ITC Hotels swings to strong profit growth on robust operational recovery

ITC Hotels' financial performance in the second quarter of FY27 underscores a sustained recovery in India's hospitality sector, with the company posting net profit of ₹202.6 crore compared to ₹133.6 crore in the corresponding period last year. Revenue growth accelerated to 26 per cent year-on-year, reflecting improved demand across both leisure and corporate segments.

Operational metrics strengthened considerably during the quarter, with Revenue Per Available Room (RevPAR) expanding 21 per cent, a key indicator of pricing power and occupancy improvements. The metric demonstrates the company's ability to command better rates while maintaining healthy occupancy levels across its properties.

Looking ahead, ITC Hotels' board has approved the establishment of a subsidiary in Dubai, marking the company's formal entry into the United Arab Emirates hospitality market. The move aligns with the operator's strategy to expand its presence beyond India and tap into the thriving Gulf tourism and business travel segments.

The strong operational performance comes as India's hospitality sector continues its recovery trajectory, with business travel normalizing and leisure tourism gaining momentum. ITC Hotels' diversified portfolio across city hotels, resorts and heritage properties has positioned it well to capitalize on this renewed demand.