Indian Hotels has issued a clarification with respect to media reports of Taj exiting Pierre Hotel stake and called it ‘misleading and speculative.’ In an exchange filing, IHCL stated that “With respect to the above-mentioned article, we would like to clarify that The Indian Hotels Company Limited (IHCL) does not own The Pierre, New York. It has leasehold rights for the hotel, and operations continue as usual. Recent media reports stating otherwise are misleading and speculative.”
The company went on to elaborate that “IHCL follows the highest standards of governance and disclosure, and any material information requiring it to make disclosures under the applicable regulatory requirements will be promptly disseminated by the Company to the stock exchanges.””
Earlier in the day, there was speculation in the Indian media, on the back of a New York Times report, stating that the iconic hotel overlooking New York’s Central Park could go on sale for about $2 billion.
According to the New York Times report, the board, under the guidance of Newmark (the Group advising on the Pierre’s revamp),are in the final stages of negotiations to sell Pierre. The report stated that the Khashoggis, a prominent Saudi family, could be providing some finances, while another luxury hotel chain, Dorchester, may look at managing the renovation. The Sultanate of Brunei own the Dorchester Luxury Hotels company.
The New York Times report also highlighted that “the Taj had defended its stewardship of the building and submitted its own proposal to make upgrades, which the company said would not entail residents having to move out.”
Financial Express had reached out to IHCL seeking a clarification on the issue.