Trading Update

India Hospitality Corp.
16 November 2007


For immediate release                                          16 November 2007


                         India Hospitality Corp. (IHC)

                            Mid-Year Trading Update


New York, NY - November 16, 2007 - India Hospitality Corp. (LSE: IHC, IHC or
India Hospitality) today announced its mid-year trading update for the six-month
period ended September 30, 2007. IHC is continuing the integration of the
various businesses under its control and the evaluation of potential future
acquisition targets.


PERFORMANCE OF EXISTING BUSINESSES


SkyGourmet Catering:


SkyGourmet Catering ('Sky') provides in-flight meals to domestic airlines in
India, in particular Jet Airways and Kingfisher Airlines. Sky also has a growing
international business.


Sky experienced rapid growth in meals served for the second quarter of 2007
(July-September) compared to the same period last year - Delhi served almost
three times as many meals while Mumbai saw an increase of 41% and Bangalore
volumes grew 89% in the same period. Driving this growth were several factors
including the addition of new capacity discussed below.

All India volumes for Sky grew 9% in the quarter ended September 2007 over the
previous quarter (April-June 2007) and a strong 67% over the prior year's
quarter. Key factors driving the growth in throughput were the acquisition of
additional Jet Airways business from Delhi in July and the expansion of sectors
servicing Kingfisher and Indian Airlines in Mumbai. In addition, the June
opening of a much larger kitchen in Delhi marked a key milestone and will
provide the capacity required for the Company's forecasted growth in that city.

Sky is now firmly established as a leading player in the air catering industry
in India with active relationships with all key domestic airlines and a solid
presence in three major air traffic hubs - Mumbai, Delhi and Bangalore. The
company also has a smaller kitchen in the city of Pune. Three new production
facilities - in Kolkata, Chennai and Hyderabad - are currently under development
and will expand significantly the network and ability to service both existing
and new customers. The airline industry in India is projected to continue its
rapid growth and investments will continue to be required at Sky to expand
capacity ahead of airline requirements. Margins have shown some volatility as
fixed costs have increased due to new capacity not yet being fully utilized, and
as customers have grown more demanding on service and price.


SkyGourmet remains well-positioned in a rapidly growing industry.


Mars Restaurants:


Mars Restaurants (Mars) operates a portfolio of restaurants in Mumbai, including
the 'Birdys' chain of bakeries, 'Not Just Jazz by the Bay' and 'Pizzeria and
Pasta Bar.' Mars also operates two Gordon House Hotels - one in Mumbai (owned)
and another in Pune (management contract).


Performance of Mars was steady for the quarter. The Mumbai hotel performed well
with ARR's rising 33% over the same quarter in 2006 (from Rs. 3,548 to Rs.
4,716). Average occupancy for the quarter was robust and over 80%. In addition,
Mars recently signed a management contract to operate a 66 room Gordon House
Hotel in Ghandi Nagar, Bangalore. The hotel is expected to open in April 2009.
IHC is pleased with this planned addition as it will secure a footprint in one
of India's key hotel markets.


Sales for the Mars restaurants in Mumbai increased 13% over last year, mainly
driven by same-store sales growth of 12%, and by the addition of five new bakery
shops in Mumbai in late 2006 and early 2007. However, the pace of new store
openings has slowed this year and no new stores were opened in the last quarter,
partly as a result of high rental costs in Mumbai and partly as a result of
Group management time and attention being diverted to the rapidly growing
business at SkyGourmet. The new management structure outlined below will ensure
that both restaurants and hotels receive the time, attention and resources
required for future growth.


ACQUISTION UPDATE


Nirula's - IHC retains an option to buy the Nirula's Group at the end of the
calendar year. Nirula's would bring an exciting and iconic brand to IHC - a
pioneer of the fast food industry in India which opened its first location in
1934. There are currently over 60 Nirula's fast food outlets throughout Northern
India, and its presence continues to rapidly expand.


Noida Hotel - IHC has completed due diligence on the acquisition of the Noida
Hotel from Nirula's and has confirmed its intention to proceed with this
purchase on the originally stated terms. For technical reasons, completion may
be delayed to coincide with the Nirula's transaction. The property is ideally
situated in close proximity to the upcoming Commonwealth Games village.


