ITC Hotels' Q2 profit rises 51% as room rates, occupancy climb
By Siddharth VermaBusiness Correspondent, Peepals Bharat
Representative image: bottlein / Pixabay
ITC Hotels' July-September 2026 profit rose about 51% to Rs 201 crore as revenue grew 26% to Rs 1,054 crore, with occupancy at 76% and room rates up 14%.
What Happened
ITC Hotels, the listed hotel company, reported a sharp rise in profit for the July-September 2026 quarter, helped by fuller hotels and higher room rates. Its board approved the results on Monday, October 26, 2026. Consolidated net profit rose about 51% to around Rs 201 crore from Rs 132.77 crore a year earlier, and revenue from operations rose 25.6% to Rs 1,054.14 crore. In its owned hotels that were open in both periods, occupancy rose to 76% and the average room rate rose 14%. The board also approved plans to set up a wholly owned subsidiary in Dubai, subject to approvals.
Key Facts
- Board meeting: October 26, 2026, approving results for the quarter and half-year ended September 30, 2026.
- Consolidated net profit: about Rs 201 crore, up roughly 51% from Rs 132.77 crore (some reports cite Rs 202.65 crore, up 52%).
- Revenue from operations: Rs 1,054.14 crore, up 25.6%.
- EBITDA (operating profit): Rs 337.45 crore, up 37.3%; margin about 32%, against 29.3% a year earlier.
- Same-store owned hotels: occupancy 76%, average room rate up 14%, revenue per available room (RevPAR) up about 21%.
- Hotel segment revenue: Rs 966.25 crore.
- Expansion: a wholly owned subsidiary in Dubai is planned, subject to approvals.
Why It Matters
Hotel results are one of the clearest signs of how much Indians, and visitors to India, are travelling. Strong growth in the July-September quarter, which covers the monsoon months, points to sturdy demand from travellers. The company's segment results, the profit of its hotel business before central costs, rose to Rs 205.86 crore from Rs 140.64 crore a year earlier, showing that the growth came from the hotels themselves.
Three numbers explain the performance. Occupancy is the share of rooms that were booked; at 76%, roughly three out of four rooms were filled on an average night. The average room rate is the price paid per occupied room; a 14% rise means guests paid noticeably more. RevPAR, or revenue per available room, combines the two by dividing room revenue by all rooms, booked or not. A 21% rise in RevPAR shows the company is both filling more rooms and charging more for them, which usually means demand is running ahead of the supply of good hotel rooms.
For travellers, that has a practical side: higher room rates at premium hotels, especially in big cities and popular destinations during peak dates. For the travel industry, it supports the case for building more hotels, which creates jobs in construction, hospitality and local services.
The planned Dubai subsidiary is a sign that Indian hotel groups are looking abroad as well as at home, following Indian travellers and businesses to international markets. Details of the Dubai plan, such as investment size and timing, have not been reported.
| Measure | July-September 2026 | Change |
|---|---|---|
| Consolidated net profit | About Rs 201 crore | Up about 51% |
| Revenue from operations | Rs 1,054.14 crore | Up 25.6% |
| EBITDA margin | About 32% | From 29.3% |
| Occupancy (same-store owned) | 76% | Higher |
| RevPAR | Up about 21% | Year on year |
Impact
Short-term: The figures suggest a strong peak season ahead, with Diwali, the wedding season and winter holidays starting in the next quarter. Travellers may find premium hotel rates firm.
Long-term: Sustained demand gives the company room to add hotels in India and expand overseas, including through the planned Dubai subsidiary.
Who is affected: Business and leisure travellers, hotel staff and suppliers, destination economies that depend on tourism, and the company's shareholders.
Key Takeaway
ITC Hotels' September-quarter profit rose about 51% to around Rs 201 crore as 76% occupancy and 14% higher room rates lifted revenue per room by about 21%.
Questions and Answers
What were ITC Hotels' Q2 FY27 results?
For July-September 2026, consolidated net profit rose about 51% to around Rs 201 crore and revenue from operations rose 25.6% to Rs 1,054.14 crore. The board approved the results on October 26, 2026.
What is RevPAR and how much did it grow at ITC Hotels?
RevPAR, or revenue per available room, is room revenue divided by all rooms, booked or empty. It rose about 21% in ITC Hotels' same-store owned hotels.
How full were ITC Hotels' properties?
Occupancy in same-store owned hotels rose to 76%, and the average room rate increased 14% from a year earlier.
Is ITC Hotels expanding abroad?
Its board approved plans to set up a wholly owned subsidiary in Dubai, subject to the required approvals. Details have not been disclosed.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Siddharth Verma, Business CorrespondentCovers Business and more for Peepals Bharat. All stories by Siddharth Verma
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Siddharth Verma is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
