Newsletter
ITC finally announced it will officially spin out its coveted hotels business as a standalone unit on January 1st, 2025.
What matters: investors have long awaited this move, which aims to separate the more attractive hospitality business from ITC’s slow-growing tobacco as well as FMCG segment.
Quick snapshot of the Hotels business:
• Operates nearly 140 properties across India, with 13,000 keys under six distinct brands
• 45% of the rooms are owned, while 55% are managed
• The business generated ₹3,103 crore in sales and ₹765 crore in operating profit
Investors who hold 10 ITC shares will receive 1 share of the hotel business when the demerger goes through.
Zoom out: several major hotel IPOs set to launch in the coming months, including Leela, Ventive, and Brigade Hotels.
