ITC Limited has received the National Company Law Tribunal (NCLT), Kolkata Bench’s approval for the demerger of its hotel business into ITC Hotels Limited. The scheme of arrangement has been sanctioned under Sections 230 to 232 of the Companies Act, 2013.
The company confirmed that all conditions mentioned in Clause 28 of the Scheme have been fulfilled, including the registration of the order with the Registrar of Companies (RoC), West Bengal.
Key Highlights:
- Effective Date: January 1, 2025
- Appointed Date: January 1, 2025
As ITC Hotels prepares for its demerger from the ITC Group, the company has announced ambitious plans to grow its portfolio from 140 to over 200 hotels across India. This move marks a significant milestone in ITC Hotels’ journey as it transitions into a standalone entity, aiming for accelerated growth and a sharper focus on the hospitality sector.
Previously operating as a division of the larger ITC conglomerate—an Indian-listed company with primary interests in consumer goods—the hotel business will now gain operational autonomy. The demerger, approved by the ITC board, includes finalized shareholder allocations for the new entity. This separation is expected to provide greater flexibility for ITC Hotels to expand and innovate in the hospitality industry.
ITC Hotels’ Growth Strategy:
- Current Portfolio: 140 properties with 13,000 rooms (45% owned, 55% under management contracts).
- Future Plans: Transitioning to an asset-light growth model, ITC Hotels aims to focus on management agreements to rapidly increase market presence.
- Brand Portfolio: Operates under six distinct brands – ITC Hotels, Fortune, Mementos, Storii, WelcomHeritage, and Welcomhotel.
- Recent Expansion: Added 28 managed hotels since November 2022.
- Target: Launch approximately one hotel every month over the next two years.
Financial Performance:
For the quarter ending September 2024, ITC Hotels reported:
- Revenue Growth: 12.1% year-on-year
- Profit Before Tax: 20.2% increase
- EBITDA Margin: Expanded by 0.7%, driven by cost efficiency and higher RevPAR amid strong booking demand.
