BackIndian Hotels sells ownership of Taj Boston for $125 million
Indian Hotels, part of Tata Group, will continue to manage the 273-room hotel through a long-term management services agreement with the new owners
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Mumbai: Indian Hotels Co. Ltd (IHCL), which runs the Taj chain of hotels, Wednesday said it has sold Taj Boston to a consortium of US-based New England Development, Eastern Real Estate, Rockpoint Group, Lubert-Adler, and Highgate for $125 million.
IHCL, part of Tata Group, will continue to manage the 273-room hotel through a long-term management services agreement with the new owners. Sentinel Advisors Pte Ltd was IHCL’s adviser for the deal.
As part of the transaction, New England Development, Eastern Real Estate and Highgate will serve as asset managers, working closely with the Taj Hotels Resorts and Palaces team, Rockpoint Group and Lubert Adler, Indian Hotels said in a statement.
“The US remains an important market for us and we are committed to our presence which we have built over the past decade in key cities like New York, San Francisco and Boston. We are excited about our relationship with our new partners, who are all recognized leaders in real estate development and have deep roots and expertise in this market," Rakesh Sarna, managing director and chief executive officer, Taj Hotels Resorts and Palaces said.
On 19 May, in a filing to the BSE, Indian Hotels had announced its plan to sell the hotel for a base price of $125 million.
The company had said the strategy to divest the hotel was part of its plan to evaluate the “relevance of some of its existing assets in the portfolio to reduce leverage" and focus on growth in “high margin markets".
“We are thrilled to join with Eastern Real Estate, Rockpoint, Lubert-Adler and Highgate in acquiring this legendary hotel property – located in one of the country’s most famous shopping districts... We look forward to making further improvements to this legendary hotel so it becomes the focal point of Boston’s cultural activities," said Stephen R. Karp, chairman of New England Development.
IHCL closed at ₹ 129.90, down 0.46% from its previous close on the BSE.
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