After years of speculation, ITC has finally decided to demerge its Hotels business, with the company holding 40% stake in the new entity, while the balance 60% will be held by the company’s shareholders proportionately.
Feels like a different way to setup this, But, this is the best way to ensure that current management doesn’t lose out the control of the entity as there can always be a chance of hostile takeover especially if BAT (the British American tobacco company) exits the hotels business.
Some interesting data on ITC Hotels -
- 120 hotels, 11,600 keys across 70+ locations
FY23 Hotels Segment
- Revenue for the year doubled to Rs 2585 Cr
- Segment EBITDA at Rs 831.62 crores, as against ` 78.03 crores in FY22
- Segment PBIT for the year stood at Rs 542 Cr v/s loss the previous year. 724.99 crores jump over FY22
Source : Aditya kondawar