Summary:
- IHCL said reports of Taj exiting The Pierre Hotel are incorrect and misleading.
- Media reported the Central Park hotel could sell for around $2 billion.
- The company holds leasehold rights and continues to operate the New York hotel.
INDIAN HOTELS CO. Ltd. said media reports on Taj exiting its stake in The Pierre Hotel in New York are incorrect, misleading and speculative. In an exchange filing, IHCL stated it does not own The Pierre, but holds leasehold rights and continues to operate the hotel.
Indian media, citing a New York Times report, speculated that the hotel overlooking Central Park could be sold for about $2 billion.
NYT reported that the board, advised by Newmark on the Pierre’s revamp, is in final talks to sell the hotel. It said that the Khashoggis, a prominent Saudi family, may provide some financing, while Dorchester, another luxury hotel chain, could manage the renovation. Dorchester is owned by the Sultanate of Brunei.
NYT said Taj defended its management of the building and proposed upgrades that would not require residents to move out.
However, IHCL called the media report speculative.
“IHCL follows the highest standards of governance and disclosure and any material information requiring it to make disclosures under the applicable regulatory requirements will be promptly disseminated by the company to the stock exchanges,” the company said.
In May, Business Line reported that IHCL’s U.S. business has recovered, with The Pierre and Campton Place in San Francisco seeing steady demand. Together, the two hotels have about 300 rooms and contribute around 10 percent of IHCL’s consolidated revenue.
