ITC expands global footprint with maiden overseas hotel in Colombo

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2 min read Last Updated : Apr 26 2024 | 10:19 AM IST

In a strategic move towards global expansion, ITC, the diversified conglomerate headquartered in Kolkata, inaugurated its first hotel outside India in Colombo on Thursday. The inauguration of “ITC Ratnadipa” marks the conglomerate’s foray into overseas ventures within the hospitality sector, with plans for further expansion across international markets.


Sanjiv Puri, Chairman and Managing Director of ITC Ltd, stated that the conglomerate is open to exploring potential in international markets for hotel openings, mainly through management contracts. Puri also highlighted the company’s strong credentials in the hospitality sector, expressing confidence in expanding its footprint beyond Indian borders.


The newly inaugurated property, ITC Ratnadipa, situated on prime sea-facing land spanning 5.86 acres in Colombo, boasts 352 guest rooms, suites, and service apartments. With a $500 million investment, the hotel aims to cater to the Meetings, Incentives, Conferences, and Exhibitions (MICE) segment, along with inbound tourism in Sri Lanka. WelcomHotels Lanka, a wholly-owned subsidiary of ITC Ltd, spearheaded the property’s launch.


Puri also emphasised the conglomerate’s focus on “proximal markets” for its worldwide hospitality expansion strategy. While the immediate focus remains on these markets, ITC is open to exploring compelling opportunities beyond them, including the Middle East and Nepal.


The company’s robust expansion plans also extend to its domestic market, with ambitions to launch around 70 hotels in India over the next five years. Puri revealed that the majority of these properties will be upper-scale establishments, primarily under management contracts.


Over the years, ITC has transitioned from an asset-heavy to an asset-right strategy, managing properties alongside its own hotels. Puri further noted that management contracts are poised to play a significant role in the company’s future, potentially outnumbering the number of owned properties.


ITC Hotels presently operates over 130 properties across 80 destinations in India, with recent expansions predominantly under management contracts. The conglomerate’s hotel portfolio includes six brands that serve the luxury, premium, upper-upscale, midscale, and heritage leisure segments.


Regarding the proposed demerger of the hotel business, Puri said that the process is on track for completion by the second half or end of the year. A shareholder meeting is scheduled for June 6 to approve the proposed scheme of arrangement between ITC Ltd and ITC Hotels Ltd, which will pave the way for the demerger.

First Published: Apr 26 2024 | 10:19 AM IST