Hotel chain operator Indian Hotels Co Ltd (IHCL) posted net loss of Rs 339 crore on a standalone basis for the quarter ended March 31, 2013 as it booked a provision of Rs 424 crore for its investment in US-listed luxury hotel group Orient-Express Hotels.

The company said that it is reviewing its options after Orient-Express Hotels rejected its takeover bid.

“The board has not yet taken a decision on the Orient-Express bid. There are different options open to us,” Anil Goel, Executive Director, Finance, said at a press conference on Thursday.

The Tata Group-owned IHCL had made a takeover bid of $1.7 billion for the US-listed luxury hotels group Orient-Express last October. IHCL posted a net profit of Rs 65 crore in the corresponding quarter the previous year.

The total income of the company, which owns and operates the chain of Taj hotels and resorts, was Rs 556 crore for the January-March quarter, against Rs 560 crore for the corresponding quarter the preceding year. Announcing the results, Raymond Bickson, Managing Director, said the sector has been facing unprecedented challenges on account of the sluggishness of the domestic economy, new supply of rooms in the market and the weak economic environment in the US and Europe.

The company’s standalone debt was Rs 2,500 crore while consolidated debt was Rs 3,800 crore.

The company reported a net loss of Rs 430 crore in its consolidated results for the 2012-13 fiscal as against a consolidated profit of Rs 3 crore in the last fiscal.

The board of directors has recommended a dividend of 80 per cent or Re 0.80 for an ordinary share for the year ended March 31, 2013.

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