IHCL, GVK-Bhupal family redefine alliance

Indian Hotels Company (IHCL), India's largest hospitality company, today announced a transition of its joint venture with the GVK-Bhupal family in Taj GVK Hotels and Resorts Ltd. ("TAJ GVK") to a long-term management agreement for its portfolio of hotels. IHCL has entered into a binding Sale & Purchase Agreement to sell its entire shareholding of 25.52% in TAJ GVK to the GVK-Bhupal family. GVK-Bhupal family will continue to be promoters and will hold 74.99% in the company, on completion of the transaction.

Mr. Puneet Chhatwal, Managing Director & CEO IHCL said: "IHCL and the GVK-Bhupal family have had a successful partnership, starting with the iconic Taj Krishna in Hyderabad and extending to Taj Santacruz in Mumbai, reflecting strong market leadership across the portfolio. In line with IHCL's five-year roadmap 'Accelerate 2030' focused on a capital-light strategy, the next phase with the GVK-Bhupal family transitions from a shareholding agreement to long-term management contracts. We look forward to realising our common purpose of unlocking India's tourism potential."

He added, "This transition elevates IHCL's capital-light operating inventory to 67%, unlocking capital for high-margin growth while advancing the Consolidated ROCE towards our guidance of 20% by 2030."

Mr. Krishna Bhupal, Joint Managing Director, Taj GVK Hotels & Resorts Ltd., said: "The GVK-Bhupal family and IHCL for over two decades have established a portfolio of seven hotels with over 1,500 keys. Our longstanding association is a benchmark in India's hospitality landscape, featuring marquee assets at landmark locations in Mumbai, Hyderabad, Chennai and Chandigarh, complemented by IHCL's world renowned hospitality."

He added, "Exploring future growth opportunities, we have executed a management contract with IHCL in October 2025, for a 256-key Taj in Yelahanka, Bengaluru set to open in 2026 with a further scope of development on the remaining ~4-acre land parcel. The company will pursue its growth strategy to scale the hospitality business to an inventory of about 4,000 keys over the next five years."

IHCL will continue to manage the currently operational 6 hotels along with the upcoming hotel in Yelahanka, Bengaluru. GVK-Bhupal Family, along with IHCL will jointly evaluate opportunities in the Indian hospitality sector, outlining a strong commitment to participate in the sector's growth.

Shares of The Indian Hotels Company Limited was last trading in BSE at Rs. 731.20 as compared to the previous close of Rs. 721.75. The total number of shares traded during the day was 137664 in over 2626 trades.

The stock hit an intraday high of Rs. 732.80 and intraday low of 722.05. The net turnover during the day was Rs. 99955028.00.

Source : Equity Bulls

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