Q4 FY25 Highlights: Record-Breaking Growth
- Revenue: ₹1,017 crore, up 17% year-on-year
- EBITDA Margin: Expanded to 40%, up 350 basis points
- Profit After Tax (PAT): ₹264 crore, up 44%
FY25 Full-Year Performance
- Revenue: ₹3,333 crore
- PAT: ₹698 crore
ITC Hotels Limited, which was recently demerged from ITC Ltd., has announced its strongest quarterly results ever in Q4 FY25, marking a successful beginning as an independent hospitality leader. The company achieved record-high revenues of ₹1,017 crore, a 17% increase year-on-year, and unprecedented profit growth, with Profit After Tax reaching ₹264 crore, a substantial 44% rise. This exceptional performance was underpinned by operational excellence, an asset-light expansion strategy, and a continued commitment to responsible luxury. The EBITDA margin also saw significant expansion, reaching 40%, a 350 basis point increase. For the full fiscal year FY25, ITC Hotels reported a total revenue of ₹3,333 crore and a PAT of ₹698 crore.
The impressive Q4 results were driven by robust growth across key segments, including strong room revenue, increasing average daily rates (ADRs) which touched ₹15,000 (a 14% year-on-year increase), healthy occupancy levels at 79%, and a thriving Food & Beverage (F&B) division. This combination led to a 17% growth in Revenue Per Available Room (RevPAR).
A significant milestone for the company was the official demerger of the Hotels Business from ITC Ltd., effective 1st January 2025. Following this, ITC Hotels Limited was successfully listed on both the NSE and BSE on 29th January 2025, demonstrating strong investor confidence and a solid market position.
ITC Hotels is strategically expanding its footprint through an asset-light approach, primarily utilizing management contracts and franchise models to reduce capital intensity and accelerate growth. Over the past 24 months, the company has signed agreements for 54 new properties and has already opened 30 hotels across its diverse portfolio of six brands: the luxury ITC Hotels, the luxury lifestyle Mementos, the upper upscale and upscale Welcomhotel, the boutique premium Storii, the mid-market to upscale Fortune Hotels, and the leisure and heritage WelcomHeritage. The company has a strong pipeline of 50 upcoming hotels, encompassing over 4,500 rooms, with an ambitious goal of reaching 220 hotels and over 20,000 rooms by 2030. Recent developments include a greenfield luxury project in Puri, a new wing at Welcomhotel Bhubaneswar, and a planned development on a strategic land parcel in Visakhapatnam. Notably, ITC Hotels’ first international venture, ITC Ratnadipa in Colombo, which opened in April 2024, achieved EBITDA positivity by Q3 FY25.
Further solidifying its leadership in responsible luxury, ITC Hotels was the first Indian hotel chain to receive the USGBC Leadership Award for Organizational Excellence 2024. The company boasts significant sustainability achievements, including 23 hotels with LEED Platinum certifications, 12 hotels that are LEED® Zero Carbon certified (the first 12 globally), and 8 hotels with LEED® Zero Water certification (also a global first). ITC Hotels has also surpassed its 2030 sectoral emission targets for the past four consecutive years, and 12 of its hotels are aligned with COP21 2050 goals.
The F&B division experienced double-digit growth, driven by strong performance in banqueting and event catering, particularly in the wedding and institutional sectors, along with revamped signature restaurants. Digital advancements, such as the ITC Hotels App, have enhanced guest engagement, loyalty benefits, and revenue growth through features like food delivery, reservations, and room automation.
The broader economic environment in India, projected to grow at 6.5% in FY25, provides favorable tailwinds for the hospitality industry. Factors such as increasing urbanization, rising domestic consumption, and improving infrastructure are fueling demand. With room demand currently exceeding supply and international tourist arrivals yet to fully recover to pre-pandemic levels, the outlook for hotel chains like ITC Hotels remains positive.
In conclusion, ITC Hotels Limited’s record-breaking performance in Q4 FY25, coupled with its robust expansion pipeline and commitment to sustainability, firmly establishes it as one of India’s fastest-growing and most responsible hospitality companies. The recent demerger has unlocked significant potential, positioning the company for sustained growth in both domestic and international markets.
