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Tatas get management rights of New York hotel
Tata group-owned Indian Hotels Company Ltd said it had acquired the management rights of a New York-based luxury hotel.
Tata group-owned Indian Hotels Company Ltd., one of South Asia's largest luxury hotel chains, said Monday it had acquired the management rights of a New York-based luxury hotel to boost its overseas business.
Indian Hotels Company, the hospitality services arm of the diversified Tata group, will soon sign a management contract for the operation and the management of the Pierre Hotel, a company statement issued here said.
The company will take over the operations of the luxury New York hotel from July, the statement added.
With this, Indian Hotels Company will be foraying into the lucrative US market for the second time. A few years ago, the company had restructured its international operations and had exited from the hotel business in the US, where it managed the Lexington in New York and Executive Plaza in Chicago.
Global hospitality major Four Seasons earlier held the management rights of The Pierre, which posted a loss of $2 million in the first quarter of the year ended March 31.
The Pierre's loss, however, has narrowed from $2.6 million logged in the January-March quarter of the previous year.
Founded in 1960, Four Seasons manages 66 hotels in 29 countries. The chain has more than 20 properties under development in different parts of the world.
Four Seasons said last month it was in discussions with the landlord of The Pierre to explore "alternatives" for the chain to modify or restructure its lease on the hotel.
Indian Hotels Company operates 56 hotels in 37 locations across India with an 14 hotels in Bhutan, Britain, the Maldives, Mauritius, Seychelles and Sri Lanka, as also in Africa and the Middle East.
The company last month entered South East Asia via a management contract with premium resort Rebak Island Marina Berhad in Malaysia.
Experts say Indian Hotel's global expansion is part of its strategy to establish its presence in key gateway cities and business and leisure destinations.
