Indian Hotels Company Ltd (IHCL), part of the Tata Group and parent of the Taj Hotels chain, is set to exit its flagship U.S. property, The Pierre Hotel in Manhattan, according to reports from The New York Times.
The deal, valued at $2 billion, is likely to see the iconic hotel sold to the Sultan of Brunei along with Saudi businessman Essam Khashoggi. If completed, this transaction could bring an inflow of nearly Rs 17,000–18,000 crore for Indian Hotels, which currently commands a market capitalization of Rs 1,11,600 crore.
IHCL had acquired The Pierre in 2005 through its wholly owned subsidiary United Overseas Holding (UOH), positioning it as its North American flagship. The company later invested $100 million in renovation of the luxury property. Despite the prestige associated with the asset, UOH reported a loss of Rs 82 crore in FY25, even after an equity infusion of Rs 2,324 crore by IHCL.
If the Pierre deal goes through, IHCL’s U.S. presence will be limited to Taj Campton Place in San Francisco. The company has not offered any official comments on the development.
For Indian Hotels, this divestment would free up significant capital, potentially strengthening its balance sheet and allowing for domestic and global expansion plans.
