ITC Hotels reported a robust 9.6% year-on-year increase in net profit, reaching Rs 237 crore in the third quarter, driven by strong domestic travel demand and operational efficiencies. Revenue growth was supported by sustained occupancy rates across key properties, alongside strategic cost management initiatives that enhanced margins. Analysts note that ITC Hotels’ performance reflects resilience in India’s hospitality sector, particularly in the premium and luxury segments. With domestic leisure travel rebounding and corporate demand gradually improving, the company is well-positioned to capitalize on market recovery, while cautiously navigating inflationary pressures and evolving consumer preferences in a competitive hospitality landscape.
Q3 Financial Highlights
Net Profit: Rs 237 crore, up 9.6% YoY
Revenue Growth: Driven by strong occupancy and higher average room rates
EBITDA Margins: Improved due to operational efficiencies and cost optimization
The performance indicates a balanced recovery strategy focusing on premium segments, leveraging ITC Hotels’ strong brand presence and diversified property portfolio.
Factors Driving Growth
Domestic Leisure Travel: Increased travel and staycations in major cities and resort destinations contributed significantly.
Operational Efficiency: Cost-control measures, including energy management and labor optimization, enhanced profitability.
Brand Premiumization: Focus on high-margin luxury and business hotel segments strengthened revenue per available room (RevPAR).
Corporate Travel Recovery: Gradual return of corporate events and business travel has supported steady demand.
Market Outlook
Industry experts anticipate that ITC Hotels will continue to benefit from:
Rising domestic travel demand
Strategic expansion in key cities
Enhanced customer experiences through digital initiatives and loyalty programs
However, challenges such as inflation, rising input costs, and competition from boutique hotels may require careful financial and operational management.
Conclusion
ITC Hotels’ Q3 performance, with a 9.6% profit increase to Rs 237 crore, underscores the resilience of India’s hospitality sector, particularly in premium and luxury segments. Sustained domestic demand, coupled with cost optimization strategies, has positioned the company for growth in 2026, making it a key player for investors and stakeholders eyeing the sector’s recovery.
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