ITC Hotels is targeting a major expansion of its hospitality business, aiming to increase its operating portfolio to 250 hotels with more than 22,000 rooms over the next five years. The plan comes as the company marks its 50th anniversary and bets on India’s growing domestic tourism, rising incomes, improved infrastructure and new travel trends.
The company currently has a portfolio of around 150 hotels and 14,200 rooms, meaning the five-year plan would add roughly 100 properties and more than 7,800 rooms. ITC Hotels has a development pipeline of 78 properties comprising more than 8,000 rooms, providing much of the foundation for the expansion.
ITC Hotels sets 250-property target
Chairman Sanjiv Puri said ITC Hotels will continue pursuing an asset-right growth strategy, combining owned developments with acquisitions and management contracts.
The approach allows the company to expand its hotel network without having to own every property it operates. Management contracts can help ITC Hotels enter new markets with comparatively lower capital requirements while still expanding its brand presence.
ITC Hotels expansion plan
| Metric | Current / reported | Five-year target |
|---|---|---|
| Hotels | ~150 | 250 |
| Rooms/keys | ~14,200 | 22,000+ |
| Development pipeline | — | 78 hotels |
| Pipeline rooms | — | 8,000+ |
| Hotels signed in past 2 years | — | 63 |
| Properties opened in past 2 years | — | 29 |
The target implies adding about 20 hotels a year on average if the company reaches 250 properties within five years.
ITC HOTELS' EXPANSION
Current
150 hotels
14,200 rooms
│
│ + ~100 hotels
│ + ~7,800 rooms
▼
Five-year target
250 hotels
22,000+ rooms
78 hotels already in the pipeline
A significant portion of the planned expansion is already taking shape.
ITC Hotels has a pipeline of 78 properties with more than 8,000 rooms. New developments and agreements span a wide range of destinations, including Puri, Visakhapatnam, Delhi, Ahmedabad, Ayodhya, Bodh Gaya, Gandhinagar, Guwahati, Jaipur, Rajgir, Shahjahanpur and Shirdi.
The company is also expanding in Kerala and has signed an additional property in Ahmedabad.
Where ITC Hotels is expanding
| Destination | Opportunity |
|---|---|
| Puri | Spiritual + leisure tourism |
| Ayodhya | Pilgrimage tourism |
| Bodh Gaya | Spiritual tourism |
| Shirdi | Pilgrimage tourism |
| Jaipur | Leisure + weddings |
| Udaipur/Rajasthan market | Weddings + leisure |
| Delhi | Business + MICE |
| Ahmedabad | Business + events |
| Guwahati | Business + leisure |
| Visakhapatnam | Business + coastal tourism |
| Gandhinagar | Business + MICE |
| Rajgir | Heritage + tourism |
This shows that ITC’s expansion is not limited to India’s biggest metropolitan markets.
Smaller tourism destinations are becoming important
One of the biggest changes in India’s hospitality market is the emergence of tier-2 and tier-3 destinations.
Improved roads, airports, rail connectivity and tourism infrastructure are making destinations outside Mumbai, Delhi and Bengaluru increasingly attractive to hotel operators.
ITC Hotels is targeting this opportunity through pilgrimage, heritage and leisure destinations.
The strategy is particularly relevant because domestic tourism is much larger than international tourism in India.
Domestic tourism has crossed 4 billion visits
According to Puri, domestic tourism in India has crossed 4 billion visits, compared with approximately 2.3 billion before the pandemic.
That represents a major expansion in domestic travel activity.
India’s domestic tourism growth
Before pandemic
~2.3 billion visits
██████████████
Current
>4 billion visits
████████████████████████
The increase creates opportunities for hotels across multiple segments, from luxury resorts and business hotels to midscale properties.
ITC Hotels is positioning its portfolio to capture several of these travel categories.
Tourism spending could nearly double
ITC Hotels expects domestic visitor spending to increase from around ₹19 trillion in 2026 to ₹36.5 trillion by 2036.
