ITC Hotels Ltd (NSE: ITCHOTELS), the demerged hospitality arm of ITC Ltd, has quickly gained investor attention since its listing in January 2025. As India’s second-largest hotel chain, the company operates across six major brands — ITC Hotels, Mementos, Storii, Welcomhotel, Fortune, and WelcomHeritage — with a strong focus on sustainable luxury.
As of October 2025, ITC Hotels trades near ₹217.54 with a market capitalization of around ₹45,341 crore. Despite being a relatively new listing, the company has already seen a ~50% rise in six months, driven by investor optimism about India’s tourism boom and post-demerger expansion.
However, analysts remain divided. While some highlight the company’s debt-free status and strong brand equity, others point to its high valuation (~4.2x book value) and competitive pressures from peers like Indian Hotels and Lemon Tree.
Let’s analyze the company’s fundamentals, past performance, and future share price targets from 2025 to 2050.
About the Company
ITC Hotels Ltd was officially listed on the NSE and BSE in January 2025 following its demerger from ITC Ltd. The demerger unlocked value for ITC shareholders, who received a 60% shareholding in ITC Hotels.
The company operates across 140+ hotels in over 80 locations, offering both owned and managed properties. It plans to expand to over 220 hotels by 2030, focusing on an asset-light model and sustainable luxury operations — a key differentiator in the Indian hospitality space.
With a strong focus on premium and upscale properties, ITC Hotels is positioning itself to capture India’s rapidly growing domestic and international tourism demand.
Fundamental Analysis
Revenue & Profit Trends
- FY2025 Revenue: ₹3,560 crore
- FY2025 Net Profit: ₹638 crore
- EBITDA Margins: ~25–30%
- Occupancy Rates: 70–75% across luxury segment
The company has shown strong earnings momentum post-demerger, backed by seasonal demand and high room rate growth.
Valuation Metrics (FY2025)
Metric | Value |
---|---|
EPS | ₹3.27 |
P/E Ratio | ~66.5x (based on ₹217.54 price) |
EV/EBITDA | ~20–22x (vs. industry avg. 30x) |
ROE | ~8–9% (expected to rise with scale) |
Balance Sheet Strength
ITC Hotels is debt-free with high liquidity and strong reserves.
Key Balance Sheet Figures (FY2025) | ₹ Cr |
---|---|
Equity Share Capital | 208.12 |
Reserves & Surplus | 10,839.96 |
Total Assets | 12,522.17 |
Cash & Cash Equivalents | 1,500.34 |
Investments | 4,536 |
Total Debt | Nil |
Shareholding Pattern (as of 2025)
Category | Holding |
---|---|
Promoters (ITC Ltd) | ~40% |
Institutional Investors | ~25% |
Retail & Others | ~35% |
Past Stock Performance
- Listing Date: January 2025
- Listing Price: ₹190 (approx.)
- Current Price (Oct 2025): ₹217.54
- 6-Month Return: ~+50%
- Volatility: Moderate, due to ETF and post-demerger adjustments
The stock initially dipped to ₹155 post-listing due to ETF outflows but later surged on strong Q1 FY2026 earnings and rising investor confidence in its growth potential.
ITC Hotels Share Price Target for 2025–2050
Year | Minimum (₹) | Average (₹) | Maximum (₹) |
---|---|---|---|
2025 | 155 | 217 | 400 |
2026 | 380 | 505 | 640 |
2027 | 612 | 749 | 886 |
2028 | 842 | 988 | 1,135 |
2029 | 1,112 | 1,248 | 1,385 |
2030 | 1,367 | 1,500 | 1,634 |
2035 | 2,548 | 2,750 | 3,000 |
2040 | 3,557 | 3,687 | 3,816 |
2045 | 4,768 | 5,200 | 5,620 |
2050 | 5,899 | 6,050 | 6,212 |
ITC Hotels Share Price Target & Prediction 2025, 2026, 2027, 2028, 2029, 2030, 2035, 2040, 2045, and 2050
ITC Hotels Share Price Target 2025
2025: ₹155 – ₹400
As a newly listed entity, volatility is expected through 2025. While ETF adjustments may cause short-term dips, the company’s strong balance sheet and Q1 FY2026 earnings could help stabilize the stock around ₹200–₹250 levels.
