IHCL and Oriental Hotels Limited Announce Merger Through Scheme of Arrangement

IHCL and Oriental Hotels Limited Announce Merger Through Scheme of Arrangement​

The Indian Hotels Company Limited (IHCL), India's leading hospitality group, today announced that Oriental Hotels Limited (OHL) will be merged with IHCL through a Scheme of Arrangement. The merger is set to simplify the group's holding structure and drive long-term value creation by leveraging IHCL's strong balance sheet, according to the announcement made on August 24, 2026.

IHCL's Managing Director and CEO, Puneet Chhatwal, stated that the Boards of both companies approved the merger in line with IHCL's Accelerate 2030 strategy. He explained that the merger will allow the company to unlock the full potential of OHL's portfolio, which includes iconic assets such as Taj Coromandel, Chennai, Taj Fisherman's Cove Resort & Spa, Chennai, and Taj Malabar Resort & Spa, Cochin. The integrated structure aims to support strategic investments, including inventory expansion and product enhancements to strengthen the portfolio's premium positioning.

Oriental Hotels Limited is an associate company of IHCL. The company manages a portfolio comprising seven hotels and 825 rooms. These assets include freehold properties such as Taj Coromandel in Chennai, Taj Fisherman's Cove Resort & Spa in Chennai, and Gateway Coonoor. Other holdings include long tenure lease hold assets like Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. OHL also holds 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.

Pramod Ranjan, Managing Director and CEO of Oriental Hotels Ltd, noted that the merger will create significant value for OHL shareholders, allowing them to participate directly in IHCL's growth. He pointed out that IHCL has delivered seventeen consecutive quarters of record performance, marked by fourfold portfolio growth, sustained double-digit increase in revenue and profitability, and a strong return on capital employed.

Regarding the transaction details, Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, confirmed that the Scheme of Arrangement proposes a share exchange ratio of 25 IHCL shares for every 117 OHL shares. As an all-stock transaction, the completion is targeted for the second half of Fiscal Year 2028, with the Appointed Date set for April 1, 2027. The merger is expected to streamline governance and optimize overheads, thereby supporting the Accelerate 2030 objectives.

Transaction Advisors​

The transaction involved specialized advisory services from firms across both entities.

For The Indian Hotels Company Limited (IHCL), PwC Business Consulting Services LLP served as the Registered Valuer and recommended the share exchange ratio. Kotak Mahindra Capital Company Limited provided the Fairness Opinion, and Cyril Amarchand Mangaldas acted as legal counsel.

On behalf of Oriental Hotels Limited (OHL), SSPA & Co. served as the Registered Valuer and recommended the share exchange ratio. Motilal Oswal Investment Advisors Limited provided the Fairness Opinion, while Kochhar & Co. served as legal counsel.

About The Indian Hotels Company Limited​

The Indian Hotels Company Limited (IHCL) brings together a diverse range of brands, including Taj, Claridges Collection, Brij, Atmantan, SeleQtions, Gateway, Vivanta, Tree of Life, and Ginger. IHCL is noted as the world's strongest luxury hotel brand for 2026 and India's Strongest Brand 2026, according to Brand Finance. Incorporated by the founder of the Tata Group, Jamsetji Tata, the company began with The Taj Mahal Palace in Bombay in 1903. IHCL maintains a portfolio of 650 hotels, with 268 in the pipeline globally across 4 continents, 15 countries, and over 300 locations.

INDHOTEL Stock Price Movement​

As of 9:14 AM in the pre-open session, shares of THE INDIAN HOTELS COMPANY LIMITED are shedding ₹0.45 (a 0.06%) to trade at ₹729.55. Trading volume remains relatively sparse, with just 4,299 shares transacted so far in the early morning session.