Upfront

IHCL eyes hotels in China, Europe, US, Australia

The Taj Hotels Resorts and Palaces, part of the Tata-owned Indian Hotels Company Ltd (IHCL) and the largest hotel chain in the country, has plans to acquire five-star properties in China, Australia, United States, Europe, West Asia and Africa.

"We are in talks to acquire five-star properties in Shanghai and Beijing. Australia, Sydney and Melbourne are the potential destinations for acquiring properties. In the west coast of the US, we are exploring Los Angeles and San Francisco as possible options for a Taj property," Raymond Bickson, managing director, IHCL stated.

According to company sources, Taj Hotels is expected to make investments in the range of $50 million to $1 billion to take the Taj brand to new overseas markets. "We are eyeing properties at gateway points across the world", Mr Bickson added. Any significant acquisition in China, host of the 2008 Beijing Olympics, is seen as a major advantage for the hotel chain.

Host Marriott to buy Starwood hotels for US $4 billion

Host Marriott Corp, which owns hotels operated under the Hyatt, Hilton Westin names, agreed to buy 38 properties from Starwood Hotels and Resorts Worldwide Inc for US $4.04 billion. Host Marriott is making the acquisition as a surge in travel is boosting room rates and making properties more valuable. While Steven Heyer, chief executive, Starwood, is selling to shed its real estate assets and expand into franchising and managing hotels.

Starwood shareholders will receive US $11.18 for each share of Class B stock they own, said Host Marriott in a statement. A unit of Host Marriott will buy all the stock in Starwood's real estate investment trust. Starwood shareholders will receive US $2.45 billion in cash and stock from the transaction.