Hotel Stock BLOCK DEAL: FMGC Giant ITC-Backed ITC Hotels Stock Nears Day's High Despite GQG's Stake Sale; BUY?

ITC Hotels, a subsidiary of FMCG giant ITC Ltd., is in focus on Thursday. ITC Hotels traded volatilely but leaned near the day's high despite a mega block deal carried by GQG Partners Equity Fund. GQG has reduced its shareholding in ITC Hotels with stake sale of Rs 197 crore worth of shares.

ITC Hotels Share Price:

At the time of writing, ITC Hotels traded at Rs 152.40 apiece, up by 0.53% on BSE with a market cap of Rs 31,744.56 crore. The stock is near its day's high of Rs 154.95 apiece.

ITC Hotels Block Deal:

As per filing, GQG sold 0.62% ownership, which translated to 1.3 crore equity shares in ITC Hotels on April 8. Earlier, GQG owned nearly a 2% stake in the company.

ITC Hotels Demerger:

ITC Hotels listed on BSE and NSE after demerger from its parent ITC. The demerger included a share entitlement ratio of 10:1 to ITC shareholders. Meaning, the shareholders of ITC got 1 equity share of the face and paid-up value of Re. 1 in the ITC Hotels for every 10 (10) Ordinary Shares of the face and paid-up value of Re. 1 each held in ITC Ltd.

Post demerger, ITC transferred its key businesses to ITC Hotels. These included --- 100% shareholding of wholly-owned subsidiaries Fortune Park Hotels, Bay Islands Hotels, Landbase India, and WelcomHotels (Lanka); 68% shareholding of subsidiary Srinivasa Resorts; 48.96% shareholding of International Travel House; 45.78% shareholding of Gujarat Hotels; and 50% shareholding of Maharaja Heritage Resorts.

Notably, ITC Ltd still holds about 40% stake in the newly demerged ITC Hotels, while rest 60% is for public shareholders.

Buy ITC Hotels Stock?

The consensus recommendation from 12 analysts for ITC Hotels is STRONG BUY, as per Trendlyne data.

In January 2026, analysts at ICICI Direct said, "ITC Hotels registered resilient performance in Q3FY26 aided by strong wedding, MICE and corporate segment. We expect steady growth momentum to sustain on back of favourable industry tailwind. We maintain Buy with a SoTP based revised price target of Rs.240."

The analysts highlighted that in Q3FY26, the company's consolidated revenues (ex-residential) grew by 14% YoY to Rs1,142.8 crore. Standalone revenues reported 13% YoY growth to Rs.1046.7 crore. Domestic RevPAR growth reported 12% YoY growth to Rs.11200/night while ITC Ratnadipa, Sri Lanka continued its strong performance with RevPAR scaling to 1.4x YoY and turned EBITDA positive on YTD basis. EBITDA margins (ex-residential) improved 80bps YoY to 38.3% in Q3FY26. Robust revenues, higher other income aided 29% YoY growth in Adjusted PAT (ex-residential) to Rs.280 crore.

ITC Hotels, established in 1975, is the second largest hotel company in India with 14,070 keys in 90+ destinations.

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