The Taj Group marks its return to the US by taking over The Pierre, a 75-year-old luxury hotel on the fabled Fifth Avenue

It's the most prestigious address in New York, the world's financial capital. The neo-classic spire and distinctive copper roof of The Pierre — a historic hotel which combines the finest European interiors with modern-day amenities and impeccable standards of service — rise majestically above Fifth Avenue and Central Park. This is the Taj Group's latest acquisition; part of a long-term strategy to establish its presence in key gateway cities of the world.

Taj Hotels Resorts and Palaces, one of South Asia's largest and finest hotel groups, has announced its return to the United States by entering into a $45 million (Rs 198 crore) 30-year management contract to operate and manage The Pierre.

The 75-year-old, 44-storied hotel offers 80 full-service apartments and 201 guestrooms, including 52 suites. Each has a unique interior, with Italian marble, gilded-crown mouldings and exquisite hand-woven carpets. Legendary gourmet restaurants, luxurious fitness facilities, a full-service business centre and versatile meeting and function spaces make for an unmatched hospitality experience.

Built in the style of a grand French chateau, The Pierre opened in 1930 and quickly became the preferred locale of New York high society, thanks to its grand suites, wood-panelled salons and the haute cuisine of August Escoffier. In 1938, millionaire J. Paul Getty bought the hotel and sold some of its original 714 guestrooms as luxury apartments. It changed hands several more times, until Trust House Forte acquired the hotel in 1973. In 1981, the lease was taken over by Four Seasons Hotels and Resorts. The property was making losses for the last three years, but turned around in the last quarter.

Under the management of the Taj, the current mix of hotel rooms and permanent residential spaces will remain unchanged. But, over the next year and more, the Taj will spend $35 million (Rs 154 crore) to upgrade and renovate it. Said Raymond Bickson, managing director of Indian Hotels: "We are delighted to mark our return to New York with this iconic hotel. This is a big step towards establishing a significant presence for the Taj brand across the globe." The renovation will be financed by the company's foreign currency convertible bonds (FCCB) issue.

"I herald with great enthusiasm the arrival of Taj Hotels in its new role of manager and guardian of this unique edifice.We anticipate a long and productive partnership," said Phyllis Mailman, chairman of 795 Fifth Avenue Corporation, the cooperative owners of the property. The Taj will pay an annual lease fee of $5 million (Rs 22 crore) on the property that, says Mr Bickson, is comparable with fees prevalent across the world.

This is the fourth management contract the Taj Group has signed for an international hotel property this year, after Bhutan, Langkawi (Malaysia) and Dubai. R. K. Krishnakumar, vice chairman of Indian Hotels, said the contract signed for the New York property is in line with the Group's strategy to internationalise its operations, to defend its home operations. New acquisitions in gateway cities of Europe, North America and China, may follow soon, he indicated. The US is the Taj Group's second largest market after the UK and Europe, and the Group is also looking at properties on the US west coast, including Los Angeles.

Taj Hotels, Resorts and Palaces has forged its reputation in India and across the world, thanks to its warm and gracious service. The Pierre, the newest member of this hospitable family, is now ready to impress the Americans with the uniquely Indian brand of hospitality.