Indian Hotels Finalises Recast

Based on a report by global investment bank Lazard Brothers & Company, Tata group hotel major, Indian Hotels has finalised a plan to restructure its international operations.

The company plans to dispose off two properties in the US and is toying with doing something similar in the United Kingdom. A recent Indian Hotels board meeting approved the sale as recommended by Lazard in association with Lazard Freres of US.

The report had pointed out that certain conditions like a well-recognised brand, strong local management backed by wide marketing network is necessary to succeed in the competitive US market.

The Executive Plaza in Chicago and Hotel Lexington in New York does not have the critical mass to become a dominant player in the US hotel industry, the report had stated. Both hotels are owned and managed by Indian Hotels 100 per cent subsidiary, Taj International Hotels Ltd.

The report had also worked out the value of both the properties. Hotel Lexington's value has been pegged at around Rs 525 crore, Executive Plaza is estimated at Rs 294 crore.

Lazard has also carried out a detailed review and valuation of the group's UK property, the St James Court in London. The board is yet to decide on this and is studying the report.

After taking over last year, Indian Hotels managing director had decided to review the company's entire international operations as well as its future growth plans.

The company had decided to explore the possibility of selling off some of its properties inUS and UK. The group is also exploring the possibility of entering the south-east Asian markets through acquisitions.