I had been reading all the comments posted by senior board members & so much to learn from this.
In addition I would like to bring another perspective in this discussion.
In the whole discussion above mostly we have forgotten what is in it for investors who will hold ITC Hotels share. Here are my three thoughts :
- It will be 2nd largest listed hotel entity in terms of market cap. I guess with around 18000 Cr MCAP. Displacing EIH (Oberoi hotels). Screenshot from screener is below :
Interestingly as per my limited knowledge ITC hotels would not have any debt on the books. As they are doing asset light mix for last 3 years, opening more & more hotels.
The current PE of other listed hotels chains are above 30 in top 5, if ITC hotels need to command that PE as well, would it rise is a question need to be answered.
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BAT, it would hold, I guess around 18-20% in ITC hotels. Now if it sells in open market it would bring the price down & it would be not a win win situation for BAT either, my best guess is, it would find a strategic investor for this. How about LIC (just thinking aloud). Any strategic investor would be interesting here, if they want to become promoter they can easily bring open offer by acquiring some more stake from open market. Would ITC hotels would want to increase the stake directly buying from BAT in this case. This is an open question to me.
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ITC, a lot of ESG norms which ITC boast of comes from Hotels divisions. All their hotels are LEED® Platinum Certified. This is mentioned in their website too : Sustainability
This video shows the kind of work ITC Hotels has done & found it really interesting, taking sustainability to next level:
How ITC Hotels are Focusing on Sustainability? | #shorts
Most of the competition in similar category at most offers, Glass water bottles in rooms.
ITC would love to have these benefits coming to them as well, which they can keep boasting off on their website.
Looking forward to hear from senior members on this.
Disc : Invested with no transaction in last 30 days.
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