ITC Hotels shares fall after Rs 3,856 crore block deal; BAT likely seller; key details

ITC Hotels Ltd fell in Friday's trade after Rs 3,855.94 crore worth company shares changed hands in block deals today. As per NSE, 18,75,00,000 ITC Hotels shares changed hands at Rs 205.65 apiece, which were at 1 per cent discount over its previous day's close of Rs 207.72 per share. BAT, which was looking to sell stake in ITC hotels today, via three entities, likely upped share sale to $430 million, reports suggested. Block deal data on BSE will be released later in the day. 

 As per initial term sheet, seen by Business Today, public shareholders Tobacco Manufacturers (India), Myddleton Investment Company and Rothmans International Enterprises were looking to sell up to 14.58 crore shares at Rs 205.65 apiece, accounting for 7 per cent stake, for Rs 2,998.40 crore to $333 million at an exchange rate of 89.98 per dollar. Citigroup Global Markets likely acted as placement agent.  Myddleton Investment Company  and Tobacco Manufacturers (India) together held 14.53 per cent stake in ITC Hotels as of September 30. 

ITC Hotels’ September quarter performance was ahead of analyst expectations, driven by better-than-expected occupancy in its standalone business. Analysts said ITC Hotels' consolidated revenue was inline and grew 8 per cent YoY, aided by 11 per cent growth in RevPAR; F&B revenue grew slower at 5 per cent YoY. 

"Despite seasonal softness and the negative impact of heavy monsoon rains on the overall travel sentiment, Ebitda grew 16 per cent YoY to Rs 250 core (vs. JMFe: Rs 230 crore, 8 per cent beat), as Ebitda margin expanded 200 bps to 29.3 per cent (JMFe: w7 per cent). Healthy growth in room rates, higher fee income and cost interventions led to this expansion in margin," JM Financial said. 

JM Financial noted that ITC Ratnadipa witnessed 1.6 times YoY growth in RevPAR and was Ebitda positive during Q2FY26. ITC Hotels announced the launch of a new upper upscale brand Epiq Collection, with two inaugural assets – an under-development, owned hotel in Puri and a managed property in Tirupati. 

"Going forward, we expect ITC Hotels to report 11 per cent/14 per cent CAGR in revenue and EBITDA over FY25-28E aided by c.7 per cent growth in ADR and ramp-up of the Sri Lanka asset. We roll forward to Mar’27E with a new TP of INR 235 and upgrade the stock to ADD from REDUCE," JM said last month.