Published on
October 24, 2025
ITC Hotels has achieved impressive growth in the second quarter of FY25-26, posting record revenue and profits despite challenges like seasonal travel dips and adverse weather. The company’s performance reflects its robust strategies, including the Asset-Right approach, operational excellence, and a focus on premium offerings. Its success, not just in India but also internationally in Sri Lanka, underscores the company’s strong position in the global hospitality landscape. Key highlights include a sharp rise in revenue from operations, an expansion in premium hotel segments like the Epiq Collection, and its commitment to sustainability with new green energy projects.
ITC Hotels’ Impressive Financial Results
ITC Hotels continues to demonstrate strong resilience, achieving record financial results for Q2 of FY25-26. Despite softer travel demand caused by weather disruptions and a lower number of auspicious dates for weddings, the company reported an 8% increase in revenue, reaching ₹839 crore. EBITDA surged by 16% to ₹246 crore, while PAT saw an impressive rise of 74%, reaching ₹133 crore. The overall RevPAR growth of 11% reflects its ability to command higher rates and occupancy, even during challenging periods.
This growth is attributed to a mix of strong performances in key areas like the corporate, MICE, and retail sectors, where ITC Hotels continues to attract high-value guests. The ADR (Average Daily Rate) rose by 6%, and occupancy rates increased by 2.54%, contributing to a healthy overall performance despite the lower demand in certain segments.
Expansion and Premiumization: The Launch of Epiq Collection
In line with its expansion strategy, ITC Hotels has launched the Epiq Collection – Member ITC Hotels Group, aimed at accelerating its presence in the premium segment. The Epiq Collection brand will focus on converting high-quality hotels in culturally rich locations like Puri and Tirupati. With a strong pipeline of over 1,000 keys planned for the medium term, this new brand reinforces ITC Hotels’ commitment to offering luxurious experiences in India’s fast-growing hospitality market. The brand’s focus on premium and luxurious stays will complement the company’s existing portfolio of upscale properties.
Hospitality Performance Across Key Segments
ITC Hotels’ success is also attributed to its strategic focus on the Food & Beverage (F&B) segment. Revenue from F&B grew by 5% year-on-year, driven by successful outlets and banqueting services. Notable restaurant achievements included top rankings for iconic properties like ITC Grand Chola in Chennai and ITC Maurya in New Delhi. The wedding segment, while softer due to fewer auspicious dates, continues to hold potential for growth as festive and wedding seasons approach.
The company’s EBITDA margin saw a significant increase of 215 basis points on a comparable basis, reflecting better operational efficiency and strong revenue growth in both room and F&B sectors.
The Rise of ITC Ratnadipa in Sri Lanka
In an exciting development, ITC Hotels continued its international expansion with the success of ITC Ratnadipa in Colombo, Sri Lanka. Since its opening in April 2024, this property has exceeded expectations, leading the market in RevPAR and becoming EBITDA positive within the second quarter. Sri Lanka’s tourism sector is recovering swiftly, and ITC’s entry into the market places the brand in a favorable position to tap into this growth.
Green Initiatives and Sustainable Practices
Sustainability remains a core pillar for ITC Hotels, with several green initiatives taking shape. The company recently commissioned a 3.3 MW windmill in Gujarat as part of its efforts to reduce its carbon footprint. ITC Hotels boasts the largest number of LEED Platinum® certifications in the world, underscoring its commitment to sustainable building practices. Furthermore, ITC continues to lead the charge in zero carbon and zero water certifications across its properties.
This focus on sustainability is integral to its long-term goals, aligning with the growing demand for eco-friendly tourism experiences and reinforcing ITC Hotels’ standing as a responsible luxury brand.
What Should Travelers Know About ITC Hotels?
Travelers looking for an exceptional stay in India or Sri Lanka can look forward to ITC Hotels’ high-end offerings. Whether it’s experiencing local culture through unique properties or enjoying the unmatched luxury of the Epiq Collection, the brand continues to deliver superior experiences. For guests who are loyal to the brand, the newly enhanced Club ITC loyalty program offers a wealth of perks, including instant gratification rewards and exclusive member experiences.
Moreover, those visiting regions like Kerala, Bihar, or Hyderabad can expect to see ITC’s growing presence, with upcoming launches set to redefine the hospitality standards in these areas.
Looking Ahead: Strong Prospects for ITC Hotels
ITC Hotels’ outlook for the second half of FY25-26 is optimistic, with a strong focus on growth and premiumization. Expansion plans are set to continue as the company strengthens its foothold across India and Sri Lanka, especially in Tier 2 and 3 cities where demand for luxury hospitality is surging. As the hospitality sector in India benefits from policy reforms and rising consumer spending, ITC Hotels is poised to capitalize on these trends with its solid portfolio and brand expansion.
ITC Hotels’ robust performance amidst challenges and its continued expansion strategy highlight the brand’s resilience and innovative approach to the evolving hospitality landscape. From introducing new luxury brands to reinforcing sustainable practices, ITC Hotels is well-positioned for future success.
