IHCL sells 25.52% stake in Taj GVK to GVK-Bhupal family, moves to management agreement

Tata Group hospitality firm The Indian Hotels Company Ltd (IHCL) on Friday, December 19, announced that its joint venture with the GVK-Bhupal family in Taj GVK Hotels and Resorts Ltd is transitioning from

a shareholding agreement to a long-term management arrangement.

As part of the transaction, IHCL has entered into a binding sale & purchase agreement to sell its entire 25.52% stake in Taj GVK to the GVK-Bhupal family, who will continue as promoters holding 74.99% post-completion.

Puneet Chhatwal, Managing Director and CEO of 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.”

Also Read:IHCL inks 90-key Ginger hotel in Shillong, Meghalaya

“(This is) in line with IHCL’s five-year roadmap, 'Accelerate 2030,' (which is) 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

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."

IHCL will continue to manage the six operational hotels in the Taj GVK portfolio, along with the upcoming Yelahanka property. The two parties will jointly explore growth opportunities in the Indian hospitality sector.

Also Read: Indian Hotels reports malware incident, says business operations unaffected

The Taj GVK portfolio includes Taj Krishna, Hyderabad; Taj Deccan, Hyderabad; Taj Club House, Chennai; Taj Chandigarh; Vivanta Hyderabad, Begumpet; and the upcoming Taj in Yelahanka, Bengaluru. The joint venture also co-owns Taj Santacruz, Mumbai, through Green Woods Palaces and Resorts Private Limited.

Shares of Indian Hotels Company Ltd ended at ₹730.60, up by ₹8.60, or 1.19%, on the BSE today, December 19.