Tuesday, April 3, 2007

Indian Hotels to acquire US-based Hotel Campton Place for $60 mn

Indian hospitality major Indian Hotels, which manages the Taj Group of Hotels, Resorts and Palaces is acquiring US-based Hotel Campton Place for around $60 mn (Rs. 264 crores). Union Square, San Francisco-based Hotel Campton Place is a 110-room luxury boutique hotel situated on the west coast of the US.

The acquisition cost includes estimated transaction costs and the hotel is intended to be acquired in partnership with financial investors. The board of directors of the Indian Hotels company have approved of the acquisition subject to necessary statutory regulations. The sale-purchase agreement was signed yesterday and the transaction is scheduled to be completed on April 30, 2007.

Indian Hotels has been very active on the acquisition front with regards to its American business strategy. Last year, Indian Hotels had signed an agreement to purchase the Ritz-Carlton Boston for $170 mn. Besides, in 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue at a lease price of $5 mn a year.

Article in Zee News.

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