ITC Hotels acquires 100% stake in GHK Hospitality for ₹155 crore
- ITC Hotels acquires 100% stake in GHK Hospitality for ₹155 crore enterprise value
- Deal completed on September 1, 2026, via cash consideration
- Adds Welcomhotel Ahmedabad (130 keys) to owned portfolio
- GHK turnover grew from ₹25.62 crore in FY24 to ₹35.16 crore in FY26
*this image is generated using AI for illustrative purposes only.
ITC Hotels has completed the acquisition of a 100% stake in GHK Hospitality & Infrastructures Limited for an enterprise value of ₹155 crore. The transaction was finalized on September 1, 2026, making GHK a wholly owned subsidiary.
Acquisition details
The following table summarises the key parameters of the transaction:
| Parameter | Details |
|---|---|
| Target entity | GHK Hospitality & Infrastructures Limited |
| Acquirer | ITC Hotels |
| Transaction value | ₹155 crore (enterprise value) |
| Ownership post-acquisition | 100% |
| Completion date | September 1, 2026 |
| Consideration type | Cash |
The acquisition gives ITC Hotels complete control over GHK Hospitality & Infrastructures, consolidating the entity fully within its hospitality operations. The deal involves the purchase of 2,82,27,741 equity shares, comprising 1,54,54,545 shares through primary subscription and 1,27,73,196 shares through secondary purchases.
Strategic rationale
The transaction allows ITC Hotels to expand its owned asset portfolio in Ahmedabad across all market segments. The target entity owns the Welcomhotel Ahmedabad, which features 130 keys and was previously operated by ITC Hotels under an Operating Services Agreement. Management described the move as value-accretive, citing the opportunity to capitalise on Ahmedabad's diversified year-round demand.
Target profile
GHK Hospitality & Infrastructures Limited is a public limited company incorporated on May 10, 2007, with its registered office in Ahmedabad, Gujarat. It is engaged in the hospitality business. The entity is not a related party transaction, and no promoter or group company interest exists in the acquired entity.
Financial performance of GHK
Based on audited accounts, the turnover of GHK over the last three years is as follows:
| Fiscal Year | Turnover |
|---|---|
| FY26 | ₹35.16 crore |
| FY25 | ₹31.23 crore |
| FY24 | ₹25.62 crore |
No governmental or regulatory approvals were required for this acquisition.
Historical Stock Returns for ITC Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.89% | -4.64% | -2.36% | -9.96% | -35.13% | 0.0% |
How will the shift from an operating agreement to full ownership impact ITC Hotels' EBITDA margins at the Ahmedabad property?
Does this acquisition signal a broader strategic pivot by ITC Hotels towards acquiring owned assets in high-growth tier-2 cities?
What is the projected payback period for the ₹155 crore investment based on GHK's historical turnover growth trajectory?
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