Skift Take
Oberoi’s expansion plans don’t seem random as it targets booming tourism hubs like Saudi Arabia and Egypt that attract luxury travelers.
The parent company of Indian luxury hospitality chain Oberoi Hotels, EIH Limited, said Tuesday that it plans to open 20 properties by 2029, nine of which would be in international destinations.
While Skift has reported news of the London hotel opening, 8 more hotels would be opening in destinations that include Egypt, Bhutan, Nepal, and Saudi Arabia.
The 20 properties in the pipeline would include 17 hotels, two luxury boats, and a Nile Cruiser, with a total inventory of approximately 1,350 keys.
Of these, 9 hotels would be owned, invested in, and operated directly or through joint venture by EIH Limited, while 11 properties, including the two luxury boats and the Nile cruiser, would be managed by The Oberoi Group.
The two boats, a Nile Cruiser and 13 hotels would operate under the Oberoi brand and four hotels would be under the Trident brand.
“With a confirmed expansion plan of 20 new properties, including 9 owned and operated flagship hotels and 11 managed properties, we are strategically growing our portfolio across key domestic and international markets,” said Arjun Oberoi, executive chairman of EIH.
Besides India, the Oberoi Group currently operates hotels in five other countries — Egypt, Morocco, Indonesia, Mauritius and Saudi Arabia.
In September, the hotel group announced it would be exiting the UAE market after the termination of its management contract for The Oberoi Al Zorah in Ajman on February 28, 2025.
Record Profit and Revenue
On Tuesday, EIH also reported record revenue and profit for the second quarter of the fiscal year, the period ending September 30, 2024.
The total revenue for the quarter ending September 30 reached INR 5.5 billion ($65 million), an increase of 14% over the same period last year. The EBITDA for the second quarter stood at INR 1.9 billion ($22.5 million) a 27% year-on-year growth, with profit after tax growing by 34% at INR 1.1 billion ($13.03 million).
Investment in UK
In a September 15 filing with the Bombay Stock Exchange (BSE), EIH announced plans to establish a company in the UK with an authorized share capital of GBP 30 million ($38.2 million), initially planning to hold a 51% stake alongside its subsidiaries. However, an updated October 16 filing revealed that EIH will now invest up to a 100% stake in the UK entity, EIH London Investments Limited, with a total share capital of GBP 69 million ($88 million).
EIH stated in the filing that this investment will strengthen its brand presence in London, a crucial market for the company.
The London hotel would be a “luxury hotel with approximately 11 suites and six rooms,” EIH mentioned in the September filing, with the investment estimated at GBP 15 million ($19 million). The hotel would be operational by the fourth quarter of fiscal 2028, according to the filing.
Mukesh Ambani-owned Reliance Industries owns around 19% stake in EIH Limited. Last year, Reliance announced it would jointly manage two properties in India and a Stoke Park hotel in Buckinghamshire, UK, along with Oberoi Hotels.
Speaking at the Skift India Summit earlier this year, EIH CEO and managing director Vikram Oberoi had said, “We want 50 new hotels by 2030.” He also spoke about the group’s push to double its overall room count by 2030.
Oberoi had said that some hotels would be smaller. “One of the things that we’re working on… are smaller hotels in beautiful locations (that) have a strong sense of place. All our research on guests tells us that that is something they would deeply value.”
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
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