Tata acquisition spree abroad sees no limit
After acquisitions in steel, tea and IT, domestic conglomerate Tata group is extending its overseas takeover spree in the hotel space as well.
With the acquisition of Boston Ritz-Carlton Hotel in the US, which was announced today, Tata group’s Taj Hotels has added five new hotel and resorts to its kitty in the past one year worldwide.
The 170 million dollar buyout of the Boston-based hotel comes close on the heels of the eight billion dollar takeover of Anglo-Dutch steelmaker Corus by group firm Tata Steel.
Earlier this year, the group also made some major overseas acquisitions in FMCG, software and automotive spaces.
These included Eight O’Clock Coffee and Glaceu (Energy Brands) in the US, Australian software firm TCM and purchase of Japanese auto giant Nissan’s South African plant.
Complementing the group’s continuing expansion on the world map, The New York Times said recently: "Across much of the world, India is still thought of as a land of elephants and maharajahs. But one day, it might be known for Tata."
"You may never have heard of the Tata Group, but there is a good chance you have sipped a Tata drink, slipped on Tata shoes, or slept in a Tata hotel in New York, London or Sydney.
When you last checked e-mail messages, telephoned Beijing or used the Internet phone service Skype, Tatas’ 60,000 kilometers, or 37,000 miles, of deep-sea cables may have connected you," the US newspaper wrote.
Tatas have emerged as the most aggressive and successful Indian acquirers abroad and the hotel deal is being viewed as the latest bid by Bombay House, the group’s headquarter in Mumbai, for expanding through the inorganic route.
Besides the Ritz-Carlton in Boston, Tata Group-owned Taj Hotels Resorts and Palaces, one of Asia’s largest hospitality chains, has added four new luxury projects in one year.
The Ritz-Carlton transaction is scheduled to close on January 11, 2007 and the hotel would be renamed Taj Boston.
This is Tata Group’s second US hotel deal, after a lease agreement last year to operate and manage The Pierre on New York City’s Fifth Avenue.
The new hotel properties include The Taj Exotica Resort, Spa and Golf (Opening 2008) in Doha, Qatar, the Taj Exotica Resort and Spa (Opening 2008) on the Palm Jumeirah Crescent in Dubai, the Taj Exotica Resort and Spa (Opening 2009) in Phuket, Thailand and a Taj Luxury Hotel (Opening 2008) in Cape Town, South Africa over the past year.
Taj Hotels currently operates 75 hotels across the world, which include some of the world’s most luxurious and iconic resorts and palaces.
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