ITC Hotels shares tank 5%: GHK acquisition, Q1 results - Key highlights

ITC Hotels Ltd on Thursday reported a 35.42 per cent year-on-year (YoY) rise in net profit at Rs 180.25 crore for the June quarter compared with Rs 133.10 crore in the same quarter last year. Revenue from operations grew 14.77 per cent YoY to Rs 936.02 crore from Rs 815.54 crore in the corresponding quarter last year.

ITC Hotels said India’s hospitality sector entered Q1 FY27 under the shadow of West Asia conflict led disruptions. The month of April witnessed broad-based demand softness across key markets, driven by uncertainty around air travel, as reflected in weak foreign tourist arrivals, it said.

"As travel sentiment improved, occupancy and room rates witnessed swift recovery in May & June, underscoring structural resilience of the demand environment," ITC Hotels said.

Thec omapny said the outlook for the hospitality industry remains positive, underpinned by India's strong economic
growth, thrust on infrastructure and connectivity improvement, rising discretionary consumption and
favourable supply-demand dynamics in the hospitality segment, particularly in Tier I cities.
 

Acquisition

Meanwhile, in an update to stock exchanges, ITC Hotels said its board executed the share purchase and share subscription agreement for acquisition of 100 per cent of the share capital of GHK Hospitality & Infrastructures Limited. 

The transaction would allow ITC Hotels to expand its owned asset portfolio in Ahmedabad across all market segments through an established hotel. At present, GHK Hospitality is operated by the company under an operating services agreement. 

"This value-accretive acquisition provides an opportunity to the company to capitalize on Ahmedabad’s diversified year-round demand," ITC Hotels said.

Tracking the developments, the stock fell 5.06 per cent to hit a low of Rs 174.20 on BSE.

The acquisition will be carried at an enterprise value of Rs 155 crores on a cash-free, debt-free basis, subject to customary adjustments for acquisition of 100 per cent equity share capital of GHK.

"The investment in GHK shall be made through primary subscription and secondary purchase of equity shares of GHK," ITC Hotels said. The acquisition of shares is expected to be completed within the June quarter.

To recall, the group had, on May 19, 2026, acquired the entire share capital of Kerala Luxury Resorts Private Limited (KLRPL),  formerly known as Zuri Hotels and Resorts Private Limited, consequent to which KLRPL became a wholly owned subsidiary of the Company with effect from the said date.