IHCL and Oriental Hotels Announce Merger Through Scheme of Arrangement
On August 24, 2026, The Indian Hotels Company Limited (IHCL), India's largest hospitality company, and Oriental Hotels Limited (OHL) announced that OHL will be merged with IHCL through a Scheme of Arrangement. The merger is subject to statutory approvals and clearances.IHCL Chief Executive Officer and Managing Director, Mr. Puneet Chhatwal, stated that the merger is part of the company's Accelerate 2030 strategy. He noted that the merger is designed to create long-term value by leveraging IHCL's strong balance sheet to support strategic investments, including inventory expansion and product enhancements. This will further strengthen the premium positioning of the combined portfolio.
Oriental Hotels Limited, an associate company of IHCL, is bringing a portfolio of seven hotels with 825 rooms into the merger. These assets include freehold properties such as Taj Coromandel in Chennai, Taj Fisherman's Cove Resort & Spa in Chennai, and Gateway Coonoor. The portfolio also includes long tenure leasehold assets: Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. Furthermore, OHL holds strategic investments in several IHCL group hotel companies, including St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd, and Taj Karnataka Hotels and Resorts Ltd.
Mr. Pramod Ranjan, Managing Director and CEO of Oriental Hotels Limited, commented on the significant value this merger will bring to OHL shareholders. He highlighted that the company has achieved seventeen consecutive quarters of record performance, sustained double-digit growth in revenue and profitability, and delivered strong return on capital employed.
The Scheme of Arrangement sets out the transaction mechanics and timeline. Mr. Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, revealed that the proposal includes a share exchange ratio of 25 IHCL shares for every 117 OHL shares. The merger is structured as an all-stock transaction, with the Appointed Date set for April 1, 2027, and completion targeted for the second half of FY2028.
The transaction is set to simplify the group's holding structure, aiming to increase IHCL's direct ownership across several entities. This streamlining is intended to optimize overheads, enhance operational efficiency, and support the company's Accelerate 2030 objectives.
Merger Transaction Details
| Metric | Details |
|---|---|
| Transaction Type | Scheme of Arrangement (all-stock) |
| Share Exchange Ratio | 25 IHCL shares for every 117 OHL shares |
| Targeted Completion | Second half of FY2028 |
| Appointed Date | April 1, 2027 |
| OHL Portfolio Size | 7 hotels / 825 rooms |
Transaction Advisors
For IHCL, PwC Business Consulting Services LLP acted as the Registered Valuer, and Kotak Mahindra Capital Company Limited provided the Fairness Opinion. Cyril Amarchand Mangaldas served as the legal counsel.
On behalf of OHL, SSPA & Co., Chartered Accountants, acted as the Registered Valuer, while Motilal Oswal Investment Advisors Limited provided the Fairness Opinion. Kochhar & Co. served as the legal counsel.
ORIENTHOT Stock Price Movement
Shares of ORIENTAL HOTELS LIMITED are edging higher at 9:22 AM, trading at ₹142.98 after surging 3.11%. The stock reflects robust intraday demand, with a traded volume currently standing at 28,665 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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