ITC HOTELS -25TH SEPTEMBER 2023

PRESENTED BY
ARUNA.V.V -23MPM001
CHRISTINA SUGI KESITA -23MPM003
HARI GANESH PRABU -23MPM005
JAISREE.S -23MPM009
SANGAVI.R -23MPM020
SANJAY. K. G -23MPM020
VARSHA.S -23MPM029

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Introduction
ITC Hotels, one of the largest luxury hotel in India
Slogan - “Responsible Luxury”
Aim of ITC Hotels
• Environmentally sustainable
• Responsible for society
• Responsible for customers and employees
 Main Strategy for Sustainability
• Carbon positive
• Multi glazed windows or minimum heat gain
• Recycled water
• Furniture from sustainable forestry wood sources
Domestic competitors for ITC hotels

Oberoi Hotels & Resorts Taj Hotels

Airbnb

Lalit Hotels Leela Palace

International competitors for ITC hotels

JW Marriott
Wyndham Hotels & Resorts
International Inc.

Ritz Cartlon

Radisson Hotels Hiltons Hotels Corporation

 Review for peer financial performance for the past year By Anand (Executive director of the business)
EXHIBIT 1: Financial data for ITC hotels and key competitors in India (In ₹ billion)

Hotel ITC Hotels Taj Hotels Oberoi Hotels The Leela Palaces, The LaLit Hotels,
& Resorts Hotels and Resorts Palaces, and Resorts

Fiscal Year 2017/18 2016/17 2017/18 2016/17 2017/18 2016/17 2017/18 2016/17 2017/18 2016/17

.
Revenue from operations* ₹14.18 ₹13.42 ₹25.84 ₹24.02 ₹13.50 ₹12.78 ₹7.19 ₹6.98 ₹6.39 ₹5.7
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Management fees** ₹0.13 ₹0.12 ₹2.10 ₹1.59 ₹0.36 ₹0.34 ₹2.50 ₹2.91 ₹0.01 ₹0.0
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EBITDA ₹3.12 ₹2.80 ₹6.29 ₹5.20 ₹2.19 ₹1.92 ₹1.94 ₹1.75 ₹1.82 ₹1.7
0
EBIT ₹1.40 ₹1.11 ₹19.55 ₹18.82 ₹1.10 ₹0.81 ₹0.69 ₹0.34 ₹1.37 ₹1.2
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Number of rooms owned or 4,713 4,419 13,382 13,344 4,256 4,201 2,688 2,688 2,261 2,26
managed*** 1
Number of third- party rooms 1,412 1,374 9,025 9,041 677 677 1,280 1,280 70 70
managed

Note: ₹ = INR = Indian rupee; US$1 = ₹69.19 on April 1, 2018; * denotes revenue from hotel properties owned or managed by the company,
usually published in the Standalone Financials section of the annual report; ** denotes revenue from managing third party properties (the
industry average is 95 per cent pass-through to operating profit.); *** denotes the number of rooms in hotels rated five-star and higher that are
owned or managed by the company; EBITDA = earnings before interest, taxes, depreciation, and amortization.
Problems

ITC started its operations in India as a tobacco company. The company changed its name
to ITC Limited and expanded its business portfolio with the first hotel opened in 1975.
The company attained the responsible Luxury in India as ITC Hotels was among the first
to introduce Responsible Luxury in India. Many issues and challenges existed as ITC
Hotels tried to fit towards sustainability. The company’s main problem was
environmental concerns that include
● Energy conservation
● Waste management
● Water management
● Greenwashing

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Environmental concern is an issue for the company since it led to different other
problems. For example, the solar-powered thermal system obstructed the view from
several hotel rooms. Balancing customer expectations and the luxury experience became
a challenge for the company.

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● Other challenges tied to the main challenge included issues regarding culture change,
functional design, and revamping the hotel’s people’s vision, including employees.
These are secondary challenges since they entailed changes in the hotels’ operations
to fit towards sustainable luxury. The changes in hotel systems meant that other
challenges, just as mentioned, would arise. Environmental concerns meant that the
hotel would require a new operational design system such as the luxury sleep
experience system and the solar-powered thermal system.

● With the new operation systems and the vision for environmental protection, cultural
change and vision change were the other secondary challenges.

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• Environmental leadership • Customer Resistance
• Brand reputation • Cultural Shift
• Diverse CSR activities

• Market Leadership • Competition

• Innovation • Disruptors

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Strategies:

• Enhanced Sustainable Practices: Continue to invest in and expand responsible

environmental initiatives, ensuring that they align with customer expectations and
minimize negative impacts on customer experience.
• Innovative Solutions: Introduce innovative and cost-effective solutions, such as the
glass-bottled water initiative, to further enhance environmental sustainability and reduce
operational costs.
• Customer Education: Implement a robust customer education program to communicate
the benefits of Responsible Luxury, addressing potential customer concerns and building
a positive perception.

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• Internal Change Management: Proactively manage cultural shifts within the
organization by fostering a culture of sustainability and aligning employee values
with the company's commitment to Responsible Luxury.
• Continuous Monitoring: Regularly monitor customer feedback, market trends,
and competitor strategies to adapt and refine Responsible Luxury initiatives,
ensuring a competitive edge in the evolving market.This strategic approach aims
to position ITC Hotels as a leader in Responsible Luxury, addressing current
challenges while capitalizing on opportunities for market differentiation and long-
term sustainability.

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THANK
YOU

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