Oriental Hotels Invests USD 1.764 Million in Hong Kong Subsidiary for Debt Repayment

1 min read     Updated on 23 Oct 2025, 09:20 PM
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Overview

Oriental Hotels Limited plans to invest $1.764 million (₹15.66 crores) in its wholly-owned subsidiary, OHL International (HK) Limited (OIHK), through a rights issue. The investment involves acquiring 63,000 equity shares at $28 per share. The primary purpose is to channel funds through OIHK to St. James Court Hotels Ltd for debt repayment, aiming to improve the group's international financial operations. The transaction is set to complete by November 7, 2025, without altering Oriental Hotels' 100% ownership in OIHK.

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*this image is generated using AI for illustrative purposes only.

Oriental Hotels Limited , a prominent player in the hospitality sector, has made a strategic move to strengthen its international presence and improve its financial position. The company's Investment Committee has given the green light for a significant investment in its wholly-owned subsidiary, OHL International (HK) Limited (OIHK).

Investment Details

Oriental Hotels will subscribe to a rights issue of OIHK, investing USD 1.764 million (approximately ₹15.66 crores). This investment involves the acquisition of 63,000 equity shares at USD 28 per share, which includes a premium of USD 18 over the face value of USD 10.

Investment Details Value
Total Investment USD 1.764 million
Number of Shares 63,000
Price per Share USD 28.00
Face Value USD 10.00
Premium per Share USD 18.00

Purpose of Investment

The primary objective of this investment is to channel funds through OIHK to St. James Court Hotels Ltd for debt repayment. This move is expected to improve the financial health of the group's international operations.

Subsidiary Performance

OIHK, incorporated on September 8, 1994, operates in the hospitality industry with a presence in Hong Kong. The company has shown fluctuating performance over the past three financial years:

Financial Year Turnover (USD) Turnover (₹ Crores)
FY2024-2025 245,988 2.18
FY2023-2024 506,054 4.49
FY2022-2023 214,816 1.91

Transaction Timeline and Impact

The transaction is scheduled for completion by November 7, 2025. Importantly, this investment will not alter Oriental Hotels' 100% shareholding in OIHK, maintaining the company's full control over its subsidiary.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No governmental or regulatory approvals are required for this acquisition.

This strategic investment by Oriental Hotels Limited demonstrates the company's commitment to strengthening its international operations and optimizing its financial structure. By channeling funds for debt repayment, the company aims to improve the financial stability of its overseas entities, potentially setting the stage for future growth and expansion in the global hospitality market.

Historical Stock Returns for Oriental Hotels

1 Day5 Days1 Month6 Months1 Year5 Years
+0.33%-1.60%-8.11%-20.25%-22.32%+522.74%
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Oriental Hotels Reports Strong Q2 FY26 Results, Expects Continued Growth

1 min read     Updated on 17 Oct 2025, 08:27 PM
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Radhika SahaniScanX News Team
Overview

Oriental Hotels Limited (OHL) announced robust Q2 FY26 results with revenue up 10% to ₹115.02 crore, EBITDA up 19% to ₹31.05 crore, and PAT up 38% to ₹12.66 crore year-over-year. H1 FY26 performance showed 17% revenue growth to ₹222.26 crore and 66% PAT increase to ₹21.37 crore. The company, operating seven hotels across India, expects continued double-digit revenue growth in coming quarters. OHL's renewable energy consumption reached 61%, aligning with IHCL's ESG+ framework.

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Oriental Hotels Limited (OHL) has announced its financial results for the second quarter of fiscal year 2025-26, showcasing robust performance and an optimistic future outlook.

Q2 FY26 Financial Highlights

OHL reported impressive financial results for the quarter ended September 30, 2025:

Metric Q2 FY26 Q2 FY25 YoY Change
Revenue ₹115.02 ₹104.44 +10%
EBITDA ₹31.05 ₹26.08 +19%
Profit After Tax ₹12.66 ₹9.20 +38%

The company's revenue growth was supported by major upgrades to assets and sustained demand growth in the hospitality sector.

H1 FY26 Performance

For the first half of FY26, OHL demonstrated strong financial performance:

Metric H1 FY26 H1 FY25 YoY Change
Revenue ₹222.26 ₹189.22 +17%
EBITDA ₹56.46 ₹40.76 +38%
Profit After Tax ₹21.37 ₹12.84 +66%

Future Outlook

Mr. Pramod Ranjan, Managing Director & CEO of Oriental Hotels Ltd., expressed confidence in the company's growth trajectory, stating, "The company will continue to deliver a double-digit revenue growth in the coming quarters." This optimistic outlook is based on the strong performance in the first half of the fiscal year and ongoing improvements in the hospitality sector.

Key Highlights

  • OHL has three Taj branded hotels in its portfolio. The Taj brand, owned by Indian Hotels Company Limited (IHCL), has been ranked as India's Strongest Brand 2025 and World's Strongest Hotel Brand 2025 by Brand Finance-UK.

  • As part of its commitment to environmental stewardship under IHCL's ESG+ framework Paathya, OHL hotels' renewable energy consumption stood at 61%.

Company Profile

Oriental Hotels Limited, an associate company of The Indian Hotels Company Limited (IHCL), operates seven hotels across India:

  1. Taj Coromandel, Chennai
  2. Taj Fisherman's Cove Resort & Spa, Chennai
  3. Taj Malabar Resort & Spa, Cochin
  4. Vivanta Coimbatore
  5. Vivanta Mangalore
  6. Gateway Madurai
  7. Gateway Coonoor

The company's strong performance and positive outlook reflect the recovering trends in the Indian hospitality sector and OHL's strategic positioning in key markets.

Historical Stock Returns for Oriental Hotels

1 Day5 Days1 Month6 Months1 Year5 Years
+0.33%-1.60%-8.11%-20.25%-22.32%+522.74%
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