Indian Hotels Co. Ltd. has plans to sell the Taj Boston hotel for at least $125 million, Boston Business Journal reported. Indian Hotels acquired the former Ritz-Carlton Boston Hotel in 2006 for $170 million before rebranding the 273-room hotel the Taj Boston.
Quoting company’s filing to the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd., Boston Business Journal said Indian Hotels Co. Ltd. has plans to sell the Taj Boston hotel for at least $125 million and that its board voted to approve United Overseas Holding Inc., a wholly owned U.S.-based subsidiary, to “pursue the option of divestment of the Taj Boston hotel by way of sale/disposal.”
The Mumbai, India-based company, one of Asia’s largest hotel groups, is part of multinational conglomerate Tata Group. Taj Boston is located at 15 Arlington St. in Boston’s Back Bay, just off the Boston Public Garden.
“The hotel sale will be used to pare down debt for the company. The hotel has operated at a loss in recent years, most recently generating $34.1 million in revenue in fiscal 2015/6 but notching a loss of $7.3 million, Indian Hotels outlined in the letter to the BSE,” Boston Business Journal said.
Indian Hotels intends to keep the Taj brand on the hotel while pursuing the divestment. It will look for real estate investment firms or real estate-focused private equity firms as buyers, Boston Business Journal said.