-KH News Desk (editorial1@imaws.org)
ITC Hotels has successfully delivered its highest-ever Q2 revenue and profits for the second quarter of FY25-26, showcasing a robust financial performance despite facing specific industry headwinds, such as subdued leisure travel and a lower number of auspicious wedding dates during the period. This stellar performance, as detailed in the company’s media statement, is primarily driven by its strategic commitment to an ‘asset-right’ strategy, coupled with unwavering focus on operational excellence and world-class service standards across its properties. The company’s overall growth pipeline has expanded significantly, now encompassing approximately 5,900 keys across over 60 hotels.
Financial and Operational Performance Highlights
The second quarter saw substantial growth across key financial metrics. Consolidated revenue from operations reached ₹839 crore, representing an 8 percent increase, while EBITDA grew by 16 percent to ₹246 crore. The most dramatic growth was seen in Profit After Tax (PAT), which surged by 74 percent to ₹133 crore. Operationally, the company recorded significant improvements, with Average Daily Rates (ADR) growing by 6 percent and occupancy expanding by 254 basis points (bps), leading to a 9 percent growth in standalone RevPAR (Revenue Per Available Room).
Consolidated RevPAR registered an even higher double-digit growth of 11 percent over the previous year. Furthermore, the company maintained its premium positioning, commanding a notable 40 percent RevPAR premium over the Industry average, which reflects the market recognition of its superior product and service quality. The profitability was enhanced by a comparable EBITDA margin expansion of 215 bps, reaching 31 percent, a factor attributed to growth in room and Food & Beverage (F&B) revenue, higher management fees, structural cost interventions, and operating leverage, with F&B revenue itself growing by 5 percent on a high base.
New Brand Launch and Geographic Expansion
A major strategic announcement for the quarter was the launch of the new premium brand, ‘Epiq Collection – Member ITC Hotels’ Group’. This brand aims to add about 1,000 keys over the medium term, offering a distinctive, locally inspired experience under a unified premium brand identity, thereby reinforcing ITC Hotels’ commitment to elevated hospitality across India. The initial projects under the ‘Epiq Collection’ are already under development in culturally significant destinations: an owned hotel with 118 rooms in Puri and a managed hotel with 201 rooms in Tirupati, both of which are scheduled to open and join the CLUB ITC rewards programme within the next two years.
In line with its capital-efficient ‘asset right’ approach, the Group is aggressively pursuing growth in Tier 2 and 3 cities where demand for premium hospitality is on the rise. This quarter saw the company enter Kerala with the launch of Fortune Kochi, with future openings planned for Wayanad (Storii) and Kakkanad (Fortune). In Bihar, the Welcomhotel Bodh Gaya opened in October 2025, and a new luxury hotel in Patna has been signed under the prestigious ITC Hotel brand, positioning these properties to redefine luxury hospitality in their respective regions.
