BENGALURU, July 24 (Reuters) - India's ITC Ltd (ITC.NS) said it would spin off its hotel business, separating it from its cigarettes and food units, sending shares 4% lower on Monday.
Shares of ITC hit a record high earlier in the day before falling as much as 4.3% after the demerger was announced.
Indian hotels have turned into a hot sector as pandemic-led disruptions eased, with operators enjoying higher rates and occupancy.
The Indian hospitality industry is expected to witness rapid growth going forward, ITC said.
The hotel business accounted for nearly 4% of ITC's total revenue from services and sales and contributed over 2% of its annual profit, according to its latest annual report.
Persons:
Varun Vyas, Sohini Goswami
Organizations:
India's ITC, ITC Hotels, ITC, Tata, Indian Hotels, Taj Hotels, Marriott Hotels, Oberoi, Thomson
Locations:
BENGALURU, Bengaluru