The Hindu : Business : Indian Hotels acquires Australian hotel

Online edition of India's National Newspaper
Thursday, Dec 15, 2005

Business

Business

Indian Hotels acquires Australian hotel

Proceeds from the FCCB issue to finance the transaction

SPREADING WINGS: Anil Goel (left), Senior Vice-President, Sales and Marketing, Indian Hotels Company, with Ajoy Misra, Senior Vice-President, Finance, at a press conference in Mumbai on Wednesday. — Photo: Paul Noronha

MUMBAI: Aiming to tap the rapidly increasing tourist inflow in popular destinations Australia, Tata group-owned Indian Hotels Company Limited (IHCL) has acquired a 100 room `W' hotel in Sydney for Australian dollar 36 million.

``We have acquired the hotel in an all cash deal for equity. From next month we would act as owner as well as operator of the hotel,'' IHCL Senior Vice President (Finance) Anil Goel told a press conference on Wednesday.

He said the company used the proceeds of its $150 million FCCB (Foreign Currency Convertible Bonds) issue for this transaction. Besides, it used some local funds for the purpose. The hotel, situated in a heritage structure at Woolloomooloo, is located near the famous Sydney Opera House. The hotel, one of the top five hotels in the city, is now owned by the Harilela Group of Hong Kong and managed by Starwood Pacific Hotels Pvt Ltd under its `W' brand.

IHCL and its subsidiaries are collectively known as The Taj Hotels Resorts and Palaces. The Taj had recently acquired Pierry hotel in New York in July.

IHCL, operating 73 hotels in India and abroad with a total room capacity of more than 8,000, would be operating a Bhutan-based 120 room hotel next year and is also engaged in designing a hotel in Dubai, Mr. Goel said.

"We are looking at Chinese as well as Southeast Asian markets for expanding our operations. The talks in this regard are on,'' he said. Asked about expansion in Australia, Mr. Goel said the company aimed at establishing its presence in the growing markets rather than focussing only on increasing its business at existing establishments.

Speaking of the Australian venture, Mr. Goel said, "After the success of the Sydney Olympic games, the tourist flow in the country has increased. The traffic here includes leisure as well as tourist. With this venture, we hope to make a mark in Sydney.''

The company is now engaged in five major projects for five star hotels located in Banglore, Santacruz (Mumbai), Coimbatore, Chennai and Hyderabad. — PTI

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