ITC Hotels Q3 Performance Highlights: Revenue Growth, Expansion and Sustainability Leadership
ITC Hotels Q3 Performance Highlights: Revenue Growth, Expansion and Sustainability Leadership
ITC Hotels continued its robust growth momentum in Q3, reporting strong financial performance supported by higher occupancy, improved Average Daily Rates (ADR), and disciplined cost management across key markets. According to the company’s latest financial statement, targeted digital distribution initiatives, strategic brand campaigns, and loyalty-led programmes played a critical role in scaling revenues across important locations.
Room Revenue Rises 12% on Corporate, Weddings and MICE Demand
Room revenue during the quarter grew by 12%, led by strong demand from Corporate, Wedding and MICE segments. ADR increased by 9%, while occupancy expanded by 290 basis points, resulting in a consolidated RevPAR growth of 13%.
ITC Hotels also maintained a significant RevPAR premium of 48% over the industry, underlining its strong brand equity, premium positioning, and consistent service standards across its portfolio.
F&B Revenue Grows 8% on Banqueting Momentum
Food and Beverage revenue recorded an 8% year-on-year growth, driven largely by banqueting demand and continued strength in weddings and corporate events. The company highlighted its focus on guest engagement through innovative culinary concepts and elevated dining experiences, which continue to resonate strongly with both leisure and business travellers.
EBITDA Margin Expands to 39% on Operating Leverage
The company reported an EBITDA margin of 39%, expanding by 110 basis points on a comparable basis. Margin improvement was supported by strong growth in Rooms and F&B segments, higher management fees, cost optimisation initiatives, and favourable operating leverage—reflecting disciplined financial management amid expansion.
Renovations Completed to Enhance Guest Experience
Active Asset Management remained a key strategic pillar during the quarter. By early October, ITC Hotels completed planned renovations across several key properties. These upgrades are aimed at enhancing guest experience, improving product quality, refreshing amenities, and introducing contemporary design elements to support higher realisations.
Colombo Mixed-Use Development Gains Momentum
ITC Ratnadipa, along with Sapphire Residences in Colombo, Sri Lanka, continued to scale steadily. The hotel sustained market leadership in RevPAR and turned EBITDA positive for the nine-month period ended 31 December 2025.
A major milestone was achieved during the quarter with the commencement of apartment handovers, marking progress in the residential segment of the mixed-use development.
Sri Lanka’s improving macroeconomic environment further supported growth, with Real GDP expanding 5.4% in Q2 FY26, inflation remaining low at 2.1%, and foreign tourist arrivals reaching 2.4 million in CY2025.
New Premium 5-Star Hotel Planned at Yashobhoomi, Dwarka
India International Convention and Exhibition Centre Limited (IICC Ltd) allotted a land parcel at Yashobhoomi, Dwarka, New Delhi, to ITC Hotels for the development and operation of a premium 5-star hotel on a 91-year lease.
The upcoming property will feature contemporary banqueting facilities and signature cuisine offerings, reinforcing Yashobhoomi’s positioning as a global conventions and marquee events destination. Construction is expected to be completed by 2030.
Expansion Accelerates with 150+ Operational Hotels
Aligned with its Asset-Right strategy, ITC Hotels continues to expand through partnerships with asset owners, particularly across Tier-II and Tier-III cities, where demand for premium hospitality is rising.
During the quarter, new hotels were opened in Bodh Gaya, Rishikesh, Siliguri, Sirmaur, Dungarpur, and Jaipur. In CY2025, the company signed 28 hotels with 2,790 keys, reflecting 26% growth over CY2024. It also crossed a key milestone of 150 operational hotels with over 14,000 keys.
Sustainability Leadership Reinforced with Global Recognition
Sustainability remained central to ITC Hotels’ growth strategy. During the quarter, the company was recognised as the World’s Leading Sustainable Organisation and the World’s Leading Sustainable Employer at the World Sustainable Travel & Hospitality Awards 2025.
Additionally, ITC Narmada, Ahmedabad and Welcomhotel Bhubaneswar achieved LEED Zero Water certification. ITC Hotels stated that it holds the largest number of LEED Platinum certifications globally, with 23 hotels, and is the first hospitality company worldwide to have 12 LEED Zero Carbon and 11 LEED Zero Water certified hotels.
Conclusion
ITC Hotels’ Q3 performance reflects a strong combination of revenue growth, margin expansion, strategic asset management, and accelerated expansion. With a robust pipeline, renewed focus on premium experiences, and industry-leading sustainability credentials, the company remains well-positioned to capitalise on rising domestic and international travel demand.
