Indian Hotels Co. Ltd. said on Monday that it has acquired a 10% stake in Orient Express Hotels for Rs8.5bn (US$211.28mn). The Tata Group company made the acquisition through its wholly owned subsidiary called Samsara Properties, with a view to expand its brand internationally.
According to reports, Indian Hotels has also written a letter to James B Hurlock, Chairman of the Orient Express Board, seeking an appointment to discuss a possible alliance with the company.
“As part of this strategy, we have been pursuing alliances and relationships with leading hotel groups that have not yet up a presence in India, but have secured leadership positions in various geographies,” said R.K. Krishna Kumar, Vice Chairman of Indian Hotels.
Earlier this month, Indian Hotels sought shareholders' approval to borrow up to Rs40bn. In August, the company said it was planning to raise more than Rs19bn through a rights issue of shares and convertible debentures to help fund its growth plans, including possible acquisitions.
New York Stock Exchange-listed Orient Express owns and manages 35 hotels across the world, beside luxury trains and cruises.
Source: India Infoline