The deal comes at a time when ITC Hotels stock has corrected nearly 20% over the past three months, amid broader weakness in equities driven by global uncertainty, including geopolitical tensions and concerns around growth.
As of the December quarter, GQG Partners held 4,10,88,951 shares, or about 1.97% stake, in the company, indicating this transaction represents a partial stake sale rather than a full exit.
The stock has been under pressure despite steady operational performance. In its third quarter, ITC Hotels reported largely in-line numbers, with growth in the core hotel business supported by both occupancy and pricing. Occupancy improved by 200 basis points YoY, while average room rates rose 8.6%.
The company also recorded real estate revenue of Rs 81.5 crore and EBIT of Rs 26.5 crore during the quarter. However, earnings were impacted by a one-time provision of Rs 52.5 crore due to changes in gratuity-related regulations.
Brokerage views remain constructive on the long-term outlook. Analysts expect growth in the hotel segment to be driven by rising occupancy at newer properties and continued expansion in the managed portfolio, with over 1,000 keys expected to be added from FY27 onwards.
Real estate is also seen as a key driver, with revenues likely to scale up as project deliveries pick up. The company’s owned hotel portfolio is expected to see meaningful growth starting FY28.Elara Capital has maintained a “Buy” rating on the stock with a revised target price of Rs 253, though it has trimmed earnings estimates for the next few years to reflect more moderate growth assumptions in both the hotel and real estate businesses.
The brokerage expects EBITDA and adjusted profit to be lower by up to 14% in FY26 and sees some moderation continuing into FY27 and FY28. Despite this, it believes the recent correction in the stock is overdone and a recovery could follow as operational performance improves and new assets ramp up.