The Indian Hotels Company, which owns the Taj Group of hotels, has decided to sell the Taj Boston. According to reports, the base price for the sale will not be lower than $125 million.
"The Board has approved its wholly owned subsidiary United Overseas Holdings' plan to pursue the option of the Taj Boston hotel by way of sale/disposal of LLC interests in IHMS (Boston) LLC, a direct subsidiary of UOH," Indian Hotels said in a notice to the BSE.
Indian Hotels had acquired Taj Boston hotel in 2006, but profitability declined during the recession. Revenues and EBIDTA margins for Taj Boston have been sliding, with net loss before tax at $7.3 million in FY16.
"In recent times, the company has been seeking options for a course correction and focusing on growth in high margin markets, evaluating the relevance of its existing assets in the portfolio to reduce leverage," the company said.
Source: India Info Online