Indian Hotels Co., operators of the Taj hotel brand, wants to sell its 6.85% stake in Belmond Ltd. (formerly Orient-Express Hotels) if the price is right, said group CEO Rakesh Sarna on Monday.
Indian Hotels Co.’s intentions are reportedly part of a new “asset right” mix after posting annual losses for four out of the past five financial years. “We need to make sure that we have taken account of all liabilities – defined and undefined,” Sarna said.
A Bloomberg report quoted Sumant Kumar with Mumbai-based Elara Securities India as saying, “The share sale, whenever it happens, will be a positive trigger that will help in reducing debt and bring in cash [for Indian Hotels Co.]. “The asset is anyway not adding value and the acquisition strategy didn’t pan out as intended.”
Kumar added, “Indian Hotels will not be facing the kind of pain it faced in the past. The worst seems over for them.”