With key property damaged, shares of Indian Hotels open weak

November 28th, 2008 - 11:56 am ICT by IANS  

Mumbai, Nov 28 (IANS) The shares of Indian Hotels that owns the Taj Mahal Palace and Tower Hotel here opened weak Friday, as investors feared significant loss of business and damage to property because of the terror attack.Within minutes into trading, the scrip of Tata group company was ruling at Rs. 42.45, against the previous close at Rs.48.45 - a loss of 12.38 percent, data with the Bombay Stock Exchange (BSE) showed.

“The Taj property has been a jewel in the crown for the Tata group. This property has always enjoyed a very high occupancy,” said an analyst tracking the hospitality industry with a leading brokerage here.

“So a damage to the property and the loss of business is certainly expected to affect the bottomlines of Indian Hotels.”

The vice chairman of the company, R.K. Krishna Kumar, had said Thursday that the entire top floor had gone up in flames, but said the group will not only rebuild the 105-year hotel, a landmark in this city, but also restore its fullest glory.

“As soon as the dust settles, we will go out there and begin the rebuilding.”

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