EIH to run RIL’s Mumbai hotel | india | Hindustan Times
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EIH to run RIL’s Mumbai hotel

india Updated: Aug 08, 2012 00:54 IST
HT Correspondent
HT Correspondent
Hindustan Times
East India Hotels

PRS Oberoi-led EIH Ltd, formerly East India Hotels, would manage a 160-room hotel property in Navi Mumbai owned by Reliance Industries Limited, marking RIL’s foray into the hospitality business.

"EIH will probably manage the Reliance property which will come up at Navi Mumbai on their land," Oberoi said after the company's annual general meeting in Kolkata, triggering speculation that the two groups may jointly execute projects in the hospitality and premium residential space. http://www.hindustantimes.com/Images/Popup/2012/8/08_08_12-buss21.jpg

EIH’s shareholders approved the proposal to induct Nita Ambani, wife of India’s richest man and RIL chairman Mukesh Ambani, on its board.

EIH’s board had last year approved the induction of Nita Ambani and Manoj Modi, a trusted lieutenant of the RIL chairman and a senior group executive.

EIH said its profits fell to R9.45 crore during the quarter-ended June 30, a 63% fall from last year.

In 2010, the Oberoi family-led promoters had divested 14.6% in favour of Ambani-owned Reliance Industries Investment and Holding Pvt Ltd (RIIHPL) for more than Rs 1,000 crore. It has since raised its stake to 18.53% making it the single largest public shareholder. The promoters hold 35.23% stake.

The move was widely seen as an attempt by the EIH promoters to rope in Ambani as a “white knight” to ward off a possible open offers by competitors.

The Navi Mumbai project spread over 15 acre will be a 160-room hotel and service apartments under the Trident brand, Oberoi said.

Oberoi was non-committal on future alliances with RIL in the hospitality space. “We have not said anything on these lines to Reliance,” he said.