The move was disclosed in a media statement on Thursday, with BAT indicating it could sell between 7% and 15.3% of its shareholding in the hotel chain.
The transaction will be carried out through an accelerated bookbuild process, with the final stake size determined to optimise overall pricing outcomes for the BAT Group.
The proceeds from the stake sale are expected to support BAT’s efforts to reach its target leverage range of 2–2.5x adjusted net debt to adjusted EBITDA (excluding Canada) by the end of 2026.
BAT’s stake in ITC Hotels originated from the demerger of the hotel business from ITC Limited, completed earlier in 2025. BAT currently holds around 15.3% in ITC Hotels, while ITC Ltd retains a promoter stake of 39.85%.
Commenting on the development, BAT CEO Tadeu Marroco reiterated that the holding in ITC Hotels is not strategic for the company and that the planned sale aligns with its broader financial priorities. He noted that the direct stake was acquired as part of the demerger and that the divestment would help advance BAT’s 2026 financial goals.Founded in 1975, ITC Hotels has grown into a prominent hospitality brand in India, with more than 140 hotels across over 90 destinations. It became an independently listed entity in January 2025 following its separation from ITC Limited.Also read: Jio Platforms IPO: Reliance said to start work on draft prospectus for India’s biggest IPO
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