Tata’s Taj may exit this old hotel, likely to sign deal for Rs 176196000000, who will buy it?

IHCL Chairman N. Chandrasekaran recently told shareholders that the company has no aggressive plans for overseas expansion.

Written by: Anirudha Yerunkar Edited by: Anirudha Yerunkar

Published: September 18, 2025, 3:39 PM IST

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https://www.india.com/business/tatas-taj-may-exit-this-old-hotel-likely-to-sign-deal-for-rs-176196000000-who-will-buy-it-8083143/ Copy

Tata Group’s hotel chain, Taj Group, which acquired New York’s The Pierre Hotel in 2005, is now preparing to sell it. The Pierre has 189 rooms, a restaurant, and luxury apartments, some of which belong to well-known personalities. 

Tata Group To Sell Hotel In America

Taj Group may exit The Pierre Hotel in New York, with Brunei’s Sultan and Saudi businessman Essam Khashoggi jointly looking to acquire the property. The deal is estimated at around $2 billion. If finalized, Taj will step away from managing The Pierre after nearly 20 years. After this transaction, the group will be left with only one hotel in the US that is the Taj Campton Place in San Francisco. Taj Group has not reacted on the matter.

According to the company’s website, it had purchased The Pierre in 2005, making it its largest hotel in North America. In 2009, the group spent $100 million on renovations. Both its New York and San Francisco hotels fall under United Overseas Holding (UOH), a wholly owned subsidiary of Indian Hotels Company Ltd (IHCL).

Tata’s IHCL Deals In Hotels

 IHCL, which owns the Taj Group, is part of the $165 billion Tata Group. Reports show that in FY25, IHCL invested Rs 2,324 crore into UOH, which nevertheless posted a loss of Rs 82 crore during the year. 

The Pierre, with 189 rooms, a restaurant, and luxury apartments, was listed for sale last year. Apartment owners in the hotel also hold shares in the property, including US Commerce Secretary and Trump’s trade negotiator Howard Lutnick, Jordan’s Princess Firyal, fashion designer Tory Burch, and former Disney chief Michael Eisner. Lutnick even owns a penthouse at the hotel.

Who Is The Buyer?

According to a New York Times report the Pierre’s board is now in final-stage talks over the sale. If completed, the management could pass to luxury hotel chain Dorchester Collection, owned by Sultan Hassanal Bolkiah. Essam Khashoggi is expected to finance the deal.