ITC Hotels Q1 Results: Profit Up 35%, Acquires GHK Hospitality for ₹155 Crore

ITC Hotels delivered a strong financial performance for the first quarter ended June 30, 2026 (Q1 FY27), reporting a 35.5% increase in consolidated net profit to ₹180 crore, compared with ₹133 crore in the corresponding quarter last year.

The company's revenue from operations increased 14.8% year-on-year to ₹936 crore, up from ₹815 crore in Q1 FY26, reflecting robust demand across its hotel portfolio. Growth was supported by higher room occupancy, improved average room rates, stronger food and beverage sales, and rising management fee income from managed properties.

Apart from announcing its quarterly earnings, ITC Hotels also approved the 100% acquisition of GHK Hospitality & Infrastructures Ltd., owner of Welcomhotel Ahmedabad, through a ₹155 crore enterprise value transaction. The acquisition is expected to strengthen the company's asset ownership strategy while enhancing its presence in Gujarat's commercial capital.

ITC Hotels Q1 FY27 Financial Highlights

The company reported healthy improvement across key financial metrics during the quarter, with operating profitability also showing steady expansion.

Financial Metric	Q1 FY27	Q1 FY26	YoY Growth
Net Profit	₹180 crore	₹133 crore	35.5%
Revenue from Operations	₹936 crore	₹815 crore	14.8%
EBITDA	₹292.3 crore	₹244.5 crore	19.6%
EBITDA Margin	31.2%	30.0%	+120 bps

The improvement in EBITDA margin indicates better operating leverage, supported by higher occupancy, premium room pricing, and growth in high-margin hospitality services.

Business Performance Remained Strong Across Segments

Excluding the contribution from branded residences, revenue from operations grew 10% year-on-year, highlighting sustained demand across ITC Hotels' core hospitality business.

Room revenue increased 8% compared with the previous year, driven primarily by strong leisure and retail travel demand. Although the company faced a high base due to MICE (Meetings, Incentives, Conferences and Exhibitions) and wedding-related business in Q1 FY26, occupancy continued to improve.

ITC Hotels reported:

• 4% growth in Average Daily Rate (ADR)
• 290 basis points improvement in occupancy
• 8% increase in Revenue Per Available Room (RevPAR)
• 33% RevPAR premium over the hospitality industry

The company's food and beverage business also performed well, with F&B revenue rising 11%, supported by specialty restaurants, banqueting, and premium dining experiences.

Meanwhile, management fee income increased 35% year-on-year, reflecting improved performance from managed hotels and stabilization of newly operational properties.

Operational Metric	Performance
Room Revenue Growth	8%
ADR Growth	4%
Occupancy Improvement	+290 basis points
RevPAR Growth	8%
RevPAR Premium	33% above industry
F&B Revenue Growth	11%
Management Fee Income	+35%

ITC Hotels to Acquire GHK Hospitality for ₹155 Crore

Alongside its earnings announcement, ITC Hotels revealed that it has signed a definitive agreement to acquire 100% of GHK Hospitality & Infrastructures Ltd., which owns Welcomhotel Ahmedabad.

The transaction will be completed at an enterprise value of ₹155 crore on a debt-free and cash-free basis, subject to customary closing adjustments. The company expects to complete the acquisition during the current quarter.

The hotel is already being operated by ITC Hotels under an Operating Services Agreement, making the acquisition strategically attractive as it enables the company to transition from operator to owner without execution risks associated with developing a new hotel property.

Acquisition Details	Information
Target Company	GHK Hospitality & Infrastructures Ltd.
Property	Welcomhotel Ahmedabad
Deal Value	₹155 crore
Transaction Type	100% Acquisition
Basis	Debt-free & Cash-free
Expected Completion	Current Quarter

Strategic Importance of the Acquisition

The acquisition aligns with ITC Hotels' strategy of strengthening its owned asset portfolio while expanding its footprint across high-growth hospitality markets.

Ahmedabad continues to witness rising demand from corporate travel, industrial investments, business conferences, exhibitions, sporting events, and tourism. By acquiring an already operational property, ITC Hotels expects to reduce time-to-market, improve capital efficiency, and generate earnings accretion faster than developing a greenfield hotel.

The company also expects the acquisition to become earnings per share (EPS) accretive during the first full year following completion.

Market Impact

The Q1 results demonstrate the continued recovery and expansion of India's hospitality sector, supported by robust domestic travel, business tourism, premium leisure demand, and increasing MICE activity.

ITC Hotels' improving occupancy, higher room tariffs, and strong management fee growth indicate sustained pricing power across its premium hotel portfolio. The acquisition of Welcomhotel Ahmedabad further strengthens its owned asset strategy while providing additional exposure to one of India's fastest-growing commercial markets.

Despite the positive financial performance, ITC Hotels shares declined nearly 5% following the announcement, reflecting broader market movements and investor profit booking.

Outlook

ITC Hotels enters FY27 with strong operational momentum supported by rising travel demand, premium room pricing, expansion in managed properties, and disciplined capital allocation.

The acquisition of GHK Hospitality is expected to strengthen long-term earnings while enhancing the company's presence in western India. Going forward, investors will closely monitor occupancy trends, ADR growth, expansion of managed hotels, branded residences, integration of the Ahmedabad property, and overall margin performance as India's hospitality industry continues its growth trajectory.

1. What was ITC Hotels' net profit in Q1 FY27?

ITC Hotels reported a 35.5% year-on-year increase in consolidated net profit to ₹180 crore during Q1 FY27.

2. How much revenue did ITC Hotels report in the June quarter?

The company reported ₹936 crore in revenue from operations, representing 14.8% growth compared with the same quarter last year.

3. What company is ITC Hotels acquiring?

ITC Hotels is acquiring 100% of GHK Hospitality & Infrastructures Ltd., which owns Welcomhotel Ahmedabad.

4. What is the value of the GHK Hospitality acquisition?

The acquisition has been valued at ₹155 crore on a debt-free and cash-free basis.

5. Why is the Ahmedabad acquisition important?

The acquisition expands ITC Hotels' owned asset portfolio, strengthens its presence in Ahmedabad, improves capital efficiency, and is expected to become earnings per share (EPS) accretive within the first full year after completion.