ICICI Securities, a leading brokerage firm, has recommended buying ITC Hotels shares. They have set a target price of ₹250 per share, suggesting the stock could rise about 21% from current levels. The main reasons are ITC Hotels’ good cash reserves, plans to open more hotels, and a growing number of managed properties.
Currently, ITC Hotels runs over 145 hotels with 13,600+ rooms across India. The company uses an asset-light model, meaning it focuses on managing or franchising hotels instead of owning all the properties. This helps them expand faster and use money efficiently. By 2030, ITC aims to have 220 hotels with more than 20,000 rooms, with managed hotels making up two-thirds of their properties.
The company already has 59 managed hotels in the pipeline, adding around 5,500 rooms, and is starting three new projects in Puri, Bhubaneswar, and Visakhapatnam, adding another 400+ rooms.
ICICI Securities expects ITC Hotels’ revenue to grow about 12% per year, and profits before tax and interest (EBITDA) to rise around 15% yearly until 2028. Margins are expected to improve from 34% to 37%. The company has net cash of around ₹1,700 crore, which gives it the flexibility to open new hotels and upgrade existing ones. Income from management fees is also expected to grow by 17% per year.
There are some risks. If hotel occupancy or room prices do not increase as expected, or if new hotels are delayed, growth could slow down.
Still, ICICI Securities believes ITC Hotels is a good investment, thanks to its strong balance sheet, smart expansion strategy, and efficient business model. The company is seen as one of India’s promising hotel chains with clear growth plans for the future.
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