That would represent an increase of roughly 92% over the decade.
| Indicator | 2026 | 2036 |
|---|---|---|
| Domestic visitor spending | ₹19 trillion | ₹36.5 trillion |
| Increase | — | ~₹17.5 trillion |
| Approximate growth | — | ~92% |
This is one of the key reasons hotel companies are aggressively adding rooms.
More spending on travel can support demand for:
- Hotels
- Restaurants
- Resorts
- Weddings
- Conferences
- Wellness
- Entertainment
- Local experiences
- Transportation
International tourism remains a huge opportunity
Despite India’s enormous domestic tourism market, the country still accounts for less than 1.5% of global international tourist arrivals, according to Puri.
ITC Hotels believes India could significantly increase its share over the long term, with an ambition of attracting 100 million inbound visitors by 2047.
INDIA'S TOURISM OPPORTUNITY
Domestic tourism
│
├── 4B+ visits
│
▼
Huge existing market
International tourism
│
├── <1.5% global arrivals
│
▼
Large untapped opportunity
│
▼
100M inbound visitors
by 2047 ambition
For hotel operators, even a modest increase in India’s share of global tourism could create significant demand for rooms.
Destination weddings are becoming a major opportunity
ITC Hotels is also looking beyond conventional business and leisure travel.
Destination weddings are emerging as an important growth segment for Indian hotels.
Large weddings generate demand across several parts of a hotel’s business:
- Rooms
- Banquets
- Restaurants
- Catering
- Events
- Spas
- Transportation
- Guest experiences
Hotels in destinations such as Rajasthan, Goa, Kerala and other heritage locations can benefit particularly from this trend.
Emerging travel segments
| Segment | Growth opportunity |
|---|---|
| Domestic leisure | High |
| Pilgrimage | High |
| Destination weddings | High |
| Wellness | Growing |
| Business travel | Established |
| MICE | Growing |
| Concert tourism | Emerging |
| Sports tourism | Emerging |
| International tourism | Long-term opportunity |
ITC Hotels specifically highlighted weddings, spiritual tourism, wellness, concerts, sporting events and MICE — meetings, incentives, conferences and exhibitions — as important growth opportunities.
MICE tourism could drive premium hotel demand
India’s investment in large convention infrastructure is creating another opportunity for hotels.
Facilities such as Bharat Mandapam and Yashobhoomi can attract large conferences, exhibitions and corporate events.
That creates demand for nearby hotel rooms and banquet facilities.
Convention infrastructure
↓
Large events
↓
Business travellers
↓
Hotel rooms
+
Banquets
+
Restaurants
↓
Higher hotel demand
The trend could particularly benefit hotels in Delhi-NCR and other major business centres.
ITC Hotels’ financial performance is already strong
The expansion plan comes after a strong financial year.
ITC Hotels reported 19% growth in total income to more than ₹4,331 crore, while profit after tax increased 29% during the year under review.
Another report puts FY26 profit after tax at approximately ₹821 crore.
FY26 performance
| Financial metric | FY26 performance |
|---|---|
| Total income | ₹4,331+ crore |
| Revenue growth | 19% |
| PAT growth | 29% |
| Reported PAT | ~₹821 crore |
The combination of strong earnings and an expanding tourism market gives ITC Hotels room to pursue its growth strategy.
ITC has already accelerated expansion
The 250-hotel target is not starting from zero.
Over the past two years, ITC Hotels has:
- Signed 63 hotels
- Opened 29 properties
- Built an 8,000-plus-room development pipeline
That means the company has already demonstrated an ability to expand its network at a much faster pace than historically.
PAST 2 YEARS
63 hotels signed
↓
29 properties opened
↓
78-property pipeline
↓
250-hotel ambition
The challenge will now be converting the pipeline into operational properties while maintaining brand standards and profitability.
Asset-right strategy is central to the expansion
ITC Hotels does not intend to build every hotel itself.
Its asset-right approach combines:
Owned properties + acquisitions + management contracts
This model can provide greater flexibility.
How the model works
| Model | Capital requirement | Expansion potential |
|---|---|---|
| Owned hotel | High | Moderate |
| Acquisition | High/medium | Fast |
| Management contract | Lower | High |
| Mixed strategy | Balanced | High |
Management contracts are particularly useful because property owners can provide the real estate and investment while ITC Hotels manages the operation and brand.
