India’s luxury hospitality sector is witnessing a robust resurgence as ITC Hotels Limited reports standout second-quarter results for FY25-26, reinforced by strategic expansion and sustainability-driven operations. The company posted an 8 % increase in revenue, reaching roughly ₹839 crore, while profit after tax (PAT) surged by 74 % to approximately ₹133 crore. These figures underscore the firm’s ability to thrive despite cyclical travel softness and adverse weather-related headwinds.
At the heart of this performance lies a dual focus: delivering premium hospitality experiences and enhancing operational efficiency. The Average Daily Rate (ADR) rose by 6 % year-on-year, while occupancy edged up by about 2.5 %, contributing to an 11 % growth in revenue per available room (RevPAR). This uptick speaks to the ability of ITC Hotels to command higher rates and maintain resilience even in slower demand cycles.
A key pillar of growth has been the company’s “Asset-Right” approach: combining ownership of core marquee properties with management contracts and strategic brand partnerships. Under this model, ITC Hotels continues to invest selectively in high-potential destinations, while leveraging its strong brand equity and loyalty platform to drive guest engagement and premiumisation.
Premiumisation and Geographical Reach
In this quarter, ITC Hotels unveiled its new brand, the Epiq Collection – Member ITC Hotels Group, signalling a bold push into the upper-premium luxury segment. The Epiq Collection will convert high-quality assets in culturally rich destinations such as Puri and Tirupati, with a pipeline of over 1,000 keys targeted in the medium term. This move aligns with rising demand for boutique-style luxury stays, experiential travel and destination-led hospitality in India’s tier-2 and tier-3 markets.
Beyond India’s borders, the group achieved a major milestone with its property in Sri Lanka: the ITC Ratnadipa, Colombo opened in April 2024 and has already outperformed benchmarks, becoming EBITDA-positive in the latest quarter. This underlines ITC Hotels’ ambition to position itself as a regional luxury hospitality leader across South Asia.
Performance Across Segments and Sustainability Drive
While room revenue remained the principal driver, the Food & Beverage (F&B) segment maintained positive momentum with a 5 % year-on-year growth, buoyed by strong banqueting and restaurant performance at flagship destinations such as Chennai and New Delhi. Moreover, with the wedding and MICE (meetings, incentives, conferences, events) sectors poised for revival, the company is well-placed to capture pent-up demand in those high-yield categories.
Operationally, ITC Hotels’ EBITDA margin expanded by approximately 215 basis points on a comparable basis, benefiting from enhanced operational efficiency, better mix and cost controls. This margin improvement further validates its strategy of elevating premium offerings rather than relying solely on volume growth.
Sustainability continues to be a signature theme. The group recently commissioned a 3.3 MW wind-mill project in Gujarat and boasts the largest number of LEED Platinum certifications worldwide among hotel chains. With zero-water and zero-carbon certifications anchored across its portfolio, ITC Hotels is aligning luxury hospitality with eco-conscious travel—resonating well with global and domestic guests increasingly attuned to responsible tourism.
Implications for Travellers and the Hospitality Landscape
For discerning travellers, ITC Hotels’ enhanced premium footprint and aspirational branding mean more choices of luxury stays in emerging destinations. Whether in heritage-rich resorts or metropolitan luxury properties, the brand’s commitment to experiential hospitality and sustainability stands out. The launch of the Epiq Collection signals elevated service standards, tailored guest experiences and access to previously under-penetrated locations.
From an industry perspective, ITC Hotels’ strong performance despite seasonal headwinds underscores that the luxury hospitality segment in India remains resilient and is migrating beyond traditional gateways. Its expansion into Sri Lanka also reflects a broader trend of Indian-home-grown hotel brands going regional, leveraging cultural affinity and operational expertise to capture inbound tourism growth.
Looking Ahead
With the remainder of FY25-26 in view, ITC Hotels is projecting further growth across its premium segments and geographies. Its pipeline of new properties, particularly under the Epiq Collection, and its increasing presence in tier-2/3 destinations position it to capture a rising share of India’s domestic luxury traveller base. At the same time, its international foothold offers upside as cross-border tourism and regional travel resume momentum.
In a broader sense, the company’s performance highlights a favourable environment: rising consumer spending on travel and leisure, growing demand for experiential and sustainable luxury, and increasing penetration of organised hospitality in smaller markets. ITC Hotels appears well-aligned to capitalise on these shifts.
Importantly, the growth is not just transient. The infrastructure, operational excellence and brand investments made today set the foundation for long-term value creation in hospitality. As the group expands its premium brands, enhances guest loyalty platforms and deepens sustainability credentials, it is poised to redefine luxury hospitality benchmarks in India and beyond.
In sum, ITC Hotels has demonstrated that with disciplined execution, brand elevation and geographic diversification, luxury hospitality can outperform—even amid macro-seasonal challenges. For travellers, the benefit is clear: more curated luxury stays, deeper cultural immersion and elevated experiences across India and Sri Lanka. And for the hospitality industry at large, the message is equally strong: premiumisation and purpose-driven growth are key to the next innings of growth.
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