Today marks a momentous occasion as we gather for the first time following the company’s historic listing on the stock exchanges. This is yet another milestone in the illustrious journey of your company, as we stride with purpose and confidence towards shaping a trailblazing future. Indeed, our rich legacy of iconic properties rooted to the soil and culture of India, globally acknowledged cuisines and service excellence position us uniquely to build an even more glorious tomorrow. As we do so, your company is committed, as always, to the spirit of compassionate capitalism that is manifest in your company’s pioneering ethos of Responsible Luxury.
We stand today at a transformative juncture as significant opportunities unfold for the tourism and hospitality sector. ITC Hotels is well poised to script a new chapter with sharp strategic focus, enhanced agility, soulful hospitality and a commitment to long-term value creation — one that aspires to deliver enduring value to all its stakeholders, while reinforcing its position as a leader in Responsible Luxury. In this quest for excellence, it will continue to benefit from the synergy of ITC’s institutional strengths and goodwill.
The Global Context and India’s Resurgence
As we chart new pathways, we do so in a world confronted with unprecedented challenges. Geo-political conflicts, geo-economic fragmentation and the accelerated climate crisis, pose new risks to economic progress and call for reimagined strategies to win the future.
In such a context, it is a matter of pride to witness the rise of India as the fastest-growing major economy. Indeed, the Prime Minister’s vision to build an Atmanirbhar Bharat is today inspiring India’s transformation into an economic, strategic and technological powerhouse. Today’s turbulent world calls for nations to invest in innovation & technology to emerge as strong, self-reliant economies. In this context, India’s unique structural drivers such as a young demographic profile, rising disposable incomes, rapid urbanisation, technological prowess, and the spirit of entrepreneurship will enable us to sustain and strengthen our competitive edge. The Hospitality industry is poised for strong growth particularly due to a confluence of economic multipliers such as rising societal aspirations, the growing stature of India as an attractive investment destination, increasing connectivity, strong macros, proactive policy interventions as well as digital transformation.
In these remarks, I would like to share some of the aspects of this potential that will propel your company in the years ahead. Before I do so, let me provide some key highlights of the year gone by.
ITC Hotels – Stellar Performance
- ITC Hotels delivered a stellar performance driven by its commitment to superior guest experiences, operational excellence and smart revenue management, aided by sustained demand across key markets.
- Total Income stood at over Rs 3,300 crore for the year. EBITDA margin expanded to 36%, driven by structural efficiencies and all-round growth.
- Food & Beverages segment grew well on the back of your company’s innovative and signature culinary offerings, strategic refresh of key outlets, as well as strong performance in MICE and bespoke events.
- Your company signed 30 management and franchise contracts last year, contributing to a healthy pipeline of 58 hotels with over 5,300 keys and is well on way to cross our target of 200 hotels by 2030.
- ITC Hotels continues to achieve best-in-class operational performance and guest service standards in addition to high customer satisfaction online ratings.
- Your company continues to raise the bar in sustainability, inspired by its credo of Responsible Luxury. Today, we have 23 LEED Platinum® certified green properties, the largest number by any hotel chain in the world. Spearheading the next horizon, 12 iconic hotels became the first in the world to achieve LEED® Zero Carbon certification, while 9 hotels also achieved the global-first LEED® Zero Water distinction. Your company is also the first hotel chain in India to receive the prestigious 2024 US Green Building Council – Leadership Award for Organizational Excellence. ITC’s premium luxury hotels have also surpassed the 2030 GHG sectoral emission targets consecutively for the 5th year, in line with the COP21 Paris Agreement.
This robust performance encourages us to pursue an even stronger growth trajectory, as exciting opportunities open up in the years ahead.
