Indian Hotels buys 10% of Orient Express for $211 mn
Tata Group company Indian Hotels snapped up 10% of Orient Express Hotels for $211 mn. Orient Express owns, part-owns and manages 35 hotels in 25 nations.
By TNN |
MUMBAI: The Tata group’s penchant for history is remarkable. Eight months ago they snapped up Corus — formerly British Steel — and a symbol of British industrial might. Then they bought Pierre, the fabled New York hotel built by a Corsican immigrant as the Great Depression was breaking upon the New World in 1929. On Monday, they did one better.
Group company Indian Hotels snapped up 10% of Orient Express Hotels Trains and Cruises for about $211 million.
Orient Express owns, part-owns and manages 35 hotels in 25 countries. It also runs cruises and luxury trains, the most famous being the Venice Simplon-Orient-Express, the modern day avtaar of the legendary luxury train.
Agatha Christie’s Hercule Poirot sniffed and poked around its passageways as he investigated the murder of passenger Samuel Edward Ratchett, stabbed 12 times in the novel. Royalty has patronised it, diplomats and celebrities were among its biggest customers, and today, it is part-owned by the Tata group, a group as steeped in history as the train.
“Over the past few years, Taj brand has been growing internationally. As part of this strategy, we have been pursuing alliances and relationships with leading hotel groups that have not yet set up a presence in India, but have secured leadership positions in various geographies,” said RK Krishna Kumar, vice-chairman, IHCL.
Mr Kumar added that the two groups — IHCL and Orient-Express — are pursuing talks on an alliance and hinted that the group may increase its stake further in the company.
The Mumbai-based hospitality chain is ensuring that one-third of its revenues comes from global acquisitions. Currently, overseas acquisitions account for around 20% of its revenues. After its three large acquisitions since 2005 — W Sydney hotel in Woolloomooloo, Sydney, Ritz Carlton in Boston and Campton Place in San Francisco — the company is eyeing the US, especially the west coast and other key gateway cities like London, Paris, Frankfurt, Chicago and South Africa.
The Rs 1,127-crore Taj Group, established nearly 100 years ago, runs 59 hotels at 40 locations across India. The hospitality major has been shoring up its luxury segment, which now contributes as much as 75-80% of its revenues.
Indian Hotels rose 0.8% to Rs 129.7 ahead of the announcement. The shares have rise 4% in the past month but have ended flat over the week.
The synergies, which can be developed, will strongly leverage the huge opportunity in the global market as also the exploding Indian hospitality industry, Mr Krishna Kumar added.
Group company Indian Hotels snapped up 10% of Orient Express Hotels Trains and Cruises for about $211 million.
Orient Express owns, part-owns and manages 35 hotels in 25 countries. It also runs cruises and luxury trains, the most famous being the Venice Simplon-Orient-Express, the modern day avtaar of the legendary luxury train.
Agatha Christie’s Hercule Poirot sniffed and poked around its passageways as he investigated the murder of passenger Samuel Edward Ratchett, stabbed 12 times in the novel. Royalty has patronised it, diplomats and celebrities were among its biggest customers, and today, it is part-owned by the Tata group, a group as steeped in history as the train.
“Over the past few years, Taj brand has been growing internationally. As part of this strategy, we have been pursuing alliances and relationships with leading hotel groups that have not yet set up a presence in India, but have secured leadership positions in various geographies,” said RK Krishna Kumar, vice-chairman, IHCL.
Mr Kumar added that the two groups — IHCL and Orient-Express — are pursuing talks on an alliance and hinted that the group may increase its stake further in the company.
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This move is in line with our plans and we are pursuing a possible association between IHCL and the company which has earned a reputation for its ultra luxury hotels, trains and cruises, he added. The Mumbai-based hospitality chain is ensuring that one-third of its revenues comes from global acquisitions. Currently, overseas acquisitions account for around 20% of its revenues. After its three large acquisitions since 2005 — W Sydney hotel in Woolloomooloo, Sydney, Ritz Carlton in Boston and Campton Place in San Francisco — the company is eyeing the US, especially the west coast and other key gateway cities like London, Paris, Frankfurt, Chicago and South Africa.
The Rs 1,127-crore Taj Group, established nearly 100 years ago, runs 59 hotels at 40 locations across India. The hospitality major has been shoring up its luxury segment, which now contributes as much as 75-80% of its revenues.
Indian Hotels rose 0.8% to Rs 129.7 ahead of the announcement. The shares have rise 4% in the past month but have ended flat over the week.
The synergies, which can be developed, will strongly leverage the huge opportunity in the global market as also the exploding Indian hospitality industry, Mr Krishna Kumar added.
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