This can allow the company to expand into more cities without committing the same amount of capital required for ownership.
ITC Hotels is also investing in acquisitions
The company has indicated that acquisitions will remain part of its expansion strategy.
Earlier this year, ITC Hotels acquired Zuri Hotels and Resorts for ₹205 crore, strengthening its portfolio and adding properties to its network.
Acquisitions can help ITC enter markets faster than developing hotels from scratch.
They can also provide access to existing properties, employees, local relationships and established customer bases.
Technology is becoming part of the hotel strategy
ITC Hotels is not relying only on physical expansion.
The company says digital transformation remains central to its strategy, including investments in:
- Cloud-first architecture
- Artificial intelligence
- Integrated data capabilities
- Revenue management
- Guest experience technology
AI in hospitality
Customer data
↓
AI + analytics
↓
Demand forecasting
↓
Dynamic pricing
↓
Personalised offers
↓
Better occupancy
↓
Higher revenue
AI can potentially help hotels predict demand, optimise room prices and personalise experiences.
For a company managing hundreds of properties, even small improvements in occupancy or room pricing can have a significant financial impact.
Loyalty will become more important
As ITC Hotels expands, retaining customers across its growing network becomes increasingly important.
A stronger loyalty ecosystem can encourage guests who stay at one ITC property to use other hotels in the portfolio.
This creates a flywheel:
More hotels
↓
More destinations
↓
More loyalty members
↓
More repeat bookings
↓
More customer data
↓
Better personalisation
↓
Higher customer retention
The company plans to strengthen its loyalty ecosystem as part of the expansion.
Sustainability remains a major differentiator
ITC Hotels is also positioning sustainability as part of its premium hospitality strategy.
The company operates 25 LEED Platinum-certified hotels, which it describes as the world’s largest portfolio of such properties. It also has:
- 13 LEED Zero Water-certified hotels
- 12 LEED Zero Carbon-certified hotels
ITC Hotels sustainability footprint
| Certification | Number of hotels |
|---|---|
| LEED Platinum | 25 |
| LEED Zero Water | 13 |
| LEED Zero Carbon | 12 |
The company calls this approach Responsible Luxury — combining premium hospitality with environmental and sustainability goals.
Why sustainability matters for hotels
Hotels consume significant amounts of:
- Electricity
- Water
- Food
- Fuel
- Construction materials
Reducing these costs can therefore produce both environmental and operational benefits.
For luxury hotels, sustainability can also increasingly influence corporate customers and international travellers when choosing accommodation.
Talent will be a critical challenge
Rapid expansion from around 150 hotels to 250 will require a much larger workforce.
Hotel operations need employees across:
- Front office
- Food and beverage
- Housekeeping
- Culinary
- Engineering
- Sales
- Events
- Management
- Technology
- Guest services
ITC Hotels plans to continue investing in talent development through the ITC Hospitality Management Institute.
The availability of trained hospitality workers could become one of the biggest constraints on rapid hotel expansion in India.
The Indian hotel market is becoming more competitive
ITC Hotels is expanding at a time when India’s branded hotel sector is seeing aggressive growth.
Major hotel groups and international brands are adding properties across luxury, premium, upscale and midscale segments.
This means ITC’s challenge will not simply be opening 250 hotels.
It will need to ensure that each property generates sufficient occupancy, room rates and profitability.
Competitive hotel market
More tourism demand
↓
More hotel development
↓
More branded supply
↓
Greater competition
↓
Need for stronger brands
+
Better locations
+
Technology
+
Customer loyalty
ITC’s established brands and distribution network could provide an advantage, but competition will intensify as new supply enters the market.
250 hotels could significantly increase ITC’s scale
Moving from approximately 150 hotels to 250 would represent an increase of roughly 67% in property count.
Room capacity would rise from about 14,200 to more than 22,000, an increase of approximately 55%.
| Metric | Approx. increase |
|---|---|
| Hotel count | ~67% |
| Room capacity | ~55% |
| Additional hotels | ~100 |
| Additional rooms | ~7,800+ |
The difference between property growth and room growth reflects ITC’s strategy of adding properties of different sizes rather than simply building large luxury hotels.
