Indian Hotels Company Limited (IHCL), which owns brands like Taj Hotels, is now acquiring a 51% stake in ANK Hotels and Pride Hospitality. According to The Clarks Hotels & Resorts’ website, the brand manages 135 hotels across 110 locations. Meanwhile, Pride (per their website) owns extensive banquet and convention centers with over 79 venues, more than 50 restaurants, lounges, and bars across India. After the deal was made public, IHCL’s share price increased by ₹10.50, or 1.43%, on the BSE as of August 11, bringing it to ₹745. Here’s a breakdown of why and how much IHCL spent to own these two well-off brands.
Why IHCL Wants To Acquire ANK Hotels and Pride Hospitality?
Notably, ANK Hotels and Pride Hospitality manage midscale hotels, and IHCL plans to expand in this sector. ANK operates approximately 111 midscale hotels, with 67 currently in operation. According to Angle One, Pride Hospitality owns 24 midscale hotels, with 13 currently operational. Adding them to the portfolio can broaden IHCL's offerings.
In its filing to BSE on August 11, IHCL stated, “The transactions aim to address India’s heterogeneous market landscape and provide deeper geographical penetration across India in the midscale segment while continuing to pursue its asset-light growth strategy.”
Breakdown of IHCL’s ₹204 Crore Investment
IHCL bought a 51% stake (across all its 135 properties) in ANK Hotels for ₹110 crore and Pride Hospitality for ₹94 crore. The total spend = ₹204 crore, and the deal is expected to close by November 15, 2025. Here’s how their revenues look in FY25:
- According to Angle One, ANK Hotels reported a turnover of ₹14.32 crore in FY25.
- According to the Economic Times, Pride Hospitality garnered revenue of 18.94 crore in FY25.
It is IHCL’s biggest expansion yet. Post the deal, IHCL's portfolio will cross 550 hotels with 55,000 rooms.
Similar Deal By IHCL
Working toward its goal, IHCL has also secured a similar marketing deal with Brij Hospitality Private Limited, which manages 19 hotels.
Signing the agreement, Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL, said, “Our partnership with ANK, Pride and Brij Hospitality is a multi-pronged approach addressing India’s heterogeneous market landscape and is in line with IHCL’s five-year road map ‘Accelerate 2030’ of unlocking India’s tourism potential.”
Final Thoughts…
All is seemingly going well for IHCL after acquiring the deals from ANK Hotels, Pride Hospitality, and Brij Hospitality. Share price for IHCL grew by ₹10.50 and now holds a portfolio of 550 hotels with 55,000 rooms. It will be interesting to see how IHCL can improve the hospitality and tourism industry in India. What do you think, will these deals be it, or will they acquire more for a mega expansion?
Original Article
(Disclaimer – This post is auto-fetched from publicly available RSS feeds. Original source: Startuptalky. All rights belong to the respective publisher.)
