The hospitality company ITC Hotels separated from ITC was listed separately on Wednesday. It has become the second most valuable hotel company with a market evaluation of around Rs 36,139 crore. After touching a high level of Rs 180 on NSE and a low of Rs 171, the stock finally closed at Rs 174 where shares worth Rs 439 crore were traded.
ITC, a 40 per cent stake in ITC hotels, fell by 0.51 per cent to close at Rs 433 on NSE, which led to the company’s evaluation of Rs 5.42 lakh crore. Among the listed companies, ITC Hotels shares, leaving behind East India Hotels (Hospitality Unit of Oberoi Group), shared the second most valuable hotel. Indian Hotels, the original company of Taj Hotels, is still the most valuable hotel share and its market capitalization is Rs 1.11 lakh crore.
ITC Hotels said in a statement that it plans to expand its portfolio to 200 hotels. In the last two years, ITC Hotels has started 30 hotels and is expected to add an average of 1 hotel every month in the next 24 months. Currently, ITC Hotels have six brands including ITC Hotels and Menments in luxury space, while the luxury upper category includes welcoming. The company operates 140 properties in more than 90 areas.
ITC Hotels Chairman Sanjeev Puri said in his statement that the listing of ITC hotels is not only a new chapter for the hospitality business of the ITC group but is also a bold step for our commitment to create a permanent value for all stakeholders. Since ITC Hotels is proceeding on this new journey, it is committed to achieving new global standards in hospitality. The company said in a statement that to meet the planned development and casual needs, it has Rs 1,500 crore in cash and its equivalent and there is no debt.
Independent equity analyst Nimish Maheshwari said in a note that separating ITC hotels is a bold step of ITC that aims to unlock the price and promote development in the hospitality sector. He said that although challenges and uncertainty exist. But strategic arguments behind separation, favorable industry approaches and development plans of ITC Hotels point to the fantastic future.
The company is present with select international destinations such as ITC Ratnadeep in Colombo, Bhakta Pur in Nepal with Fortun Resorts and Wellness Spa. According to the statement, the company will soon start welcome in Nepal.