ITC Hotels listed at Rs 188 on the BSE and at Rs 180 on the National Stock Exchange. In the special pre-open session Rs 200 was the indicative price on the NSE. The de-merged entity was quoted at Rs 250 in the pre-open session on the BSE on January 29. This is more than 7.5% higher than the expectations of market participants of Rs 175.
The consensus was that the share of ITC Hotels would be between Rs 120 and 175. There were a few who suggested a Rs 200 plus number while some saw the prospect of below Rs 100 a share.
In January 2025, the FMCG & tobacco major ITC demerged its hotel business to create a separate entity ITC Hotels The move was seen as a part of value unlocking for shareholders. The ITC Hotels was de-merged from the parent company ITC in a ratio of 1:10, which means any investor that holds 10 shares of ITC will receive 1 share of ITC Hotels.
The hotel business accounted for 4.1% of ITC’s overall revenue in FY24, while its EBIT contribution was 3%. The Average Room Rate (ARR) has increased to Rs 12,000 from Rs 7,900 in FY19, up 51.9%.
ITC Hotels has a diverse portfolio with 140 properties across 6 unique brands. These brands are ITC Hotels, Mementos, WelcomHotel, Storii, Fortune, and WelcomHeritage. In FY24, the company achieved an occupancy rate of 69% and aims to increase its inventory by adding 5,000 more rooms by the year 2030.