ITC Hotels Share Price Target 2026
2026: ₹380 – ₹640
With consistent room additions and improved profitability post-demerger, ITC Hotels could see re-rating in valuations. Higher occupancy rates and seasonal performance may push the stock toward ₹600+ by the end of 2026.
ITC Hotels Share Price Target 2027
2027: ₹612 – ₹886
Continued expansion and brand diversification under the “Mementos” and “Storii” segments are expected to enhance margins. The focus on an asset-light model supports long-term scalability.
ITC Hotels Share Price Target 2028
2028: ₹842 – ₹1,135
By 2028, ITC Hotels may approach its target of 200+ hotels. Improved revenue mix and operational efficiency could drive sustainable EPS growth.
ITC Hotels Share Price Target 2029–2030
2029–2030: ₹1,112 – ₹1,634
If the company maintains a revenue CAGR of 11–13% and steady profit margins, valuations may remain attractive. Strategic acquisitions or partnerships could further support growth.
ITC Hotels Share Price Target 2035
2035: ₹2,548 – ₹3,000
With the hospitality industry maturing and tourism growth stabilizing, ITC Hotels could trade around ₹2,500–₹3,000, assuming continued market share gains and brand strength.
ITC Hotels Share Price Target 2040-2050
2040–2050: ₹3,557 – ₹6,212
By 2040–2050, assuming consistent growth and reinvestment, ITC Hotels could evolve into one of Asia’s leading hospitality companies. The share price may reach ₹6,000+ under favorable economic and tourism conditions.
Growth Drivers
- Tourism Sector Boom: India’s growing domestic and inbound travel demand supports sustained hotel occupancy.
- Asset-Light Expansion: Focus on managed and franchised models reduces capital burden.
- Strong Brand Portfolio: Established luxury presence via ITC Hotels and emerging premium brands.
- Sustainability Focus: “Responsible Luxury” initiative attracts global eco-conscious travelers.
- Post-Demerger Agility: Financial independence enables faster decision-making and capital deployment.
- Digital Transformation: Technology-led guest experiences and loyalty programs enhance customer retention.
Expert Views (Neutral Summary)
Market sentiment around ITC Hotels remains cautiously optimistic. Investors recognize its potential as a long-term play in India’s expanding hospitality market, but some remain concerned about near-term valuation pressures and execution risks. Analysts expect gradual re-rating as the company delivers consistent earnings growth.
Risks & Challenges
- High Valuations: Stock trades at a premium compared to peers.
- Economic Slowdowns: Travel and tourism are cyclical industries.
- Competition: Intense rivalry from Indian Hotels, Lemon Tree, and global chains.
- Execution Risk: Expansion delays or cost overruns may affect profitability.
- ETFs & Liquidity: Short-term volatility due to post-demerger adjustments.
Investment Suitability
ITC Hotels suits long-term investors looking for exposure to India’s hospitality and tourism growth story. While short-term volatility is likely, the company’s debt-free balance sheet, strong brand equity, and steady expansion pipeline make it a promising long-term compounding stock for 2030–2050 investors.
FAQs
1. What will be ITC Hotels’ share price in 2030?
Based on current projections, ITC Hotels’ share price could range between ₹1,367 and ₹1,634 by 2030.
2. Can ITC Hotels reach ₹1,000 by 2028?
Yes, if expansion plans and profitability targets stay on track, the stock could cross ₹1,000 by FY2028.
3. Is ITC Hotels a good long-term investment?
For investors with a long-term horizon (10+ years), ITC Hotels offers strong fundamentals and potential compounding returns from India’s growing tourism and hospitality demand.
Conclusion
ITC Hotels Ltd, following its 2025 demerger, has established itself as a promising standalone hospitality player. With zero debt, a strong brand portfolio, and an ambitious expansion strategy, the company is well-positioned for steady growth through 2030 and beyond.
However, investors should be mindful of high valuations and short-term volatility. In the long run, ITC Hotels could emerge as a core hospitality stock in India’s market landscape, delivering stable returns backed by sustainable business practices and industry tailwinds.