The Tata group has sold its Taj Residency property at Indore for Rs 14-15 crore (Rs 140-150 million). The property, which was owned by Piem Hotels, an associate company of the group's hospitality flagship, Indian Hotels Company, has been bought by a businessman, Kamal Galani.
"The decision was taken based on the viability of the venture and whether it fitted into Taj's brand architecture. Following our performance reviews, it was decided that continuing with the Indore hotel was unviable," a Taj spokesman said.
The hotel will no longer be managed by the Taj group and will not bear the Taj Residency tag name from September 1.
Galani is a businessman and hotelier and owns Suraaj Hotels & Resorts, along with a premier hotel in Ahmedabad.
This transaction is part of the Taj Group and Piem Hotels ongoing brand restructuring, under which, the company is weighing the option of exiting from seven more Taj hotels.
The hotels to be put on the block are the Taj Hari Mahal Hotel, Jodhpur, Taj Residency business hotels in Calicut, Vishakhapatnam, Nashik, City Inn in Baramati. The other properties include Taj Golden Retreat, Coonoor and Taj Kutteeram, Bangalore.
Meanwhile, IHC is looking towards China, North America and Europe to extend its Taj Exotica brand. China has been targeted as it has a rapidly growing economy.
