The Indian Hotels Company (IHCL) will merge Oriental Hotels (OHL) with itself, the two companies announced on Monday. This brings properties such as Taj Coromandel and Taj Malabar Resort & Spa directly under the Tata group hospitality major.

The boards of both companies approved a Scheme of Arrangement for the amalgamation on the day, IHCL said in a stock exchange filing. 

IHCL-OHL merger share swap ratio 

Under the terms of the deal, OHL shareholders will receive 25 IHCL shares for every 117 OHL shares they hold. Ankur Dalwani, Executive Vice President and Chief Financial Officer at IHCL, said the transaction is structured entirely in stock, with no cash component.

ALSO READ

The Appointed Date for the merger has been set as April 1, 2027, and the companies expect the process to be completed in the second half of FY2028, Dalwani said. The deal remains subject to statutory and regulatory approvals.

Oriental Hotels’ 825-room portfolio 

OHL, an associate company of IHCL, runs seven hotels with a combined 825 rooms. Its freehold assets include Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor. On long-tenure leasehold land, it operates Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.

The company also holds strategic investments in several IHCL group entities in India and overseas, including St. James Court, TAL Hotels and Resorts, Lanka Island Resorts, Taj Madurai and Taj Karnataka Hotels and Resorts.

Why IHCL is merging Oriental Hotels 

“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,” Puneet Chhatwal, Managing Director and Chief Executive Officer of IHCL, said. “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,” he added. 

ALSO READ

“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,” Pramod Ranjan, Managing Director & CEO, Oriental Hotels said.

About IHCL

IHCL runs a portfolio of brands including Taj, Claridges Collection, Brij, Atmantan, SeleQtions, Gateway, Vivanta, Tree of Life and Ginger. The company opened its first hotel, the Taj Mahal Palace in Bombay, in 1903, under Tata Group founder Jamsetji Tata.

It currently operates 650 hotels, including 268 in the pipeline, across 15 countries and more than 300 locations, according to the company. The company describes itself as India’s largest hospitality firm by market capitalisation.

IHCL share price today 

IHCL’s share price has been down 0.59% as of early morning on August 24. The company’s share price has been up 0.51% in the past month. Over the past year, IHCL’s share price has been down 7.61%.