Tata Group’s IHCL to Conclude JV with GVK: Signed Agreement to Divest 25.52% Stake in Taj GVK

Tata Group’s hospitality arm, The Indian Hotels Company Ltd (IHCL), on Friday, December 19, announced a strategic restructuring of its joint venture with the GVK-Bhupal family in Taj GVK Hotels and Resorts Ltd, transitioning from an equity partnership to a long-term management-led arrangement.

Transaction Details 

Under the agreement, IHCL has signed a binding sale and purchase deal to divest its entire 25.52% stake in Taj GVK to the GVK-Bhupal family. Following the completion of the transaction, the GVK-Bhupal family will continue as promoters with a 74.99% shareholding.

Management Take on Stake Sale

Mr. Puneet Chhatwal, Managing Director & CEO IHCL said: “IHCL and the GVK-Bhupal family have had a successful partnership, starting with the iconic Taj Krishna in Hyderabad and extending to Taj Santacruz in Mumbai, reflecting strong market leadership across the portfolio. In line with IHCL’s five-year roadmap ‘Accelerate 2030’ focused on a capital-light strategy, the next phase with the GVK-Bhupal family transitions from a shareholding agreement to long-term management contracts. We look forward to realising our common purpose of unlocking India’s tourism potential.” 

He added, “This transition elevates IHCL’s capital-light operating inventory to 67%, unlocking capital for high-margin growth while advancing the Consolidated ROCE towards our guidance of 20% by 2030.”

Mr. Krishna Bhupal, Joint Managing Director, Taj GVK Hotels & Resorts Ltd., said: “The GVK-Bhupal family and IHCL for over two decades have established a portfolio of seven hotels with over 1,500 keys. Our longstanding association is a benchmark in India’s hospitality landscape, featuring marquee assets at landmark locations in Mumbai, Hyderabad, Chennai and Chandigarh, complemented by IHCL’s world renowned hospitality.” 

He further added added, “Exploring future growth opportunities, we have executed a management contract with IHCL in October 2025, for a 256-key Taj in Yelahanka, Bengaluru set to open in 2026 with a further scope of development on the remaining ~4-acre land parcel. The company will pursue its growth strategy to scale the hospitality business to an inventory of about 4,000 keys over the next five years.”

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IHCL Remaining Portfolio

Following the transaction, IHCL will continue to manage the six operational hotels, as well as the upcoming property in Yelahanka, Bengaluru. The GVK-Bhupal family, together with IHCL, will jointly evaluate opportunities in the Indian hospitality sector, underscoring a strong commitment to the industry’s growth.

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