ITC Hotels share price hits 52-week high: Key reasons behind the rally

With the holiday season approaching, listed companies with businesses in hotels, airlines and railways are seeing a surge in their trading counters.

On Friday, shares of ITC Hotels soared 5.30% during the intraday period to ₹192.54 apiece on the National Stock Exchange.

The scrip touched a 52-week high of ₹193.27 during the session. Its market capitalisation stood at ₹40,070.87 crore, as per NSE data.

As per reports, various companies have been added to the FTSE All World Index. ITC Hotels was among one of the firms to be added. Its weightage was also seen at $52.6 million, which will lead to higher inflows.

The Indian equity markets are likely to see inflows between $1.4 billion and $1.6 billion after closing on March 21, reports added. As many as 14 companies make it to the global index provider FTSE's All-World Index following the latest rebalancing on Friday.

Last month, global brokerage firm Jefferies had revised its outlook for the hotel, highlighting its strong franchise, diversified brand portfolio and robust financial position.

Jefferies in its report had said it expects ITC Hotels' occupancy rates to rise from approximately 75% by financial year 2027 from 69% in financial year 2024, with a RevPAR CAGR of 9% over the same period.

Jefferies sees increased demand for travel and tourism to be sustained over FY24-FY27 and therefore ITC Hotels to report steady growth over the next few years. “We expect 15% EBITDA CAGR for the hotels business driving total EBITDA CAGR of 16% over FY24-FY27e,” it had said.

Shares of ITC Hotels have been in market investors’ focus since its listing. Over a month’s time, the stock has jumped almost 18%. Since its listing on January 29 this year, the scrip has gained 12.3% till Friday’s intraday period.

ITC Hotels was recently demerged from the ITC businesses to be listed as a separate entity for value unlocking for shareholders. Post-demerger, ITC Hotels shares were listed at ₹188 per share on the BSE on January 29, 2025. On the NSE, its share price was listed at ₹180 per share.

At present, ITC holds 40% ownership of ITC Hotels, and ITC shareholders acquired the remaining 60% in proportion to their stake in ITC Limited.

In the October to December 2024 quarter, ITC Hotels reported its best-ever quarterly performance. Its revenue during the quarter stood at ₹922 crore, which grew by 14.6% year-on-year (YoY) on a high base. Profit before tax, meanwhile, stood at ₹302 crore, up 43.4% YoY, driven by the retail, wedding, and food & beverages (F&B) segments.