ITC Hotels Ltd announced a 36% rise in consolidated net profit to ₹181.91 crore for the quarter ended June 30, 2026, up from ₹133.71 crore in the same period last year, according to ET RealEstate. Consolidated revenue from operations grew 15% year-over-year to ₹936.02 crore, compared with ₹815.54 crore in the previous fiscal year. Total expenses increased to ₹750 crore from ₹674.9 crore during the same quarterly period. The hotel business segment alone contributed ₹881.06 crore in revenue, rising from ₹800.57 crore year-on-year, with room revenue up 8%, led by retail demand offsetting a strong prior year base in meetings,
incentives, conferences, and exhibitions (MICE) and weddings segments.
ITC Hotels Acquires GHK Hospitality and Welcomhotel Ahmedabad
ITC Hotels signed a definitive agreement to acquire 100% ownership of GHK Hospitality and Infrastructures Ltd for an enterprise value of ₹155 crore on a debt-free and cash-free basis, subject to adjustments. GHK Hospitality, a public limited company registered in Ahmedabad, owns Welcomhotel Ahmedabad, a 130-room upper-upscale business hotel located on Ashram Road in Ahmedabad’s commercial district. The hotel is currently managed by ITC Hotels under an operating services agreement. Welcomhotel Ahmedabad offers 8,500 square feet of banqueting facilities, an on-site restaurant featuring Indian and international cuisine, and a rooftop swimming pool.
The acquisition is expected to close within the fiscal quarter ending September 30, 2026.
Strategic Rationale and Market Context
Ahmedabad ranks among India’s top eight urban economies by GDP and benefits from industrial corridors such as Dholera, GIFT City, and Sanand. The city’s expanding commercial base and infrastructure projects support strong, year-round hospitality demand driven by corporate growth, MICE, and sporting events. The hotel is strategically situated near Ahmedabad International Airport and the Narendra Modi Stadium. ITC Hotels aims to extend its owned asset portfolio in Ahmedabad across all branded hospitality segments and price points by acquiring this property. The full ownership acquisition enables ITC
Hotels to move beyond a managed contract, aiming to unlock enhanced value, improve yield, and increase long-term cash flow from the asset.
ITC Hotels Managing Director on Acquisition Significance
Anil Chadha, Managing Director of ITC Hotels Ltd, said the acquisition marks another step in the company’s growth strategy by adding an owned property in one of India’s fastest growing urban centers. 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 emphasized Ahmedabad’s dynamic commercial environment, supported by infrastructure investments and diversified demand, which provides opportunities for higher occupancy and yields over time.
Market Environment for Q1 FY2027
The Indian hospitality sector experienced demand softness in April 2026 due to disruptions linked to West Asia conflicts, affecting travel sentiment and foreign arrivals. However, recovery was swift in May and June 2026 as occupancy rates and room pricing rebounded. ITC Hotels’ robust financial results reflect this resilience. GHK Hospitality reported a 12.6% turnover growth to ₹35.16 crore in financial year 2026 from ₹31.23 crore in FY25, underscoring the property’s positive operating momentum ahead of the acquisition.
