Wednesday, April 4, 2007

Indian Hotels to acquire US hotel for Rs 264 c

After buying the Ritz Carlton in Boston, Indian Hotels Company (IHCL), owners of the Taj group of hotels, have done it again.

The country's largest hotel chain is now acquiring Hotel Campton Place in San Francisco. The acquisition cost, pegged at $60 million (Rs 264 crore), will be completed in partnership with a clutch of financial investors, IHCL said on Tuesday.

Hotel Campton Place is a 110-room luxury boutique hotel situated at Union Square in the heart of San Francisco. The acquisition is routed through IHCL's wholly-owned subsidiary in US.

The sale-purchase agreement was signed on Monday and the transaction is scheduled to close on April 30. The Campton Place is the Taj group's first acquisition on the West Coast of US.

Two other properties that it owns are located on the East Coast of US. Last year, it purchased Ritz-Carlton Boston (renamed as Taj Boston) for $170 million.

In 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue. The lease price was $5 million a year.

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