Indian Hotels Company Limited Unlocks New Hospitality Growth Opportunities Through Oriental Hotels Merger Proposal

Written By: Ricky Acharjee

Ricky Acharjee

I am travel writer at Travel And Tour World with 3 years of experience covering global tourism, aviation, hospitality, and destination news. Dedicated to accurate reporting and compelling storytelling, Ricky explores the trends, innovations, and developments shaping the international travel industry while delivering engaging insights for travellers and industry professionals.

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August 25, 2026 00:28 GMT+5:30

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India’s leading hospitality group, Indian Hotels Company Limited (IHCL), has announced a proposed merger involving Oriental Hotels Limited (OHL) under a Scheme of Arrangement. The strategic move aims to consolidate operations and strengthen IHCL’s position in India’s growing hospitality sector.

The merger will combine the businesses of IHCL and OHL through a structured arrangement process, subject to approval from regulatory bodies, shareholders and other relevant statutory authorities. The transaction will move forward only after completing all necessary legal and compliance requirements.

Once approved, the merger is expected to support greater operational integration, improve business efficiency and create stronger opportunities within the hospitality market. The companies will continue to follow the required regulatory process before final completion of the proposed arrangement.

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

He added, “The merger will drive long-term value creation by leveraging IHCL’s strong balance sheet to support strategic investments, including inventory expansion and product enhancements further strengthening the premium positioning of the portfolio.”

Oriental Hotels Limited (OHL), an associate company of The Indian Hotels Company Limited (IHCL), operates a diverse portfolio of seven hotels comprising 825 rooms across key destinations in India. The company’s hospitality assets include freehold properties such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor. Its long-term leasehold portfolio features Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.

Beyond its hotel operations, Oriental Hotels Limited also maintains strategic investments in several IHCL-affiliated hospitality ventures in India and overseas. These investments include St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd, further strengthening its association with the wider IHCL hospitality network.

Mr. Pramod Ranjan, Managing Director & CEO, Oriental Hotels Ltd. said,“IHCL, India’s largest hospitality ecosystem, has built a resilient and diversified business model anchored by a strong brandscape that caters to the country’s diverse travel needs. The company has delivered seventeen consecutive quarters of record performance, achieving fourfold portfolio growth, sustained double-digit increase in revenue and profitability and strong return on capital employed. The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL’s growth journey.”

Mr. 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, “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 our Accelerate 2030 objectives.”

Transaction Advisors

For IHCL, PwC Business Consulting Services LLP was appointed as the Registered Valuer to conduct the valuation process and determine the recommended share exchange ratio. Kotak Mahindra Capital Company Limited provided the Fairness Opinion, while Cyril Amarchand Mangaldas acted as the legal advisor for the transaction.

For OHL, SSPA & Co., Chartered Accountants, served as the Registered Valuer and was responsible for carrying out the valuation assessment and recommending the share exchange ratio. Motilal Oswal Investment Advisors Limited issued the Fairness Opinion, with Kochhar & Co. providing legal advisory support throughout the transaction process.