
In a bold move signaling confidence in India’s booming hospitality sector, ITC Hotels has unveiled an aggressive expansion strategy, aiming to scale up from 30 hotels added in the last 24 months to 200 hotels in the coming years.
Sanjiv Puri, Chairman of ITC, shared this vision during a recent interview, emphasizing the immense growth potential of the Indian hospitality industry and the company’s commitment to capitalizing on this opportunity.
A Legacy of Excellence and a Vision for Growth
ITC Hotels, a brand synonymous with iconic properties, world-class cuisines, and unparalleled service standards, has been a cornerstone of India’s hospitality sector for decades.
The company’s recent success in serving at the G20 summit further cemented its reputation as a leader in the industry. According to Puri, the foundation of ITC Hotels is built on creating value for all stakeholders—customers, employees, and society at large.
“We have a strong foundation, and the opportunity in India is immense,” Puri stated. “With the government’s interventions transforming the economy into a vibrant one, infrastructure development, and the rise of leisure tourism, the hospitality sector is poised for exponential growth.”
India’s Hospitality Boom: A Supply-Demand Mismatch
Puri highlighted the significant supply-demand gap in India’s hospitality sector. With only 270 hotel rooms per million people, India lags far behind the global average of 6,900 rooms per million and even trails neighboring countries, which boast between 2,000 to 4,000 rooms per million. This disparity, coupled with India’s growing economy and improved infrastructure, presents a golden opportunity for expansion.
“Delhi is a prime example of how global-standard convention facilities, air connectivity, and road and rail networks have transformed the landscape,” Puri noted. “The trend of leisure tourism and the ability to take breaks during non-holiday periods are further driving the industry forward.”
From One Hotel Every Two Months to Rapid Acceleration
ITC Hotels has already demonstrated its ability to scale rapidly, opening 30 hotels in the last two years—a significant leap from its earlier pace of one hotel every two months. The company now aims to accelerate this growth, targeting 200 hotels in the near future.
“We are confident in our ability to scale up,” Puri said. “The pace of expansion will only increase as we move forward.”
What’s in Store for Shareholders?
With the recent demerger of ITC Hotels and its listing on the stock exchange, shareholders are keen to understand what lies ahead. Puri assured stakeholders that the hospitality sector offers tremendous growth potential, and ITC Hotels is well-positioned to capitalize on it.
“Our philosophy is rooted in creating stakeholder value,” Puri explained. “When our customers, employees, and society win, ITC Hotels wins. This approach will continue to drive economic value for all participants.”
Synergy Between ITC and ITC Hotels
Despite the demerger, ITC will remain a strong supporter of ITC Hotels, holding a 40% stake in the company. Puri emphasized the power of synergy between the two entities, which has historically created significant value for stakeholders.
“The hotel business is now mature, with immense growth potential,” Puri said. “As a pure-play entity, ITC Hotels can accelerate its growth while continuing to benefit from the synergy with ITC.”
Looking Ahead: ITC’s Broader Strategy
While the demerger of ITC Hotels marks a significant milestone, Puri hinted that ITC’s broader strategy will continue to evolve based on business maturity, competitive context, and market opportunities.
“Our approach to structuring depends on the business strategy and the competitive landscape,” Puri said. “We evaluate the pros and cons of every option to determine the best path forward.”
India’s Moment in History
Puri concluded by underscoring India’s pivotal role in the global economy. “This is India’s moment in history,” he said. “The world is looking towards India, and we are committed to playing a leading role in this transformation.”
As ITC Hotels embarks on its ambitious expansion journey, the company is not just building hotels—it is shaping the future of India’s hospitality industry, one iconic property at a time.