EIH Ltd Expands Horizons: New Hotels in Pune and London Amid Legal Challenges
EIH Ltd, the esteemed owner of the Oberoi and Trident hotel brands, is embarking on an ambitious expansion plan with the announcement of two new hotels—one in Pune, India, and another in London, United Kingdom. This strategic move not only signifies the company’s commitment to growth but also highlights its resilience in the face of ongoing legal disputes within the family.
New Developments in Pune
In Pune, EIH Ltd plans to develop a mixed-use project that will feature a Trident Hotel with approximately 175 keys, covering an area of 1.81 lakh square feet. This hotel will be complemented by a commercial development that includes office space and food and beverage-focused retail outlets, spanning an impressive 4.08 lakh square feet. The total investment for this ambitious project is estimated at ₹972 crore, with commercial operations expected to commence in the first quarter of the financial year 2029-30.
To facilitate this development, EIH Ltd will acquire a 51% stake in Muttha Towers II Private Ltd, which owns the land parcel designated for the project, for ₹254 crore. This strategic acquisition not only underscores EIH’s commitment to expanding its footprint in India but also reflects the growing demand for high-quality hospitality and commercial spaces in Pune, a city known for its burgeoning IT and business sectors.
The Oberoi Hotel in London
In addition to its Indian venture, EIH Ltd has approved an investment of £15 million to establish a new hotel in the United Kingdom. The Oberoi, London, is set to feature approximately 11 luxurious suites and 6 elegantly designed rooms. This hotel is expected to be operational by the fourth quarter of the financial year 2027-28, further enhancing the Oberoi brand’s presence in the international luxury hospitality market.
The decision to expand into London aligns with EIH’s strategy to tap into the lucrative tourism and business travel sectors in one of the world’s most iconic cities. The Oberoi brand is synonymous with luxury and exceptional service, and this new property is poised to attract discerning travelers seeking a unique and upscale experience.
Legal Challenges Looming
While EIH Ltd is focused on its growth trajectory, it is not without its challenges. The company is currently embroiled in a legal dispute concerning the will of the late hotelier Prithvi Raj Singh Oberoi. Anastasia Oberoi, the daughter of the late P.R.S. Oberoi, has filed a lawsuit in the Delhi High Court claiming rights to shares in the company as per her father’s will. This legal action has been initiated against her step-brother, step-sister, and cousin, alleging that they are obstructing the execution of the will.
The managing director and CEO of EIH, Vikramjit Oberoi, along with Arjun Oberoi, the executive chairman, have publicly disputed Anastasia’s claims. The Delhi High Court has since issued an interim injunction that restrains the transfer of shares in EIH and its holding companies, Oberoi Hotels Private Ltd and Oberoi Properties Private Ltd. Justice Navin Chawla noted that the plaintiffs have made a strong prima facie case, and the balance of convenience lies in their favor, thereby protecting Anastasia and her mother’s rights to their family home in Kapashera, Delhi.
The Legacy of the Oberoi Group
Founded in 1934, the Oberoi Group has established itself as a leader in the luxury hospitality sector, operating 32 hotels and 2 Nile cruisers across seven countries. Beyond hotels, the Group is involved in various sectors, including flight catering, airport restaurants, travel and tour services, car rentals, project management, and corporate air charters. This diverse portfolio not only showcases the Group’s versatility but also its commitment to providing exceptional service across different facets of the hospitality industry.
Conclusion
As EIH Ltd moves forward with its plans to open new hotels in Pune and London, it is clear that the company is poised for significant growth. However, the ongoing legal challenges within the Oberoi family serve as a reminder of the complexities that can arise in family-owned businesses. Despite these hurdles, EIH’s commitment to excellence and expansion reflects its resilience and dedication to maintaining its esteemed legacy in the global hospitality landscape. The coming years will be crucial for EIH Ltd as it navigates both its ambitious growth plans and the intricacies of its internal family dynamics.