ITC Hotels Set for Potential 2024 Listing, Board Decision Expected on August 14

The renowned conglomerate ITC Ltd is gearing up to list its hotels business, a move expected to take place in 2024, according to a report on Saturday. The company's board is scheduled to convene on August 14 to discuss the next steps in this significant strategic move. This decision follows the in-principle approval granted by the board for the demerger of the hotels business under a scheme of arrangement, as stated in a regulatory filing on July 24.

Charting a New Course for ITC's Hotel Division

With the forthcoming listing, ITC Hotels aims to establish its presence as an independent entity in the market, showcasing the conglomerate's commitment to enhancing its position as a prominent player in the hospitality industry. The conglomerate is slated to hold a significant stake of around 40 per cent in the new hotel entity, while the remaining shares (about 60 per cent) will be directly held by the company's shareholders proportionate to their existing shareholding.

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ITC Hotels boasts a remarkable portfolio of over 120 hotels, offering more than 11,600 rooms across 70 locations. The hotels operate under six distinguished brands: ITC Hotels, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage. Over the last couple of decades, the hotel business has displayed impressive growth, achieving a CAGR of 11 per cent. During this period, ITC expanded its room keys by 2.6 times, underscoring its commitment to excellence and expansion in the hospitality sector.

For the fiscal year 2022-2023, the hotel division reported significant revenue of Rs 2,570 crore, constituting 4 per cent of ITC's total revenues. The division's Ebitda stood at Rs 830 crore, contributing 3 per cent to ITC's Ebitda, while capital employed amounted to Rs 5,600 crore, representing 12 per cent of ITC's total capital employed.

The planned listing aligns with ITC's vision to unlock the full potential of its hotels business, presenting an attractive investment opportunity for potential investors in the global market. As the company explores new horizons and strengthens its foothold in the hospitality sector, the forthcoming listing is poised to mark a significant milestone in ITC's journey of growth and diversification.