Indian Hotels Company Ltd, which owns the Taj Group of hotels, has decided to sell Taj Boston at a base price which is not lower than US$125 million (~INR 837 crore).
The company's Board has approved United Overseas Holdings (UOH), a wholly-owned subsidiary in the US, to pursue the sale and disposal of the property in Boston to an independent third party.
"The Board has approved its wholly-owned subsidiary United Overseas Holdings (UOH) plan to pursue the option of the Taj Boston hotel by way of sale/disposal of LLC interests in IHMS (Boston) LLC, a direct subsidiary of UOH," Indian Hotels said in a notice to the BSE.
Indian Hotels had acquired Taj Boston hotel in 2006.
Global recession took its toll on the global hospitality industry which impacted the profitability of the property, according to reports.
Revenues and EBIDTA margins for Taj Boston have been sliding, with net loss before tax at US$7.3 million in FY16.
"In recent times, the company has been seeking options for a course correction and focusing on growth in high margin markets, evaluating the relevance of its existing assets in the portfolio to reduce leverage," the company said.