ITC Hotels bets on Tier 2 boom; expands Fortune brand, adds 7 new hotels

ITC Hotels, one of the biggest hotel chains in India, is continuing its expansion strategy, especially in the tier 2 and tier 3 cities. Fortune Hotels, a subsidiary of ITC that operates in the mid-market category, added seven new hotels to its portfolio in FY-25. 

These new hotels are located in cities like Pahalgam, Puri, Palampur, Ekta Nagar and Candolim (Goa). ITC Hotel’s Fortune brand now operates 56 hotels in India and Nepal. The brand also plans to add 22 new hotels in the coming years. 

The ITC Hotels brand now operates about 140 hotels in the country and has six subsidiaries. The company has a presence in 90 cities in India as well as neighbouring countries Nepal and Sri Lanka. 

Key Deals Signed by ITC Hotels in FY25-

Additionally, in 2023, ITC  Hotel’s Welcome brand signed a management deal with Pravez Construction for a 4-acre resort in Kalimpong, West Bengal. 

ITC Hotels demerger in FY25

On January 1 2025, ITC Hotels became a separate entity after demerger from the parent company ITC Ltd. Subsequently, it got listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on January 29. The company was listed at a share price of Rs 188 on BSE and Rs 180 on NSE. At the time of its debut on the stock exchange, ITC Hotels was valued at $4.2 billion in January of this year.

ITC Hotels 2030 target

Going forward, ITC Hotels plans a portfolio comprising over 200 properties and as many as 18,000 keys by 2030. The recently demerged Hotel giant has decided to make a strategic shift in its ownership strategy, though. They plan to cut down the share of properties they own in comparison to those they manage. The current owned-to-managed ratio is significantly lower than earlier at 35:65. They target adding 5,000 additional rooms by 2030. Of which the company aims to have only 500 that would be owned by the company. The rest would be under management contracts.

ITC Hotels share price Vs Nifty

ITC Hotels’ share dipped to its lowest in February when its share price dropped to Rs 158 on February 25. However, it recovered gradually, and by March 25, its share price had been trading at Rs 196. ITC Hotels’ share traded at its highest on April 1 at a value of Rs 213.30. On Wednesday, ITC Hotels’ shares are trading around Rs 199

When compared with the Nifty in the same period, the Nifty share price went up by 2.46 percent, and it is trading at around 24328 on Wednesday.