ITC Share Price Falls as Investors Disappointed with Demerger Ratio
hotel industry that are worth discussing today. The first is about booming hotel rates ahead of the scheduled ODI International World Cup. The 2023 men's cricket world cup will be hosted by India from 5 October 2023 to 19 November 2023.
The final match is slated to be played at Narendra Modi Stadium in Ahmedabad. When I was in Ahmedabad the other day, just out of curiosity I went into the reception of Lemon Tree Hotels at Navrangpura to check the rates of a normal room for November 2023. Having stayed at the same hotel many times before at ₹5,000- ₹6,000 per day, I confidently strolled in and asked the reception whether rooms were available for November 2023 and what’s the going rate? With more than three months to go, I was shellshocked when they said almost all the rooms were booked and prices are rising for the remaining rooms.
To put things into context, a base category room is going somewhere in the range of ₹50,000 per night. That’s 10 times higher than the average rate! The budget hotels too are cashing in on this trend as most hotels in Navrangpura are charging over ₹20,000 for one day’s booking on 19 November 2023. Such is the hype for cricket these days.
And for hotel stocks as well. Here’s Keenan McKenzie, the general manager of ITC Narmada… There is also great traction for the match between India and Pakistan, likely on October 15. Bookings have already been made for the October 13-16 period and hotel rooms in the city are expected to be sold out on most match days.
This brings me to the demerger of ITC’s hotel business. Yesterday during market hours, the FMCG-to-cigarette major’s board gave an in-principal approval for demerging its hotels business. Here are some important details about the demerger: After
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