Buy ITC Hotels; target of Rs 250: ICICI Securities

ICICI Securities is bullish on ITC Hotels has recommended buy rating on the stock with a target price of Rs 250 in its research report dated January 20, 2026.

Broker Research

January 23, 2026 / 14:38 IST

Buy

ICICI Securities's research report on ITC Hotels

In Q3FY26, ITC Hotels (ITCHL) reported 13% YoY hotel revenue growth and 15% YoY hotel EBITDA growth led by 12% YoY RevPAR growth along expected lines. We estimate a 9% RevPAR CAGR with management fees CAGR of 17%, over FY25–28E, led by new hotel openings. Hence, we estimate a 12% revenue CAGR on a consolidated basis over FY25–28E, with 15% EBITDA CAGR during the same period, estimating EBITDA margin to rise by 300bps over FY25 28E (100bps annually) to 37% in FY28E. We retain BUY on ITC Hotels with an unchanged target price of INR 250, valuing the company’s hotel business at 27x Dec’27E EV/EBITDA. Key risks: Slowdown in hotel occupancies/ARRs and delay in execution of upcoming hotel assets.

Outlook

Valuation: Retain BUY; TP at INR 250 We retain BUY on ITC Hotels with an unchanged target price of INR 250. We value the company’s hotel business at 27x Dec’27E EV/EBITDA, with EV of INR 478.2bn.

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