Oberoi enters Abu Dhabi, to manage 2 hotels

Dubai, Sept 9: India's Oberoi Group, which owns or manages 32 hotels and luxury cruises across five countries, said it is entering UAE in a big way and has signed an agreement to develop two luxury hotels in Abu Dhabi.

The Indian Hotel Chain Chairman P R S Oberoi said the group had entered into a strategic relationship with the UAE's Aldar Properties PJSC, the largest real estate company in Abu Dhabi by market capitalisation, to develop one property at Al Raha beach and another at the Al Yas beach, both entirely funded and owned by Aldar.

Aldar Hotels and Hospitality managing director Paul Bell could not immediately provide an estimate of what it would cost the company to build the two hotel properties.

''The Oberoi Group will manage the hotels under long-term management contract that will be a minimum 20 years. The properties will be known as The Oberoi - Al Raha Beach and The Oberoi - Al Yas,'' Oberoi told the Gulf News.

While the Al Raha Beach property will have 250 rooms and 50 service apartments, Al Yas would comprise 120 villas, said Oberoi.

He declined to comment on the revenue sharing deal with Aldar for the two proposed properties, saying the information was confidential.

The Oberoi Group-managed properties would cater to the top, luxury end of the market, he said, adding that the Al Raha beach hotel would open in 2010, while the Al Yas project is scheduled for opening in 2013.

''We will bring our hospitality expertise and give our time, resource, brand equity and management to these world-class projects.

Abu Dhabi has a nice coastline and Aldar is providing the right drivers to bring people in,'' said Oberoi.

He said that in his view, as far as the current position of hotel rooms was concerned, the ''Abu Dhabi market is under-bedded.'' Oberoi said with the Abu Dhabi Government working on upgrading the airport infrastructure and Etihad airline purchasing new aircraft, there was bound to be an increase in ''top of the scale'' visitors from all over the world to the UAE, Abu Dhabi in particular.

He allayed fears of a glut in the hotel industry in Abu Dhabi owing to several new projects scheduled to come on stream over the next few years.

The Oberoi Group was established in 1934. Oberoi said the flagship of the Oberoi Group - East India Hotels - currently has a market capitalisation of 1.2 billion dollars, while its market borrowings stand at around 200 million dollars.

UNI