Upfront

Indian Hotels invests in the Orient Express

After opting for organic growth, The Indian Hotels Company (IHCL) has finally spread its wings through the inorganic growth route. IHCL which owns, operates and manages the Taj Hotels Resorts and Palaces brand, picked up a 10 per cent stake in the US based hospitality chain - the Orient-Express Hotels Trains & Cruises, for a princely sum of $211.28 million. This was through a wholly-owned subsidiary, Samsara Properties. There is a possibility that the group might increase the stake further.

This strategy is in consonance with the brand's strategy over the past few years to establish its presence internationally and ink alliances with brands which do not have a presence in the Indian market. With this alliance, both brands will leverage each other's strengths to further develop a mutually beneficial relationship. While Taj has existing alliances with hotel companies, and even a cruise company, with this it will have access to the Orient-Express legendary trains and even restaurants. Recently, the chain had inked a marketing alliance with the Japan-based Okura Hotels & Resorts. It had previously entered into alliances with Korea's Shilla Hotels & Resorts and Silversea Cruises. However, this is one step further in strengthening their alliance based strategy.

Orient-Express is synonymous with luxury and owns and manages hotels, trains, cruises and restaurants in many exotic locations including Peru, Botswana, Tahiti, Portugal and Australia. The quarter century old brand has 49 businesses operating in 25 countries, including 39 hotels across 5 continents.