ITC Hotels Ltd. is projected to grow its revenue at a compound annual growth rate (CAGR) of 15% over the next three to four years, according to Prashant Biyani, sector lead at Elara Securities. The growth will be driven by hotel expansion and luxury residential sales at ITC Ratnadipa in Sri Lanka.
🔴 Key Highlights:
- Revenue forecast for FY28: ₹5,300–5,400 crore, with an EBITDA of ₹2,000–2,100 crore.
- Margin expansion of 300–400 basis points expected due to a shift towards managed contracts, which will make up 65% of ITC Hotels’ portfolio by FY30.
- Luxury residential sales will contribute to high-margin revenue growth.
📢 ITC Hotels’ Business Model:
- Managed hotels offer 80% EBITDA margins, while owned hotels generate 33–37% margins but deliver higher absolute EBITDA.
- Cash reserves of ₹1,500–1,600 crore, boosted by a ₹1,500-crore infusion post-demerger.
⚠️ Future Outlook:
- Occupancy rates rising due to new property launches and renovations.
- Elara Securities sets a target price of ₹230 per share, factoring in hotel and real estate businesses.
👉 Will ITC Hotels achieve its ambitious growth target? Let us know in the comments!
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