The Hindu : Business : Oberoi keen to increase stake in EIH

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Friday, Aug 15, 2008
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Oberoi keen to increase stake in EIH

Special Correspondent

Plans Rs. 650 crore investment in Bangalore, Goa hotels

— PHOTO: ARUNANGSU ROY CHOWDHURY

PLAYING IT SAFE: P. R. S. Oberoi (left), Chairman, and Vikram Oberoi, Joint Managing Director, EIH, at a press conference in Kolkata on Thursday.

KOLKATA: The Oberois are keen to increase their stake in East India Hotels (EIH) which owns or manages the Oberoi and the Trident group of hotels. The promoters now hold 46.37 per cent of the equity.

P. R. S. Oberoi, group Chairman, said at a press conference here on Thursday, “We intend to increase our shareholding slowly as we can do only about five per cent annually as per current laws”. However, when asked about the 14 per cent holding by ITC in EIH, he said “We were not worried”.

Earlier, shareholders at the company’s annual meeting expressed concern about the equity holding by a rival corporate group with substantial interest in hotels. Mr. Oberoi replied that ITC chairman had said that it was their investment.

He said by mid-2011, EIH would add 2,300 rooms in India and abroad and also add new flight kitchens in Kochi, Kozhikode, Kolkata and Mauritius. New hotels were proposed either through joint venture or own in Hyderabad and Bangalore.

He said that seven of these (of 10) would be management contracts, while two would be joint ventures and one owned property. This apart, investments were proposed to be made on another hotel in Bangalore and one in Goa. Together, an investment of Rs. 650 crore would be required for this.

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