GQG sells Rs 197 cr ITC Hotels shares in bulk
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- GQG Partners sold a bulk block of ITC Hotels shares worth Rs 197 crore, reducing its holding to 4,10,88,951 shares (≈1.97 % of the company).
- ITC Hotels stock has corrected nearly 20 % over the past three months, reflecting broader equity weakness due to global uncertainty and geopolitical tensions.
- ITC Hotels reported third‑quarter occupancy up 200 basis points YoY and average room rates rising 8.6 %, supporting steady operational performance.
- ITC Hotels posted real‑estate revenue of Rs 81.5 crore and EBIT of Rs 26.5 crore, but earnings were hit by a one‑time provision of Rs 52.5 crore for gratuity‑related regulation changes.
- Elara Capital maintained a “Buy” rating on ITC Hotels with a revised target price of Rs 253, while trimming FY26‑FY28 earnings estimates by up to 14 % due to moderate growth assumptions.
- Analysts expect the hotel segment to add over 1,000 keys from FY27 onward and the owned hotel portfolio to see meaningful growth starting FY28, driving future revenue.
Why it matters: The bulk sale gives GQG Partners liquidity and shows confidence that ITC Hotels can rebound from a steep price correction; investors view the discounted valuation as a buying opportunity, but the one‑time provision and trimmed earnings forecasts overall temper expectations.
