In a move to strengthen its portfolio, theIndian Hotels Company Limited (IHCL), the parent company of the iconic Taj brand, announced the merger of Oriental Hotels Limited (OHL) with IHCL through a Scheme of Arrangement. The proposed merger, which is subject to shareholder and regulatory approvals, will bring Oriental Hotels’ properties directly under IHCL’s umbrella.
The move is in line with IHCL’s Accelerate 2030 strategy, aimed at driving growth and improving operational efficiency across the group. Accelerate 2030 strategy focuses on simplifying the group’s corporate structure, enhancing operational efficiency, and unlocking greater value from its hospitality assets.
Speaking on the announcement, IHCL Managing Director and CEO Puneet Chhatwal said that the integration would help realize the full potential of Oriental Hotels’ portfolio, which includes some of South India’s most celebrated properties such as Taj Coromandel, Chennai; Taj Fisherman’s Cove Resort & Spa, Chennai; and Taj Malabar Resort & Spa, Cochin.
Oriental Hotels, an associate company of IHCL, currently operates a portfolio of seven hotels comprising 825 rooms. Its assets include freehold properties such as Taj Coromandel and Gateway Coonoor, along with long-term leasehold properties including Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. The company also holds strategic investments in several hospitality ventures within the IHCL ecosystem.
Under the proposed arrangement, shareholders of Oriental Hotels will receive 25 IHCL shares for every 117 OHL shares held. The transaction is structured as an all-stock merger, with completion targeted in the second half of FY2028, while the appointed date has been set as April 1, 2027.
For Oriental Hotels, the merger represents an opportunity for shareholders to directly participate in IHCL’s growth story. OHL Managing Director and CEO Pramod Ranjan highlighted IHCL’s strong performance, noting its record of sustained growth, profitability, and portfolio expansion. He expressed confidence that the combination would create meaningful value for OHL shareholders.
From a strategic perspective, the merger is expected to provide IHCL with greater control over key hospitality assets while enabling future investments in capacity expansion, product improvements, and premium guest experiences. The company believes the combined entity will benefit from a stronger balance sheet, streamlined governance, and improved operational synergies.
As India’s tourism and hospitality sectors continue to expand, the proposed merger signals IHCL’s intent to strengthen its leadership position. By bringing Oriental Hotels directly into its fold, IHCL aims to create a more integrated hospitality platform capable of delivering long-term value for guests, employees, investors, and stakeholders alike.
Get real time update about this post category directly on your device, subscribe now.
