ITC Hotels To Acquire Welcomhotel Ahmedabad For ₹155 Crore

ITC Hotels is buying the property it already runs. The company has signed a definitive agreement to acquire a 100% stake in GHK Hospitality and Infrastructures, the entity that owns Welcomhotel Ahmedabad, a 130-key hotel currently operated by ITC Hotels under an operating services agreement.

The transaction will be completed at an enterprise value of ₹155 crore on a debt-free and cash-free basis and is expected to close within the current quarter.

The move converts a managed asset into an owned one, strengthening ITC Hotels' balance sheet presence in a city the company views as one of India's fastest-growing urban economies.

Why Ahmedabad

Welcomhotel Ahmedabad sits on Ashram Road overlooking the Sabarmati Riverfront, within reach of Ahmedabad International Airport and the Narendra Modi Stadium. The city's industrial infrastructure, including Dholera, GIFT City and Sanand, has drawn significant corporate activity, making hospitality assets in the market increasingly attractive.

The acquisition adds another owned property to ITC Hotels' Ahmedabad portfolio, filling out its presence across branded market segments and price points in the city. The company recently acquired The Zuri Kumarakom, Kerala Resort and Spa, pointing to an active owned-asset accumulation strategy.

Managing Director Anil Chadha said the hotel's location, brand positioning and consistent occupancy levels make it an attractive candidate for yield enhancement and long-term cash flow generation.

Key Q1FY27 Financial Highlights

ITC Hotels reported a strong June quarter alongside the acquisition announcement:

• Consolidated net profit: ₹180.25 crore, up 35.42% year-on-year.

• Revenue from operations: ₹936.02 crore, up 14.77% year-on-year.

• Hotels division revenue: ₹881.06 crore, up 10.05% year-on-year.

• Earnings before interest, taxes, depreciation and amortisation (EBITDA): ₹292 crore vs ₹245 crore in Q1FY26.

• EBITDA margin: 31%, up from 30% in Q1FY26.

• Profit before tax: ₹248.20 crore, up 31.46% year-on-year.

• Total expenses: ₹750 crore, up 11.11% year-on-year.

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