Indian Hotels, an arm of the giant Tata Group, has abandoned a $1.2-billion offer to buy Orient-Express Hotels, marking its second unsuccessful attempt to purchase the Bermuda-based luxury global chain.
Indian Hotels Co Ltd (IHCL) made the unsolicited offer last October for Orient-Express, whose name comes from the iconic trans-European train, as it sought to boost its global hospitality presence.
The decision not to pursue the offer -- its second in four years for the chain -- took into account "the current economic environment and also other opportunities and priorities for the company", Indian Hotels said late on Friday.
Indian Hotels had earlier acquired a 6.9% stake in Orient-Express. But the value of its stake has fallen sharply in the face of slowing global demand for luxury travel.