as Operator of The Pierre
Indian Hotels Company, Which Runs the Taj Chain, Would Invest
Up to $35 million to Renovate the 224 room Luxury Hotel
Business Standard Corporate Bureau / New Delhi May 20, 2005 - The Tata-promoted Indian Hotels Company, which runs the Taj chain of hotels, resorts and palaces, is set to sign a management contract deal with The Pierre, a super luxury hotel in New York.
The Tatas are expected to invest $35mn to renovate and refurbish the hotel.
The deal will mark the re-entry of Taj in the world’s commercial capital after it sold off the Lexington Hotel a few years ago.
Taj will replace Four Seasons which currently runs the hotel under a management contract. Though its contract ends in 2012, sources close to the development said Four Seasons has been looking at exiting the property.
The Pierre has 224 luxury rooms and 74 apartments. But it is making losses. The Tatas are expected to invest $35 million to renovate and refurbish the hotel. However, the hotel would be kept open during renovation, the sources said.
Confirming the development, a Taj spokesperson said: “As New York is an essential market for luxury hospitality, Taj has been actively pursuing strategic opportunities there for some time now. In this context, Taj has entered into exclusive negotiations with the owners and operators of The Pierre to assume management rights of this property.”
The spokesperson added that Taj was taking a long-term view of this contract and planned to make The Pierre its flagship property in the US.
However, he said the agreement was subject to regulatory approvals. The New York deal is a part of the group’s long-term strategy to establish a presence in the key gateways of the world. The Taj group had earlier unsuccessfully tried to acquire the Carlyle in New York.
The group already has a presence in the UK in London through a luxury service apartment called 51 Buckingham Gate. Just a few weeks ago, it also entered into a management contract deal with Rebak Island Marina Berhad to run a resort hotel in Lankavi in Malaysia.
Earlier it also tied up with Eta Star property to develop and manage a resort and spa in Dubai.
The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and are recognised as one of South Asia's largest and finest hotel company. Taj Hotels Resorts and Palaces comprises 56 hotels in 37 locations across India with an additional 13 international hotels in the Maldives, Mauritius, UK, Nepal, Sri Lanka, Africa and the Middle East.
|Also See:||Taj Hotels Resorts and Palaces to Develop and Manage a Resort at the Palm Island Jumeirah Crescent in Dubai / April 2005|
|Taj Hotels, Preserving India's Heritage One Hotel at a Time / Nov 2002|