Sources close to the development said Indian Hotels might announce the acquisition of W Sydney Hotel. The deal size is estimated to be around Rs 125 crore.
Early this year, Indian Hotels had entered into a 30-year management contract to operate and manage Pierre, a luxurious hotel in New York. The hotel was earlier managed by Four Seasons.
Sources in the public relations firm working for the company neither denied nor confirmed the deal. They said they would inform the Bombay Stock Exchange before making an announcement.
The Indian Hotels stock today closed at Rs 969.80 on the BSE, 0.7 per cent lower than yesterday's closing price.
The company has already earmarked an investment of Rs 565 crore for acquisitions in this financial year. Tata group Chairman Ratan Tata had announced at the company's last annual general meeting that out of this kitty, Rs 500 crore would be utilised for expansion and the balance for upgrading existing properties.
W Sydney Hotel is located in the Woolloomooloo area of Sydney -- the central business district of the city. Owned by the Hong Kong-based Harilela group, the 104-room boutique hotel is managed by Starwood Hotels and Resorts. The Harilela group had acquired the property in 1999.
Indian Hotels is also looking for opportunities in China. Sources tracking the Tata group company said the firm was keen on entering China through acquisition of stand-alone properties or hotel chains as the country was set to emerge as a dominant force in world hospitality in the next five years.
Indian Hotels currently has 17 international hotels, including those in the Maldives, Mauritius, Malaysia, Seychelles, the UK, the US, Bhutan, Sri Lanka, Africa and West Asia.