SAJ - Navis Capital has chosen not to pursue the acquisition of SAJ and
therefore IHC will not be exercising its option to acquire SAJ.


MANAGEMENT


IHC is in the process of building a Group-level organization to complement the
strong management teams in its existing businesses and those it plans to
acquire. IHC intends to manage the businesses as three operating units (Airline
Catering, Restaurants and Hotels), each led by a Senior Executive with overall
leadership being provided by an IHC Chief Executive Officer.

As a result, recruitment is underway to employ additional senior group
management.


Executives from Navis Capital and Hayground Cove will also play increasingly
active roles at the Board level as outlined below, building on their extensive
experience in these businesses.


ADMINISTRATIVE MATTERS


Change of Fiscal Year End


India Hospitality Corp. intends to change its Financial Year end to be
consistent with that of its operating companies. The current Financial Year will
therefore end on 31st March 2008, and reports and accounts will be prepared
accordingly.


Change of Directors


As previously announced, Mr. Pawan Munjal, Mr. Manvinder Puri and Mr. Rajeev
Talwar resigned on 20 July 2007 and were immediately replaced by Mr. Richard
Foyston, Mr. Nicholas Bloy and Mr. Bruno Seghin - all the nominees of Navis
Capital.


On 14 September, Ms. Christa Short resigned and was replaced by Mr. Scott
LaPorta.

About India Hospitality Corp.

IHC was created as a blank-check company to acquire Indian businesses or assets 
in the hospitality, leisure, tourism, travel and related industries, including 
but not limited to hotels, resorts, timeshares, serviced apartments and restaurants.

In August 2006, IHC raised US $103 million in an IPO and private placement and 
is listed on AIM, a market operated by London Stock Exchange plc, under the ticker IHC.  
IHC was sponsored and advised by Hayground Cove Asset Management LLC, a New York-based 
investment management firm with approximately US $1.9 billion in assets under 
management as of July 31, 2007.

In July 2007, IHC closed on the acquisition from Navis Capital Partners and its 
Affiliates of India-based Mars Restaurants Private Limited ('Mars'), an emerging 
hotel and restaurant company, and SkyGourmet Catering Private Limited ('SkyGourmet'), 
an airline catering company operating out of four locations in India.

About Mars and SkyGourmet

Since its incorporation in 2000, Mars has diversified into bakery outlets and 
operating and managing food courts and hotels. SkyGourmet was incorporated in 
2002 and is headquartered in Mumbai. SkyGourmet currently provides in-flight 
catering services to a number of domestic and international airlines, including 
Jet Airways, Kingfisher Airlines, Air India Express, Indian Airlines, Malaysian 
Airlines and Air France. It has operations in Mumbai, Bangalore, New Delhi and 
Pune, and 1,700 employees.


Application for admission of shares and warrants to the CREST system


On October 30, 2007, IHC announced that de-materialized depositary interests
representing its shares and warrants have been admitted to the CREST system. The
CREST settlement system allows securities to be transferred from one CREST
account to another without the need to use share certificates, warrants or
written instruments of transfer. IHC believes that admission to the CREST system
will facilitate settlement of its shares and warrants in a more timely and
efficient manner and benefit its shareholders.


For further information, please contact:

Investor Relations Contact: ICR Inc.
William Schmitt
203-682-8200

Media Contact: Buchanan Communications
Richard Darby, Isabel Podda
[phone]

Nominated Adviser and Broker: Deutsche Bank
Mumtaz Naseem
[phone]
Deutsche Bank is IHC's nominated adviser and broker for the purposes of the AIM 
Rules for Companies. Its responsibilities as IHC's nominated adviser and broker 
under the AIM Rules for Nominated Advisers are owed solely to London Stock 
Exchange plc and not to IHC, any director of IHC or any other person.

No offer or invitation to purchase or subscribe for ordinary shares in or 
warrants to purchase or subscribe for ordinary shares or warrants of IHC is 
being made by this announcement.



                      This information is provided by RNS

            The company news service from the London Stock Exchange





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                      This information is provided by RNS
            The company news service from the London Stock Exchange