Taj buys W Sydney hotel for $36m
The Times Of India — December 14, 2005

If you like staying at the Taj, you can now find one at the wharf of Woolloomooloo, Sydney. India's largest hospitality chain, Indian Hotels, the owners of the Taj brand, is all set to acquire the iconic W Sydney hotel for $36 million. The hotel group's first acquisition in Australia, is part of its long-term strategy to establish a global presence. TOI on October 19 had reported about Taj bidding for the W Sydney property.

An announcement on the acquisition is expected to be made on Wednesday. Owned by the Hong Kong-based Harilela group, the 104-room hotel, overlooking the Sydney harbour, is currently managed by Starwood Hotels and Resorts. The Harilela group had acquired the boutique hotel in 1999. With Taj set to claim a stake in the hotel, it will be a blow to Starwood, as it was the first of its 'W' brand hotel outside North America. Tourism in Australia, the sixth largest country in the world, has been growing significantly.

Indian Hotels, which owns and manages Taj hotels, resorts and palaces, is the largest chain in south Asia with 55 hotels in India and 14 abroad. In June, Taj re-entered the US market, after almost a decade, by signing a contract to operate and manage The Pierre, a 75-year-old luxury hotel on New York's Fifth Avenue. Though Harilela group is selling its interest in the Australian property, the group is looking at entering the booming Indian hospitality sector. The Harilela family, whose origins can be traced to India, have business interests in food and beverage, healthcare and real estate.

However, the Harilelas' main business continues to be hospitality. They diversified into hotels in 1961 through their acquisition of the Imperial Hotel in Hong Kong. Today they own luxury properties in London, Singapore, Bangkok and Penang. The Tata group, India's second largest industrial house, already has a presence in Kangaroo land. Tata Steel has acquired equity interest in coal mines, while Tetley is one of the leading tea players in the country. Recently, Tata Consultancy Services acquired Sydney-based Financial Network Services, a core banking solutions vendor, for $26 million.