ITC Hotels Acquires Zuri Resort in Kerala for ₹205 Crore to Strengthen Luxury Portfolio

ITC Hotels has announced the 100 percent acquisition of Zuri Hotels & Resorts in Kumarakom, Kerala, for an enterprise value of ₹205 crore. The transaction has been structured on a debt-free and cash-free basis and is expected to be completed within the next few days. The acquisition marks another important step in ITC Hotels’ strategy to expand its presence in India’s high-growth luxury leisure market.

The premium resort is located on the banks of Vembanad Lake, one of Kerala’s most popular tourism destinations. Spread across 18 acres of landscaped greenery, the property has 72 keys and offers a lakeside hospitality experience in Kumarakom, a destination known for backwaters, wellness tourism and premium holiday travel. Following the acquisition, ITC Hotels plans to renovate and reposition the property as a luxury resort under its own hospitality portfolio.

The resort reported revenue of ₹21.91 crore in FY26. For ITC Hotels, the acquisition provides an opportunity to strengthen its footprint in Kerala, a market that continues to attract domestic and international travellers. Kumarakom has also seen rising interest from luxury tourists looking for nature-led stays, wellness experiences and premium resort destinations.

The Indian hospitality sector has remained resilient despite recent operating challenges. Demand for luxury rooms has continued to grow, while supply in several established leisure destinations remains limited. This demand-supply gap has encouraged hotel companies to acquire and upgrade existing premium assets instead of depending only on greenfield development.

For ITC Hotels, the Zuri acquisition fits well with its broader growth plan of building a stronger domestic luxury portfolio across strategic leisure and business destinations. The company is expected to benefit from the property’s location, existing brand recall and potential for value creation through renovation and rebranding.

The deal also highlights the growing investor confidence in India’s hospitality and tourism sector. With rising disposable incomes, improved connectivity and strong demand for premium travel experiences, luxury resorts in destinations such as Kerala are expected to remain attractive assets for leading hotel operators.