“The Tata Group is preparing to take a big step in its hotel business. Tata’s Taj Hotels chain may sell New York’s luxury property, The Pierre Hotel. The deal could be worth around $2 billion (about ₹17,628 crore). The potential buyers include the Sultan of Brunei, Hassanal Bolkiah, and Saudi businessman Essam Khashoggi.”
“Indian business giant Tata Group is preparing to make a big move in its hotel business. Reports suggest that Tata’s Taj Hotels chain may sell the luxury ‘The Pierre Hotel’ in New York, USA. The deal could be worth around $2 billion (about ₹17,628 crore).”
“The potential buyers include the Sultan of Brunei, Hassanal Bolkiah, and Saudi businessman Essam Khashoggi. If the deal goes through, Taj will give up the management of this iconic hotel after nearly 20 years. After that, Taj will be left with only one property in the US – Taj Campton Place in San Francisco.”
“So far, the Taj Group has not made any official comment on the deal. However, according to a New York Times report, the board of The Pierre Hotel is in the final stages of talks to sell the property. If the deal is finalized, the management of the hotel may go to the luxury chain Dorchester Collection, owned by Sultan Hassanal Bolkiah, while Essam Khashoggi is expected to finance the deal.”
Taj’s Journey with The Pierre Hotel
The Taj Group bought New York’s iconic The Pierre Hotel back in 2005, calling it their most prestigious property in North America. In 2009, the hotel underwent a $100 million renovation. Today, it boasts 189 rooms, fine dining restaurants, and luxury apartments.
Celebrity Shareholders in the Hotel
Interestingly, some of the apartment owners at The Pierre are also its shareholders. The list includes big names like Howard Lutnick (former U.S. Commerce Secretary and key figure in the Trump administration), Princess Firyal of Jordan, fashion designer Tory Burch, and former Disney CEO Michael Eisner.
Tata Group's Financial Loss in 2025
Both The Pierre Hotel and Taj Campton Place in San Francisco are operated under United Overseas Holding (UOH), a 100% subsidiary of Tata Group’s Indian Hotels Company Limited (IHCL). According to reports, IHCL invested ₹2,324 crore in UOH during FY25, but the company still reported a loss of ₹82 crore.
IHCL’s Global Expansion Strategy
N. Chandrasekaran, Chairman of IHCL, recently clarified that the company is not pursuing aggressive global expansion. During the July AGM, he mentioned, “We will not enter every global market, but will focus only on selective locations.” In FY25, IHCL’s international hotels reported revenue of around ₹1,512 crore with an operating profit of ₹202 crore.
The Sale Amid Tata Group Challenges :
The news of The Pierre Hotel being sold has come less than a year after the passing of Ratan Tata (October 9, 2024). Media reports suggest that the Tata Group has faced a series of challenges since his demise. From layoffs and hiring freezes at TCS to winding up operations in smaller cities like Bhopal, concerns about the group’s stability have grown. Adding to this, reports of tensions between Noel Tata and N. Chandrasekaran have also fueled speculation about internal conflicts