-KH News Desk (cbedit@imaws.org)
In its first Annual General Meeting since the demerger from ITC Limited, ITC Hotels announced an ambitious new growth target: 220 operational hotels with over 20,000 keys by 2030 — up from its earlier goal of 200. This represents a bold expansion strategy as the hospitality sector in India rebounds strongly.
Current portfolio figures underscore this momentum: the company operates approximately 140 properties today, and in the last year alone, 30 management and franchise agreements were signed, contributing to an active pipeline of 58 future hotels with more than 5,300 keys.
Resilient Travel Demand
Chairman Sanjiv Puri highlighted robust tourism trends, citing ₹3.1 trillion in international visitor spending and ₹15.5 trillion in domestic travel expenditure in 2024, signaling a revival well above pre-pandemic levels. These figures underpin ITC’s confidence in achieving its elevated target.
Asset-Light Growth Model
A critical pillar of ITC’s strategy is its emphasis on management contracts and franchise arrangements, which currently drive around 70% of its operational keys. This “asset-light” model enables nimble expansion without large-scale capital deployment, allowing access to emerging Tier-2 and Tier-3 cities, plus leveraged brand strength and operational expertise.
Fast-Growing Pipeline
Over the past two years, ITC has launched 30 hotels, with 29 under the asset-light model, reflecting strong execution of its strategy. Brownfield opportunities (existing properties rebranded or upgraded) constitute a major part of the near-term rollout, offering quicker market entry.
As of the latest data, ITC manages six distinct brands—ITC Hotels (Luxury), Mementos (Luxury Lifestyle), WelcomHotel (Upper Upscale), Storii (Boutique Premium), Fortune (Mid-market), and WelcomHeritage (Leisure/Heritage)—enabling reach across multiple customer segments.
Financial and Sustainability Performance
In FY 2024–25, ITC reported impressive metrics:
- Over 140 properties and 13,300+ rooms across brands
- Occupancy and average daily rates (ADRs) rose sharply, driving EBITDA margins to 36%, with room and F&B revenues rising strongly
- A pipeline of 50 hotels with 4,500+ keys already in place toward the 220-hotel target
The group also leads globally in sustainable hospitality, holding 23 LEED Platinum certifications, 12 LEED Zero Carbon, and 8 LEED Zero Water properties.
A Catalyst for Supply-Chain Expansion
With rapid growth in hotel count and F&B outlets, ITC Hotels will drive stronger demand for food products—from perishables to packaged goods—enriching opportunity for its manufacturing arms and allied suppliers. Expect heightened sourcing from agro-producers, dairy, bakery, and culinary innovators as the F&B footprint scales.
Competitive Pressure & Market Shift
ITC’s assertive expansion sets a new benchmark, likely prompting rivals like Oberoi, Taj, and others to accelerate their own growth strategies. A stronger hospitality infrastructure across India may also elevate standards for culinary experiences and foodservice operations.
Regional Development & Tourism Multiplier
As ITC spreads into Tier-2 and Tier-3 locations, it will catalyze local economies—stimulating jobs, tourism demand, and regional supply chains spanning food, logistics, and homegrown specialties.
A Transformative Chapter in Indian Hospitality
ITC Hotels’ updated plan—to exceed 220 properties by 2030 using an asset-light, brand-driven strategy—marks a pivotal trend. With strong tailwinds from tourism, a robust pipeline, and sustainability credentials, the company is positioning itself as a strategic lever for both hospitality growth and food industry expansion. The ripple effects across India’s culinary and food manufacturing sectors could be profound as supply needs deepen and consumer expectations evolve.
