ITC has approved the demerger of its hotel business to form a new entity called ‘ITC Hotels’. ITC Hotels demerger is expected to be completed by the end of the current financial year, which is March 2024. ITC will hold a 40 per cent stake in ITC Hotels, and the company’s shareholders will hold the remaining 60 per cent proportionate to their shareholding.
ITC Hotels is one of the largest hotel chains in India, with over 100 hotels across the country. The company’s brands include ITC Hotels, Welcomhotel by ITC Hotels, Fortune Hotels, and WelcomHeritage. ITC Hotels’ hotels are located in some of the most popular tourist destinations in India, such as Delhi, Mumbai, Chennai, Kolkata, Agra, Jaipur, and Goa. The company’s hotels offer a variety of accommodation options, from budget-friendly to luxury. ITC Hotels also has a number of restaurants and bars, as well as spa and wellness facilities.
The demerger is a significant step for ITC and its hotel business. It is a sign that the company is committed to growing its hotel business and making it a more successful and profitable part of the company. The ITC hotels demerger is also a positive development for the Indian hotel industry, as it will create a more focused and competitive player.
Key benefits of ITC Hotels demerger
- Increased focus and flexibility: The demerger will allow ITC to focus on its core businesses, such as food and tobacco, and to give the hotel business the flexibility to make its own strategic decisions.
- Improved access to capital: The demerger will make it easier for ITC Hotels to raise capital, which will help it to expand its operations.
- Enhanced brand value: The demerger will help to enhance the brand value of ITC Hotels by giving it a separate identity and allowing it to focus on its own marketing and branding efforts.
- Increased shareholder value: The demerger is expected to increase shareholder value by unlocking the value of the hotel business and by allowing ITC to focus on its core businesses.
Final words
The ITC demerger is expected to unlock value for ITC’s shareholders and give the hotel business greater focus and flexibility. It is also expected to benefit ITC’s other businesses, such as its food and tobacco businesses. It is expected to help ITC Hotels to achieve its full potential and create value for all stakeholders.
Disclaimer : The information contained in this article is for informational purposes only and does not constitute investment advice. The author is not a financial advisor. The author’s opinions are based on their own personal experience and research.