Tata Group’s Indian Hotels Company (IHCL) has sold Taj Boston in the US to a consortium composed of New England Development, Eastern Real Estate, Rockpoint Group, Lubert-Adler and Highgate for US$125 million (₹839 crore).
IHCL that owns Taj Hotels Resorts and Palaces, announced that the sale proceeds will help in paying off the company’s outstanding debt.
As per the sales agreement, New England Development, Eastern Real Estate and Highgate, will serve as asset managers. They will work in tandem with Taj Hotels Resorts and Palaces, Rockpoint Group and Lubert Adler.
The 273-key hotel will continue to be known as Taj Boston. It will be managed by Taj Hotels Resorts and Palaces through a long-term management agreement between IHCL and the consortium. Taj says that the ownership transfer will not interfere with room, banquet and restaurant bookings and guests can continue to make reservations through the existing online and offline options available.
Rakesh Sarna, MD and CEO, Taj Hotels Resorts and Palaces says, “The US remains an important market for us and we are committed to our presence, which we have built over the past decade in key cities like New York, San Francisco and Boston. We are excited about our relationship with our new partners, who are all recognised leaders in real estate development and have deep roots and expertise in this market.”
The Taj Boston building has been an iconic landmark in the city since 90 years. Before it was bought by the Tata Group in 2006 for US$170 million, it was known as Ritz-Carlton Boston.