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Indian Hotels Company Ltd (IHCL), part of the Tata Group, has approved the merger of Oriental Hotels Ltd (OHL) through an all-stock transaction aimed at consolidating its hospitality business. The boards of both companies have cleared the Scheme of Arrangement, under which OHL shareholders will receive 25 IHCL shares for every 117 OHL shares. The merger is expected to be completed in the second half of FY2028, subject to regulatory and shareholder approvals, and is intended to simplify the group's ownership structure and strengthen operational integration.
Indian Hotels Company Ltd (IHCL), the hospitality arm of the Tata Group, has approved the merger of Oriental Hotels Ltd (OHL) through an all-share transaction, marking another step in the group's strategy to consolidate its hospitality operations.
The boards of both IHCL and Oriental Hotels have approved a Scheme of Arrangement that will merge OHL into IHCL, subject to the required regulatory, statutory and shareholder approvals.
Under the approved share swap arrangement, shareholders of Oriental Hotels will receive 25 equity shares of IHCL for every 117 equity shares of OHL held by them. The companies expect the merger process to be completed during the second half of FY2028.
The proposed merger is intended to simplify the group's ownership structure and strengthen operational integration across its hospitality portfolio. Oriental Hotels has long been associated with IHCL through ownership and management arrangements, and the merger is expected to bring these businesses under a single corporate structure.
IHCL operates one of India's largest hospitality portfolios across brands including Taj, Vivanta, Selections and Ginger, while Oriental Hotels owns and operates several hotels, particularly in southern India. Bringing the two companies together is expected to improve organisational efficiency and create a more streamlined business structure.
The merger comes as IHCL continues to expand its footprint across India and international markets through new hotel openings, management contracts and strategic partnerships. The company has been pursuing a broader growth strategy aimed at strengthening its presence across luxury, upscale and mid-scale hospitality segments.
Once completed, the merger is expected to provide a unified ownership framework for the combined hospitality business while aligning Oriental Hotels' operations more closely with IHCL's long-term expansion plans.
Source: PTI
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