Indian Hotels Co Ltd may increase its offer to take over Orient-Express Hotels after the global luxury hotels operator rejected its $1.2 billion bid earlier this week.

Tata Group-owned Indian Hotels Company (IHC), which currently holds approximately a 7% stake in Orient Express, offered $12.63 per share for the remaining 93% of the US-listed company as it looks to expand its international presence.

After evaluating the proposal, Orient Express Hotels claimed it was ‘deeply unattractive’ from a financial perspective.

“The board believes the current macroeconomic environment, conditions in the luxury hotel business and factors unique to Orient-Express would make this a highly disadvantageous time to sell the company to realize its true value.” Chairman Robert Lovejoy said in a statement.

Indian Hotels Company, which operates 99 hotels in 56 locations across India and 16 international hotels including the Pierre Hotel in New York, have acknowledged the announcement and are reviewing the position taken by the Orient-Express Board and considering their options with respect to their offer to acquire Orient-Express.

Bank of America Merrill Lynch is serving as sole financial advisor to Indian Hotels, Shearman & Sterling LLP is serving as legal advisor to Indian Hotels, and Hotel Advisor (UK) Ltd is providing industry expertise for the proposed transaction.

Orient-Express operates 46 luxury hotels, restaurants, trains and river cruises in 23 countries.