Taj forays into SE Asia with Phuket project
The Economic Times — August 7, 2006

The Taj Group's Southeast Asia and Far East plans are gathering momentum. Hospitality major Indian Hotels Company (IHCL), which owns and operates Taj Hotels, Resorts and Palaces, has firmed up plans for the first project in Phuket even as negotiations are on for projects in Singapore, Hong Kong, and possibly in mainland China. The project in Phuket, which could be under the Taj Exotica brand, is being executed through Taj Asia, a vehicle identified for the Southeast Asian plans.

Sources said Taj Asia, through a Thailand subsidiary, has acquired land in Koh Lone Island carrying a value of roughly 33 million bahts. The Taj group declined to comment, when contacted. Sources said that Taj was looking at a second project in Bangkok, Thailand. Increasing tourist arrivals in Thailand, which stood at around 11 million in 2005, makes it an attractive potential market for investment in the hospitality sector. Thailand is also becoming a popular MICE (meetings, incentives, conferences and exhibition) destination.

The Rs 1,127-crore IHCL is also in the midst of charting out ambitious plans for properties in Singapore, Hong Kong, Bali and mainland China as part of developing a larger regional footprint. However, much of this expansion would come through management contracts. Sources said talks are on with potential partners, mainly big real estate groups, to show up with individual properties. Alternatively, Taj could also look at the possibility of an umbrella joint venture for the Far East, which would be separate from its plans for some of the south-east Asian markets.

While Southeast Asia and Fast East are among the key drivers of Taj's international expansion, the hospitality group is also working on fresh projects in Middle East and foraying into South Africa. It is learnt that Taj is conducting due diligence for a proposed hotel site in Cape Town, while early talks are on for a project in Doha. It already operates properties in Zambia and Dubai.