Indian Hotels Company (IHCL), which runs the Taj chain of hotels, has earmarked Rs 1,800 crore for funding inorganic growth in the subsequent 3 years, said chairman Ratan Tata.
Talking to shareholders at the company’s yearly general meeting, Mr Tata said IHCL would set up four airport hotels in the country, including one in Navi Mumbai, over the next few years.
Also, the company is looking at establish its presence in the Andamans and has entered into marketing associations with hotels in Japan and Korea. The company will continue to purchase iconic standalone properties across the world.
IHCL witnessed average room occupancy of 73% last year. The company is likely to hike its room tariffs by 10-15% from September 1. Responding to a shareholder’s query, he said rising real estate prices have made expansion of the low-cost brand Ginger difficult. However, the company is not seeing any liquidity crunch despite the tight money conditions existing in the market. The company last week opened a Ginger hotel at Panaji in Goa.
Commenting on Orient Express Hotel (OEH), he said IHCL would not mount any hostile takeover bid on the Bermuda-based company. Previous year IHCL picked up 11.5% stake in OEH and expressed willingness to strike a strategic alliance to grow business together. The Tata overture was rejected by the OEH management, which also spoke despairingly about the Taj brand.
According to Mr Tata, the group has initiated Tata Realty and Infrastructure and has put IHCL vice-chairman Krishna Kumar at the helm of its affairs. This entity could be listed in the future, Mr Tata added.