Indian Hotels Company Ltd (IHCL), part of the Tata Group, has planned to acquire Rajscape Hotels Private Limited. This strategic move aims to enhance IHCL’s market presence in India’s hospitality sector, further solidifying its status as South Asia’s largest hospitality company.
Share Price Movement
The share price of Indian Hotels Company Limited has rallied 2.7% percent from today’s low to Rs. 668 per share on Tuesday. Its previous close stood at Rs. 666.55 per share. Over the past 6 months, the share has delivered returns of over 16.93 percent. The market capitalisation now stands at approximately Rs. 95,100 crore as of November 05, 2024.
What Happened
Indian Hotels Company Ltd (IHCL), owned by Tata Group, has approved the acquisition of approximately 55% equity shares in Rajscape Hotels Private Limited for ₹18 crores. The acquisition strengthens IHCL’s position as South Asia’s largest hospitality company, adding to its existing portfolio of over 200 hotels across 12 countries and 4 continents.
Rajscape Hotels Private Limited, incorporated in 2005, operates in the travel and hospitality sector. Despite recent financial challenges, including negative profit margins, IHCL sees strategic value in this acquisition. The move aligns with IHCL’s expansion strategy and aims to enhance its market presence and service offerings in India’s growing hospitality sector.
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Financials
The company’s consolidated net profit has increased by 10.16 percent, from Rs. 236 crore in Q2 FY24 to Rs. 260 crore in Q2 FY25. Revenue as compared to the last quarter of FY25 is down by 18.63 percent QoQ from Rs. 1,905 crore to Rs. 1,550 crore.
The company’s EPS fell by 40.2 percent from Rs. 2.93 in Q1 FY25 to Rs. 1.75 in Q2 FY25. The Operating Profit Margin (OPM) also fell to 29%.
About the Company
Founded in 1899 by Jamsetji Tata, Indian Hotels Company Limited (IHCL) is a premier player in the global hospitality industry, headquartered in Mumbai, India. Recognised for its distinguished heritage and exceptional service standards, IHCL operates a diverse portfolio of luxury, upscale, and midscale hotels, along with unique homestays.
The company’s offerings include the iconic Taj brand, celebrated for world-class service; Vivanta and SeleQtions, which cater to sophisticated travellers; and Ginger, providing affordable yet quality accommodations. As of now, IHCL operates 260 hotels across 12 countries and has 73 properties under development.
In FY 2022-23, IHCL signed 36 new hotels and opened 16, reinforcing its growth strategy. Committed to sustainability, IHCL focuses on eco-friendly practices while maintaining its status as South Asia’s largest hospitality company by market capitalization. With a blend of rich heritage and modern practices, IHCL continues to deliver unparalleled experiences to guests worldwide.
Written By Fazal Ul Vahab C H
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