Tata group to expand their chain of hotel
Tata group’s The Indian Hotels Co. Ltd (IHCL), which runs the Taj Group of Hotels, will add 30 hotels with 3,700 rooms and has committed Rs 440 crore for the next three years, according to Cyrus P. Mistry, chairman of the company.
Addressing shareholders at the 113th annual general meeting, Mistry said the hospitality sector is still facing a challenging environment and due to significant increase in supply in the coming years the pressure will increase further.
On Wednesday, he said the company has raised Rs 1,000 crore through a rights issue and the proceeds will be used for retiring debt and for capital expenditure. Mistry said the whole-time directors of the company would forego their commission for the year. The hotel operator has Rs 3,956 crore in debt as on 31 March.
This has been planned in order to expand the luxury hotel groups to a next stage. The Taj group of hotels has been a heritage group of hotels. This decision has been taken by the authorities of the Tata group. Probably the work might take some time to get finished.
Source: Mint
