IHCL-Oriental Hotels merger details: ‘Long-term value…’ | Explained - How it will benefit shareholders

Tata Group-owned Indian Hotels Company Ltd (IHCL) on Monday said Oriental Hotels Ltd (OHL) will be merged with IHCL through an all-stock transaction. The Boards of Oriental Hotels and IHCL have approved a Scheme of Arrangement to this effect.

The Scheme of Arrangement proposes a share swap ratio of 25 IHCL shares for every 117 OHL shares and aims to complete the transaction in the second half of FY2028.

Oriental Hotels Limited is an associate company of The Indian Hotels Company Limited and 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—as well as long-tenure leasehold assets, including 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.

Explaining the structure of the transaction, Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL, said, “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.”

He added that 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 the company’s Accelerate 2030 objectives.

IHCL plans to leverage its strong balance sheet to drive long-term value and portfolio growth

The proposed merger is also expected to support long-term value creation by allowing IHCL to leverage its strong balance sheet for strategic investments, including inventory expansion and product enhancements, while further strengthening the premium positioning of the portfolio.

Puneet Chhatwal, Managing Director & Chief Executive Officer, said, “In line with our Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the full potential of the 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.”

The merger comes as IHCL continues to expand its portfolio and strengthen its presence across the hospitality sector through its diverse range of brands and businesses.

The Indian Hotels Company Limited and its subsidiaries operate a diverse portfolio of hospitality brands that combine warm Indian hospitality with world-class service.

These include Taj, ranked as the World’s Strongest Luxury Hotel Brand 2026 and India’s Strongest Brand 2026 by Brand Finance, along with Claridges Collection, Brij, Atmantan, SeleQtions, Gateway, Vivanta, Tree of Life and Ginger, catering to segments ranging from luxury and wellness to upscale and lean-luxe hospitality.

Incorporated by the founder of the Tata Group, Jamsetji Tata, the company opened its first hotel, The Taj Mahal Palace, in Bombay in 1903. Over the years, IHCL has grown into India’s largest hospitality company by market capitalisation and is listed on the BSE and NSE.

IHCL currently has a portfolio of 650 hotels, including 268 in the pipeline, spread globally across four continents, 15 countries and over 300 locations.

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