Marking its return to the US, Indian Hotels Company Ltd has entered into a contract for 30 years to operate and manage New York-based hotel, The Pierre for a lease amount of $ 5 million.
"Taj Hotels Resorts and Palaces will officially take over the management of The Pierre Hotel in New York. This acquisition in US is in line with the internationalisation strategy of the Tata Group," Raymond Bickson, IHCL managing director and CEO said.
Bickson said the company would spend over $35 million for renovating this hotel to align with Taj's culture and style of operations.
Taj to manage luxury hotel in New York
Asked about the financial soundness of the Pierre hotel, he said the hotel has recovered from the loss cycle and started making profits. The company's return to New York is a big step towards establishing a presence for the Taj brand across the globe.
Taj Hotels Resorts and Palaces senior vice president (sales & marketing) Ajoy K Misra said the New York market is favourable for luxury properties and Pierre acquisition is rightly fitting within the brand of Taj Group.
"Earlier, we had exited from the hotel business in US as those brands were not aligned with the Taj brand. Pierre is matching with our service standard and culture," he said.
To a query, Bickson said the company is looking to acquire luxury properties in China, UK and North America. "Our primary focus will be on acquiring luxury brands followed by service apartments," he added.