IHCL to merge Oriental Hotels in all-stock transaction

Indian Hotels Company Ltd (IHCL) said on Monday that it will merge Oriental Hotels Ltd (OHL) through an all-stock transaction, consolidating the Tata Group's hotel holdings. Both companies' boards have approved a Scheme of Arrangement outlining the transaction terms, with completion targeted for the second half of FY2028.

Under the merger framework, IHCL will issue 25 shares for every 117 shares held in Oriental Hotels, establishing a fixed conversion ratio for shareholders. The transaction seeks to simplify the group's corporate structure while integrating Oriental's property portfolio into IHCL's broader operations.

Oriental Hotels currently operates seven properties with a combined 825 rooms, including marquee assets such as Taj Coromandel in Chennai, Taj Fisherman's Cove Resort & Spa in Chennai, and Taj Malabar Resort & Spa in Cochin. IHCL's managing director and chief executive officer Puneet Chhatwal stated the merger aligns with the group's Accelerate 2030 strategy to unlock value and unlock the full potential of Oriental's freehold properties.

The merger represents IHCL's continued efforts to consolidate its hospitality operations and maximize returns from its premium resort portfolio across key markets. As an associate company of IHCL, Oriental Hotels has maintained operational independence while remaining within the broader Tata hospitality ecosystem.