Indian Hotels to buy US hotel for Rs 264 crore

In yet another bid to expand its presence in the international market, Indian Hotels (IHCL) operated Taj Hotels, Resorts and Palaces, has said it would acquire US-based Hotel Campton Place for Rs 264 crore.

Hotel Campton Place, situated in the heart of San Francisco, is a 15-storey, 110-room four-star luxury boutique hotel. It will be IHCL's second acquisition in the US. The company acquired 273-room Ritz-Carlton Hotel in Boston from Millennium Partners for $170 million in November 2006.

IHCL informed the Bombay Stock Exchange that the acquisition cost includes estimated transaction costs and the hotel is intended to be acquired in partnership with financial investors. 
 

CHECKING IN Foreign buyouts BY IHCL
Year	Hotel	Deal size  ($ mn)
April 07	Hotel Campton	60
Nov 06	Ritz-Carlton	170
Feb 06	Blue Woolloomooloo	27.1

The IHCL board has approved the acquisition, subject to necessary statutory regulations. The sale-purchase agreement was signed on April 2 and the transaction is scheduled to close on April 30.

Hotel Campton Place has been listed on the Condé Nast Traveler's Gold list as one of the world's best places to stay. In addition, Travel+Leisure has included it among the top 100 hotels in the US and Canada. In 2005 it was purchased by Kor Hotel group.

In July 2005, Taj Hotels Resorts and Palaces entered into a 30-year management contract agreement to operate and manage The Pierre, New York.