Mumbai: The owner of the Taj Hotels chain, Indian Hotel Company (IHCL) has purchased a 10 per cent stake in the NYSE-listed Orient-Express Hotels for around Rs 850 crore.

The Tatas owned Hotels (IHCL) made the acquirement through its wholly owned subsidiary Samsara Properties Ltd. Orient-express owns or part-owns and manages 35 hotels in 25 countries across the world, besides running luxury trains and cruises.

A report from IHCL showed that IHCL plans to leverage Orient’s worldwide networks and frame brand equity for both companies.

According to reports, IHCL has also written a letter to Chairman of the Orient Express Board, James B Hurlock, seeking a meeting to talk about a possible grouping with the company.

Mr. R.K. Krishna Kumar, Vice-Chairman of IHCL, stated, “As part of our strategy to grow the Taj brand internationally, we have been pursuing alliances and relationships with leading hotel groups that have not yet set up a presence in India, but have secured leadership positions in various geographies. This move is in line with our plans and we look forward to pursuing a possible association between IHCL and the company, which has earned a great reputation for its outstanding ultra luxury hotels, trains and cruises.”

The Mumbai-based hospitality chain is ensuring that one-third of its income originate from worldwide acquisitions. At present, abroad acquisitions make up about 20% of its earnings. It is expecting more acquisitions out of the country.

Taj Group, set up nearly 100 years ago, runs 59 hotels at 40 locations across India. It has been propping up its luxury division that now brings as much as 75-80% of its earnings.