ITC is expanding beyond traditional luxury
While ITC Hotels is strongly associated with luxury hospitality, its broader portfolio allows the company to target different customer groups.
The group operates brands spanning luxury, premium, upscale and other segments.
This diversification can help ITC capture demand across multiple price points.
ITC HOTELS
│
┌───────────┼───────────┐
▼ ▼ ▼
Luxury Premium Upscale
│ │ │
└───────────┼───────────┘
▼
Wider customer base
This becomes particularly important as the company expands into smaller cities and pilgrimage destinations.
India’s tourism transformation is creating the opportunity
ITC Hotels’ strategy is ultimately based on a broader structural shift in India’s economy.
Three major trends are working together:
Rising incomes
More households can afford domestic vacations, weekend travel and premium experiences.
Improved infrastructure
New airports, highways, rail connectivity and convention centres are making destinations more accessible.
Changing consumer behaviour
Travel is increasingly becoming a discretionary priority for India’s growing middle and upper-middle classes.
Together, these trends can support sustained hotel demand.
The next five years could reshape ITC Hotels
If the company reaches its target, its operating portfolio will look significantly different by the early 2030s.
2026
~150 hotels
~14,200 rooms
│
│ Expansion
│ Acquisitions
│ Management contracts
│ New developments
▼
2031 target
250 hotels
22,000+ rooms
The company will also have a broader geographic footprint covering metropolitan cities, business centres, pilgrimage destinations, heritage locations and leisure markets.
Key numbers
| Indicator | Figure |
|---|---|
| ITC Hotels anniversary | 50 years |
| Current portfolio | ~150 hotels |
| Current room inventory | ~14,200 keys |
| Five-year hotel target | 250 |
| Five-year room target | 22,000+ keys |
| Development pipeline | 78 hotels |
| Pipeline rooms | 8,000+ |
| Hotels signed in past 2 years | 63 |
| Properties opened in past 2 years | 29 |
| FY26 total income | ₹4,331+ crore |
| FY26 income growth | 19% |
| FY26 PAT growth | 29% |
| Domestic tourism visits | 4 billion+ |
| Domestic visitor spending, 2026 | ₹19 trillion |
| Projected spending, 2036 | ₹36.5 trillion |
| LEED Platinum hotels | 25 |
| LEED Zero Water hotels | 13 |
| LEED Zero Carbon hotels | 12 |
What to watch next
The most important indicator will be how quickly ITC converts its development pipeline into operating hotels.
Investors and the hospitality industry will also be watching:
- New hotel signings
- Opening pace
- Occupancy rates
- Average room rates
- Revenue per available room
- Management-contract growth
- Acquisitions
- Tier-2 and tier-3 expansion
- International tourist arrivals
- Wedding and MICE demand
- Employee and talent availability
The company’s ability to grow without sacrificing profitability will ultimately determine whether the 250-hotel strategy creates sustainable value.
Conclusion
ITC Hotels is entering the next phase of its growth story with an ambitious target of 250 hotels and more than 22,000 rooms within five years. The company already has a 78-property, 8,000-plus-room pipeline, while its recent pace of signing and opening hotels suggests that the expansion is already well underway.
The strategy is being supported by India’s rapidly expanding domestic tourism market. Domestic visits have crossed 4 billion, while visitor spending is projected to rise from ₹19 trillion in 2026 to ₹36.5 trillion by 2036.
ITC Hotels is also targeting new sources of demand including pilgrimage tourism, destination weddings, wellness, concerts, sporting events and MICE travel. At the same time, acquisitions, management contracts, AI-driven operations and a stronger loyalty programme are expected to support expansion.
The company enters this phase from a position of financial strength, having reported 19% growth in total income to more than ₹4,331 crore and 29% growth in profit after tax for the year under review.
The bigger opportunity is that India’s hotel industry is still relatively underpenetrated compared with the country’s enormous population and tourism potential. If domestic travel continues to grow and India succeeds in attracting more international visitors, ITC Hotels’ expansion could position it to capture a much larger share of the country’s long-term hospitality boom.
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