IHCL takes controlling stake in ANK Hotels & Pride Hospitality

Deal doubles IHCL portfolio to over 550 hotels

In a move to enhance its footprint in midscale hotels, IHCL, largest Indian hospitality firm, has taken controlling stake in ANK Hotels and Pride Hospitality, growing its total portfolio to 550 hotels.

Indian Hotels Company (IHCL), India’s largest hospitality company, has entered into a strategic partnership, signing definitive agreements to acquire controlling stake in ANK Hotels and Pride Hospitality and has also signed a distribution agreement with Brij Hospitality. The three companies that IHCL has signed agreements with belong to the Clarks Hotels, a family-run hospitality brand with presence primarily in Rajasthan and Uttar Pradesh.

In a press statement, IHCL, which runs the Taj Group of hotels among others, says that these agreements come as part of its strategy to enhance its presence in the midscale hotels segment in India. The agreements take IHCL’s portfolio to over 550 hotels.

“India’s hospitality sector has witnessed sustained demand momentum over last three consecutive fiscal years, reflective of the country’s growing economic prominence and rising discretionary spends. The outlook for the sector remains buoyant as demand outpaces supply and India continues to be an under-served hospitality market especially in the mid-market segment. Our partnership with ANK, Pride and Brij Hospitality is a multi-pronged approach addressing India’s heterogenous market landscape and is in line with IHCL’s five-year road map Accelerate 2030 of unlocking India’s tourism potential,” says Puneet Chhatwal, Managing Director & Chief Executive Officer, IHCL.

“Furthering IHCL’s leading presence in the midscale segment with the successful transformation of Ginger, this partnership doubles our portfolio with over 240 hotels addressing the growing needs of the aspirational traveller. Expanding our brandscape, the strong brand equity of Brij hotels in India’s cultural and historical centres extends our offering in the experiential boutique luxury segment. With their rich legacy and hospitality expertise, the key managerial personnel of ANK, Pride and Brij Hospitality will continue to oversee the running of the respective companies, thereby providing business continuity and also enabling future growth of the companies,” adds Chhatwal.

According to the statement, ANK Hotels and Pride Hospitality have a portfolio of 135 hotels in the midscale segment spread across 110 locations and are presently operated under the Clarks Hotels & Resorts, which over the next few months will be integrated operationally and migrated to IHCL’s brandscape predominantly under the Ginger brand among others.

These hotels are a on a capital light arrangement of management contracts and select operating leases. Brij Hospitality has a portfolio of 19 hotels in the experiential leisure segment in India’s unique destinations.

“IHCL will fund this investment through internal accruals given our strong cash flows. The primary investment in the companies will be used for unlocking value in the existing assets and for fuelling future growth opportunities,” says Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL.

“It is with great enthusiasm that we move forward towards new vistas with India’s largest hotel group. Our forefathers, who sowed the seeds of the hospitality sector in India in 1947, will be proud,” says Anoop Kumar, Founder, ANK Hotels.

“Combining over 200 years of collective hospitality legacy, we come together with IHCL, part of the iconic Tata Group. Together, we are a powerhouse of energy with a shared vision for growth and transformation. This is more than a partnership, it is a union of legacies, ready to inspire the future,” says Aryavir Kumar, Promoter, ANK Hotels.

“Together with IHCL, we carry forward the shared vision of our respective founders, Jamshed Tata and Babu Brijpal Das, in shaping and propelling India’s tourism journey. IHCL’s legacy of showcasing Indian hospitality to the world resonates deeply with our core objective at Brij Hotels, to immerse travellers in the authentic spirit of India’s most storied destinations. Together, we will blend IHCL’s century-old tradition of excellence with our experiential approach, creating journeys that honour our shared heritage, nurture local communities, and reveal to the world the India that we love in its most beautiful and timeless form. We extend our heartfelt gratitude to Vijay Thacker from Horwath HTL for helping facilitate this strategic alliance,” say Anant Apurv Kumar and Udit Kumar, Founders, Brij Hotels and Promoters, Clarks Group of Hotels.