| Taj Hotels Group, owned by The Indian Hotels Company Ltd. has agreed to buy Hotel Campton Place, in the heart of San Francisco, California, from the Kor Hotel Group for a sum of $US 60 million dollars, including the transaction cost. The closing is slated for April 30.
"North America is a very important source market for our hotels across the globe. This acquisition offers us a unique opportunity to establish Taj's presence on the US West Coast," said Krishna Kumar, vice chairman, Indian Hotels.
The hotel is a part of the group's global expansion strategy and will become its third property in the US.
In 2005, Taj Hotels entered into a lease agreement to operate and manage The Pierre, the luxurious, landmark hotel on New York 's Fifth Avenue . It also purchased the 80-Year-Old Ritz Carlton in Boston , now re-named Taj Boston, in January, 2007.
Hotel Campton Place is a 14 storey, 110 room luxury boutique hotel situated in Union Square . Renamed Campton Place Hotel in 1983, the hotel occupies two historic and picturesque buildings dating back to the early 1900s.
The Rs. 1,127-crore (Us $260 mill.) hospitality chain is also looking at takeovers in other markets, especially in some prominent gateways in South-East Asia, it is reported. The 100-year old Taj Group, runs 59 hotels in 40 locations across India and 16 hotel overseas.
The international focus has been in the luxury segment, which now contributes 75-80% of its revenue. With travel on the rise and the addition of new rooms lagging, the global hotel industry is witnessing hectic M&A activity with investor interest ruling high. |
