Taj Hotels' parent company plans to sell assets to stop further debt: Report
For the past few years, the company has tried to reduce its debt by selling assets.
Tata Group-controlled luxury hotel chain is planning to sell some assets in order to stop further borrowings, a report on Thursday said.
According to Bloomberg, Indian Hotels Co. which operates Tata Group's hotels including the Taj brand plans is also looking to avoid owning new properties.
Quoting Puneet Chhatwal, managing director and chief executive officer (CEO) of Indian Hotels Co., Bloomberg reported that the group plans to dispose of certain budget inns in non-metro areas and lease them back for a fee.
Chhatwal said the company is moving its focus to more management contracts rather than constructing hotels of its own. He, however, clarified that there is no plan to sell or lease back the company's legacy and flagship properties.
The report said that besides economic slowdown Tata Group company has also been hit by the grounding of Jet Airways as it was forced to write-off some dues.
These past few years, Tata Group's hospitality company has tried to reduce its debt by selling assets.
Indian Hotels currently operates more than 15 hotels worldwide including Mumbai's landmark Taj Mahal Palace.