Business-Today reported that ITC Hotels, India's second most valuable hotel company by market capitalisation, is evaluating "multiple" offers from property owners in Dubai to manage luxury and premium hotels there. The evaluation comes as the West Asia region attempts a comeback in tourism amid the US-Iran conflict, which has hit tourist flows since Feb 28.
Dubai and West Asia under review
According to Business-Today, ITC Hotels Ltd Managing Director Anil Chadha said the company is in "early-stage evaluation" for suitable opportunities for management contracts in international destinations, with the Middle East (West Asia) and proximal markets under review.
We are in early-stage evaluation for suitable opportunities for management contracts in international destinations. The Middle East (West Asia), along with proximal markets is under review, given the emerging business opportunities in this space. — Anil Chadha, MD, ITC Hotels Ltd
Tourist flow to West Asia has been hit after the conflict in the region began on Feb 28, but ITC Hotels sees opportunity once hostilities end, Business-Today reported.
Proximal markets: Sri Lanka and Nepal
Beyond Dubai, the company is also looking to grow in "proximal" international markets, Chadha told Business-Today. ITC Hotels currently operates one property in Sri Lanka and will open a property in Nepal shortly.
- Sri Lanka: existing ITC property
- Nepal: upcoming opening
Growth targets, signings and pipeline
The Dubai evaluation is part of a broader expansion strategy targeting 250 operational properties with 22,000 keys by 2031. Over the last three years, ITC Hotels has recorded 87 hotel signings and 43 hotel openings, according to Chadha's comments reported by Business-Today. The current pipeline stands at 77 hotels with nearly 8,000 keys.
| Metric | Figure |
|---|---|
| Hotel signings over the last 3 years | 87 |
| Hotel openings over the last 3 years | 43 |
| Current pipeline | 77 hotels, ~8,000 keys |
| Target by 2031 | 250 hotels, 22,000 keys |
Chadha said the company will pursue an "asset right" approach to reach this target, meaning it will focus majorly on managed hotels while making a "calibrated increase in owned assets."
Twin-track approach and premium shift
"We have built a strong momentum over the last three years with 87 hotel signings and 43 hotel openings, laying the foundation 250 operational hotels with 22,000 keys by 2031," Chadha said, according to Business-Today. He added that while the managed business continues to scale rapidly through brand-led growth and management contracts, the company is simultaneously strengthening its owned portfolio through greenfield developments and strategic acquisitions.
This "twin-track approach" aims to "drive higher management fees, stronger earnings quality and enhanced shareholder value," the company said. With a pipeline of 77 hotels, ITC Hotels is witnessing a "steady shift towards premium and luxury" offerings, Business-Today reported.
The evaluation of Dubai offers is at an early stage, and no agreements have been disclosed. The company's next disclosed milestone is the opening of its Nepal property, with continued progress toward the 2031 target of 250 operational hotels and 22,000 keys.
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