Taj Hotels (Indian Hotels Company of Tata Group) has demanded an immediate apology from US-based Orient Express Hotels (OEH) for what it said was misinformation and libellous language contained in a recent letter by OEH President & CEO, Mr Paul White, turning town the Indian company''s request for alliance negotiations. Mr White''s letter had said that that OEH did not wish to be involved in an attempt to improve the performance of Taj''s non-Indian properties; and that an association with Taj''s brands and properties would result in a decrease of OEH brands and erosion in its RevPar premiums. The Indian company''s letter supplied figures to show that on financial parameters, it compared better against OEH.
OEH''s average room rate was meaningfully below those of Taj Hotels properties at $302, against $383 for Taj. Taj Hotels had acquired a 10 per cent stake in OEH in September this year, increasing it to 11.5 per cent later only to have a serious and credible foundation for discussions with the OEH board, the letter said: they acted in the mistaken belief that your Board recognised its fiduciary duties and would act in a responsible manner to begin a dialogue with them.
OEH''s average room rate was meaningfully below those of Taj Hotels properties at $302, against $383 for Taj. Taj Hotels had acquired a 10 per cent stake in OEH in September this year, increasing it to 11.5 per cent later only to have a serious and credible foundation for discussions with the OEH board, the letter said: they acted in the mistaken belief that your Board recognised its fiduciary duties and would act in a responsible manner to begin a dialogue with them.
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