ITC Hotels Shares Removed from Sensex and BSE – Here’s Why

ITC Hotels Shares: The stock of ITC Hotels will no longer be part of the Sensex and other BSE indices from February 5, 2025. This change comes after the company was temporarily included in these indices for portfolio adjustments.

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Why ITC Hotels is Being Removed?

ITC Hotels was separately listed on the stock exchange on January 29, 2025, after being demerged from ITC Ltd. The stock was temporarily added to indices to help passive funds rebalance their portfolios. However, as ITC Hotels did not hit the lower circuit limit by the cut-off time of 2 PM on February 4, the BSE announced its removal from all indices.

ITC Hotels Shares Price Performance

• The stock last closed at Rs 165, marking a 4.16% decline.
• When first listed, ITC Hotels had a market value of Rs 39,126.02 crore, but it has now decreased to Rs 34,266.48 crore.
• With its removal from the Sensex, index trackers sold shares worth over Rs 400 crore, and another Rs 700 crore in selling is expected once it exits the NSE Nifty as well.

Business Growth

Despite stock fluctuations, ITC Hotels has shown strong business performance:

• Average Room Rate (ARR) grew from Rs 7,900 in FY19 to Rs 12,000 in FY24 (a 51.9% increase).
• Revenue Per Available Room (RevPAR) increased from Rs 5,200 to Rs 8,200, marking a 57.7% rise.
• Room bookings contributed 52% of total revenue, while food and beverage accounted for 40% in FY24.

Future Prospects

Experts believe ITC Hotels will benefit from a strong hospitality industry, with rising demand for premium stays and limited new hotel supply. Additionally, ITC Ltd retains a 40% stake in ITC Hotels, providing brand support and governance.

Although ITC Hotels’ share price may face short-term volatility, analysts remain optimistic about its long-term growth in the hotel sector.

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