The Taj Group has sold its Sydney hotel to Hong Kong’s Ovolo Group.
The Blue Hotel, which was officially owned by Samsara Properties Limited, a wholly owned subsidiary of Taj’s parent company, The Indian Hotels Company Limited, has been sold to Hong Kong-based Hind Hotels & Properties Group, which operates the Ovolo brand.
The deal for 100% of the property was agreed in late June 2014, and the transaction is expected to be completed by 31 October 2014, at which time the property will be rebranded as an Ovolo. The transaction value is AU$32 million (US$30m).
Taj said the divestment forms part of its strategy “to focus on markets which are core to group’s operations”. Asia, and particularly China, have been identified as key targets for the group’s expansion, as seen by the recent launch of a Vivanta by Taj hotel in Malaysia.
“We are committed to the sale of Blue Sydney to its new owners, Hind Hotels & Properties Group,” said Raymond Bickson, managing director & CEO.
“The hotel has a wonderful track record of high occupancy, a stellar list of industry awards and has set new Australian benchmarks for environmental practices. This decision is in line with our group strategy to focus on key markets for now, that are critical to the group’s operations.”
The company added however, that Australia’s outbound market remains a “high priority” for Taj.
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