ITC Hotels eyes overseas expansion
NEW DELHI: ITC plans to expand its hotel business internationally, beginning with neighbouring countries and West Asia, its Chairman and Managing Director Sanjiv Puri said.
The cigarettes-to-consumer goods conglomerate has demerged its hotels division and the new company will list on bourses in the next couple of weeks. The date of ITC Hotels Ltd listing is yet to be announced but Puri said it will happen in “next few weeks”.
India’s most-valued consumer company selling a wide variety of goods from cigarettes to paper, also operates 140 hotels, almost all of them in India. ITC’s shareholders will own 60 per cent in the new unit, with the parent company retaining the rest. “So as far as overseas is concerned, we are starting to (expand). We have been India-centric, but we have started to go beyond India. We have a hotel in Colombo. We have one in Nepal. There is one more in Nepal that we have signed up for.
“And over a period of time, we will expand (overseas), primarily more focused on proximal market, West Asia, and over time, we will look at beyond that also. Or, if specific interesting opportunities come out, we will explore those as well,” Puri said in an interview.
ITC is targeting to grow its portfolio from 140 to over 200 hotels across India. Previously operating as a division of the larger ITC conglomerate, the hotel business will now gain operational autonomy after the demerger.
ITC Hotels currently boasts 140 properties with 13,000 rooms, of which 45 per cent are owned and 55 per cent are operated through management contracts. The company is shifting further towards an asset-light growth model, focusing on management agreements to increase its market presence.
Puri said the overseas expansion will be managed and franchisee model.
Asked how ITC plans to counter competition from well-entrenched foreign players, he said the group brings a unique proposition to the table -- its hotels being a favourite of foreign dignitaries visiting India.
“We have iconic cuisine that is acknowledged globally,” he said. “I am told, a lot of foreigners who come to India first book a table at Bukhara (restaurant at ITC Maurya in New Delhi). So we have iconic cuisine, we have iconic service standards. I think we’re well known for that.”
ITC Hotels stands out for its green credentials, with all properties meeting Paris 2030 emissions targets. The group opened its first Sri Lanka hotel and aims to expand to 200 hotels.
