Taj brand valued at Rs4000 crore

18 August 2008

The Taj brand is valued in excess of Rs4,000 crore. This was revealed by Group chairman  Ratan Tata, at the Indian Hotel Companies' shareholder meeting on 14 August.
The company had appointed UK's Brand Finance to evaluate the hotel firm's intangible assets.

This is reported to be the first time that its parent, Indian Hotels Co (IHC), has revealed its flagship brand's value after it picked up an 11.57-per cent stake in Orient Express in 2007 for about Rs10 billion on the grounds that an association with the Taj would have led to a  reduction in in its brands. (See: Orient-Express turns down Taj group overtures and Indian Hotels demands apology from Orient Express) 

With the increasing growth in the tourism sector, the Taj  group has drawn-up a Rs1,800-crore expansion over the next three years.

Tata told the shareholders that over the next few years Indian Hotels plans to set up four airport hotels in the country, including one in Navi Mumbai. He also said Indian Hotels has entered into marketing alliances with hotels in Japan and Korea and plans to build a luxury resort at Andaman & Nicobar Islands.

The hospitality chain will continue to acquire properties across the world on lease, entering into tie-ups for equipping hotels being built by partners and executing a number of management and technical services contracts.

The first quarter of 2008 recorded 11.9 per cent growth in tourist arrivals at just over two million, over the corresponding period in 2007. With growth in the tourism industry, the hospitality industry benefited with occupancy rates in hotels at close to 80 per cent and room rates going up by 22-25 per cent, in 2007-08.