ITC Hotels shares in focus after marquee investor GQG sells Rs 197-crore stake. What lies ahead?

ITC Hotels Stock Remains in Focus Amid GQG Partners Stake Sale

Shares of ITC Hotels are under the limelight on Thursday following a significant stake sale by foreign investor GQG Partners, which offloaded nearly 1.29 crore shares worth about Rs 197 crore through a bulk deal on Wednesday.

Key Points

GQG Partners Emerging Markets Equity Fund sold 1,28,87,559 shares at an average price of Rs 152.67 apiece.
The total transaction value stood at around Rs 197 crore.
GQG Partners held about 4.12 crore shares, or a 1.97% stake, in the company at the end of the October–December quarter of FY26.

The stock has declined over 22% so far in 2026 amidst a broader selloff on Dalal Street, triggered by the escalating Iran–US-Israel conflict and the subsequent closure of the Strait of Hormuz.

ITC Hotels Earnings Snapshot

In the third quarter, ITC Hotels reported largely in-line numbers, with growth in its core hotel business supported by both occupancy and pricing.

Occupancy improved by 200 basis points YoY.
Average room rates rose 8.6%.
The company reported real estate revenue of Rs 81.5 crore and EBIT of Rs 26.5 crore during the quarter.
Earnings were impacted by a one-time provision of Rs 52.5 crore due to changes in gratuity-related regulations.

Brokerages Remain Bullish on Long-Term Outlook

Analysts expect growth in the hotel segment to be driven by rising occupancy at newer properties and continued expansion of the managed portfolio, with over 1,000 keys expected to be added from FY27 onwards.

Real estate is also seen as a key growth driver, with revenues likely to rise as project deliveries pick up.
The company’s owned hotel portfolio is expected to see meaningful growth starting FY28.

Elara Capital Maintains “Buy” Rating

Elara Capital has maintained a “buy” rating on the stock with a revised target price of Rs 253, although it has trimmed earnings estimates for the next few years to reflect more moderate growth assumptions across both the hotel and real estate segments.

Despite the recent correction in the stock, Elara Capital believes the potential recovery as operational performance improves and new assets ramp up.

Recommendations and Views

Brokerages remain bullish on the long-term outlook, but recommend caution due to the recent selloff and potential moderation in growth.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own and do not represent the views of The Economic Times)