IHCL Sells Taj GVK Stake to Embrace Capital-Light Growth
IHCL exits equity in Taj GVK, sells 25.52% stake to GVK-Bhupal family, unlocks capital-light future in hospitality.
By SOH Edit Team
Tata Group hospitality firm The Indian Hotels Company Ltd (IHCL) on Thursday announced a strategic restructuring of its joint venture with the GVK-Bhupal family in Taj GVK Hotels and Resorts Ltd, transitioning from an equity partnership to a long-term management arrangement.
The move aligns with IHCL’s broader strategy of adopting a capital-light business model while retaining operational and brand presence across key hospitality assets.
IHCL to Sell 25.52% Stake
As part of the transaction, IHCL has entered into a binding sale and purchase agreement to divest its entire 25.52% equity stake in Taj GVK to the GVK-Bhupal family. Following completion, the GVK-Bhupal family will continue as promoters with a 74.99% shareholding in the company.
Despite the exit from equity ownership, IHCL will continue to manage the portfolio under a long-term management contract.
Puneet Chhatwal, Managing Director and CEO of IHCL
Leadership Commentary
Commenting on the development, Puneet Chhatwal, Managing Director and CEO of IHCL, said the partnership with the GVK-Bhupal family has been both enduring and successful.
“IHCL and the GVK-Bhupal family have had a successful partnership, starting with the iconic Taj Krishna in Hyderabad and extending to Taj Santacruz in Mumbai, reflecting strong market leadership across the portfolio,” he said.
The transaction enables IHCL to unlock capital while maintaining brand stewardship and operational control, reinforcing its focus on scalable, asset-light expansion in India’s growing hospitality market.