Mumbai: Indian Hotels Co. Ltd (IHCL), which runs the Taj chain of hotels, on Wednesday said net loss in the June quarter widened to Rs.169.45 crore from Rs.72.39 crore a year ago due to a loss on the sale of its US property.
Revenue rose 5% to Rs.946 crore from Rs.896 crore a year ago, the company said in a filing to the BSE .
On 12 July, 2016, United Overseas Holding Inc, Indian Hotels’ wholly-owned subsidiary, divested its entire stake in IHMS (Boston) LLC which owned Taj Boston, to AS Holding LLC, Boston, for $125 million.
“Accordingly, during the quarter, the carrying value of the hotel in UOH books has been brought down to reflect the sale value and the difference has been charged to the profit and loss account aggregating to Rs.101.79 crore and shown as exceptional item,” the company said in the filing.
IHCL, part of Tata Group, will continue to manage the 273-room hotel through a long-term management services agreement with the new owners.
Shares of IHCL closed at Rs.127.00 on the BSE, down by 1.40% from the previous close.