Mistry hotel spinoff to cut debt as US grows


MUMBAI 
Indian Hotels Co. Ltd, the Tata group company that runs the Taj chain in India and owns New York’s Pierre hotel should sell part of its overseas business to trim its debt pile and focus on reviving growth at home, say investors in the loss-making company.

The luxury chain had Rs.3,818 crore ($602 million) of debt as of March, according to data compiled by Bloomberg.

The company, with 22 resorts from the US to Mauritius, reported a loss of Rs.19.1 crore for June quarter as costs increased and said it plans to spin off its foreign holdings by March.

A stake sale will allow chairman Cyrus Mistry to exploit reviving growth in the US even as India’s $1.8 trillion economy expands at the slowest pace in a decade. The depreciation of the rupee, Asia’s worst performing currency this year, may lure overseas tourists to the nation’s heritage sites such as the Taj Mahal, helping boost revenue at the nation’s hotel operators, according to Krishnakumar Srinivasan, head of equities at Sundaram Asset Management Co.

Full report here Mint 

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