The Indian Hotels Company Limited (IHCL) has acquired Roots Corporation Ltd. (RCL), making it a wholly owned subsidiary to strengthen its presence in the budget hotel sector amid a recovering hospitality market.

Target Information

The Indian Hotels Company Limited (IHCL) is India's largest hospitality chain, renowned for its scale and service excellence. Incorporated by Jamsetji Tata, IHCL opened its inaugural hotel, The Taj Mahal Palace, in 1903. Today, it boasts a diverse portfolio of 235 hotels, including 59 under development, across over 100 locations globally. The company operates various well-known brands, including Taj, SeleQtions, Vivanta, and Ginger, catering to different market segments.

In recent financial disclosures for the fourth quarter ending March 31, 2022, IHCL reported a remarkable revenue of INR 955 crores, marking a 52% year-on-year increase. The company's EBITDA also exhibited exceptional growth, rising 192% to INR 242 crores, reflecting an industry-leading EBITDA margin of 25.3%. IHCL continues to expand its portfolio, highlighted by the recent acquisition of Roots Corporation Ltd. (RCL), which operates the Ginger brand, making it a wholly owned subsidiary.

Industry Overview

The Indian hospitality industry has been undergoing significant transformation and growth. As travel restrictions ease and the tourism sector rebounds, the demand for hospitality services is pr