That, and if you have encrypted DNS and the server you're connecting to uses Encrypted Client Hello (https://blog.cloudflare.com/encrypted-client-hello/), the domain name is hidden too.

It doesn't help if only one site is behind an IP address, but it does help if you're connecting to a share host where many sites can be behind a single IP, your ISP will have a harder time figuring out which site you're visiting.