In a major move today, August 11, 2025, Tata Group-owned Indian Hotels Company Limited (IHCL) announced the acquisition of controlling stakes in two key players in the midscale hospitality sector—ANK Hotels Private Limited and Pride Hospitality Private Limited. With a combined investment of 2.04 billion rupees, IHCL will secure a 51% stake in both entities. This marks a significant step in IHCL's strategy to tighten its grip in the midscale hotel segment across India, reinforcing its asset-light growth approach and boosting its nationwide footprint.
Key Developments and Financial Highlights
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IHCL will acquire 51% in ANK Hotels for up to 1.10 billion rupees.
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Similarly, IHCL takes 51% in Pride Hospitality for up to 940 million rupees.
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The transactions will be executed via cash consideration and are anticipated to complete by November 15, 2025.
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These acquisitions do not constitute related party transactions and have no promoter interests in the acquired companies.
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ANK Hotels reported a turnover of 14.32 crore rupees in FY25, while Pride Hospitality recorded 18.94 crore rupees for the same period.
Midscale Expansion: Portfolio Impact
ANK Hotels operates 111 hotels under the Clarks Hotels & Resorts brand (with 67 currently in operation) and has a footprint in both India and Sri Lanka.
Pride Hospitality currently manages 24 midscale hotels with 13 operational, primarily in India.
Through these acquisitions, IHCL’s portfolio expands to over 135 hotels under the Clarks Hotels & Resorts banner, providing deeper market penetration in India’s diverse hospitality landscape.
The expansion enables IHCL to leverage established brands such as Clarks Inn, Clarks Safari, Clarks Collection, and Clarks Resort.
Strategic Objectives and Asset-Light Approach
IHCL’s recent deals align with its ongoing commitment to an asset-light expansion in the midscale segment.
The strategy aims to heighten geographical reach and strengthen IHCL’s presence in new regions, catering to India’s rapidly evolving hospitality demand.
The asset-light model minimizes capital expenditure, relying on management contracts and partnerships, which has been pivotal for the company’s sustainable growth.
Additional Partnerships
Alongside these acquisitions, IHCL has signed a distribution and marketing agreement with Brij Hospitality Private Limited, which manages 19 hotels under the Brij Brand in India.
This partnership further bolsters IHCL’s distribution channels, enhancing marketing capabilities and customer reach.
Market Reaction and Industry Context
Shares of IHCL ended at 745 rupees, up 1.43% today, reflecting positive investor sentiment following the announcement.
The hospitality sector in India continues to show robust growth, especially in the midscale category, with strategic deals such as these signaling confidence in domestic tourism and travel markets.
Transaction Timeline & Management
The share purchase agreements and all relevant deal documentation were approved by IHCL’s board and its committee, with completion targeted for November 15, 2025.
Both ANK Hotels (established in 1996, Lucknow-based) and Pride Hospitality (established in 2005, Jaipur-based) add substantial depth to IHCL’s operations and network.
Outlook:
IHCL’s acquisitions are expected to reshape the midscale hotel segment by bringing together operational expertise, broad brand portfolios, and enhanced regional access. As demand for affordable but quality hospitality options grows, IHCL is positioning itself proactively for the next wave of market expansion.
Source: CNBC-TV18, TradingView/Reuters, BusinessUpturn, Rediff, Devdiscourse, Business Standard, NewsDrum.
