IHCL and ITC Hotels post double-digit Q1 growth as domestic travel demand lifts RevPAR
India hotel RevPAR rose 18% year on year in July, supporting strong Q1FY27 results for IHCL and ITC Hotels. IHCL reported 14.6% revenue growth and a 20.7% profit increase, while ITC Hotels grew revenue 14.8% and profit 35%; both posted EBITDA margins above 31%.
What happened
Indian Hotels Company (IHCL) · India’s domestic travel boom is lifting hotel demand and RevPAR. IHCL and ITC Hotels reported double-digit Q1FY27 revenue and
Key facts
- India hotel RevPAR rose 18% year-on-year in July
- IHCL Q1FY27 consolidated net profit rose 20.7% to Rs 357.9 crore
- IHCL Q1FY27 revenue rose 14.6% to Rs 2,339 crore
- IHCL Q1FY27 EBITDA rose 18% to Rs 753 crore; margin was 31.1%
- ITC Hotels Q1FY27 net profit rose 35% to Rs 180.25 crore
- ITC Hotels Q1FY27 revenue rose 14.8% to Rs 936 crore
- ITC Hotels Q1FY27 EBITDA rose 19.5% to Rs 292 crore; margin was 31.2%
- IHCL has 255 hotels in its pipeline and a total portfolio target of 630 properties
- ITC Hotels targets 250 hotels and over 22,000 rooms by 2031
- Jefferies expects 12-15% EBITDA CAGR for hotel coverage during FY26-FY29
Why this matters
Sustained RevPAR momentum and high operating margins reinforce the strategic appeal of expanding premium hotel capacity and pursuing asset-light growth partnerships in India.
What to watch
- Monthly India RevPAR, ADR and occupancy trends, especially after the July 18% year-on-year RevPAR increase.
- Corporate travel and MICE booking pace for the September and festive-season quarters.
- Room-supply additions and pipeline conversions in Mumbai, Delhi NCR, Bengaluru, Goa, Jaipur and key pilgrimage markets.
- Share of direct bookings versus online travel agencies and resulting distribution costs.
- Wage, food, utility and renovation-cost inflation relative to ADR growth.
- Management commentary on signed keys, openings, asset-light mix and same-store RevPAR.
- Any weakening in domestic air-passenger traffic, consumer discretionary spending or foreign tourist arrivals.
- Accelerate asset-light management and franchise signings in high-demand leisure, pilgrimage and Tier-2/Tier-3 destinations.
- Prioritize premium and luxury inventory, suites, food-and-beverage concepts and wedding/MICE capacity to capture higher-spend demand.
- Use elevated cash generation to renovate aging properties, improve digital direct-booking penetration and reduce OTA commission exposure.
- Maintain pricing discipline while selectively adding inventory in supply-constrained markets rather than pursuing broad discount-led occupancy.
- Competitors are likely to raise expansion targets and bid more aggressively for management contracts, increasing future development costs.