Tata Group’s hospitality company, The Indian Hotels Company Limited (IHCL), announced on Friday, December 19, a restructuring of its joint venture with the GVK-Bhupal family in Taj GVK Hotels and Resorts Limited. The move marks a shift from an equity-based partnership to a long-term management-focused arrangement.
Transaction Details
As part of the agreement, IHCL has entered into a binding sale and purchase arrangement to divest its entire 25.52% equity holding in Taj GVK Hotels and Resorts Limited to the GVK-Bhupal family. Upon completion of the transaction, the GVK-Bhupal family will continue as promoters with a shareholding of 74.99%.
Management Commentary
Commenting on the development, Mr. Puneet Chhatwal, Managing Director and Chief Executive Officer of IHCL, stated that the collaboration with the GVK-Bhupal family began with Taj Krishna in Hyderabad and expanded to properties such as Taj Santacruz in Mumbai. He noted that the revised structure aligns with IHCL’s five-year strategy, “Accelerate 2030,” under which the association will continue through long-term management contracts instead of shareholding arrangements.
Mr. Chhatwal also said that following this transition, IHCL’s capital-light operating portfolio will increase to 67%, enabling capital redeployment while supporting improvements in consolidated return on capital employed.
Mr. Krishna Bhupal, Joint Managing Director of Taj GVK Hotels and Resorts Limited, said the association with IHCL over more than two decades has resulted in a portfolio of seven hotels with over 1,500 rooms across key cities including Mumbai, Hyderabad, Chennai, and Chandigarh. He highlighted the execution of a management contract with IHCL in October 2025 for a 256-key Taj hotel in Yelahanka, Bengaluru, which is scheduled to open in 2026, along with development potential on the remaining land parcel. He added that the company plans to expand its hospitality inventory to around 4,000 rooms over the next five years.
IHCL’s Ongoing Role
After the completion of the stake sale, IHCL will continue to operate and manage six existing hotels under the arrangement, in addition to the upcoming Yelahanka property in Bengaluru. IHCL and the GVK-Bhupal family will also jointly assess further opportunities within the Indian hospitality sector.
Summary
IHCL has signed a binding agreement to sell its entire 25.52% stake in Taj GVK Hotels and Resorts Limited to the GVK-Bhupal family, ending its equity participation while continuing as the long-term manager of the hotel portfolio. The GVK-Bhupal family will retain promoter status with a 74.99% holding, and both parties will continue to collaborate on existing and future hospitality projects in India.
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