IHCL Makes Strategic Move into Boutique Hospitality with Brij Hotels Acquisition
Tata group's hospitality arm, Indian Hotels Company Limited, made a significant announcement on Thursday. The company revealed it has acquired a majority stake in Brij Hospitality, the operator of Brij Hotels. This strategic deal carries a total value of ₹193 crore.
Details of the Acquisition
IHCL, which operates the renowned Taj Hotels brand, confirmed the transaction through an official release. The company signed definitive agreements to purchase a 51% stake in Brij Hospitality. This move gives IHCL controlling interest in the boutique hotel chain known for its experiential leisure offerings.
As India's largest hospitality company by market capitalization, IHCL trades on both the Bombay Stock Exchange and National Stock Exchange. On Thursday, following the announcement, shares of IHCL closed at ₹688. This represented an increase of ₹9.85, or 1.45% from the previous day's closing price.
Expanding the Leisure Portfolio
Through this acquisition, IHCL gains ownership of the Brij brand. The company plans to work closely with Brij's founding promoters to expand its footprint in India's boutique leisure segment. This strategic move aims to capitalize on growing consumer preferences for unique travel experiences.
Puneet Chhatwal, Managing Director and CEO of IHCL, explained the rationale behind the acquisition. He stated that India's hospitality sector is experiencing sustained demand growth. This growth is driven by rising disposable incomes and increased discretionary spending. Consumers are showing a clear preference for experiential leisure travel over traditional options.
In response to this increasing demand, IHCL plans to use the acquisition to strengthen its position in India's leisure tourism market. The company specifically targets key cultural, spiritual, and wildlife destinations where Brij Hotels already has a presence.
Complementary Locations and Expansion Plans
Chhatwal highlighted how Brij's presence in offbeat locations adds valuable diversity to IHCL's existing portfolio. Brij operates properties in distinctive locations including Jaipur, Varanasi, Ranthambore, northern hill stations, northeastern regions, and Goa. These locations complement IHCL's current hotel network.
With this acquisition, IHCL's total portfolio now reaches 610 hotels. This includes 253 properties currently under development that will open in the coming years. The expansion significantly strengthens IHCL's market position.
Brij Hotels' Unique Offerings and International Ambitions
Brij Hotels currently operates a portfolio of 22 properties, with an additional 11 hotels in the pipeline. The hotel chain specializes in providing luxurious stays with personalized service and unique settings that reflect local culture.
Udit Kumar and Anant Apurv Kumar, Co-Founders of Brij Hospitality, expressed excitement about the partnership. They stated that Brij Hotels is recognized for creating immersive, locally rooted experiences that celebrate India's cultural diversity. The founders believe partnering with IHCL will help shape the future of boutique hospitality.
When questioned about international expansion, the founders revealed that Brij Hotels is not limiting itself to India. They confirmed an upcoming property in Pokhara, Nepal, which promises to be highly experiential. The company is also engaged in business development activities in Sri Lanka. The founders emphasized their focus on identifying unmatched locations with strong storytelling potential for future properties.
