Tata’s Indian Hotels Company fights auction of Delhi hotel

Tata’s Indian Hotels Company (IHCL) has been looking to go asset-light—but it’s trying to hold on to at least one of its hotels.

A recent order from the High Court has allowed for the public auction of the Taj Mansingh Hotel in Central Delhi by the New Delhi Municipal Council (NDMC). IHCL, which has been operating the hotel since 1978 and claims to be a partner, has filed an appeal with a divisional bench of the High Court to prevent the sale.

Earlier this week, IHCL sought to renew its operating license for the property on the basis that it was a partner in the hotel. In 1978, the company claimed, it had completed the pending construction of the building and paid for the cost of constructing the property. The operating license expired in 2011 and the company has been managing the hotel on extensions ever since. 

Virtual Event

HOTEL OPTIMIZATION PART 2 | SEPTEMBER 10 & 24, 2020

Survival in these times is highly dependent on a hotel's ability to quickly adapt and pivot their business to meet the current needs of travelers and the surrounding community. Join us for Optimization Part 2 – a FREE virtual event – as we bring together top players in the industry to discuss alternative uses when occupancy is down, ways to boost F&B revenue, how to help your staff adjust to new challenges and more, in a series of panels focused on how you can regain profitability during this crisis.


The union urban development ministry decided in 2011 that NDMC should invite open bids and provide first right of refusal to IHCL, allowing it to match bid, the ministry of home affairs later said that providing this right would lower revenues in the auction. IHCL filed a civil suit against the council in the Delhi High Court after it decided to auction the property in 2013. 

A spokesperson for the company said that it would “vigorously protect its interests in the Taj Mahal Hotel, New Delhi and will pursue all legal options." 

 

Suggested Articles

This role has continued to change with some revenue managers taking on leadership roles within hotel brand and management companies.

Nearly 60 percent of respondents are predicting a 50-75 percent decline in RevPAR versus budget for their entire portfolio.

Hotels in a number of regions in the U.S. announced new hires recently.