The Indian Hotels Company Limited (IHCL), India’s leading hotel company, has announced the merger of Oriental Hotels Limited (OHL) into its structure via a Scheme of Arrangement. The transaction remains subject to the requisite statutory and regulatory approvals in India.
A shareholding transaction aligned with the Accelerate 2030 roadmap
Puneet Chhatwal, Managing Director & Chief Executive Officer of IHCL, places the merger within the continuity of the group’s Accelerate 2030 strategy, which aims to create value and simplify the group’s shareholding structure. “In line with our Accelerate 2030 strategy of value creation, simplifying the group’s holding structure and unlocking the full potential of OHL’s portfolio, including iconic assets such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Taj Malabar Resort & Spa in Cochin, the boards of IHCL and OHL have approved this merger,” he said.
The CEO noted that the transaction is designed to leverage the strength of IHCL’s balance sheet to support strategic investments, including inventory expansion and product enhancement, further reinforcing the portfolio’s premium positioning.
A seven-hotel portfolio brought into the group
Oriental Hotels Limited is an associate company of IHCL. Its portfolio comprises seven hotels totalling 825 rooms, split between freehold assets — Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor — and long-lease assets: Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
OHL also holds strategic stakes in several companies within the IHCL group, both 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.
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An all-stock transaction
Ankur Dalwani, Executive Vice President & Chief Financial Officer of IHCL, set out the financial terms of the deal: “The Scheme of Arrangement provides for a share exchange ratio of 25 IHCL shares for every 117 OHL shares, in an all-stock transaction targeted for completion in the second half of FY2028, with an Appointed Date of 1 April 2027.”
Pramod Ranjan, Managing Director & CEO of Oriental Hotels Ltd, underlined the strength of the acquiring group: “IHCL, India’s leading hospitality ecosystem, has built a resilient and diversified business model, underpinned by a powerful brand portfolio catering to the country’s diverse travel needs. The group has delivered seventeen consecutive quarters of record performance, a fourfold increase in portfolio growth, sustained double-digit growth in revenue and profitability, and strong return on capital employed.” He added that the merger will create significant value for OHL shareholders, allowing them to participate directly in IHCL’s growth trajectory.
Simplified governance and new subsidiaries
Ankur Dalwani noted that the merger is also intended to simplify the group’s holding structure by strengthening IHCL’s direct stake in several entities, resulting in the creation of two new operating subsidiaries. This reorganisation aims to streamline governance, optimise structural costs and enhance operational efficiency, in support of the Accelerate 2030 roadmap objectives.
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Transaction advisers
On behalf of IHCL, PwC Business Consulting Services LLP acted as registered valuer, responsible for the valuation exercise and the recommendation of the exchange ratio, while Kotak Mahindra Capital Company Limited provided the fairness opinion and Cyril Amarchand Mangaldas acted as legal counsel.
For Oriental Hotels Limited, SSPA & Co., Chartered Accountants, acted as registered valuer, Motilal Oswal Investment Advisors Limited provided the fairness opinion, and Kochhar & Co. acted as legal counsel for the transaction.
IHCL, a heavyweight of Indian hospitality
The Indian Hotels Company Limited and its subsidiaries bring together a portfolio of brands combining Indian hospitality with international service standards: Taj, named the world’s most powerful luxury hotel brand in 2026 and India’s most powerful brand in 2026 by Brand Finance, alongside Claridges Collection, Brij, Atmantan, SeleQtions, Gateway, Vivanta, Tree of Life and Ginger.
Founded by Jamsetji Tata, founder of the Tata group, IHCL opened its first hotel, the Taj Mahal Palace, in Bombay in 1903. The group today operates a portfolio of 650 hotels, including 268 under development, spread across four continents, 15 countries and more than 300 destinations. IHCL is India’s largest hotel company by market capitalisation, listed on the BSE and NSE.
At a glance by The Hospitality Tribune
IHCL to merge with associate company Oriental Hotels Limited (OHL) via Scheme of Arrangement
Share exchange ratio: 25 IHCL shares for every 117 OHL shares, an all-stock transaction
Completion targeted for H2 FY2028; Appointed Date set at April 1, 2027
OHL portfolio: 7 hotels, 825 rooms, including Taj Coromandel Chennai, Taj Fisherman’s Cove Resort & Spa Chennai, Taj Malabar Resort & Spa Cochin, Vivanta Coimbatore, Vivanta Mangalore, Gateway Coonoor and Gateway Madurai
Merger to simplify IHCL’s group holding structure, creating two new operating subsidiaries
Part of IHCL’s Accelerate 2030 roadmap; IHCL operates 650 hotels including 268 in the pipeline across 15 countries
















