Indian Hotels plans another overseas acquisition

Indian Hotels Company, which operates the Taj group of hotels, is likely to announce an overseas acquisition next week, said its Managing Director Raymond Bickson.

Sources said Indian Hotels might acquire a hotel in China, a destination the company had been eyeing for the past three years. However, Bickson did not divulge any details.

Sources tracking the Tata group company said the firm was keen to enter China through acquisition of stand-alone properties or hotel chains as China was set to emerge as a dominant force in the world hospitality scene in the next five years. In addition to China, Indian Hotels was zeroing in on a handful of properties in Australia, they added.

Funding the acquisitions would not be a problem for the company which had already earmarked an investment of Rs 565 crore for this financial year.

Tata group Chairman Ratan Tata had announced at the company's last annual general meeting that of this kitty, Rs 500 crore would be utilised for expansion while the balance would be meant for upgradation of existing properties.

He had said the company planned to add about 1,100 rooms, including 500 for the budget IndiOne Hotels this financial year.

The company's immediate expansion would include Bangalore, Coimbatore and Mumbai. In the next two to three years, Taj would put up 40 IndiOne hotels in the country, Tata had indicated.

The company had recently entered into a 30-year management contract agreement to operate and manage Pierre, a luxurious hotel on New York's Fifth Avenue. The hotel was earlier managed by Four Seasons Hotel.

India Hotels was also contemplating the idea of owning and managing hotels in Andaman and New Delhi. The company has tied up with South Africa-based CC Africa and Nepal-based Cigen Corporation to develop wildlife across the country.

Established nearly 100 years ago, the company runs 56 hotels in 39 locations across India with an additional 17 international hotels in the Maldives, Mauritius, Malaysia, Seychelles, UK, USA, Bhutan, Sri Lanka, Africa, and the Middle East.