ITC Hotels Limited, one of India’s leading hospitality chains, has carved a niche for itself with its guiding philosophy of Responsible Luxury. Over the years, the company has built a strong reputation by blending world-class service with sustainability and cultural richness. Its revenue model is shaped by a diversified portfolio that spans luxury hotels, food and beverage offerings, large-scale banqueting, premium wellness services, customer loyalty programmes, and management contracts. In this article, we take a closer look at ITC Hotels’ key revenue streams, highlighting how the company generates income across multiple touchpoints and continues to sustain profitable growth in the competitive hospitality industry.
Table of Contents
- Background and Business Model
- Core Revenue Streams of ITC Hotels
- Financial Performance Snapshot of ITC Hotels
- Brand Ecosystem and Diversification
- Loyalty and Customer Engagement
- Responsible Luxury and Sustainability
- Conclusion
- FAQs
Since its inception in 1975, ITC Hotels has steadily grown from a single property into one of India’s largest and most respected hospitality chains. Today, the company operates a diverse portfolio of over 140 properties with 13,300+ keys across India, Sri Lanka, and Nepal. Over the years, it has built a strong identity rooted in Indian traditions while adopting a modern, global outlook to match the evolving demands of travellers.
At the heart of this journey lies the philosophy of Responsible Luxury, which blends world-class hospitality with sustainable practices. ITC Hotels has consistently celebrated India’s culture and heritage, while at the same time championing eco-conscious initiatives that set new benchmarks for the industry. This unique balance has elevated the brand beyond a domestic success story, establishing it as a global exemplar of homegrown excellence in hospitality.
For decades, ITC Hotels operated as a division of ITC Limited, one of India’s largest conglomerates. In 2025, the hospitality business was demerged, making ITC Hotels an independent listed company effective January 1, 2025. As part of this restructuring, ITC shareholders on the record date of January 6 received one share of ITC Hotels for every ten shares of ITC Limited.
Before breaking down the numbers, it is important to note that ITC Hotels’ revenue model is multi-pronged.
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Rooms: The backbone of ITC Hotels’ earnings lies in its room revenue, which continues to be the single largest contributor to overall performance. This stream is supported by a balanced mix of segments, including individual retail travellers, the growing MICE (Meetings, Incentives, Conferences, Exhibitions) business, and the ever-expanding wedding market. By catering to both leisure and business needs, ITC Hotels ensures steady occupancy levels and strong demand across its properties.
The largest revenue stream, contributing more than half of the total. This steady 52% share highlights rooms as the backbone of revenues, supported by strong occupancies and higher Average Daily Rates (ADR).
Food & Beverages: The F&B segment is a strong revenue pillar for ITC Hotels, supported by its portfolio of iconic dining brands such as Bukhara, Dum Pukht, Royal Vega, Avartana, Pavilion, and Yi Jing. These brands not only strengthen the in-house dining experience but also attract external guests, which widens the revenue base beyond room occupants.
The second pillar of income forms 40% of total revenue. This strong contribution comes from ITC’s iconic restaurants, banqueting, and catering operations, reflecting the brand’s culinary leadership.
Management & Operating Fees: Accounting for 3% of revenue, this reflects ITC’s asset-light expansion through management contracts, enabling growth without heavy capital deployment.
Others: Contributing 4%, this stream includes Club ITC memberships, spa services, laundry, retail, and internet. Though relatively smaller, it shows consistent growth and helps diversify income sources.
Together, Rooms + F&B make up 92% of total revenue, while fees and other ancillary services contribute the remaining 8%, creating a hospitality-focused revenue model.
As of June 2025, ITC had 143 operational hotels and 58 more in the pipeline, taking its portfolio to over 200 properties. Looking ahead, the company has set an ambitious target of reaching 220 hotels with more than 20,000 keys by 2030.
Discover more about ITC Hotels share price and its luxury offerings by visiting the company page.
ITC Hotels delivered a strong performance in FY25, reflecting the ongoing recovery in India’s hospitality sector. The company benefited from rising demand, premiumisation, and efficient cost management.
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Particulars
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FY25
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FY24
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YOY
|
|
Revenue
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3,279
|
2124
|
+54.4%
|
|
Total Expenses
|
2399
|
1593
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+50.5%
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|
Profit before Tax
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933
|
539
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+73.1%
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Profit after Tax
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699
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401
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+74.1%
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EPS
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3.36
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1.94
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+73.2%
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Revenue from Operations
- In FY25, ITC Hotels reported ₹3,279.27 crore in revenue compared to ₹2,124.24 crore in FY24.
- This represents a 54.4% year-on-year increase, driven by higher occupancy levels, better room rates, and strong contributions from food & beverage services.
Total Expenses
- The company’s expenses rose to ₹2,399.06 crore in FY25 from ₹1,593.98 crore in FY24.
- This 50.5% growth in costs was linked to increased business activity, expansion, and service-related spending, but the rise was lower than revenue growth, indicating effective cost control.
Profit Before Tax (PBT)
- PBT stood at ₹933.93 crore in FY25, compared with ₹539.38 crore in FY24.
- This marks a 73.1% jump, highlighting how strong revenue growth and disciplined cost management improved profitability.
Profit After Tax (PAT)
- PAT reached ₹699.34 crore in FY25, up from ₹401.81 crore in FY24.
- With a 74.1% increase, ITC Hotels demonstrated its ability to convert higher revenues into bottom-line growth despite higher operating expenses.
Earnings Per Share (EPS)
- EPS improved to ₹3.36 per share in FY25, against ₹1.94 per share in FY24.
- The 73.2% rise in EPS reflects how profit growth directly benefited shareholders, improving value creation and market confidence.
