premium push.

Innovation and Brand Diversification

The company is also innovating its brand portfolio, introducing new concepts to cater to diverse segments. This includes both hospitality brands and F&B ventures, further diversifying revenue streams.

• Epiq, an upper-upscale brand, focuses on religious tourism locations like Puri and Tirupati, with upcoming properties in Salasar.
• Mementos, a super-luxury brand, will see limited, strategic expansion, with two properties currently in the pipeline.
• New F&B brands include gelato brand Yura and premium mithai boutique Ritvah.

Anil Chadha noted that while technology and AI will enhance efficiency and personalize guest services, the essence of luxury hospitality remains in warm, personal, and bespoke human interaction. ITC Hotels remains open to value-additive acquisitions for large-scale properties that align with their EBITDA and margin goals.

The strategic shift towards premium, asset-light growth positions ITC Hotels to capitalize on India’s evolving hospitality landscape, focusing on higher-value segments and expanding its global footprint in key proximal markets.