Within a month of pulling out of its contract with a five-star hotel in Nepal, Indian Hotels Company Ltd (IHCL)– owner of the Taj hotel chain—is all set to make its presence felt in the Himalayan kingdom of Bhutan.

A Taj group hotel.
Photo source:telegraphindia.com

IHCL has signed a deal under which it will run a hotel in Thimphu under a management contract, The Telegraph, a leading Indian daily, reported Tuesday.

“We expect the plan to crystallise by the year-end. The facilities are now being upgraded to our standards,” the daily quoted senior vice-president (finance) Anil P. Goel as saying.

Spread along the River Raidak at an altitude of 7,000 feet, Thimpu has a population of 48,300 but is yet to earn a star-spangled badge for its hotels. That will change once the Taj takes its insignia there, the news report said.

IHCL has recently opened a beach-head in Seychelles with a luxury resort that will be called Taj Denis.

The group’s net profit surged by over 110 per cent to IRs 34.97 crore for the quarter ended December from IRs 16.60 crore in the same period of last year, according to the daily.

The group, however, pulled unceremoniously out of its contract with Hotel de l’Annapurna—a leading five start hotel—in Kathmandu last month.

The IHCL had signed a 25-year contract with the hotel in November 1988, but pulled mid-way citing “security reasons.”

The decision from the group came close on the heels of five Indian employees at the hotel leaving Kathmandu all of a sudden. They included general manager Ravi Pillai and accounts manager Padmanabham.

The hotel, located at a stone’s throw away from the royal palace, is mostly frequented by Indian tourists and businessmen.

A private TV channel, Nepal One, reported that the Indian employees at the Hotel de l’Annapurna had left owing to an extortion threat by the Maoist insurgents.

The hotel authorities, however, denied the report and said the five had gone to India to attend an in-house conference.

A week later, Nepali management of the hotel suspended its Indian staff for leaving hotel without any formal communication leading to break-up of its contract with the IHCL.

The Annapurna authorities also said the IHCL pulled out of the 25-year contract without any prior notice. Princess Helen, a royal family member, is chairperson of the board of directors of the hotel, according to reports.