Cost-Benefit Analysis of Responsible Luxury and Sustainable Initiatives and their Financial Viability in Welcomhotel

Abstract

This research paper presents a cost-benefit analysis of responsible luxury and sustainable initiatives at WelcomHotel, a flagship brand under ITC Hotels, to assess their financial viability over the five-year period from 2020-21 to 2024-25. Using analytical research methodology based on secondary data drawn from ITC Hotels annual reports, Balance sheet and Profit & Loss Accounts, the study employs Ratio Analysis and Trend Analysis as Key tools. The findings reveal a consistent improvement in profitability, liquidity and asset efficiency with the net profit ratio reaching a record 47.41% in 2024-25, indicating that WelcomHotel’s Sustainability driven strategies have positively contributed to long-term financial resilience and operational excellence.