The Indian Hotels Company Limited (IHCL) has announced a strategic partnership with Brij Hospitality. IHCL will acquire a 51% stake in Brij Hospitality, adding a unique portfolio of boutique leisure hotels. This partnership includes 22 hotels (440 keys), 11 operational hotels (145 keys) and 11 pipeline hotels (295 keys), enhancing IHCL’s presence in the experiential leisure market. The deal is expected to drive revenue and operational synergies.
Strategic Leap into Experiential Leisure
IHCL is set to expand its footprint in the experiential leisure market through a strategic partnership with Brij Hospitality. This move will see IHCL acquire a 51% stake in Brij Hospitality Pvt Ltd, integrating a unique portfolio of boutique leisure hotels renowned for offering exceptional experiences in India’s tourism sector.
Key Portfolio Highlights
The partnership brings significant additions to IHCL’s portfolio:
- 22 Hotels Portfolio: A total of 440 keys.
- 11 Operational Hotels: Comprising 145 keys.
- 11 Pipeline Hotels: Adding a future capacity of 295 keys.
Synergy and Financial Details
The investment involves up to ₹225 Cr in the target company and is structured as follows:
- Primary Investment: Between ₹105-140* Cr.
- Secondary Share Purchase: Approximately ₹85 Cr.
*Additional investment upon achieving certain future milestones.
Financial Performance & Deal Metrics
The deal presents a promising financial outlook:
- Equity Value: Estimated at ₹300 Cr (FY25) and ₹275 Cr (FY27E).
- Enterprise Value: Projected at ₹270 Cr (FY25) and ₹245 Cr (FY27E).
- EBITDA (FY27E Existing Portfolio): Expected to be around ₹11.5 Cr.
- Implied Deal Multiple: Approximately ~11.5x (FY27E).
IHCL will continue to receive distribution & marketing fees from the Brij portfolio hotels.
Source: BSE
