Mega Merger
Indian Hotels approves merger of Oriental Hotels with itself
This story was originally published at 11:49 IST on 24 August 2026
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--Indian Hotels Co approves merger of Oriental Hotels with itself
--Oriental Hotels shareholders to get 25 shrs in Indian Hotels for 117 held
--Indian Hotels aims to complete Oriental Hotels merger by FY28
--Indian Hotels sees EBITDA margin above 30% post Oriental Hotels merger
MUMBAI – Indian Hotels Co. Ltd. Monday approved the merger of Oriental Hotels Ltd. with itself, according to an exchange filing. The company holds around 37.05% stake in Oriental Hotels. The shareholders of Oriental Hotels will receive 25 equity shares in Indian Hotels for every 117 shares held in Oriental Hotels.
After the merger, the promoter shareholding in Indian Hotels will fall to 37.50% from 38.12% as of Jun. 30. The public shareholding in the company will increase to 62.50% from 61.88% as of Jun. 30. The total number of outstanding shares of Indian Hotels will rise to 1.45 billion from 1.42 billion.
Both the companies own, operate, and manage hotels. Oriental Hotels has a portfolio of seven hotels with 825 rooms. Its portfolio includes Taj Coromandel and Taj Fisherman's Cove Resort and Spa in Chennai and Gateway Coonoor, and the company holds long-tenure lease assets, such as Taj Malabar Resort and Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai. The company also has strategic investments in several Indian Hotels group companies, which includes St. James Court, TAL Hotels and Resorts Ltd., Lanka Island Resorts Ltd., Taj Madurai Ltd., and Taj Karnataka Hotels and Resorts Ltd.
The significant presence of Oriental Hotels in Tamil Nadu, Kerala, and Karnataka will create synergies for the two companies and facilitate a wider and stronger base for future growth, Indian Hotels said in a press release. Oriental Hotels will become a part of a larger entity and gain access to the financial resources, management experience, and expertise of Indian Hotels. This will lead to operational and cost synergies, asset management opportunities, rationalisation, standardisation, and simplification of business processes, according to the press release.
With the merger, Indian Hotels plans to reduce the number of operating entities under its holdings, which will eliminate duplication, simplify management structure, improve administration, and rationalise administrative expenses. It will reduce the cost for Indian Hotels to operate as separate entities. The merger will also facilitate joint utilisation of financial resources. The merger will be beneficial to the public shareholders of Indian Hotels, the company said.
"The merger will drive long-term value creation by leveraging IHCL's (Indian Hotels) strong balance sheet to support strategic investments, including inventory expansion, and product enhancements, further strengthening the premium positioning of the portfolio," Puneet Chhatwal, managing director and chief executive officer of Indian Hotels, said in the press release.
Indian Hotels plans to complete the acquisition by the financial year 2027-28 (Apr-Mar) and has marked Apr. 1 as the date from which all the financial accounts, assets, and liabilities of the combining entities will be formally treated as combined.
Cost efficiency and synergy benefits are expected to drive the expansion of Indian Hotels' earnings before interest, tax, depreciation, and amortisation margin to over 30% post-merger, from 26.8% in FY26. The flow through from asset upgrades and expansion will also aid the EBITDA margin expansion, the company said.
For the June quarter, Indian Hotels had reported a consolidated net profit of INR 3.58 billion on revenues of INR 23.39 billion, while Oriental Hotels reported consolidated net profit of INR 53 million on revenues of INR 1.11 billion. At 1002 IST, shares of Indian Hotels traded largely unchanged from Friday at INR 730.45 apiece on the National Stock Exchange, while shares of Oriental Hotels were up 3% at INR 142.38 apiece. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ayush Jaiswal
Edited by Shubhayan Bhattacharya
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