Following media reports that implied that Taj may exit New York’s Pierre hotel, Tata Group backed Indian Hotels Company (IHCL) has issued a clarification to the BSE stating that the chain does not own The Pierre hotel, but has leasehold rights for the property.
“Operations continue as usual. Recent media reports stating otherwise are misleading and speculative,” the chain said in a statement.
“IHCL follows the highest standards of governance and disclosure and any material information requiring it to make disclosures under the applicable regulatory requirements will be promptly disseminated by the company to the stock exchanges,” the chain added in a statement.
The media reports and news articles surfaced after a The New York Times report stated that The Pierre’s co-op board, under the guidance of Newmark, a real estate firm previously run by US commerce secretary Howard Lutnick, has reached the final stages of negotiations to sell The Pierre, that also has a residential component, for roughly $ 2 billion. As per the report, the Khashoggis- a prominent Saudi family would provide some of the funding for the purchase, while the Dorchester Collection, a luxury hotel company owned by the Sultanate of Brunei would most likely manage the building after an extensive renovation. As per the report, The Pierre has a mix of both permanent residents and overnight guests and permanent residents get the same daily housekeeping, room services and other amenities as hotel guests.
Reports following The New York Times article have incorrectly implied that the chain may sell a stake in the hotel, prompting IHCL to issue a clarification.