ITC Hotels has completed the acquisition of Zuri Hotels and Resorts for ₹205 crore, with an upfront payment commitment of up to ₹175 crore, as reported by CNBC TV18. The transaction was completed on May 19, 2026, making Zuri Hotels and Resorts a wholly-owned subsidiary of ITC Hotels. The acquisition has an enterprise value of ₹205 crore on a cash-free, debt-free basis, which includes repayment of debts and other customary adjustments. This strategic move represents a calculated step toward dominance in the Indian luxury resort market, with ITC Hotels now controlling the Zuri brand's flagship properties in Goa and Kumarakom.
The acquisition strengthens ITC Hotels' luxury portfolio through established, high-performing assets in prime locations including Goa, Kumarakom (Kerala), and Bengaluru, significantly boosting their leisure portfolio. According to reports from CNBC TV18, the company plans to renovate the resort and rebrand it as a luxury resort, positioning it as a premier destination for leisure and high-profile MICE activities by leveraging ITC Hotels' institutional strengths. The deal size of ₹205 crore represents a targeted deployment of capital into cash-flow-positive luxury assets, with the acquisition expected to be margin-accretive due to Zuri's established occupancy levels and ADR.
Anil Chadha, Managing Director of ITC Hotels Limited, described the acquisition as a strategic cornerstone in expanding ITC Hotels' footprint into one of India's most sought-after leisure destinations, as reported by CNBC TV18. He emphasized that by integrating this iconic resort into their portfolio, they aim to elevate the guest experience through their globally recognized culinary excellence and world-class Ayurvedic wellness offerings. According to a press release on NSE, Chadha stated that the acquisition of this exclusive property in Kumarakom marks a strategic cornerstone in their journey to expand ITC Hotels' footprint.
Shares of ITC Hotels closed at ₹155.84, up ₹2.00 or 1.33% on NSE following the announcement, according to CNBC TV18. The positive market reaction reflects investor confidence in the company's strategic expansion into the luxury hospitality segment through this acquisition. ITC Hotels recently finalized its demerger from parent ITC Ltd, listing as a standalone entity in early 2025, and has reported 15% YoY growth in RevPAR (Revenue Per Available Room) over the last 90 days. The company announced plans to add 2,000 rooms over the next two years through a mix of management contracts and strategic acquisitions, demonstrating strong execution of its capital allocation policy post-standalone listing.
