Taj puts hotel in Australia on the block

MUMBAI: Indian Hotels Company (IHCL), the owner of Taj hotels, is reviewing its overseas portfolio and has put Blue, its 100-room hotel in Australia, on the block. IHCL has started discussions with local hoteliers, said a source familiar with the development.

The property - that overlooks the Sydney Harbour with film actor Russell Crowe's penthouse at a stone's throw distance - was bought by the Taj for Australian dollar 36 million from the HongKong-based Harilela group, nearly four years ago. If Taj manages to strike a deal, it would mark its exit from Down Under. Taj's move to sell Blue (earlier known as W) is after an analysis of operating and financial metrics.

The occupancy and average room revenues are on a par with similar properties in the region, the source added. A stay at Blue costs Aus $130-150 and last year's financial crisis and lesser number of guests checking into the hotel has impacted its business. An international hotel consultancy firm is assisting Taj in finding a buyer.