ITC Hotels achieves record Q2 performance and continued growth, a new brand for Ettravelworld begins

ITC Hotels posted a strong performance for the quarter ending September 2025, achieving its highest ever second quarter revenue and profitability. The company’s ‘asset-right’ growth strategy, operational excellence and sustainability initiatives continued despite seasonal softness and less favorable wedding dates.

Financial performance:
During Q2 FY26, ITC Hotels grew 16 per cent to INR 246 crore and 74 per cent to INR 133 crore from operations of INR 839 crore, a year-on-year growth of 839 crore. On a comparable basis, EBITDA grew 22 percent. The company maintained an impressive EBITDA margin of 31 percent, reflecting efficiency and cost discipline.

Room revenues saw a strong match between the retail, corporate and mouse segments. The average daily rate (ADR) increased by 6 percent, jobs expanded by 254 basis points, resulting in a 9 percent increase in Revpar and an 11 percent increase in the rate of 11 percent. ITC hotels continued to command a Revpar premium of 40 percent of the industry average.

Operational points:
The company’s food and beverage (F&B), ITC Maurya at IMT Maurya and Imtura at ITC Maurya and Signature Restaurants at Dum Pukht and Edo at Dum Pukht launched a high-base, ‘EPIQ Collection – Member Hotels’ group Premiumization journey through Transformation and new developments. The first two EPIQ collection hotels—Puri (118 rooms) and Tirupati (201 rooms)—are slated to be added to the company’s extensive portfolio over the next two years. In the medium term, ITC Hotels plans to add around 1,000 buttons under this new brand.

ITC has expanded its hotel portfolio to 207 hotels, including 146 in operation and 61 in the pipeline. New properties in Patna, Hyderabad, Tirupati, Waydanad, Nellore and Mantralayam have been signed in mantralayam, strengthening its presence in Tier-II and Tier-III markets. Recent openings include Fortune Kochi and Welcomhotel Bodh Gaya, Upcoming projects are planned in Wayanad and Kakkanad.

International and sustainability milestones:
The company’s first international property, ITC RatnadiPa in Colombo, launched in 2024, drove Revpar’s continued market leadership and delivered positive EBITDA results in Q2 FY26. Sri Lanka’s hospitality sector continues to recover strongly, recording 1.7 million foreign arrivals in the first nine months of 2025.

Strengthening its leadership in responsible luxury, ITC Hotels is increasing the use of renewable energy in its portfolio of 3.3 MW wind turbines in Gujarat. The company has the most Leed Platinum-Certified hotels, with 23 hotels achieving this distinction. ITC hotels are also among the top 12 LEED Zero Carbon and top 9 LEED Zero Water certified properties in the world.

Customer engagement and loyalty:
It recently introduced a redesigned club loyalty program with the ICC loyalty program, which seamlessly integrates with the culinary program for guest engagement, staged profits, stage rewards and makeup.

Looking ahead, ITC Hotels remains well-positioned for continued growth, powered by its asset-light model, expanding presence in emerging markets and an unwavering commitment to sustainable hospitality.

Join the 2M+ community of industry professionals.

Subscribe to the newsletter to get the latest insights and analysis in your inbox.

EttravelWorld industry on your smartphone.