Bhupal Family Transitions to Management Agreement with IHCL
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Indian Hotels Company Ltd. (IHCL) and the GVK-Bhupal family are changing their Taj GVK Hotels joint venture to a long-term management agreement.
The Indian Hotels Company Ltd (IHCL), a Tata Group hospitality firm, announced on Friday, December 19, a shift in its partnership with the GVK-Bhupal family concerning Taj GVK Hotels and Resorts Ltd. The existing shareholding agreement will transition into a long-term management agreement.
As part of this restructuring, IHCL will sell its complete 25.52% stake in Taj GVK to the GVK-Bhupal family. Following the completion of the transaction, the GVK-Bhupal family will remain the promoters, holding 74.99% of the company.
IHCL's Managing Director and CEO, Puneet Chhatwal, commented on the successful collaboration between IHCL and the GVK-Bhupal family. He noted their partnership began with the Taj Krishna in Hyderabad and expanded to include Taj Santacruz in Mumbai, demonstrating strong market leadership across their properties.
Chhatwal added that the transition aligns with IHCL’s five-year roadmap, called 'Accelerate 2030,' which prioritizes a capital-light strategy. He stated that the next phase of their relationship with the GVK-Bhupal family will involve moving from a shareholding agreement to long-term management contracts. He expressed enthusiasm for jointly unlocking India’s tourism potential.
Krishna Bhupal, Joint Managing Director of Taj GVK Hotels & Resorts Ltd, highlighted the two-decade-long partnership between the GVK-Bhupal family and IHCL, which has resulted in a portfolio of seven hotels with over 1,500 rooms. He emphasized that their enduring association sets a benchmark in the Indian hospitality sector, featuring prominent assets in key locations such as Mumbai, Hyderabad, Chennai, and Chandigarh, all enhanced by IHCL's renowned hospitality.
IHCL will continue to manage the six operational hotels within the Taj GVK portfolio, along with the upcoming Yelahanka property. Both parties will collaborate to explore further growth opportunities within the Indian hospitality sector.
The Taj GVK portfolio includes several properties: Taj Krishna and Taj Deccan in Hyderabad, Taj Club House in Chennai, Taj Chandigarh, Vivanta Hyderabad, Begumpet, and the soon-to-open Taj in Yelahanka, Bengaluru. The joint venture also has co-ownership of Taj Santacruz in Mumbai through Green Woods Palaces and Resorts Private Limited.
On December 19, shares of Indian Hotels Company Ltd closed at ₹730.60 on the BSE, an increase of ₹8.60, or 1.19%.
