EIH to invest Rs.6.5 bn on two new hotelsAugust 14th, 2008 - 7:51 pm ICT by IANS
Kolkata, Aug 14 (IANS) Hospitality major EIH Ltd, which operates the Oberoi chain of hotels, will invest Rs.6.5 billion ($165 million) to set up new projects in Goa and Bangalore, said a top company official here Thursday. “We plan to start two hotels, one each in Goa and Bangalore, for which we have already got the land. The debt-equity ratio of the projects will be 2:1,” said P.R.S. Oberoi, chairman of the company, during the annual general meeting.
EIH plans to invest Rs.5 billion on the Bangalore hotel, to be built on an eight-acre plot, and the rest for the Goa project on a 50-acre plot. It is expecting to get the approvals for both projects soon - Bangalore by next month and Goa by October.
“In the next three and a half years, we shall see the opening of 10 hotels. We will add 2,300 rooms in India and abroad, and also add new flight kitchens in Mauritius, Kolkata, Cochin and Calicut,” Oberoi added.
The flights kitchens are expected to start operations at the end of 2009 or in early 2010.
EIH, which is into the business of luxury and five star hotels, operates two brand names - Oberoi Grand and Trident hotels.
“We are looking at taking the Trident brand abroad, probably to the Middle East countries,” Oberoi said.
Asked about plans to raise promoter’s stake in EIH, he said: “We want to raise the promoter’s stake to 50 percent as soon as possible.”
At present, the promoters control 46.37 percent.
The occupancy rate in the hotels have declined marginally by around two percent due to the current economic scenario, Oberoi said.
The company’s total income in the first quarter this year stood at Rs.2.55 billion, compared to Rs.2.33 billion during the corresponding period last fiscal, reflecting an increase of over 10 percent.
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Tags: acre plot, annual general meeting, bangalore, bn, calicut, cochin, debt equity ratio, economic scenario, eih ltd, five star hotels, goa, half years, kitchens, middle east countries, new projects, occupancy rate, promoter, promoters, rs 2, trident