IHCL and Oriental Hotels Limited announce merger
The Indian Hotels Company Limited (IHCL), India’s largest hospitality company, 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.
Announcement Date:
August 24, 2026
Companies Involved:
Indian Hotels Company Limited (IHCL), India’s largest hospitality company, and Oriental Hotels Limited (OHL).
Merger Structure:
Scheme of Arrangement, subject to statutory approvals.
Strategic Rationale:
- Simplify IHCL’s holding structure.
- Unlock OHL’s portfolio value, including iconic assets like Taj Coromandel (Chennai), Taj Fisherman’s Cove Resort & Spa (Chennai), and Taj Malabar Resort & Spa (Cochin).
- Strengthen premium positioning and support inventory expansion.
OHL Portfolio:
7 hotels, 825 rooms, including freehold and long-term leasehold assets, plus strategic investments in IHCL group companies in India and abroad.
Share Exchange Ratio:
25 IHCL shares for every 117 OHL shares (all-stock transaction).
Timeline:
Completion targeted for second half of FY2028, with an appointed date of April 1, 2027.
Advisors:
PwC, Kotak Mahindra Capital, Cyril Amarchand Mangaldas (IHCL side); SSPA & Co., Motilal Oswal, Kochhar & Co. (OHL side).
Expected Impact
- Long-term value creation for shareholders.
- Streamlined governance and operational efficiency.
- Enhanced ability to invest in product upgrades and expansion.
- Direct participation of OHL shareholders in IHCL’s growth journey.
