Buy ITC Hotels; target of Rs 250: ICICI Securities

ICICI Securities's research report on ITC Hotels

Established in 1975, with the first premium hotel launched in Chennai, the company’s hotels business represents one of India’s prominent branded hospitality chains, embodying the essence of Indian hospitality and sustainability. ITCHL is engaged in the business of owning, operating, managing and franchising hotels and resorts. As of Sep’25, the company operates 145+ hotels across 13,600+ keys with a mix of 41% owned and 59% managed keys across India, Sri Lanka and Nepal. It envisages reaching 220 operational hotels across 20,000+keys by 2030, with a mix of 33% owned and 67% managed keys.

Outlook

We initiate coverage with a BUY rating on ITCHL and a target price of INR 250. We value the company at a Dec’27E EV of INR 478.2bn – for its hotel business at 27x Dec’27E EV/EBITDA of INR 17.7bn at a 15% discount to our target multiple of 32x for Indian Hotels. Adding net cash of INR 30.6bn, as of Dec’27E, and Sri Lanka residential project NAV of INR 12.1bn, we derive an equity value of INR 520.9bn or INR 250/share.