Consolidated net profit at ITC Hotels increased by 40.8% in the fourth quarter of FY25 to ₹257 crore. As a result, this is the first quarter for the company following its split from ITC Limited. The operations produced ₹1,060.6 crore, an increase of 17% from ₹907.3 crore recorded in the previous year's third quarter. The profit before interest, depreciation, and tax (PBIDT) increased by 12.1% to Rs. 365 crore.
ITC Hotels made a net profit of ₹634.5 crore for the entire financial year and earned operational revenue of ₹3,559.8 crore. The nice results were mainly due to growth in room revenue, backed by good performance in retail, contracted bookings, weddings, and airline crew segments. With an average rate per day of ₹12,500 and an occupancy of 73 percent, the hotel's performance improved compared to the previous year, mainly thanks to continued interest and good planning.
For the reported quarter, ITC Hotels increased their room revenue by 16% due to a 14% increase in ADR to ₹15,000 and an occupancy of 79%. The average revenue from each night in a hotel improved by 17%. Most of the company's room additions were agreed upon through management and franchise contracts, which aligns with their asset-light strategy.
Marriott plans to run 220 hotels and offer more than 20,000 guest rooms by 2030. So far, 50 properties with 4,500 keys are facing construction. The target is to move the ratio of rooms owned versus managed from 42:58 to 30:70. With that, the company expects management fee income to more than double by 2030. Over the last two years, ITC Hotels has added 54 new properties and opened 30 hotels operating under its brands.
ITC Hotels is now building its presence in smaller cities, responding to the growing need for premium lodging in those areas. The company's food and beverage segment, including Dum Pukht, Bukhara, and Avartana, also reported solid results. The segment saw impressive growth of more than ten percent during the quarter.
As part of its capital plans, the company focuses on increasing its owned properties. On current projects, Welcomgroup is working towards a greenfield hotel in Puri, a new extension at Welcomhotel Bhubaneswar, and a proposed 200-key hotel in Vizag, which requires more than ₹328 crore and is expected to be completed by 2029. These changes mirror the company's commitment to growing and operating more efficiently.