IHCL and Oriental Hotels Limited Announce Merger
IHCL will absorb associate company OHL via an all-stock deal at 25 IHCL shares per 117 OHL shares, folding in seven hotels and 825 rooms, with completion targeted in H2 FY2028.
Photo by IHCL
Indian Hotels Company (IHCL) , India’s largest hospitality company, today announces that Oriental Hotels Limited (OHL) will be merged with IHCL through a Scheme of Arrangement. The Scheme is subject to statutory approvals and clearances.
In line with our Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the full potential of OHL portfolio including iconic assets like Taj Coromandel, Chennai, Taj Fisherman’s Cove Resort & Spa, Chennai and Taj Malabar Resort & Spa, Cochin, the Boards of IHCL and OHL have today approved this merger.
Mr Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL
The merger will drive long-term value creation by leveraging IHCL’s strong balance sheet to support strategic investments, including inventory expansion and product enhancements further strengthening the premium positioning of the portfolio.
Oriental Hotels Limited is an associate company of The Indian Hotels Company Limited. The company has a portfolio of seven hotels with 825 rooms. This includes freehold assets: Taj Coromandel -Chennai, Taj Fisherman’s Cove Resort & Spa - Chennai and Gateway Coonoor, and long tenure lease hold assets: Taj Malabar Resort & Spa - Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai. Additionally, OHL has strategic investments in several IHCL group hotel companies in India and internationally including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd.
IHCL, India’s largest hospitality ecosystem, has built a resilient and diversified business model anchored by a strong brandscape that caters to the country’s diverse travel needs. The company has delivered seventeen consecutive quarters of record performance, achieving fourfold portfolio growth, sustained double-digit increase in revenue and profitability and strong return on capital employed. The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL’s growth journey.
Mr. Pramod Ranjan, Managing Director & CEO, Oriental Hotels Ltd.
The Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares and is an all-stock transaction, with completion targeted in the second half of FY2028 and Appointed Date of April 1, 2027.
Mr Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL
The merger will further simplify the group’s holding structure by increasing IHCL’s direct ownership across several entities, resulting in two new operating subsidiaries. This will streamline governance, optimise overheads, enhance operational efficiency, and support our Accelerate 2030 objectives.
Transaction Advisors
For IHCL, PwC Business Consulting Services LLP acted as the Registered Valuer, undertaking the valuation exercise and recommending the share exchange ratio. Kotak Mahindra Capital Company Limited provided the Fairness Opinion, while Cyril Amarchand Mangaldas served as legal counsel.
On behalf of OHL, SSPA & Co., Chartered Accountants acted as the Registered Valuer, undertaking the valuation exercise and recommending the share exchange ratio. Motilal Oswal Investment Advisors Limited provided the Fairness Opinion, and Kochhar & Co. acted as legal counsel.
About The Indian Hotels Company Limited
The Indian Hotels Company Limited (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj – the iconic brand for the most discerning travellers and ranked as World's Strongest Hotel Brand 2024 and India's Strongest Brand 2024 as per Brand Finance; SeleQtions, a named collection of hotels; Tree of Life, private escapes in tranquil settings; Vivanta, sophisticated upscale hotels; Gateway, full-service hotels designed to be your gateway to exceptional destinations and Ginger, which is revolutionising the lean luxe segment.
Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel - The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 360 hotels including 123 under development globally across 4 continents, 13 countries and in over 150+ locations. The Indian Hotels Company Limited (IHCL) is India's largest hospitality company by market capitalization. It is listed on the BSE and NSE.
Please visit: IHCL; Taj; SeleQtions; Tree of Life; Vivanta; Gateway; Ginger