ITC Hotels Q1 Net Up 36 Pc at ₹181.91 Cr

ITC Hotels Ltd on Thursday reported a 36% rise in consolidated net profit to ₹181.91 crore in the first quarter ended June 30, 2026, amid the West Asia conflict-led disruptions casting their shadow on the Indian hospitality sector.

The company, which posted a consolidated net profit of ₹133.71 crore in the corresponding period of the last fiscal, said its board has approved the acquisition of GHK Hospitality & Infrastructures Ltd at an enterprise value of ₹155 crore.

Consolidated revenue from operations in the first quarter stood at ₹936.02 crore as compared to ₹815.54 crore in the year-ago period, ITC Hotels Ltd said in a regulatory filing.

Total expenses in the first quarter were higher at ₹750 crore, compared with ₹674.9 crore in the same period a year ago, the company said.

During the quarter under review, the hotel business clocked revenue of ₹881.06 crore as compared to ₹800.57 crore in the year-ago period, while the new branded residences vertical clocked a revenue of ₹37.77 crore, it added.

Room revenue grew 8% YoY led by strong performance in the retail segment, offsetting the high base effect in the MICE and Weddings segments in the previous year, the company said.

India's hospitality sector entered Q1 FY27 under the shadow of West Asia conflict-led disruptions. April witnessed broad-based demand softness across key markets, driven by uncertainty around air travel, as reflected in weak foreign tourist arrivals.

As travel sentiment improved, occupancy and room rates witnessed a swift recovery in May and June '26, underscoring the structural resilience of the demand environment, the company said.

On the acquisition of GHK Hospitality & Infrastructures, ITC Hotels said the transaction would allow it to expand its owned-asset portfolio in Ahmedabad across all market segments through an established hotel currently operated by it under an operating services agreement.

GHK owns a hotel, 'Welcomhotel Ahmedabad', with 130 keys located along Ahmedabad's prominent Ashram Road, overlooking the scenic Sabarmati Riverfront, the company said.

"The acquisition of this hotel will mark another milestone in pursuit of the company's growth aspiration by adding another owned property in one of the fastest growing urban centres of India," ITC Hotels Ltd Managing Director, Anil Chadha said.

He further said, "Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset." Ahmedabad continues to be one of India's most dynamic commercial and industrial centres, supported by significant infrastructure investments, strong long-term demand fundamentals, and a diversified demand base, Chadha said.

The hotel's prime location, established brand positioning and consistent occupancy levels provide an attractive opportunity to enhance yields and cash flow generation over the long term, he added.

The investment in GHK will be made through a primary subscription and a secondary purchase of GHK's equity shares, it added.