The Oberoi Group, a hospitality major, plans to open 50 new hotels by 2030, as stated by Vikram Oberoi, CEO and MD of EIH Limited, the flagship company of The Oberoi Group.
“Our vision for 2030 is to expand the Oberoi brand and the Trident brand. We’d like to open 50 new hotels by 2030. And some of the hotels will be smaller,” Oberoi said at the Skift India Summit on Wednesday.
“One of the things that we’re working on and we’ve got an internal name for it, which is Oberoi Nature. That won’t be the final branding, but these are smaller hotels in beautiful locations and have a strong sense of place. And all our research on guests tells us that is something that they would deeply value,” he added.
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In response to inquiries, a spokesperson for the Oberoi Group clarified that the company has no plans to introduce a new luxury hotel brand.
Oberoi outlined three reasons why growth holds significance for the chain.
“When guests travel, we want them to stay at our hotels. We need to be in locations where guests travel to. Certainly, in key locations in India and maybe in key geographies overseas,” he said.
“Secondly, attracting, retaining and growing talent is something that’s very close to our heart. We want people to grow with Oberoi rather than grow elsewhere. Thirdly, growth is an important criteria for creating shareholder value,” he added.
Oberoi additionally mentioned the necessity for hotel rates to rise in India.
“I sometimes feel our rates in India should be much higher. I urge all our colleagues to drive rates up. Because we have amazing hotels. Whether it’s Taj, Leela, or Oberoi. Our hotels are world class in India,” he said.
“If you compare us to hotels in other parts of the world, our rates offer fantastic value for money. In fact beyond that. So, there is an opportunity to catch up with the rest of the world on rates,” he added.
EIH Limited, the flagship company of The Oberoi Group, reported operational revenue of INR 770 crore for the third quarter ended on December 31, 2023, indicating a year-on-year jump of 28%.
The company posted a profit after tax of INR 230 crore, marking a 55% increase compared to the corresponding period of the previous fiscal year.
EIH announced that its subsidiary, Mumtaz Hotels, approved the construction of a luxury resort in Gandikota, Andhra Pradesh, during its board meeting on January 31, 2024. The project is expected to necessitate an estimated investment of INR 60 crore.
In its annual report for 2022-2023, EIH highlighted hotels and resorts in the planning and development stages. Specifically, it noted The Oberoi Group’s involvement in the development of The Oberoi Rajgarh Palace, a luxury accommodation project located near Khajuraho, Madhya Pradesh. The company described the resort as offering upscale lodging on a 62-acre site adjacent to the Panna forest reserve.
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EIH also announced that it has received land use consent for its 55-acre beachfront property in Goa.
The chain also mentioned in the report that construction is underway for The Oberoi Wildlife Resort Bandhavgarh, located on a 22-acre site, just five kilometers away from Bandhavgarh National Park in Madhya Pradesh.
An overseas subsidiary of the company will manage two resorts, The Oberoi and Trident, on Koh Tan island, situated southwest of Koh Samui in Thailand. Additionally, the chain is progressing with The Oberoi Kathmandu, situated on a five-acre greenfield site. Moreover, The Oberoi Wildlife Resort, positioned near Bardia National Park in Nepal, will be established on a greenfield site spanning roughly 30 acres. Furthermore, a Trident resort in Tirupati, Andhra Pradesh, is anticipated to commence operations in the first quarter of 2027.
In its annual report, EIH also mentioned that a deed of variation has been signed between the company’s overseas subsidiary, EIH Holdings Limited, and Al Zorah Development for a 174-key hotel.
