Oberoi Group to pump in Rs 4,500 crore in new projects

Kolkata, Aug 27(UNI) EIH Limited, the flagship company of the Oberoi Group, will invest about Rs 4,500 crore in new projects for 60 per cent capacity addition in the country and abroad in the next five years.

Announcing this here today at the end of the company's 57th annual general meeting, Oberoi Group Chairman PRS Oberoi said during the period the number of rooms would go up to 6,800 from the present 4,100.

" With the enormous growth in the hospitality industry, we plan to invest Rs 4,300 crore to Rs 4,500 crore in new projects over the next five years. Of this EIH will contribute Rs. 1,000 crore and the rest will come from borrowings and partners," he told reporters.

Having set a target of 50 per cent capacity addition in the country alone, EIH will add up 1,400 more rooms in its Trident Hilton category projects in Mumbai, Bangalore international airport and Hyderabad city entailing an investment of Rs 800 crore, he said.

The construction of the 440 key Trident Hilton located at Bandra Kurla, Mumbai was expected to open in the third quarter of 2008, while two joint venture projects--one in association with L and T in Bangalore and another in Hyderabad with the Rama Rao Group--are likely to be complete by 2010.

This apart, The Oberoi Luxury hotel at Gurgaon, is expected to open in 2009.

The company had earlier announced its plan to set up seven additional luxury hotels--two in the Emirate of Abu Dhabi, including a resort and one each in the Sultanate of Oman, Sharm el Sheikh in Egypt, Marrakech in Morocco and Paro and Thimpu in Bhutan.

In reply to a question, Mr Oberoi said EIH was eager to set up its second property in Kolkata in league with a partner for whiich it was looking for land.

The company was planning new flight kitchens at the international airports at Kolkata airport at an investment of Rs 70 crore and in Mauritius after commencing the service in Chennai.

Mr Oberoi said the company had a 70 per cent market share in the country in flight kitchen business which contributed about 13 per cent of the profitability.

Earlier, speaking at the AGM, the Chairman said the travel and tourism industry had shown significant growth in the past few years and the number of visitiors to India had doubled in five years resulting in more competition. "This trend will continue as India is now an important destination for leisure and business travellers," he observed.

With the demand for hotel accommodation remaining buoyant, the trend was evident not only in the gateway cities like New Delhi, Mumbai, Chennai and Kolkata, but also in other destinations. The growth of the sector comprising services such as tourism, trade, transport and communication was more than 13 per cent, he said.

UNI