ITC Hotels and its strategic plans following the demerger from ITC Limited:

ITC Hotels and its strategic plans following the demerger from ITC Limited:

🔄 Overview of Demerger:

• 📅 Effective Date: January 1, 2025

• 📈 Record Date for Share Allocation: January 6, 2025

• Post-demerger, ITC Hotels will operate independently, focusing exclusively on the hospitality sector. About 60% of ITC Hotels' equity shares will be directly held by ITC shareholders, with the remaining 40% still held through ITC.

🏨 Business and Financial Outlook:

• 🔏 Trademarks and Intellectual Property: Key trademarks and intellectual properties related to the hotel business, like 'ITC', 'Bukhara', 'Dum Pukht', and 'Dakshin', will be transferred to ITC Hotels under a licensing agreement.

• 💰 Cash and Assets: ITC Hotels will start with a cash reserve of Rs. 1500 crores to support growth and operational needs. Key properties and assets will also be transferred to the new entity.

📈 Growth and Strategy:

• 🛎️ Brand Strategy: Continued investment to enhance brand equity, focusing on signature cuisines and luxury experiences. The strategy also includes capital productivity and leveraging digital platforms for customer engagement and revenue management.

• 💵 Capital Investments: Plans for renovations, ongoing projects, and new developments are projected to be around 8-10% of revenue cumulatively.

• 🎯 Growth Targets: Ambitious growth targets include a robust pipeline of managed hotels, aiming for 200+ hotels with 18,000+ keys over the next five years, emphasizing brownfield assets and inorganic growth opportunities through mergers and acquisitions.

💹 Financial Performance:

• 📊 Revenue Growth: ITC Hotels has shown significant revenue growth over the years, with a substantial contribution expected from new and recently launched properties like ITC Ratnadipa in Colombo.

• 📉 EBITDA and Revenue: For H1 FY25, ITC Hotels reported a revenue of Rs. 1471 crores with an EBITDA of Rs. 413 crores, indicating strong operational performance and profitability.

🌟 Key Projects and Developments:

• 🌐 ITC Ratnadipa, Colombo: This property is highlighted as a key development, featuring luxury apartments and a strong focus on retail and banquet spaces, expected to be a significant contributor to revenue and EBITDA going forward.

This analysis provides a comprehensive view of ITC Hotels' strategic direction, financial health, and growth prospects post-demerger, making it a potentially attractive option for investors focused on the hospitality industry.