Oriental Hotels Approves Merger With IHCL in All-Stock Deal

Oriental Hotels approves its merger with Tata Group-owned IHCL through an all-stock deal. Eligible OHL shareholders will receive 25 IHCL shares for every 117 shares held, while the merger aims to simplify operations and strengthen the hotel portfolio.

The Board of Directors of Oriental Hotels Limited (OHL) has approved a Scheme of Arrangement for its amalgamation with The Indian Hotels Company Limited (IHCL), the Tata Group-owned hospitality company. The boards of both companies approve the proposed merger, marking a move to consolidate OHL’s hotel portfolio under IHCL. 

Under the proposed all-stock transaction, eligible shareholders of Oriental Hotels will receive 25 equity shares of IHCL for every 117 shares held in OHL. Shares held by IHCL and its subsidiaries in Oriental Hotels will be cancelled as part of the arrangement. The transaction is targeted for completion in the second half of FY2028, subject to statutory and regulatory approvals.

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Oriental Hotels is an associate company of IHCL and operates seven hotels with a total inventory of 825 rooms. Its portfolio includes several prominent properties such as Taj Coromandel and Taj Fisherman’s Cove Resort & Spa in Chennai, Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.

The merger is part of IHCL’s broader Accelerate 2030 strategy, which focuses on simplifying the group’s holding structure, improving operational efficiency and unlocking the potential of its hotel portfolio. The consolidation is also expected to enable IHCL to leverage its stronger balance sheet for strategic investments, including room inventory expansion and property enhancements.

The transaction will result in the issuance of approximately 2.32 crore IHCL shares to eligible OHL shareholders, leading to an estimated 1.6% dilution for existing IHCL shareholders. The proposed arrangement is based on valuations and independent fairness opinions obtained by both companies.

The merger also strengthens IHCL’s presence in key hospitality markets by bringing Oriental Hotels’ assets directly into its portfolio. The company expects the consolidation to create operational synergies while supporting investments in premium properties and enhancing their long-term competitiveness.

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For Oriental Hotels shareholders, the transaction provides an opportunity to participate directly in IHCL’s larger hospitality platform through the share-swap arrangement. For IHCL, the merger simplifies its corporate structure and brings additional hotel assets under direct ownership.

The proposed amalgamation remains subject to approvals from shareholders, creditors, stock exchanges, SEBI and the National Company Law Tribunal. Once completed, the transaction will further consolidate IHCL’s position in India’s hospitality sector and support its strategy of expanding and strengthening its premium hotel portfolio.