ITC Hotels Limited to Acquire Luxury Resort in Kumarakom, Kerala

ITC Hotels Limited to Acquire Luxury Resort in Kumarakom, Kerala​

ITC Hotels Limited has signed definitive agreements for the acquisition of a luxury resort in Kumarakom, Kerala. The deal involves the purchase of a 100% stake in Zuri Hotels & Resorts Private Limited (ZHRPL), the entity that owns The Zuri Kumarakom, Kerala Resort & Spa. This move marks a significant expansion of the company's luxury portfolio into a key leisure destination.

The acquisition is valued at an Enterprise Value of Rs. 205 crores. The transaction is based on a debt-free and cash-free principle, subject to customary adjustments outlined in the definitive agreements. The company anticipates the acquisition will be finalized within the next few days.

Operational Details of the Acquired Property​

The property, The Zuri Kumarakom, Kerala Resort & Spa, is strategically located on 18 acres of lush landscaped greenery, situated along the serene banks of the Vembanad Lake. It is easily accessible, located approximately 70 km from Cochin, positioning it as a luxury hub for both domestic and international travelers.

The resort currently features 72 keys, including 38 villas and cottages. The development integrates a sprawling 5-acre man-made lagoon, reflecting the tranquility of the backwaters. The property amenities include:

• Spa and Wellness: Approximately 20,000 sq.ft. of facilities.
• Dining: Multiple dining venues, including all-day dining and specialized restaurants.
• Capacity: 13,500+ sq.ft. of banqueting capacity (indoor and outdoor).

Strategic Vision and Value Enhancement​

Upon completion of extensive renovation, the resort will be rebranded as a luxury destination under the 'ITC Hotels' brand. According to Anil Chadha, Managing Director of ITC Hotels Limited, this acquisition is a strategic corner stone in expanding the company's footprint in India's sought-after leisure markets.

Chadha stated that by integrating the resort, ITC Hotels aims to elevate the guest experience using its globally recognized culinary excellence and world-class Ayurvedic wellness offerings. The move reinforces the company's commitment to delivering authentic experiences in the backwater sanctuary.

The rebranding process is expected to utilize the region's traditional architectural designs, integrating traditional woodcraft and stone-work. By leveraging ITC Hotels' institutional strengths, such as its robust distribution network and the Club ITC loyalty program, the resort aims to achieve significant brand value uplift.

Financial analysts note that the revenue stream is expected to be margin accretive to ITC Hotels' portfolio. Furthermore, the stabilized revenue of the resort is anticipated to be close to three times its current levels.

Kumarakom itself is recognized as a premier destination in Kerala, known for its unique blend of ecological wonder and luxury heritage, drawing visitors with its tranquil backwaters and lush green landscape.

ITCHOTELS Stock Price Movement​

Today, ITC Hotels Limited shares edged higher to close at ₹155.48, gaining 0.90% from the previous session's close. The stock showed solid momentum throughout the day, reporting a total traded volume of 3.93 million shares.