The much-anticipated ITC Hotels share price listing is finally here! As ITC Hotels Ltd, the demerged entity of ITC Ltd’s hotel business, makes its stock market debut, investors are keenly watching its valuation, performance outlook, and industry comparisons. Let’s dive into what this means for shareholders and how ITC Hotels stacks up against competitors.
ITC Hotels Share Price: Expected Listing Range
Market analysts estimate the ITC Hotels share price to debut between ₹140-₹175 per share. This range is based on various valuation models, including EV/Ebitda multiples and expected future earnings.
According to Deven Choksey Research, ITC Hotels is likely to list at an EV/Ebitda multiple of 20-25 times, implying a market capitalization of around ₹29,163 crore to ₹36,454 crore. Another brokerage, Systematix, estimated the stock’s value at ₹150 per share, while Nuvama projected the listing price to be between ₹150 and ₹175 per share.
Impact on ITC Ltd Shareholders
For existing ITC Ltd investors, the demerger of ITC Hotels doesn’t necessarily translate into an immediate increase in shareholder value. This is because ITC Ltd’s stock price will adjust post-listing to account for the holding company discount.
However, analysts remain optimistic about ITC Ltd’s prospects post-demerger. With a sharper focus on its core businesses—FMCG, agriculture, and cigarettes—ITC Ltd is expected to unlock greater value for its shareholders.
Removal from Stock Indices
Post listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective three business days after the listing date. This is a standard process when a new entity is demerged and separately listed.
How ITC Hotels Compares to Competitors
ITC Hotels will now compete directly with other major hospitality players such as Indian Hotels Company Ltd (IHCL) and EIH Ltd. Here’s how they compare in terms of valuation:
- Indian Hotels (IHCL): Trades at an FY26E EV/Ebitda multiple of 31x
- EIH Ltd: Trades at an FY26E EV/Ebitda multiple of 21.2x
- ITC Hotels: Expected to trade at 20-25x EV/Ebitda
This suggests that ITC Hotels’ valuation is in line with industry standards, making it an attractive proposition for investors looking at the hospitality sector.
ITC Hotels Performance Over the Years
ITC Hotels has shown strong financial growth over the past decade:
- Revenue CAGR: 10%
- Ebitda CAGR: 14.6%
- EBIT CAGR: 18%
- Ebitda margin (FY24): 34.4%
Additionally, Average Room Rate (ARR) has grown from ₹7,900 in FY19 to ₹12,000 in FY24, while Revenue Per Available Room (RevPAR) increased from ₹5,200 to ₹8,200 in the same period. The management fee income, a key revenue driver, grew at a CAGR of 21% over the last five years.
Revenue Breakdown for FY24
- Room Sales: 52%
- Food & Beverage: 40%
- Other Revenue Streams: 8%
This diversified revenue mix indicates ITC Hotels’ strong positioning within the premium and luxury hospitality segments.
ITC Hotels Growth Strategy & Future Outlook
Looking ahead, ITC Hotels aims to expand aggressively, targeting:
- 200+ properties with 18,000+ keys by 2030
- Increasing the owned-to-managed property ratio to 35:65
- Revenue CAGR projection (FY24-FY27E): 15%
- Ebitda CAGR projection: 18%
- Projected Ebitda margin: 36% (by FY26-FY27E)
With a debt-free balance sheet and strong cash flows, ITC Hotels is also well-positioned for strategic acquisitions and mergers in the coming years.
Why ITC Hotels Demerger Unlocks Value
The separation of ITC’s hotel business is expected to drive greater efficiency and unlock new investment opportunities. This move allows:
- ITC Ltd to focus on high-margin, core segments like FMCG and agriculture.
- ITC Hotels to operate independently, attract strategic investors, and enhance its valuation multiples.
Brokerage View on ITC Ltd Post-Demerger
Deven Choksey Research has upgraded ITC Ltd from “Accumulate” to “Buy”, citing:
- Better resource allocation
- Increased growth potential for ITC Hotels
- Improved valuation multiples for both entities
Read More: 2025 Upcoming Bollywood Movies: Calendar & Cast Details
Final Thoughts
The listing of ITC Hotels share price marks a significant milestone in the Indian hospitality industry. While ITC Ltd’s stock will adjust for the demerger, ITC Hotels is expected to hold strong as an independent entity, leveraging its brand reputation, premium offerings, and robust expansion strategy.
For investors eyeing the hotel sector, ITC Hotels presents a compelling opportunity given its strong fundamentals and promising growth trajectory. The coming years will be crucial in determining how well ITC Hotels capitalizes on industry trends and expansion plans.
