ITC Hotels Posts 26% Revenue Growth as Q2 PAT Rises 52%

By Daniel Okafor

ITC Hotels reported consolidated revenue from operations of ₹1,054 crore for the quarter ended Sept. 30, 2026, up 26% year on year, while consolidated profit after tax rose 52% to ₹203 crore.

Consolidated EBITDA increased 37% to ₹337 crore. Standalone revenue from operations grew 16% to ₹885 crore, EBITDA rose 28% to ₹301 crore, and PAT advanced 37% to ₹207 crore. Standalone trailing four-quarter operating ROCE, excluding other income and treasury investments, reached 20%, up 310 basis points, or 3.1 percentage points.

What does the quarter change for operators?

Rooms did the heavy lifting. Consolidated revenue from operations, excluding branded residences, grew 17% to ₹983 crore, while room revenue rose 22% on stronger rates and volumes. Occupancy at consolidated owned hotels on a same-store basis climbed 481 basis points, or 4.81 percentage points, to 76%; ADR increased 14%, and RevPAR rose 21%. ITC Hotels maintained a 44% RevPAR premium over the luxury, upper-upscale and upscale hotel industry.

Healthy transient demand across key markets and stronger meetings, incentives, conferences and exhibitions business supported the quarter, including the BRICS India 2026 Summit in New Delhi.

Food and beverage revenue grew 12% year on year. Speciality restaurants, lounges, bars and banqueting led the increase. As the exclusive F&B service provider, ITC Hotels served heads of state, ministers and global delegates during the summit, reinforcing its position at major international events.

The restaurant portfolio collected several honors:

• Travel + Leisure’s Delicious Dining Awards 2026 named Bukhara at ITC Maurya Best Family Restaurant.
• Avartana at ITC Grand Chola won Best South Indian Restaurant.
• Royal Vega at ITC Royal Bengal received Best Sustainable Kitchen honors.
• Tatler also included Avartana among its Best 20 Restaurants in India 2026.

Management and operating fees increased 25% as the managed hotel portfolio expanded and stabilized. EBITDA excluding branded residences rose 28% to ₹314 crore, while the margin expanded by 263 basis points, or 2.63 percentage points, to 32%. ITC Hotels attributed the improvement to operating leverage and continued cost efficiencies. The company did not disclose a separate labor-share or cost-of-goods bridge for the margin gain.

ITC Hotels also called the quarter a milestone after consolidated income crossed ₹1,100 crore, a measure that exceeded the ₹1,054 crore revenue-from-operations line. The release gave no reconciliation between the two figures.

The managed pipeline reaches 84 hotels

During the first half of FY27, ITC Hotels signed 20 hotels comprising more than 1,600 keys, lifting its managed pipeline to 84 hotels with approximately 8,200 keys. The company is pursuing management contracts alongside selected owned assets, with signings spanning:

• Spiritual destinations: Rajgir and Ujjain.
• Wildlife locations: Sasan Gir, Jawai and Sanjay Dubri.
• Leisure destinations: Goa, Havelock, Sindhudurg, Mukteshwar and Karjat.
• Business markets: Greater Noida and Roorkee.

The additions broaden ITC Hotels’ presence across emerging and high-growth travel destinations while adding more than 1,600 keys to its managed growth pipeline.

ITC Hotels also completed its acquisition of the 130-key Welcomhotel Ahmedabad, which began operating as an owned hotel on Sept. 1, 2026. The company renovated more than 200 keys during the first half across owned hotels in Kolkata, Bengaluru, Chennai and Delhi, with the aim of improving the guest experience.

The Lucknow Development Authority allotted ITC Hotels a 2.8-acre parcel in one of the city’s fastest-growing corridors. The company intends to develop a luxury hotel with more than 200 keys and substantial banqueting facilities.

Sri Lanka points to a gradual recovery

ITC Ratnadipa maintained its RevPAR leadership position in Sri Lanka as second-quarter RevPAR reached 1.8 times its FY25 level. The hotel continued strong revenue growth and posted positive EBITDA during both the quarter and the first half of FY27. The progressive handover of Sapphire Residences also continued.

Sri Lanka recorded a twelfth consecutive quarter of GDP growth, although inflation increased during the period. Tourist arrivals remained marginally below 2025 levels, while Colombo’s luxury hotel segment registered improving RevPAR. ITC Hotels expects greater macroeconomic stability and the country’s tourism fundamentals to support a gradual medium-term recovery in travel and hospitality demand.

LEED credentials broaden the portfolio

ITC Narmada became the company’s 13th hotel to receive LEED Zero Carbon certification, while Welcomhotel Bay Island became its 25th hotel to achieve LEED Platinum certification. The portfolio includes 25 USGBC LEED Platinum-certified hotels, including 13 LEED Zero Carbon-certified and 13 LEED Zero Water-certified properties.

ITC Hotels said its “balanced portfolio, brand equity, operational excellence, people-first culture, asset-right growth strategy and focus on responsible luxury and sustainability provide a foundation for long-term profitable growth and value creation.” The board approved the quarter and half-year results on Oct. 26, 2026.

With 84 managed hotels in the pipeline, the next test is whether fee income and margins can keep pace as newer properties stabilize and the owned portfolio absorbs renovation and development spending.