Oberoi Group Plans to Open 50 New Hotels by 2030
Thursday, 21 March 2024, 10:16 IST
The Oberoi Group, a leading hospitality major, has announced ambitious plans to open 50 new hotels by 2030, according to Vikram Oberoi, CEO and MD of EIH Limited, the flagship company of The Oberoi Group. Oberoi shared this vision during the Skift India Summit, highlighting the expansion strategy for both the Oberoi and Trident brands.
The growth plan includes the establishment of smaller hotels under a new concept internally referred to as "Oberoi Nature." These properties will be situated in picturesque locations, embodying a strong sense of place to cater to guests seeking immersive experiences. Oberoi emphasized that guest feedback indicates a strong preference for such offerings. Oberoi Group spokesperson clarified that the chain is not considering launching a new luxury hotel brand. Instead, the focus remains on expanding the existing Oberoi and Trident brands.
Oberoi outlined three key reasons behind the growth initiative. Firstly, the chain aims to ensure that guests choose Oberoi Group properties whenever they travel, necessitating a presence in key locations both in India and abroad. Secondly, growth is vital for attracting, retaining, and nurturing talent within the organization, fostering professional development and loyalty. Thirdly, expansion is crucial for enhancing shareholder value, aligning with the company's long-term strategic objectives.
Furthermore, Oberoi expressed the belief that hotel rates in India should be higher to reflect the quality of services and facilities offered by brands like Oberoi, Taj, and Leela. He urged industry colleagues to focus on increasing rates, emphasizing the outstanding value proposition provided by Indian hotels compared to international counterparts.
EIH Limited, the parent company of The Oberoi Group, reported robust financial performance for the third quarter ended December 31, 2023. Revenue from operations surged by 28% year-on-year to Rs 770 crore, while profit after tax increased by 55% to Rs 230 crore, highlighting the company's strong growth trajectory.
In line with its expansion plans, EIH subsidiary Mumtaz Hotels approved the construction of a luxury resort in Gandikota, Andhra Pradesh, representing an estimated investment of Rs 60 crore. Additionally, the company is actively engaged in several development projects, including The Oberoi Rajgarh Palace near Khajuraho, Madhya Pradesh, and The Oberoi Wildlife Resort Bandhavgarh in Madhya Pradesh.
Overseas ventures include the development of The Oberoi and Trident resorts on Koh Tan island, Thailand, as well as The Oberoi Kathmandu and The Oberoi Wildlife Resort near Bardia National Park in Nepal. Furthermore, a Trident resort in Tirupati, Andhra Pradesh, is expected to commence operations in the first quarter of 2027.
EIH also highlighted progress on its Goa beachfront property and the signing of a deed of variation for a 174-key hotel between its overseas subsidiary EIH Holdings Limited and Al Zorah Development.
The comprehensive expansion strategy underscores The Oberoi Group's commitment to growth and innovation, leveraging its renowned brands to capture emerging opportunities in the global hospitality landscape. With a focus on quality, sustainability, and guest satisfaction, the group is poised for continued success in the years ahead.
The growth plan includes the establishment of smaller hotels under a new concept internally referred to as "Oberoi Nature." These properties will be situated in picturesque locations, embodying a strong sense of place to cater to guests seeking immersive experiences. Oberoi emphasized that guest feedback indicates a strong preference for such offerings. Oberoi Group spokesperson clarified that the chain is not considering launching a new luxury hotel brand. Instead, the focus remains on expanding the existing Oberoi and Trident brands.
Oberoi outlined three key reasons behind the growth initiative. Firstly, the chain aims to ensure that guests choose Oberoi Group properties whenever they travel, necessitating a presence in key locations both in India and abroad. Secondly, growth is vital for attracting, retaining, and nurturing talent within the organization, fostering professional development and loyalty. Thirdly, expansion is crucial for enhancing shareholder value, aligning with the company's long-term strategic objectives.
Furthermore, Oberoi expressed the belief that hotel rates in India should be higher to reflect the quality of services and facilities offered by brands like Oberoi, Taj, and Leela. He urged industry colleagues to focus on increasing rates, emphasizing the outstanding value proposition provided by Indian hotels compared to international counterparts.
EIH Limited, the parent company of The Oberoi Group, reported robust financial performance for the third quarter ended December 31, 2023. Revenue from operations surged by 28% year-on-year to Rs 770 crore, while profit after tax increased by 55% to Rs 230 crore, highlighting the company's strong growth trajectory.
In line with its expansion plans, EIH subsidiary Mumtaz Hotels approved the construction of a luxury resort in Gandikota, Andhra Pradesh, representing an estimated investment of Rs 60 crore. Additionally, the company is actively engaged in several development projects, including The Oberoi Rajgarh Palace near Khajuraho, Madhya Pradesh, and The Oberoi Wildlife Resort Bandhavgarh in Madhya Pradesh.
Overseas ventures include the development of The Oberoi and Trident resorts on Koh Tan island, Thailand, as well as The Oberoi Kathmandu and The Oberoi Wildlife Resort near Bardia National Park in Nepal. Furthermore, a Trident resort in Tirupati, Andhra Pradesh, is expected to commence operations in the first quarter of 2027.
EIH also highlighted progress on its Goa beachfront property and the signing of a deed of variation for a 174-key hotel between its overseas subsidiary EIH Holdings Limited and Al Zorah Development.
The comprehensive expansion strategy underscores The Oberoi Group's commitment to growth and innovation, leveraging its renowned brands to capture emerging opportunities in the global hospitality landscape. With a focus on quality, sustainability, and guest satisfaction, the group is poised for continued success in the years ahead.
