Tata Group-owned Indian Hotels Company (IHCL) said that occupancy rate in the tower wing of its flagship Taj Mahal Palace and Tower Hotel is picking up now.

The iconic sea-facing hotel was hit badly by the 26/11 terror strikes and was shut for nearly three weeks before being reopened on December 21.

"Occupancy rates came down in December and January (after the 26/11 attacks), but we are catching up with last year's occupancy rates," IHCL Managing Director Raymond Bickson told reporters on the sidelines of a conference.

"There has been a drop in occupancy rates but there has also been a maintenance of rates. This month, our bookings have increased," he said.

While it has refurbished and reopened its tower wing to guests, the older palace wing which suffered extensive damage, is still being refurbished.

Asked for a time-frame on the reopening of the palace wing, Bickson said, "probably, by the end of this year."

The group has been affected by the global economic downturn just like its peers in the hospitality industry, he said.

"Taj too has been affected by the global downturn. But the hospitality industry is resilient and has bounced back quickly," he said.