ITDC Shares Soar 14% as Ashok Hotel Faces Redevelopment

ITDC shares jumped 14% after news broke about The Ashok Hotel’s monetization plan. The government, which owns 87.03% of ITDC, plans to lease the hotel and nearby land under a public-private partnership (PPP). This move aims to redevelop the iconic property in Lutyens’ Delhi.

The deal involves leasing the hotel and land for 60 to 99 years. The project is valued at ₹7,500 crore, including capital investment by the private partner and upfront lease payments to ITDC.

The Ashok Hotel covers 11.42 acres and has 550 rooms, including 160 suites. It is close to the Prime Minister’s residence and several embassies. The selected bidder will invest about ₹450 crore to upgrade the hotel to international standards. The plan also includes two vacant land parcels: 1.83 acres for retail and office space and 6.3 acres for serviced apartments.

This project is part of the National Monetisation Pipeline (NMP), which aims to generate ₹6 trillion by FY25. The government’s decision to revamp The Ashok Hotel has boosted investor confidence, leading to a surge in ITDC’s stock price.