NINETEEN YEARS AFTER it merged with its parent, ITC Hotels has once again got a separate identity. The journey since August 2004 has been creditable that year, the chain had 55 hotels across 55 destinations in India. Today, that number has grown to over 120 hotels across 70plus locations.
There are challenges, no doubt. The hotels segment, for example, accounts for more than 20% of ITC's capital employed, but contributes less than 5% of revenues and profits. Virginia House, the Kolkata-based headquarters of ITC, has been trying to correct that by focusing on an asset-light strategy.
Over the last three years, approximately 50% of the rooms added have been through management contracts to ensure that the capital consumed is lower.
Currently, over half its room inventory is through management contracts with the rest of the hotels owned. While the premium hotels are all company-owned, 'Fortune' and 'WelcomHeritage'are run via management contracts.
This story is from the July 25, 2023 edition of Financial Express Mumbai.
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This story is from the July 25, 2023 edition of Financial Express Mumbai.
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