ITC Hotels is acquiring a luxury resort in Kerala for an enterprise value of ₹205 crore, on a debt-free and cash-free basis.

The 100 per cent acquisition of the Kumarakom-based Zuri Hotels & Resorts is expected to be consummated over the next few days, enabling ITC Hotels to expand its luxury portfolio.

The 72-key resort is spread over 18 acres of landscaped greenery, along the banks of the Vembanad Lake, and will be rebranded as a luxury resort under the ITC Hotels brand. The property had recorded a revenue of ₹21.91 crore in FY26.

“The transaction would allow ITC Hotels to strengthen its luxury portfolio in a strategic, high-growth leisure destination, through an established luxury property. Post renovation, the resort will be re-branded as a luxury resort,” the company said in a release.

“During the year, the Indian hospitality industry recorded steady growth despite a challenging operating environment, marked by geo-political events, domestic aviation incidents, and adverse weather conditions,” it added.

However, a persistent demand-supply gap continues to drive growth.

“While the supply of branded hotel rooms across the country increased by 7.8 per cent year-on-year in CY 2025, demand registered an increase of 9.1 percent.

“During the same period, hotel occupancies improved to 64 per cent, up by 100 basis points, while average daily rates across branded hotels increased to ₹8,600, representing a robust 8.6 per cent growth,” the release added.

Profit up 23%

ITC Hotels on Friday reported a 23.1 per cent rise in consolidated net profit for March quarter at ₹317.43 crore.

ITC Hotels had reported a net profit of ₹257.85 crore for the corresponding period a year ago.

Revenue from operations grew 18.2 per cent to ₹1,253.7 crore from ₹1,060.6 crore in the year-ago period.

The company’s board has recommended a dividend of ₹1 per share for financial year ended March 31, 2026.

During 2025-26, ITC Hotels recorded its highest-ever signings, adding 33 hotels with over 3,300 keys.

Aligned to its ‘asset-right’ strategy, the company aims to scale its portfolio to 250 operational hotels with more than 22,000 keys by 2031.