Tata Group to sell 25 percent of London hotel


Indian Hotels is controlled by the Tata Group, chaired by Ratan Tata

Staff and reports

NEW DELHI, India -- Tata Group subsidiary Indian Hotels is looking to sell 25 percent of its stake in London's Crowne Plaza St. James hotel, according to a report.

The company is interested in retaining management control. But it wants to generate funds to expand both in India and abroad, the Economic Times newspaper stated.

Indian Hotels owns 54 percent of the St. James hotel. The Taj Group, another Tata company, indirectly owns the other 46 percent.

Six Continents might be a contender to purchase a stake in the hotel, the newspaper reported, citing unidentified sources.

Indian Hotels has a franchise agreement with that multinational for the Crowne Plaza brand name.

Focusing on key cities

The 342-room hotel, located in Central London near Buckingham Palace and the Houses of Parliament, lost Ł1.6 million ($2.49 million) last fiscal year.

Indian Hotels has been restructuring, with the company looking to set apart its loss-making properties from those that generate strong sales.

The company recently sold its stake in New York's Lexington Plaza Hotel, reportedly because it didn't meet Taj's brand standards.

Despite selling some hotels, the company is looking to expand to key cities in the United States, the United Kingdom, South East Asia and the Middle East, including New York.

The company is now in the process of finding a suitable property for acquisition in New York, seeking a decent price given the recession.