Oberoi group opens property in Gurgaon

Hospitality major the Oberoi Group on Tuesday said EIH would utilise around Rs.900 crore out of the Rs.1,178.86 crore raised last month from a rights issue to retire debt. The company is currently under expansion mode and would add new properties in India and abroad by 2014.

“Majority of it (proceeds from the rights issue) , around Rs.900 crore, will be used to retire debt and some part will be utilised for setting up flight kitchens,” Oberoi Group Chief Planning Officer and Joint Managing Director Arjun Oberoi said after inaugurating its new luxury hotel in Gurgaon that has been built at a cost of Rs.400 crore.

Commenting on the group's expansion plans, Mr. Oberoi said: “We are in the process of opening five new properties, which will be primarily management contracts along with some equity. The growth will come from management contracts and this model will be the priority for us.” In 2012, the Oberoi Group will open a new hotel in Hyderabad followed by Dubai, while in 2013, it would add another property in Hyderabad. By 2014, the company hopes to operationalise a new hotel at Marrakesh in Morocco, followed by a resort in Oman. The company is also looking at Europe for future expansion.

Meanwhile, commenting on the group's succession plans, Chairman P. R. S. Oberoi said he was not retiring yet. “P. R. S. Oberoi as Chairman and CEO of EIH and the Oberoi Group leads the senior executive team and has no plans to retire or step down,” he said in a statement, rejecting media reports he had anointed his son Vikram Oberoi to succeed him.

Source: http://www.thehindu.com/business/companies/article1691651.ece