Indian Hotels Company , a prominent player in the hospitality sector, has acquired a 51% stake in Sparsh Infratech Pvt Ltd (Atmantan) for an enterprise value of ₹415 crores. This acquisition marks the company's entry into the integrated luxury wellness segment.

Acquisition Details

The acquisition includes the following key aspects:

Financial Performance

Atmantan Resort has demonstrated strong financial performance:

• 25% revenue CAGR from FY19 to FY25
• EBITDA margins of approximately 50%

Significance of the Acquisition

This strategic move signifies Indian Hotels Company's expansion into the luxury wellness segment, diversifying its portfolio beyond traditional hospitality offerings. The acquisition of Atmantan Resort, known for its wellness-focused services, positions the company to capitalize on the growing demand for health and wellness tourism.

Recent Block Trade

Prior to this acquisition announcement, Indian Hotels Company executed a significant block trade on the National Stock Exchange (NSE), which involved:

This large-volume transaction suggested significant interest from institutional or bulk investors in the company's shares.

Market Implications

The acquisition of Atmantan Resort, coupled with the recent block trade, underscores the continued investor interest in Indian Hotels Company and the broader Indian hospitality sector. These developments may influence market perceptions and potentially impact the company's stock performance.

About Indian Hotels Company

Indian Hotels Company, commonly known as Taj Hotels, operates a portfolio of luxury, premium, and business hotels across various locations in India and internationally. This latest acquisition further expands its presence in the high-end wellness resort segment.

Investors and market participants may want to closely monitor Indian Hotels Company's performance and any subsequent announcements related to this acquisition and its integration into the company's existing portfolio.

Indian Hotels Company (IHCL) has demonstrated consistent strength in its performance, marking 14 consecutive quarters of robust results, according to Managing Director and CEO Puneet Chhatwal. This sustained success is attributed to a strategic shift in brand management and a multi-faceted growth approach.

Brand Independence and Portfolio Expansion

IHCL has successfully transitioned its brands, including Taj and Ginger, to operate independently rather than relying solely on the Taj brand. This strategy has paid off, particularly for the budget brand Ginger, which has seen its revenue surge to nearly Rs 1,000 crore from under Rs 300 crore in the past seven to eight years.

Growth Drivers

The company's growth is propelled by several key factors:

1. Market Dynamics: Demand outpacing supply in the hospitality sector
2. Operational Efficiency: Margin expansion through an asset-light model
3. Strategic Expansion: Fee-based growth using management contracts

Diversification and New Ventures

IHCL has also made significant strides in diversifying its revenue streams:

• Qmin: The food delivery platform has crossed Rs 100 crore in Gross Merchandise Value (GMV)
• Taj SATS: The non-aviation catering business has expanded to constitute 12% of overall catering revenues

Performance Metrics and Future Outlook

IHCL maintains an optimistic outlook, expecting to match or exceed its current margin performance of nearly 35%. The company is on track to open approximately 36-40 hotels, currently inaugurating three new properties each month.

Conclusion

IHCL's strategic approach of brand independence, diversification, and expansion has yielded impressive results. With a strong performance track record and clear growth plans, the company appears well-positioned to capitalize on the robust demand in the hospitality sector.