Synopsis: ITC Hotels Ltd has announced the acquisition of The Zuri Kumarakom Kerala Resort & Spa in a Rs. 205 crore deal, marking the company’s entry into Kerala with its first owned resort property in the state. The acquisition aligns with ITC Hotels’ strategy of expanding its luxury hospitality portfolio across high-growth leisure destinations in India.
ITC Hotels Ltd is one of India’s leading hospitality companies with a strong presence across luxury, premium, and mid-market hotel segments. The company operates multiple brands catering to business, leisure, and wellness tourism while focusing on sustainable and experience-driven hospitality offerings.
ITC Hotels Ltd currently has a market capitalization of Rs. 31,880 crore. The stock is trading at Rs. 153 per share down by 1.50% compared to its previous close of Rs. 155.48, compared to its 52-week high of Rs. 262 and 52-week low of Rs. 137.
The company has a stock P/E ratio of 36.4 times, while its ROCE and ROE stand at 10.7 percent and 7.83 percent respectively. ITC Hotels also offers a dividend yield of 0.64 percent.
Acquisition Details
ITC Hotels has signed definitive agreements to acquire a 100 percent stake in Zuri Hotels & Resorts Private Limited, which owns The Zuri Kumarakom Kerala Resort & Spa. The acquisition will be completed at an enterprise value of Rs. 205 crore on a debt-free and cash-free basis, subject to customary adjustments.
The luxury resort is spread across 18 acres along the backwaters of Vembanad Lake in Kumarakom, Kerala. The property includes 72 keys, 38 villas and cottages, extensive wellness facilities, event spaces, and nearly 20,000 square feet of spa infrastructure.
Following renovation and rebranding under the “ITC Hotels” brand, the company expects the resort to become a major luxury leisure destination. Management stated that stabilized revenue from the property is expected to reach nearly three times current levels while also being margin accretive to ITC Hotels’ portfolio.
ITC Hotels reported revenue of Rs. 1,254 crore in Q4 FY26, registering a growth of around 2 percent on a quarter-on-quarter basis compared to Rs. 1,231 crore in Q3 FY26. On a year-on-year basis, revenue increased by nearly 18 percent from Rs. 1,061 crore reported in Q4 FY25.
Net profit for the quarter stood at Rs. 317 crore, compared to Rs. 237 crore in Q3 FY26 and Rs. 258 crore in Q4 FY25. This represents a growth of around 34 percent sequentially and approximately 23 percent year-on-year. Earnings per share (EPS) also improved to Rs. 1.52 in Q4 FY26 from Rs. 1.13 in Q3 FY26.
Industry Outlook
India’s hospitality and tourism sector continues to witness strong momentum driven by rising domestic travel, wellness tourism, premium leisure experiences, and increasing international visitor spending. Industry reports indicate that wellness tourism and luxury hospitality are emerging as key growth segments across India.
Government initiatives such as Swadesh Darshan, PRASHAD, and tourism infrastructure development programs are also supporting sector growth. Increasing investments in experiential tourism, medical tourism hubs, and improved connectivity are expected to create long-term opportunities for premium hospitality companies like ITC Hotels.
ITC Hotels’ acquisition of The Zuri Kumarakom Kerala Resort & Spa reflects the company’s aggressive expansion strategy in the luxury hospitality segment. The deal strengthens its presence in high-potential leisure destinations while adding a premium waterfront resort to its portfolio.
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