The proposed merger of Oriental Hotels Ltd. with Indian Hotels Company Ltd. is expected to be earnings-per-share accretive for Indian Hotels. Indian Hotels currently owns a 37.1% stake in Oriental Hotels. Under the share-swap arrangement, shareholders of Oriental Hotels will receive 25 Indian Hotels shares for every 117 shares held. As part of the transaction, Indian Hotels will issue approximately 23.2 million new shares. The company expects to complete the merger by FY28, with April 1 designated as the appointed date from which the financial accounts, assets and liabilities of the two companies will be treated as combined. Indian Hotels has indicated that its EBITDA margin could rise to more than 30% following the merger, compared with 26.8% in FY26. The company highlighted the potential margin improvement in its investor presentation dated August 24. IHCL also plans to capitalize on expansion opportunities across Oriental Hotels' existing portfolio. The 149-key Taj Fisherman’s Cove in Chennai offers scope for adding villas and expanding banqueting facilities. Similar expansion opportunities have been identified at the 63-key Gateway Madurai. To drive growth in total revenue per available room (TREVPAR), IHCL plans to renovate the 220-key Taj Coromandel in Chennai and the 96-key Vivanta property in Mangalore. Taj Coromandel is also slated for upgrades to its food and beverage outlets and Chambers’ Club.

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