NEWS
Taj Poised to Exit New York’s Iconic Pierre Hotel in $2 Billion Deal
The future of The Pierre Hotel in Manhattan may soon change, as the Sultan of Brunei and Saudi businessman Essam Khashoggi have expressed interest in acquiring the landmark property for $2 billion. The potential deal would end nearly two decades of Taj Hotels’ management of the storied hotel, leaving the Indian chain with just one U.S. property — Taj Campton Place in San Francisco.
Acquired by Taj in 2005 as its North American flagship, The Pierre underwent a $100 million renovation four years later. The 189-room property, which also includes restaurants and luxury apartments, was listed for sale last year after falling into a “less-than-ideal” state. Apartment owners, who are also shareholders, include notable figures such as Princess Firyal of Jordan, designer Tory Burch, former Disney chief Michael Eisner, and U.S. commerce secretary Howard Lutnick.
If finalized, the hotel’s management may shift to Dorchester Collection, owned by Sultan Hassanal Bolkiah, following extensive renovations. Khashoggi, a brother of the late Saudi arms dealer Adnan Khashoggi and uncle of slain journalist Jamal Khashoggi, is expected to contribute financing.
The move would represent a scaling down of Taj’s international footprint. Parent company Indian Hotels Company Limited (IHCL), part of the Tata Group, has indicated it is not pursuing aggressive overseas expansion. Instead, IHCL plans to focus on selective city-specific opportunities. In FY25, IHCL’s international operations generated revenues of Rs 1,512 crore and an operating profit of Rs 202 crore, though its U.S. subsidiary United Overseas Holding reported a loss of Rs 82 crore during the same period.
Source: NYT
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