Shares of Indian Hotels Company Ltd (IHCL), the Tata Group’s hospitality arm, will be in focus after reports indicated the company is set to exit its flagship U.S. property, The Pierre Hotel in Manhattan.
The deal, pegged at around $2 billion, is expected to bring a cash inflow of nearly Rs 18,000 crore for IHCL. According to reports, the Sultan of Brunei and Saudi businessman Essam Khashoggi are likely buyers of the iconic Manhattan property, which the company acquired in 2005.
At present, Indian Hotels commands a market capitalization of Rs 1,11,600 crore. If the Pierre divestment is finalized, it will significantly bolster the group’s cash reserves, strengthening the company’s balance sheet and aiding expansion plans in India and overseas.
Post the sale, IHCL’s U.S. footprint will narrow to just Taj Campton Place in San Francisco, as The Pierre had served as its North American flagship for nearly two decades. The hotel underwent a $100 million renovation under IHCL’s ownership but has remained a drag on financials — with its holding arm United Overseas Holding (UOH) reporting a loss of Rs 82 crore in FY25, despite an infusion of Rs 2,324 crore by IHCL.
The potential deal is expected to draw investor attention in Thursday’s session, with markets closely watching stock movement on the back of the Rs 18,000 crore inflow.
