ITC Hotels currently has more than 120 hotels in over 70 destinations across six distinct brands. Credit:. KuMaR437 via Shutterstock.com.

Indian conglomerate company ITC’s board has given in-principle approval for the demerger of its hotels business, under a scheme of arrangement, ET Hospitality World reported.

If the demerger gets final approval from the board on 14 August, the new entity will be named ITC Hotels Ltd and will handle ITC’s hotels and hospitality business.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

In a stock exchange filing, the company stated: “Appropriate announcements and public disclosures in accordance with the SEBI Listing Regulations and other applicable laws will be made as necessary.”

ITC will approximately hold a 40% stake in the new entity and the remaining will be held by its shareholders.

The company’s board noted that its hotel business grew over the years and is well poised to chart its own growth trajectory as a separate entity.

See Also:

ITC chairman Sanjiv Puri said: “Creation of a hospitality-focused entity will engender the next horizon of growth and value creation by harnessing the exciting opportunities in the Indian hospitality industry.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“In the proposed reorganisation, both ITC and the new entity will continue to benefit from institutional synergies.”

At present, ITC Hotels, which was launched in 1975, has more than 120 hotels in over 70 destinations across six distinct brands, including ITC Hotels, Mementos by ITC Hotels, Welcomhotel, Storii by ITC Hotels, Fortune Park Hotels and WelcomHeritage Hotels.

As per the company’s recently published FY2022-23 financial report, the gross revenue of the company grew by 17.6% to Rs694.8bn ($8.47bn), compared with Rs591.01bn ($7.2bn) recorded in the previous year.