ITC Hotels Ltd has signed a definitive agreement to acquire 100% ownership of GHK Hospitality and Infrastructures Ltd, which owns the Welcomhotel Ahmedabad. The enterprise value of the acquisition is Rs 155 crore on a debt-free and cash-free basis subject to customary adjustments. The completion of the transaction is scheduled within the second quarter of FY27, which includes July to September 2026, according to ETHospitalityWorld.
Welcomhotel Ahmedabad Features and Strategic Location
Welcomhotel Ahmedabad is a 130-room upper-upscale business hotel located on Ashram Road, the commercial heart of Ahmedabad. The hotel offers 8,500 square feet of banqueting space, a restaurant featuring Indian and global cuisine, and a
rooftop swimming pool. Its location overlooks the Sabarmati Riverfront and lies near Ahmedabad International Airport and the Narendra Modi Stadium.
ITC Hotels’ Financial Performance in Q1 FY27
ITC Hotels reported a consolidated net profit of Rs 181.91 crore for the first quarter of FY27 ended June 30, 2026, marking a 36% increase from Rs 133.71 crore in the same period in the previous year. Revenue from operations rose by 15% year-on-year to Rs 936.02 crore. The hotel business segment revenue specifically saw a 10% growth, driven by strong retail demand.
Official Statements and Strategic Rationale
Anil Chadha, Managing Director of ITC Hotels Ltd, said the acquisition will add an owned property in
one of India’s fastest growing urban centers. He emphasized that moving Welcomhotel Ahmedabad from a managed contract to full ownership allows ITC to unlock greater value from the asset. He highlighted Ahmedabad’s commercial and industrial growth supported by infrastructure investments and diversified demand as factors making the property an attractive investment.
Ahmedabad’s Economic and Industry Context
Ahmedabad ranks among India’s top eight urban economies by GDP and benefits from prominent corporations and industrial corridors such as Dholera, GIFT City, and Sanand. The city’s hospitality demand is diversified across corporates, MICE, industrial activities, and sports events. Despite some demand softness in April 2026 due to external
disruptions, the hospitality sector saw recovery in the following months.
Acquisition Timeline and Integration
The acquisition is expected to be completed within the current quarter, Q2 FY27, ending in September 2026. Welcomhotel Ahmedabad is currently operated by ITC Hotels through an operating services agreement. With this acquisition, ITC Hotels aims to bolster its owned asset portfolio across all branded hospitality segments and price points in Ahmedabad.
