The Indian Hotels Company Limited (IHCL) today announced a strategic transition of its joint venture (JV) with the GVK-Bhupal family in Taj GVK Hotels and Resorts Ltd. (“TAJ GVK”). The JV will now operate under a long-term management agreement for its portfolio of hotels. IHCL has entered into a binding Sale & Purchase Agreement to divest its entire 25.52% shareholding in TAJ GVK to the GVK-Bhupal family, who will continue as promoters holding 74.99% of the company upon transaction completion. Mr. Puneet Chhatwal, Managing Director & CEO of IHCL, stated that this move aligns with IHCL's 'Accelerate 2030' roadmap, emphasizing a capital-light strategy. The transition from a shareholding agreement to long-term management contracts is expected to enhance IHCL's capital-light operating inventory to 67%, freeing up capital for high-margin growth and advancing Consolidated ROCE towards the 20% guidance by 2030. Mr. Krishna Bhupal, Joint Managing Director of Taj GVK Hotels & Resorts Ltd., highlighted the two-decade-long successful association, which has established a portfolio of seven hotels with over 1,500 keys. He further mentioned the execution of a management contract in October 2025 for a 256-key Taj in Yelahanka, Bengaluru, slated to open in 2026, with potential for further development. The company aims to scale its hospitality business to approximately 4,000 keys over the next five years. IHCL will continue to manage the six currently operational hotels and the upcoming Taj in Yelahanka, Bengaluru. Both IHCL and the GVK-Bhupal Family will jointly explore future growth opportunities in the Indian hospitality sector.
