ITC Hotels Ltd reported a consolidated net profit of ₹181.91 crore for Q1 FY27 ended June 30, 2026, a 36% rise from ₹133.71 crore in Q1 FY26. Consolidated revenue from operations increased 14.8% year-on-year to ₹936.02 crore, driven by a 10% rise in hotel business revenue to ₹881.06 crore. EBITDA grew 19.6% to ₹292.3 crore with a margin improvement to 31.2%. Hotel segment EBIT grew 22.8% year-on-year to ₹176.54 crore, while branded residences EBIT was ₹13.22 crore.
ITC Hotels Signs Agreement to Acquire GHK Hospitality
ITC Hotels Ltd signed a definitive agreement to acquire 100% stake in GHK Hospitality and Infrastructures Ltd, owner of Welcomhotel Ahmedabad, for an
enterprise value of ₹155 crore on a debt-free, cash-free basis. The investment will be via primary subscription and secondary purchase of equity shares, with completion expected within Q2 FY27.
Details of Welcomhotel Ahmedabad and Location
Welcomhotel Ahmedabad is a 130-room upper-upscale business hotel with 8,500 square feet of banqueting spaces, a restaurant serving Indian and global cuisines, and a rooftop swimming pool. It is located on Ashram Road, overlooking the Sabarmati Riverfront, near Ahmedabad International Airport and Narendra Modi Stadium. Prior to acquisition, ITC Hotels operated the hotel under an operating services agreement.
Management’s View on Strategic Importance
Anil Chadha, Managing Director of ITC Hotels Ltd, said, “The acquisition of this
hotel will mark another milestone in pursuit of the company’s growth aspiration by adding another owned property in one of the fastest growing urban centres of India.” He added, “Transitioning this established 130-room property from a managed contract to full ownership allows us to unlock greater value from the asset.” Chadha highlighted Ahmedabad’s strong infrastructure, diversified demand, and business fundamentals that provide opportunities for higher occupancy and yield.
Sector Context and Ahmedabad’s Economic Role
The Indian hospitality sector faced soft demand in April 2026 due to West Asia conflict-related air travel disruptions, impacting foreign tourist arrivals, with recovery in May and June. Ahmedabad is among India’s
top eight urban economies by GDP, supported by corporate and industrial growth in corridors including Dholera, GIFT City, and Sanand. GHK Hospitality’s FY26 turnover rose 12.6% to ₹35.16 crore from ₹31.23 crore in FY25. The acquisition expands ITC Hotels’ owned asset portfolio in Ahmedabad across branded hospitality market segments and price points and reduces time-to-market compared to greenfield investment.
