ITC Hotels announced the acquisition of a luxury resort in Kerala for an enterprise value of ₹205 crore, on a debt-free and cash-free basis. According to reports from Moneycontrol, the 100 percent acquisition of the Kumarakom-based Zuri Hotels & Resorts is expected to be completed 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, located along the banks of the Vembanad Lake, and will be rebranded as a luxury resort under the ITC Hotels brand. As per the latest reports, the property includes 38 villas and cottages, designed around a sprawling five-acre man-made lagoon that mirrors the tranquillity of Kerala's backwaters. This acquisition marks ITC Hotels' first owned property in Kerala, strengthening its presence in India's premium leisure segment and aligning with growing demand for wellness and experiential travel.
The hotel major reported strong financial results for the March quarter, with consolidated net profit increasing 23% to ₹317.43 crore from ₹257.85 crore in the same period last year. As reported by Moneycontrol, revenue from operations grew 18.21% to ₹1,243.88 crore from ₹1,052.24 crore in the year-ago period. The property being acquired had recorded revenue of ₹21.91 crore in FY26, providing a solid foundation for the acquisition. For the full year, net profit rose 39% to ₹888 crore compared to ₹634.57 crore in the previous year, with consolidated revenue from operations increasing 16% year-on-year to ₹4,139 crore. During Q4 FY26, EBITDA stood at ₹466 crore, up 13% year-on-year.
According to the company's release, the Indian hospitality industry recorded steady growth despite challenging operating conditions marked by geo-political events, domestic aviation incidents, and adverse weather conditions. Industry estimates show that while branded hotel room supply increased 7.8 percent year-on-year in CY 2025, demand registered 9.1 percent growth, with hotel occupancies improving to 64 percent, up by 100 basis points. Average Daily Rates (ADR) across branded hotels increased to ₹8,600, representing a robust 8.6 percent growth. As per ITC Hotels, the company delivered robust performance during FY26 amidst a volatile operating environment, with ADRs witnessing year-on-year growth supported by smart revenue management and value-based offers.
At ITC Hotels, ADRs for the year grew by 6 percent and occupancy expanded by 229 basis points, resulting in an overall growth of 10 percent in revenue per available room (RevPAR). As reported by Moneycontrol, the management fee registered 28 percent growth during the year, driven by stabilisation of managed properties and new properties opened during FY26. The company's EBITDA margin (ex-Real Estate) for the year stood at 35 percent and expanded by 148 basis points, supported by higher room yields, management fees, and cost management initiatives. For the full year, operating profit margin improved to 37.49% from 34.65% in the previous year, while PBDT increased 26% to ₹1,619.66 crore. The growth in the food & beverages segment was driven by sustained momentum in banqueting and event catering along with innovative culinary offerings across the hotels.
The company announced a final dividend of ₹1 per equity share of face value ₹1 each for FY26, subject to shareholder approval. According to Moneycontrol, this dividend declaration reflects the company's strong financial performance and commitment to returning value to shareholders despite the challenging operating environment faced by the hospitality sector. As per the latest reports, the company's board recommended a dividend of ₹1 per share for the financial year ended 31st March, 2026.
