As the Indian premiumisation journey gains pace, ITC Hotels on Friday announced the launch of a new hotel brand “Epiq Collection” to accelerate growth in the premium segment.
The brand will debut in Odisha’s Puri with a 118-key property, which will be owned by the group, and a 201-key managed property in Tirupati, Andhra Pradesh, in the next two years.
“With this new brand launch, ITC Hotels aims to add about 1,000 keys under Epiq Collection over the medium term, reinforcing its commitment to offering elevated hospitality experiences across India. This strategic addition to the portfolio is designed to accelerate the company’s premiumisation journey by focusing on the conversion of high-quality hotels into new owned and managed properties,” the company said in a statement on Friday.
Rivals Indian Hotels Company Ltd (IHCL) operates the Vivanta brand in the premium segment while Lemon Tree Hotels operates the Aurika brand.
The new brand launch comes at a time when the group’s outlook for the second half of 2025-26 (H2FY26) is positive, signalling an uptrend, largely due to strong fundamentals and rising discretionary spending.
For the second quarter of the ongoing financial year (Q2FY26), the hospitality arm of the ITC group recorded a 74.3 per cent increase in consolidated net profit to ~132.8 crore from ~76.2 crore in the same period of FY25.
Its revenue from operations grew 7.9 per cent to ~839.5 crore from ~778 crore in the year-ago period. Its profit before interest, depreciation, and tax (PBIDT) grew 34.5 per cent year-on-year (Y-o-Y) to ~294.7 crore.
“The hospitality sector faced seasonal softness in the quarter, which was further impacted by heavy monsoon rains that dampened travel sentiment and leisure mobility in July and August. A lower number of auspicious dates in the quarter also affected the wedding segment. However, demand rebounded in September with longer weekends and early festive activity, reaffirming the sector’s medium- to long-term resilience,” the release stated.
The company’s room revenue growth was driven by robust performance in the retail, corporate, and the MICE (meetings, incentives, conferences, and exhibitions) segments. The average daily rate for the quarter grew by 6 per cent while occupancy expanded by 254 basis points (bps), resulting in overall standalone Revenue per Available Room (RevPAR) growth of 9 per cent. On a consolidated basis, RevPAR registered a double-digit growth of 11 per cent during the quarter over last year.
“Despite headwinds, the company commanded a 40 per cent RevPAR premium over the industry, reflecting the strength of its superior product and service,” the release further said.
Its food & beverage (F&B) revenue registered a growth of 5 per cent during the quarter on a high base, driven by outlets and banqueting.
During the quarter, the company signed new hotels in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam, reinforcing its presence in high-potential markets.
The group currently has a portfolio of 207 hotels, of which 146 are operational and 61 are in the pipeline. The group has a target of over 220 operational hotels comprising 20,000 keys by 2030.
“Recent policy measures, including goods and services tax (GST) rate rationalisation and monetary easing, are expected to boost consumer spending going forward. Supply-demand mismatch in the hospitality sector is expected to persist in the medium to long term,” the company said.
