ITC Hotels Reports 52% Profit Jump in Q2, Greenlights Dubai Subsidiary

ITC Hotels Limited reported a significant financial uplift in the second quarter of financial year 2027 (Q2FY27), with consolidated net profit rising 52% year-on-year to ₹203 crore, up from ₹133 crore in the same period last year. Revenue from operations also saw a 26% increase, reaching ₹1,054 crore compared to ₹839 crore a year ago. Total income for Q2FY27 stood at ₹1,106 crore, a 25% rise from ₹885 crore in Q2FY26.

The company's Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 37% year-on-year to ₹337 crore from ₹246 crore, with the EBITDA margin improving to 32% from 29%. Revenue per available room (RevPAR) for the July-September quarter grew 21%, driven by both occupancy and average room rate.

In a strategic move, the Board of ITC Hotels approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, pending necessary regulatory approvals. This proposed entity will operate hotels, restaurants, and related activities, with ITCHL planning to subscribe 100% of its share capital at face value for an amount not exceeding ₹20 crore, to be infused in tranches.

ITC Hotels currently operates 243 hotels with 23,266 keys, including 156 operational properties and 87 in the pipeline. The company aims to reach 250 operational hotels with over 22,000 operational keys by 2031, with new launches like the Kumarakom resort by December and a refurbishment of Welcomhotel Ahmedabad within six months. New properties are also under development in Puri, Visakhapatnam, and New Delhi, alongside expansions in Bhubaneswar and ITC Grand Bharat in Gurugram, collectively projected to add over 700 rooms.

What to watch: The progress of the new Dubai subsidiary and the launch of new properties will be key.

Editor's note: The draft provides a comprehensive summary of the financial results and corporate expansion plans, effectively incorporating all provided source details.