The Tata Group's hospitality business is making a big bet on India's growing travel market, announcing Monday evening that it will spend ₹204 crore to buy controlling stakes in the companies behind the Clarks Hotels chain.

Indian Hotels Company Limited (IHCL), which runs the iconic Taj Hotels brand, is acquiring 51% of two firms that operate 135 hotels across India under the Clarks banner. The deal marks IHCL's latest push to capture more of the country's booming midscale hotel segment, where business travelers and middle-class families are driving demand.

IHCL Managing Director and CEO Puneet Chhatwal said most of the newly acquired Clarks properties will be rebranded as Ginger hotels, expanding the brand’s portfolio to around 250. He said the move aims to position Ginger as India’s leading mid-market brand, catering to 500 million emerging consumers over the next three to five years. With Taj already recognised globally, Chhatwal noted this deal puts Ginger in the spotlight as the next major brand in the segment.

Deal Breakdown: Asset-Light Expansion

The deal involves two separate purchases. IHCL will pay ₹110 crore for its stake in ANK Hotels Private Limited, which runs 111 properties under brands like Clarks Inn and Clarks Inn Suites, even though only 67 are currently operating. ANK generated revenues of ₹14.32 crore last fiscal year.

The remaining ₹94 crore goes toward Pride Hospitality Private Limited, which manages 24 hotels under names like Clarks Safari and Clarks Resort. Thirteen of Pride's properties are operational, and the company posted ₹18.94 crore in turnover for FY25.

IHCL has also signed a strategic marketing partnership deal with Brij Hospitality, bringing 19 boutique hotels under its distribution network. The move comes as India's hotel industry rebounds strongly from the pandemic, with domestic travel surging and new destinations emerging across the country. This collaboration further deepens IHCL’s footprint across India, particularly in the experiential and heritage travel segments. 

The acquisition supports IHCL’s asset-light growth strategy, allowing it to scale without significant capital investment in new construction. The move strengthens its position against both global hotel chains and domestic competitors amid India’s ongoing travel boom.

IHCL shares rose 2.15% to ₹748.65 on the BSE ahead of the announcement, valuing the company at approximately ₹1.06 trillion. This makes it the country’s most valuable hospitality firm.

The company, in a post-market regulatory filing on Monday, said it sees strong potential in India’s diverse hospitality market. The deal is expected to close by November 2025.