IHCL to buy stakes in hotels
The Asian Age  — September 9, 2004

Indian Hotels is considering acquisition of small stakes in hotel properties across the globe in a bid to spread the reach of its brand. “We are looking for properties in the USA and South Africa,” Indian Hotels Company Ltd chairman Ratan Tata told reporters. Mr Tata was in Kolkata to attend the annual general meeting of Tata Tea. Mr Tata said, “Our first preference is to have a small stake in properties abroad and then have a marketing contract. We will consider any proposition that makes sense and will examine it.” Mr Tata also added, “Our aim is to spread our brand name across the globe.” 

When asked whether the group was considering properties in United States, he said, “We had earlier looked at some properties in the US, but could not acquire any as we were outbid. Indian Hotels will continue to look for hotels in that country,” Mr Tata added. Indian Hotels has recently announced plans to open 55 to 60 smart budget hotels in the next five years. The first one has come up at Bangalore under the brand name “Indione”. 

In the long run, the group expects that the budget hotels segment will help in spreading its risk over a larger base. The luxury division contributes 49 per cent to the Taj group’s revenues. The company has chalked out a capital expenditure of Rs 167 crores in the current year that includes renovating some of its properties.