ITC Expands Stake in Hospitality Rivals Amid Demerger Plans

ITC Ltd is in the process of demerging its hotel business from January 2025. As part of this, it has increased its stake in rival hospitality chains Oberoi and Leela. This move will consolidate ITC's shareholding and create a new wholly-owned subsidiary, ITC Hotels Ltd, to manage its hospitality business.

ITC Ltd, a major player in India's hotel industry, announced the acquisition of additional shares in competitors Oberoi and Leela via its subsidiary, Russell Credit Ltd. This move comes as ITC prepares to demerge its hotel business by January 2025.

The acquisition includes 2.44% of EIH and 0.53% of HLV, raising ITC's stake in these companies to 16.13% and 8.11%, respectively. The transaction was recorded at book value in Russell Credit's accounts, the company detailed in its regulatory filing.

ITC's board had approved this consolidation strategy on October 24, aligning with its larger demerger plan. This plan will form ITC Hotels Ltd, a new entity designed to manage the conglomerate's extensive hospitality portfolio, including Oberoi, Trident, and The Leela brands.

(With inputs from agencies.)