Oberoi family says no plan to sell EIH stakes
The Oberoi family, which controls East India Hotels (EIH), that runs the Oberoi and Trident chains has no immediate plans to sell stakes in the company, its chairman said on Friday in the backdrop of attempts by rival group ITC’s bid to buy shares in the firm.business Updated: Jul 09, 2010 21:45 IST
The Oberoi family, which controls East India Hotels (EIH), that runs the Oberoi and Trident chains has no immediate plans to sell stakes in the company, its chairman said on Friday in the backdrop of attempts by rival group ITC’s bid to buy shares in the firm.
“We continue to own 46.4 per cent stake in EIH. We have no control overanybody buying equity from the open market,” P.R.S Oberoi said at a function to mark the group winning the Travel+Leisure magazine honour for four of the group’s hotels.
ITC, which runs the WelcomGroup of hotels, at present holds 14.98 per cent stake in EIH—just shy of 15 per cent threshold that would trigger a mandatory open offer under regulatory rules.
Oberoi refused to comment on rumours of Max India promoter Analjit Singh buying stake in EIH or the diversified business conglomerate ITC raising its equity stake in the group.
He added that the group plans to double its number of rooms over the next five years.
The chain is spreading its footprint across locations such as Dubai, Morocco overseas in addition to Indian destinations including Hyderabad, Dehradun and Khajuraho.
“We will spend close to Rs 100 crore in this financial year for renovation of our properties,” said Oberoi. The company, at present operates a total of 4,741 rooms and suites in India, Indonesia, Mauritius, Egypt and Saudi Arabia.
Travel+Leisure — a monthly magazine from The American Express Publishing group — has adjudged four Oberoi Group properties among its list of fifteen best hotels of the world.
“We will open two new hotels in Hyderabad and one each in Dehradun, Dubai and Marrakech. We also have space near Khajuraho in Madhya Pradesh and in Rajasthan. Over the next five years we will double the number of rooms under our kitty,” Oberoi said.
He expressed concern over the ongoing economic crisis in Europe. “It is a matter of concern for the Indian tourism industry and for us,” he said.