ITC Strengthens Hospitality Footprint Ahead of Hotels Demerger

In a strategic move ahead of its hotels business demerger, ITC Ltd has consolidated its stake in two leading hospitality brands, Oberoi (EIH) and Leela Mumbai (HLV). ITC acquired 2.44% of EIH’s share capital (1.52 crore equity shares) and 0.53% of HLV’s share capital (34.60 lakh equity shares) from its wholly-owned subsidiary, Russell Credit Ltd, for over ₹111 crore. This brings ITC's total shareholding to 16.13% in EIH and 8.11% in HLV. This acquisition aligns with ITC’s October 2024 decision to consolidate its hospitality investments. EIH manages luxury brands such as Oberoi and Trident, while HLV operates The Leela Mumbai, strengthening ITC’s presence in premium hospitality. The demerger, effective January 1, 2025, will create a new entity, ITC Hotels Ltd, to focus solely on the hotels business. ITC shareholders will hold 60% direct ownership in ITC Hotels proportionate to their current shareholding, while ITC retains 40% ownership. Key investments in hospitality entities like Fortune Park Hotels, Srinivasa Resorts, and WelcomHotels Lanka Pvt Ltd will also transition to ITC Hotels under this plan. With over 140 luxury hotels across 90+ locations, ITC Hotels has been a trailblazer in the Indian hospitality space since its launch in 1975. This demerger positions ITC Hotels as a standalone luxury hospitality leader while empowering ITC to sharpen its focus on diversified growth.