Indian Hotels Company (IHCL), India’s largest hospitality company, has announces that Oriental Hotels Limited (OHL) will be merged with IHCL through a Scheme of Arrangement. The Scheme is subject to statutory approvals and clearances.

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 is an associate company of The Indian Hotels Company Limited. The company has a portfolio of seven hotels with 825 rooms. This includes freehold assets: Taj Coromandel -Chennai, Taj Fisherman’s Cove Resort & Spa – Chennai and Gateway Coonoor, and long tenure lease hold assets: Taj Malabar Resort & Spa – Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai. Additionally, OHL has 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 & 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.”

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.”

For IHCL, PwC Business Consulting Services LLP acted as the Registered Valuer, undertaking the valuation exercise and recommending the share exchange ratio. Kotak Mahindra Capital Company Limited provided the Fairness Opinion, while Cyril Amarchand Mangaldas served as legal counsel.

On behalf of OHL, SSPA & Co., Chartered Accountants acted as the Registered Valuer, undertaking the valuation exercise and recommending the share exchange ratio. Motilal Oswal Investment Advisors Limited provided the Fairness Opinion, and Kochhar & Co. acted as legal counsel.