Rumours on Sarna’s exit baseless

New Delhi, Oct. 27: Indian Hotels Company Ltd (IHCL) and Tata Sons on Thursday termed as “completely baseless and unfounded” speculations that Rakesh Sarna, the Managing Director and CEO of Taj Hotels, is leaving the company.

Sarna was appointed to lead IHCL on September 1, 2014, taking over from the Tata group hospitality firm’s long-serving chief Raymond Bickson.

With over three decades of experience across various leadership roles with Hyatt Hotels Corporation, Sarna is one of the highprofile appointments from outside the Tata group made by Mistry. With the latter's departure, there were speculations that Sarna was also likely to follow suit.

“The Indian Hotels Company Ltd and Tata Sons wish to reiterate that reports about the exit of Mr Rakesh Sarna, MD of Taj Hotels, Resorts and Palaces, are completely baseless and unfounded,” the two companies said in a joint statement. IHCL is one of the Tata group companies, which Mistry in his letter to Tata Sons board members flagged as ‘legacy hotspots’.

As per Mistry, beyond flawed strategy, IHCL had acquired the Searock property at a highly inflated price and housed in an off-balance sheet structure. “In the process of unraveling this legacy, IHCL has had to write down nearly its entire net worth over the past three years,” he said.

The Indian Hotels Company Ltd and Tata Sons wish to reiterate that reports about the exit of Rakesh Sarna, are completely baseless

— JOINT STATEMENT Tata Sons and Indian Hotels