3 days ago
ITC Hotels Plans Premium Expansion Across India and Abroad
ITC Hotels wants to grow from its current hotel network to 250 hotels by 2031.
It plans to have 22,000 rooms across hotels it owns and hotels it manages for others.
The company mainly wants to build premium hotels rather than very cheap hotels.
It believes many customers will pay more for good service and special experiences.
It also plans to expand into smaller Indian cities, where businesses and travelers need better hotels.
ITC Hotels is considering more hotels in Sri Lanka, Nepal and Dubai.
New brands include Epiq, Yura and Ritvah, while Storii is popular with younger travelers.
The company says artificial intelligence can make service faster and more personal, but people will remain important in luxury hotels.
ITC Hotels aims to reach 250 hotels and 22,000 rooms by 2031, increasing managed rooms from 8,600 to 15,000.
The company plans to raise its premium portfolio share from 40-42% to 50-55% and management fees from Rs 135 crore in FY25 to about Rs 350 crore.
Domestic expansion will focus on Storii, Welcome and Fortune hotels, including tier-2 and tier-3 cities and new locations such as Kerala, Madhya Pradesh, Bihar and Northeast India.
ITC Hotels is exploring further expansion in Sri Lanka, Nepal and Dubai, while international plans for Europe, the United States and Southeast Asia remain preliminary.
Managing director Anil Chadha said technology will improve efficiency and personalization, but luxury hotels will continue relying on warm, human service rather than replacing staff with robots.
- Who
- ITC Hotels and its managing director, Anil Chadha.
- What
- The company outlined plans for hotel expansion, premiumisation, acquisitions, new brands and technology use.
- Where
- India, with potential expansion in Sri Lanka, Nepal and Dubai; domestic plans include Kerala, Madhya Pradesh, Bihar and Northeast India.
- When
- The targets discussed include 2031 for the hotel and room expansion, with management-fee goals set over three to five years; the company reported FY25 management fees.
- Why
- ITC Hotels wants to grow its managed portfolio, increase premium offerings, capture demand in smaller cities and religious destinations, and create value through selective acquisitions.
Premium Strategy
Broader Budget Access
Hotel pricing
Premium Strategy
ITC Hotels says customers increasingly want high-quality experiences and are willing to pay for them; it is targeting a larger premium portfolio.
Broader Budget Access
The interview raises the industry’s focus on branded rooms costing less than Rs 5,000 per night, a segment ITC Hotels does not directly prioritize.
Technology and staffing
Premium Strategy
Technology and artificial intelligence can make decisions faster and personalize service by analyzing guest data.
Broader Budget Access
Luxury hospitality depends on warm, bespoke human service, so replacing employees with machines or robots could damage the guest experience.
Key facts
- 2031 target
- 250 hotels and 22,000 rooms.
- Managed portfolio
- Planned to grow from 8,600 to 15,000 rooms, or keys.
- Owned portfolio
- Planned to increase from 5,700 to 7,500 rooms; 900 rooms are already signed.
- Management fees
- Rs 135 crore in FY25, with a target of about Rs 350 crore in three to five years.
- Premiumisation
- The premium share of the portfolio is targeted to rise from 40-42% to 50-55%.
- Capital allocation
- The company plans to allocate 10-12% of cumulative revenue toward capital allocation.
- Religious tourism
- 875 rooms are operational at religious sites, with another 1,400 signed.
Quotes
Anil Chadha
Managing director of ITC Hotels
“It’s not that you only need to make budget hotels, or we can say Indians are finding the cheapest hotel to stay in. The domestic demand is rather strong and we are seeing that people are seeking experiences they are ready to pay for.”
financialexpress.com
“People pay for bespoke experiences that are warm and personal. And, in luxury, you should never cut costs.”
financialexpress.com
Sources
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