Summary:
- IHCL is acquiring a 51 percent stake in Brij Hospitality for approximately $24.8 million.
- Brij Hotels was founded in 2021 by Udit Kumar and Anant Kumar.
- This is IHCLS’s third acquisition in six months, including ANK and Pride.
INDIAN HOTELS CO. Ltd. is acquiring a 51 percent stake in Brij Hospitality, which operates 22 properties with 11 under development, for approximately $24.8 million. The acquisition will take Tata Group-owned IHCL’s portfolio to 610 hotels, with 253 in the pipeline, moving it toward its Accelerate 2030 target of 700 hotels.
Brij Hotels, founded in 2021 by Udit Kumar and Anant Kumar, is a collection of boutique hotels and resorts in India, with properties in Varanasi, Jawai, Dalhousie and Jaipur, among others, IHCL said in a statement. Its first hotel, BrijRama Palace, is located in Varanasi.
The deal involves IHCL, the operator of Taj hotels, making a primary investment of $11.6 million to $15.5 million and a secondary share purchase of $9.4 million, VCCircle reported, citing a stock-exchange filing. IHCL will also receive marketing and distribution fees from Brij portfolio hotels.
IHCL will acquire a majority stake in Brij Hospitality, either on its own or with its subsidiaries ANK Hotels Pvt Ltd and Pride Hospitality Pvt Ltd, in which it already holds a 51 percent stake, VCCircle reported.
“India’s hospitality sector is witnessing sustained demand growth led by rising disposable income and discretionary spending, with a growing preference for experiential leisure,” said Puneet Chhatwal, IHCL MD and CEO. “We are extending our partnership with the Clarks Group by moving to a majority stake in Brij Hotels, one of the country’s early entrants in the boutique leisure segment.”
This is Indian Hotels’ third acquisition in six months. It earlier bought a 51 percent stake in ANK Hotels and Pride Hospitality, which operates Clarks hotels, for approximately $21.8 million. It also acquired a 51 percent stake in Sparsh Infratech Pvt Ltd, which owns and operates the Atmantan resort in Mulshi, Maharashtra, for approximately $27.5 million late last year.
The Brij cofounders said they look forward to partnering with IHCL to develop boutique hospitality.
“Brij Hotels is recognised for creating locally rooted experiences that reflect India’s cultural diversity,” they said. “IHCL’s legacy of presenting Indian hospitality globally aligns with Brij’s purpose. Together, we will combine IHCL’s tradition with Brij’s design approach to craft meaningful journeys and build India’s first global boutique hospitality brand.”
Brij Hospitality’s Brij brand includes properties in cities including Varanasi, Dalhousie and Jaipur. IHCL’s portfolio includes Taj, Vivanta, Gateway, SeleQtions and Ginger.
IHCL recently sold its 25.52 percent stake in Taj GVK Hotels & Resorts Ltd to executive director and promoter Shalini Bhupal for $65.7 million. The company recently signed a Taj hotel in Cairo, marking its entry into Egypt.
