ITC Hotels shares surge on strong Q2 earnings, revenue metrics

ITC Hotels reported significant operational improvements in the second quarter of fiscal 2027, driving investor confidence in the company's recovery trajectory. Occupancy rates expanded substantially to 76 per cent, up 481 basis points year-on-year, while average daily rates grew 14 per cent, demonstrating pricing power in an increasingly competitive market.

The combined effect of higher occupancy and improved pricing resulted in a 21 per cent year-on-year increase in revenue per available room, or RevPAR, a key industry metric for hotel performance. This metric reflects the company's ability to optimize both room utilization and tariff realisation.

The strong operational metrics translated into healthy financial results, with the company's net profit climbing 51 per cent to ₹201 crore in the quarter. The earnings performance sparked renewed investor interest, with the stock gaining 8 per cent in trading.

The results underscore improving demand dynamics in India's hospitality sector, attributed to growing business travel, corporate spending, and leisure tourism across the company's property portfolio. Industry analysts view the quarter's performance as indicative of sustained momentum in the domestic hotel market as economic activity normalizes post-pandemic.