Indian Hotels buys 10 percent stake in Orient-Express group
NEW DEHLI (Bloomberg) - Indian Hotels, the country's largest provider of rooms, said its unit paid $211.3 million for 10 percent of Orient-Express Hotels, the owner of New York's 21 Club restaurant.
The Mumbai-based owner of the Taj brand of hotels and resorts has started talks with Orient-Express for a partnership to expand its network globally, Indian Hotels said in an e-mailed statement.
India's Tata Group, which owns the Taj chain of hotels plans to spend as much as $1.5 billion to open new hotels in the US, Europe and Asia as part of a campaign to turn itself into a "global brand," the Financial Times reported in February, citing Taj Chief Executive Officer Raymond Bickson. Indian Hotels completed its purchase of the Ritz-Carlton hotel in Boston for $170m earlier this year.
The acquisition by Samsara Properties Ltd. "is a reflection of its deep commitment to the possibility of an association," Indian Hotels said. Bermuda-based Orient-Express manages hotels in 25 countries, as well as luxury trains and cruises.
The board of directors of Indian Hotels last month approved a plan to raise 19.2bn rupees by selling securities to existing shareholders for funding new properties.
Indian Hotels shares rose 0.8 percent to 129.65 rupees on the Bombay Stock Exchange before the announcement.
• Orient-Express Hotels Ltd. owners or part-owners and managers of 49 luxury hotel, restaurant, tourist train and river cruise properties operating in 25 countries, yesterday announced that it has realigned its management structure to better serve the needs of the business as it pursues its expansion plans. These appointments follow the appointment of Paul White as president and CEO on August 10.
"Under our management structure to date, Orient-Express Hotels has grown significantly since the IPO in 2000," said Paul White, CEO. "To operate and further grow the business in the years ahead, we must harness the skills and talents of our senior managers. Today's realignment is the beginning of a process, which will continue to develop over the coming months."