US real estate tycoon Donald Trump has outbid the Tatas to take control of the InterContinental in New York. The Tatas had bid $62 million for the hotel, but Trump walked away with the prime New York property with his $65 million bid.
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This is the second hotel deal in the US that the Tata-controlled Taj group has failed to seal in the last two years. In 2001, the Tatas had lost their bid for The Carlyle, also in New York.
Raymond Bickson, managing director of Indian Hotels Company, said: "Donald Trump has outbid us for the InterContinental. I have been given to understand that the property will be converted into a luxury condominium."
Although the Tata bid has fallen through, Bickson said Indian Hotels would look for acquisitions in the US, a key market for the Taj group.
Indian Hotels' bid for The Carlyle was in consortium with the Rothschild group, but the deal fell through because of their inability to raise cash quickly.
The Tatas have big overseas expansion plans, focusing on premium properties that can help Taj emerge as a major hospitality brand.
The company is restructuring its existing international properties, including selling hotels in Chicago, New York and Washington that do not fit with Taj's brand equity.
Taj has put its St James Court Hotel in London on the block, though it may retain a minority stake in the company. It is also looking at acquiring a small international hotel chain.
Another area of focus for the Taj group is a presence in China. The company is looking at premium properties in Beijing and Shanghai.
