Indian Hotels to Acquire 51% Stake in Brij Hospitality for INR 225 Crore
Filing Summary
Indian Hotels Company Ltd (IHCL) has announced the approval of agreements to acquire a 51% stake in Brij Hospitality Private Limited for an amount not exceeding INR 225 crore. The acquisition involves IHCL and its subsidiaries, ANK Hotels Private Limited and Pride Hospitality Private Limited. Brij Hospitality operates 22 hotels under the ‘Brij’ brand across India. The transaction is expected to be completed by March 31, 2026, subject to certain conditions. This move aligns with IHCL’s strategy to expand its portfolio in the boutique leisure segment.
Indian Hotels Company Ltd (IHCL) has secured approval from its Board of Directors to execute definitive agreements for acquiring a 51% stake in Brij Hospitality Private Limited. The acquisition will be conducted through IHCL and its subsidiaries, ANK Hotels Private Limited and Pride Hospitality Private Limited. The transaction involves a Share Subscription and Purchase Agreement, Share Purchase Agreement(s), and a Shareholders’ Agreement. The total investment for this acquisition will not exceed INR 225 crore.
The financial terms of the acquisition specify that IHCL, along with ANK and Pride, will collectively acquire the majority stake in Brij Hospitality. The transaction is structured as a cash consideration. The acquisition price is subject to the fulfillment of certain conditions precedent as outlined in the agreements. The transaction is conducted at arm’s length, with one of the seller shareholders of Brij being related to a director of Pride, a step-down subsidiary of IHCL.
Brij Hospitality operates a portfolio of 22 hotels under the ‘Brij’ brand, with 11 hotels currently in operation. The hotels are managed under various names, including Brij Anayra, BrijRama Palace, and Brij Bageecha. Brij Hospitality reported a turnover of INR 62 crore for the fiscal year 2024-2025. The acquisition is part of IHCL’s strategy to expand its presence in the boutique leisure segment across India while adhering to a capital-light growth strategy.
The acquisition does not require any governmental or regulatory approvals. The transaction is expected to be completed by March 31, 2026, or another mutually agreed date. This timeline is contingent upon the fulfillment of the specified conditions precedent. The acquisition will enhance IHCL’s portfolio by adding 22 hotels, thereby strengthening its position in the hospitality sector.
Brij Hospitality Private Limited was established in 2022 and is focused on the hospitality sector, particularly hotels. The company has shown consistent growth in turnover over the past three years, with figures of INR 31 crore in FY 2022-23 and INR 51 crore in FY 2023-24. Brij Hospitality operates primarily in India, offering a range of hospitality services under the ‘Brij’ brand.
Indian Hotels Company Ltd is a leading player in the hospitality industry, focusing on expanding its portfolio through strategic acquisitions and partnerships. The company is committed to enhancing its presence in the boutique leisure segment while maintaining a capital-light approach to growth. IHCL continues to explore opportunities that align with its long-term strategic objectives in the hospitality sector.