World-Class Hospitality, the Indian Way
The travel, tourism and hospitability sector in India is today riding a wave of resurgence. International visitor spends touched a record Rs 3.1 trillion in 2024. Domestic travel spends reached Rs 15.5 trillion, 22% above 2019 levels. As per the World Travel and Tourism Council, the direct economic contribution of the Travel & Tourism sector to the Indian GDP in 2024 was around Rs 21 trillion, contributing 6.6% to the overall GDP of the country and creating over 46 million jobs. Estimates suggest that this sector is likely to contribute 10% of the country’s GDP by 2030 and as a major employment multiplier could support over 100 million jobs by that year. Recent reports suggest that air passenger traffic in India at 211 million in 2024 surpassed Japan and is fast closing in on Spain, as the nation gains from a growing domestic network, airport infrastructure expansion, and strong travel demand.
India’s hospitality sector has huge headroom to grow with only 0.3 rooms per thousand population compared to the world average of 2.2 rooms. The country’s tourism and hospitality sector holds immense potential, given its rich cultural heritage, diverse landscapes and expanding infrastructure. India is home to 44 UNESCO World Heritage Sites, attracting foreign tourists. The country is witnessing a surge in Nature & Adventure Tourism, Culture & Cuisine Tourism, Religious & Spiritual Tourism, Medical Tourism, among others. The growing MICE segment, supported by world-class convention centres such as Yashobhoomi and Bharat Mandapam, is enhancing India’s position as a preferred business tourism destination. The Government’s initiatives to promote tourism by developing 50 top tourist destinations in partnership with states, is indeed welcome and will be a major multiplier of employment.
The rising aspirations of a young and globalised Indian population have also led to a significant increase in the quest for unique travel experiences. With increasing international connectivity, greater exposure and a growing desire to explore new destinations, today’s travellers seek deeper and more meaningful experiences that connect with the culture and character of a place.
Your company is well positioned to tap these emerging opportunities. Today, it is a matter of pride that your company is amongst the fastest growing hospitality chains in the country with over 140 properties across 90 locations under six distinctive brands – ITC Hotels in the Luxury segment, Mementos in the Luxury Lifestyle segment, Welcomhotel in the Upper Upscale segment, Storii in the Boutique Premium segment, Fortune in the Mid-market to Upscale
segment and WelcomHeritage in the Leisure and Heritage Segment. ITC Ratnadipa in Colombo, the company’s first international foray, is symbolic of our ambition to take Indian hospitality to global shores. In line with our aspiration to venture into proximal geographies, we have established our presence in Nepal as well.
Our hotels have always been the preferred choice for distinguished guests including Heads of States, whilst specially curated cuisines have enthralled dignitaries at global events like G20, bringing pride to the nation. The signature cuisine brands of ITC Hotels including the iconic Bukhara, the innovative Avartana, unique dining experiences at Dum Pukht, Yi Jing, Ottimo, and Royal Vega continue to delight discerning guests and also earn accolades from India and abroad. Our world-class chefs are committed to crafting innovative and novel offerings with the finest in culinary artistry, spanning global and Indian cuisines.
I am confident that the company’s ‘asset-right’ strategy will further accelerate growth and competitiveness in the years ahead. The equity of your company’s iconic brands have resulted in a healthy generation of leads with a robust pipeline of potential management contracts. The company’s presence has also expanded to Tier 2 and 3 cities, leveraging the increasing demand for premium hospitality. To drive superior guest experiences and strengthen operational efficiency, your company has made significant investments in digital adoption including AI. I expect that your company will be enriched with a portfolio of 220 operational hotels with over 20,000 keys by 2030.
Conclusion
Today, as we celebrate this momentous occasion, I would also like to commend the entire team at ITC Hotels who uphold the timeless philosophy of ‘Atithi Devo Bhava’ with commitment and dedication that gives me enormous pride. Our talent is indeed one of our most valuable assets which we nurture through unique learning and development opportunities.
On behalf of the Board and my own, I would like to take this opportunity to thank our esteemed shareholders, valuable partners and cherished guests for their unwavering support and belief in this remarkable journey. I am sure with your encouragement and goodwill, ITC Hotels will further enrich its proud legacy — a legacy founded in trust, guided by innovation, and deeply committed to sustainable excellence.