Overall, FY25 was a strong year for ITC Hotels, with revenue growth translating into even faster profit expansion. The company showcased operating leverage, efficient cost management, and healthy demand momentum. With rising occupancies and robust profitability, ITC Hotels is well-positioned to sustain growth in the hospitality sector.
Get a detailed breakdown of ITC’s latest performance and how its hospitality arm contributes to overall quarterly earnings in this ITC Q1 FY26 results analysis.
ITC operates under six distinct brands, each crafted to meet the needs of different traveller segments and price points:
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- ITC Hotels (Luxury): Represents the pinnacle of luxury with world-class hospitality, premium experiences, and the Responsible Luxury ethos.
- Mementoes (Luxury Lifestyle): Focuses on curated luxury lifestyle stays, offering exclusivity and personalised service for discerning travellers.
- Welcomhotel (Upper Upscale): Serves the premium comfort category, striking a balance between high standards and wider accessibility.
- Storii (Boutique Premium): Targets guests looking for distinctive and intimate stays, often set in unique locations with a strong local flavour.
- Fortune (Mid-market to Upscale): Provides reliable, value-driven hospitality for business and leisure travellers in the mid-to-upscale segment.
- WelcomHeritage (Leisure & Heritage): Celebrates India’s cultural richness and architectural legacy, appealing to leisure travellers seeking authentic heritage-inspired experiences.
Summary: This structured brand architecture allows ITC Hotels to cater to diverse traveller profiles from ultra-luxury to mid-market, maximising revenue opportunities while expanding its market reach.
Learn how GST & Sin Tax affect ITC’s stock performance in this detailed analysis of the recent ITC stock rally and tax implications.
The Club ITC loyalty programme is a critical enabler of recurring revenue, designed to strengthen customer relationships and encourage repeat stays. Refreshed in FY25, the programme now offers enhanced benefits such as tier-based earning, instant redemptions, and an integrated Culinaire programme, which allows members to earn up to 12% points on F&B spends. These features not only make the programme more rewarding but also ensure that customers perceive real value in staying within the ITC ecosystem.
Further boosting its credibility, Club ITC was recognised at the Freddie Awards 2025 for delivering Best Customer Service and Best Redemption Ability. Such recognition highlights the programme’s effectiveness in driving customer satisfaction and loyalty on a global scale.
Summary: Club ITC plays a vital role in strengthening customer retention, increasing spend per guest, and fuelling repeat revenues, thereby adding significant long-term value to ITC Hotels’ revenue model.
Beyond financial performance, ITC Hotels has positioned itself as a global leader in sustainable luxury, embedding environmental responsibility into the core of its operations:
- 23 LEED® Platinum certified hotels – the highest for any hotel chain worldwide, reflecting ITC’s deep commitment to sustainable and green building practices.
- 12 LEED® Zero Carbon and 8 LEED® Zero Water certified properties – making ITC the first hotel chain globally to reach this rare milestone in environmental leadership.
- ITC Grand Bharat further strengthened this leadership by being accredited with LEED® ZERO Water certification, meaning its hotels are fully water-neutral, conserving, recycling, and replenishing as much water as they consume, reinforcing ITC’s position as a pioneer in responsible luxury.
Summary: These initiatives not only deliver long-term cost savings but also enhance ITC Hotels’ brand appeal, allowing the company to command a premium for its offerings while reinforcing its Responsible Luxury promise.
See how ITC Hotels is shifting its strategy and driving expansion. Watch the video for an in-depth look at their transformative journey.
ITC Hotels’ revenue model is anchored in a well-balanced mix of rooms, food & beverage, banqueting, wellness services, and management contracts. This foundation is further strengthened by its multi-brand architecture and asset-right growth strategy, which allows the company to scale efficiently while addressing diverse customer segments. Such an approach ensures that revenue streams are not overly dependent on a single line of business, providing both stability and growth potential.
From a financial perspective, ITC Hotels continues to deliver robust results, with FY25 revenues at ₹3,279 crore and Q1 FY26 revenues at ₹783 crore, both reflecting strong double-digit growth. However, what truly sets ITC Hotels apart is more than just numbers. Its unique ability to integrate responsible luxury, world-class culinary excellence, and sustainability leadership positions it as not only a profitable enterprise but also a long-term value creator in the hospitality industry.
Q1. What drives ITC Hotels’ core revenue growth?
Rooms remain the backbone (~50% share), supported by Food & Beverages (~40%) and Others (~10%). Growth is led by premiumisation (higher ADR & RevPAR), strong F&B brands, and banqueting demand.
Q2. How is ITC Hotels improving profitability despite rising costs?
By maintaining premium pricing power, cost discipline, and leveraging operating efficiencies. Q1 FY26 EBITDA margin held at 32%, showing strong cost control even as expenses rose 15% YoY.
Q3. What role does the asset-light strategy play in expansion?
Through management contracts under the “Asset-Right” model, ITC grows faster with low capex. As of June 2025, 143 hotels are operational, 58 in pipeline, with a 2030 target of 220 hotels (20,000+ keys).
Q4. How significant is customer loyalty for recurring revenues?
Club ITC loyalty programme drives repeat stays and F&B spends (up to 12% points earned). Its global recognition (Freddie Awards 2025) reflects effectiveness in boosting customer stickiness and lifetime value.
Q5. What differentiates ITC Hotels from its peers in the hospitality sector?
A unique blend of Responsible Luxury, world-class dining brands, sustainable leadership (23 LEED® Platinum hotels, Zero Carbon/Water certifications), and strong RevPAR premium (34% higher than industry).
Q6. What is the financial outlook for ITC Hotels?
Robust strong growth trajectory - FY25 revenue ₹3,279 crore; Q1 FY26 revenue ₹744 crore (+14% YoY). Strong profitability (PAT +47% YoY in Q1 FY26) supports long-term sustainable growth.