ITC Hotels Acquires Luxury Resort in Kerala for Rs 205 Crore

ITC Hotels Expands Luxury Portfolio with Acquisition of Zuri Hotels & Resorts

ITC Hotels has announced the acquisition of a luxury resort in Kerala for an enterprise value of Rs 205 crore on a debt-free and cash-free basis. The 100 percent acquisition of the Kumarakom-based Zuri Hotels & Resorts is expected to be consummated over the next few days, enabling ITC Hotels to expand its luxury portfolio.

The 72-key resort is spread over 18 acres of landscaped greenery, along the banks of the Vembanad Lake, and will be rebranded as a luxury resort under the “ITC Hotels” brand. The property had recorded a revenue of Rs 21.91 crore in FY26.

ITC Hotels Reports Strong Growth in March Quarter

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The hotel major also reported a 23 percent uptick in consolidated net profit to Rs 315.8 crore in the March quarter from Rs 257 crore in the same period last year. Its revenue from operations grew 18.2 percent to Rs 1,253.7 crore from Rs 1,060.6 crore in the year-ago period.

Indian Hospitality Industry Sees Steady Growth

Despite a challenging operating environment, marked by geo-political events, domestic aviation incidents, and adverse weather conditions, the Indian hospitality industry recorded steady growth. As per industry estimates, while the supply of branded hotel rooms across the country increased by 7.8 percent year-on-year in CY 2025, demand registered an increase of 9.1 percent. During the same period, hotel occupancies improved to 64 percent, up by 100 basis points, while Average Daily Rates (ADR) across branded hotels increased to Rs 8,600, representing a robust 8.6 percent growth.

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ITC Hotels Delivers Strong Financial Performance

At ITC Hotels, ADRs for the year grew by 6 percent and occupancy expanded by 229 bps, resulting in an overall growth of 10 percent in revenue per available room (RevPAR). Its management fee registered a growth of 28 percent during the year, driven by the stabilisation of managed properties commissioned in the previous years, along with new properties opened during FY26, and a full-year contribution from ITC Grand Central.

The company's EBITDA margin (ex-Real Estate) for the year stood at 35 percent and expanded by 148 bps, on the back of higher room yields, management fees, and cost management initiatives.

Dividend Announcement

The company also announced a final dividend of Rs 1 per equity share of face value Rs 1 each for FY26, subject to shareholder approval.