Oberoi Hotels plans to open multiple hotels to capitalize on demand for upscale holidays – industry news

Keeping in mind the growing demand for upscale holidays, Oberoi Hotels and Resorts has created a portfolio of about a dozen hotels, luxury boats and cruise ships that will come up in the next five years.

This new supply will add 1,350 keys starting in 2026, including about 288 outside India, the company said on Friday. Nine of these will be owned by EIH, a registered member of the Oberoi group, while 11 will be managed.

New facilities are planned to come up in Rajgarh (Khajuraho), Bandhavgarh, Goa, Visakhapatnam, Tirupati, Jawai (Rajasthan), Gandikota (Andhra Pradesh), Hebbal (Bangalore), Pune, Bardia (Libya), Diriyah (Saudi Arabia). , Kathmandu, Bhutan and London.

A senior EIH official said a financial investor would be coming to London property.

Vikram Oberoi, Managing Director and CEO, said: “The total investment in London property is £69 million. At the same time, as a rule, in our enterprises we strive to have an equal share of debt and equity. Our target would be to achieve a partnership of perhaps 49% and this would further reduce EIH’s exposure to less than £18 million.”

Situated in a prime location in Mayfair, The Oberoi London will be the brand’s first hotel in the UK. Taj Hotels and Resorts has been operating the St James Court Hotel in central London for several years.

“Having the UK flag will strengthen our brand presence. It will be a high-end luxury hotel that will compete with the best hotels in London,” Oberoi said on a call with analysts.

London has high occupancy and high rates. Prices in the UK capital in the first half of the year, according to STR, are around £1,200 for rooms and suites. “Given the large number of apartments we will have, we expect rates to be significantly higher,” he added.

The company has 3,772 keys in India and 497 outside the country. Thanks to its premium positioning, the company’s net profit in the September quarter grew by 41% on a consolidated basis.

While occupancy in the second quarter stood at 73% against 69% in the same quarter last year, the average room rate rose 9% year-on-year to nearly Rs 15,000. Given the high demand typically seen during the marriage season, prices and occupancy are expected to remain strong in the current quarter.

“We expect rates to be strong, especially during the winter months, and at least in luxury hotels in India, there is significant upside potential for rates. Winter rates are already approaching $1,000,” Oberoi said.