The Hindu Business Line : Indian Hotels shifting to ‘rupee tariff’

Looking ahead
Sees new tariff as rational step as other countries charge customers in their local currency.
Plans to up room count to around 18,000 in 36 months.
Considering foray into Vietnam, Indonesia, Fiji.

– Shashi Ashiwal

Rupee effect: Mr Ratan N. Tata, Chairman, The Indian Hotels Company Ltd, and Mr Raymond N. Bickson, Managing Director, at the company’s 106th AGM in Mumbai on Friday. Mr Tata said the company would be shifting to a single tariff structure, called ‘rupee tariff’, across all its properties in India from September.

Our Bureau

Mumbai, Aug. 3 Indian Hotels Company, operators of the Taj group of hotels, would be shifting to a single tariff structure (called ‘rupee tariff’) across all its properties in India from September this year, said the company’s Chairman, Mr Ratan Tata, at the Annual General Meeting held on Friday.

“There have been a lot of factors that have made us look into the issue including the rupee appreciating against the dollar in recent times,” Mr Anil P. Goel, CFO of Indian Hotels, said, on the sidelines of the AGM. “This is also a rational step in view of the global scenario where all the other countries charge customers in their local currency.” The company also said its capital expenditure over the next three years would be Rs 1,200 crore.

Mr Raymond N. Bickson, Managing Director, Indian Hotels, said the company plans to add 54 new properties, taking their total number to 137 from the current 83 across the globe during these three years.

The room count will increase from the current 10,118 to around 18,000 in the next 36 to 40 months, he said.

On the overseas expansion plans of the company, Mr Tata said the company is considering a foray into Vietnam, Indonesia and Fiji. In the longer term there would be other countries in the Taj fold.

“We do not have a presence in Thailand, South Africa, Doha and Western Europe, which we are going to have in the near future,” said Mr Tata.

Rights issue plans

Indian Hotels has informed the BSE that a meeting of the board of directors will be held on August 13 to consider various options for raising long-term finance for its capital expenditure and growth plans, including a rights issue to the shareholders.

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