Oberoi to Stay Rooted in India while Branching out Overseas

Time of India

7 hours ago

HighlightsThe Oberoi Group is set for expansion into new markets, including Saudi Arabia and Egypt, while maintaining a strong focus on the domestic Indian market, according to Arjun Oberoi, the executive chairman. In the financial year 2025, EIH Limited, the flagship of the Oberoi Group, reported a 14% increase in net profit, reaching ₹770 crore and a 10% revenue growth to ₹2,880 crore, driven by a premium service strategy and a growing demand for quality hospitality. Despite facing legal challenges regarding family property and disputes with the Himachal Pradesh government over a luxury hotel, the Oberoi Group is prioritizing growth in mixed-use developments and branded residences to meet rising market demand.
The
Oberoi Group
is primed for further growth as its eponymous brand sits at the 'centre' of premium travel—the fastest-growing segment in India's hospitality industry, Arjun Oberoi, executive chairman of the
luxury hotel chain
, told ET. He said the group will enter new destinations such as Saudi Arabia and Egypt while continuing its sharp focus on the growing domestic market.
Over the last few years, the operator of the Oberoi and Trident hotel brands has seen a 'strong' uptick in financial performance, said group CEO
Vikram Oberoi
in a joint interview. This was fuelled by the clear mandate of growing the hotel portfolio with 'carefully-curated, brand-aligned' properties, driving a high premium strategy, outperforming rivals during periods of high demand, and offering 'exceptional' service to guests, he said.
It was the first media interaction of the two Oberoi scions since the passing of patriarch PRS Oberoi in November 2023 and the formal handover to the third generation.
The Oberoi Group delivered one of its strongest performances in the financial year 2025. For the year ended March 2025, EIH, the group's flagship, posted a 14% rise in net profit at ₹770 crore, while revenue grew 10% to ₹2,880 crore.
Vikram Oberoi said guests are becoming more selective and are willing to pay a premium for quality service.
'People are traveling more, both for leisure and business. STR (Smith Travel Research) data shows we have significantly outperformed the market on revenue per available room, with a premium on average room rates and occupancy,' he said. 'In almost all locations, Oberoi ranks first on revenue per available room in its competitive set.'
Vikram Oberoi expects India's affluence to accelerate. 'Twenty years ago, the Indian-to-foreign guest ratio was small. The proportion of our Indian guests has grown exponentially.'
Having signed 21 new projects in under two years, the chain has launched its most ambitious growth strategy. The pipeline includes 19 hotels, two luxury boats, and a Nile River cruiser. A dozen of these are in India; the rest are in London, Saudi Arabia, Egypt, Bhutan, and Nepal. Sixteen will operate under the Oberoi brand and five under Trident.
About half the new projects will be owned, while the rest will be under management contracts. Last November, the group said it will open a hotel in London's Mayfair through an arrangement with British property major Grosvenor and EIH London Investments.
Saudi Arabia is another key focus. 'We've announced two hotels there. We're also entering countries we should've been in earlier—Indonesia and Egypt. India will remain our main thrust. It's still the right time to invest here,' said Arjun Oberoi.
Post-Covid, competition in India's hospitality market has intensified, with Tata Group-owned IHCL, Marriott, Accor, and Hilton expanding rapidly.
Arjun Oberoi explained that the chain is guided by internal benchmarks and won't stretch the brand to risk dilution. 'Why are our hotels recognised globally? Not just for the locations—but because we've crafted each one with love, care and thoughtfulness,' he said.
While the generational transition has worked well, the company has also faced hurdles.
The brothers are currently locked in a legal battle over PRS Oberoi's will, challenged by their stepsister Anastasia, who is claiming a share of the family properties. 'The matter is sub-judice; we wouldn't like to comment,' said Arjun Oberoi.
The hospitality chain is also locked in a dispute with the Himachal Pradesh government over the historic luxury hotel, Wildflower Hall in Shimla. More recently, it exited the UAE, ending its management of The Oberoi Beach Resort, Al Zorah.
Going forward, residences are another focus area, particularly where there is a hotel and viable residential opportunity.
'
Mixed-use developments
are increasingly the preferred model, and many partners see this as the best way to monetise assets,' said Arjun Oberoi. 'There is strong demand for branded residences, so it's something we're committed to.'