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Skift
26-05-2025
- Business
- Skift
India's Luxury Hotels Are Underpriced, That Must Change, Says Oberoi CEO
According to Vikram Oberoi, it's time Indian hotels stopped selling themselves short. He's betting that Indian guests are ready to pay more, especially for top-tier stays. Luxury hotels in India are 'significantly underpriced,' according to Vikram Oberoi, managing director, CEO and executive director of EIH Limited. Oberoi said he's keen to change that. 'Our objective is to drive our rates higher, and we've done that during the financial year, and we'll continue to do that going forward,' Oberoi said during the company's earnings call on Monday. EIH Limited operates the Oberoi and Trident hotel brands. Oberoi even suggested the company would rather sacrifice some occupancy if that means stronger pricing. 'If demand continues to be as it is today, our endeavor will be to drive rates up to the largest extent possible, and even if that is at the cost of occupancy. As long as our RevPAR sees strong growth, and I don't see any reason why that will change.' This marks a shift in focus from just filling rooms to making each room night more valuable. He argued that room prices in India's top cities, Delhi, Mumbai and Bengaluru, are well below what the quality justifies, especially compared to global peers. He didn't mince words: 'You can go online and see top hotels around the world in key cities. A good hotel costs $1,000 upwards per night. We are significantly below that threshold. And if I then combine that with the quality of hotels we have in India, in our key cities, I think there's tremendous opportunity for upside in average room rate.' Financial Performance Highlights EIH's financial results back Oberoi's confidence. The company delivered its best-ever performance. EIH reported a 13% year-on-year increase in consolidated EBITDA to INR 11.5 billion ($135 million) for fiscal 2025. Net profit rose by 14% to INR 7.7 billion ($90 million). Revenue from operations grew 9% on a standalone basis to INR 25.35 billion ($298 million) and 10% to INR 28.8 billion ($338 million) at the consolidated level. In the fourth quarter alone, RevPAR (revenue per available room) rose 22% year-on-year across all domestic hotels. Oberoi-owned hotels led the way, with a 24% rise in RevPAR, outpacing the industry average of 16% and even edging out Trident's 22% growth. Occupancy also climbed from 81% last year to 84%. While international operations contributed a smaller share, the growth reported was healthy, with a 10% rise in revenue and a similar growth in EBITDA. Betting on India's Premium Travel Upsurge Oberoi's bullish outlook is also rooted in structural changes in India's economy. 'There's an opportunity to push rates higher, especially with India's rising affluence and growing demand for quality accommodation,' he said. Oberoi also cited the 'significant changes' taking place in the Indian economy. With increasing wealth and affluence there's a desire for quality accommodation and quality hotels that provide exceptional services and experiences to guests, he said. Ultra high-net worth individuals, those with a net worth of $30 million and above, in India grew by 11% last year, according to industry reports cited in the company's presentation. Oberoi sees this as a key demand driver, especially in the luxury leisure segment. Domestic travel is also on the rise. The fourth quarter saw air traffic grow 9% year-on-year. Inbound tourism is projected to rise by 15% in fiscal 2026, buoyed by India's improving global profile and infrastructure upgrades. Coming Up: 21 New Hotels EIH isn't just raising prices, it's also growing its footprint. The company plans to add 21 new properties (roughly 1,500 rooms) over the next 3-4 years. Of these, 12 are in India. EIH's expansion plan includes nine international projects, including cruise ships. Two luxury boats will debut this year, including a Nile cruiser by 2026, alongside properties in Egypt, Nepal, Bhutan and Saudi Arabia. Upon completion, 16 hotels (including the boats and cruiser) will operate under the Oberoi brand and 5 hotels under the Trident brand, representing a total inventory of approximately 1473 keys. In India the openings include Goa, Tirupati, Rishikesh and Bengaluru. This includes both managed and owned assets, with Oberoi stating the company is open to acquisitions and brownfield opportunities to accelerate growth. The group currently operates 4,200 rooms across 30 hotels. Its domestic portfolio includes 3,700 keys, while international properties make up around 500 rooms. What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance. Read the full methodology behind the Skift Travel 200.
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Business Standard
21-05-2025
- Business
- Business Standard
EIH Q4 results: PAT up 6% to Rs 261.62 cr on strong demand across segments
EIH Ltd, owner and operators of Oberoi and Trident brands of hotels, reported a 6 per cent rise in its March quarter net profit on improved demand in both business and leisure segments. Consolidated net profit of Rs 261.62 crore in January-March - the fourth quarter of April 2024 to March 2025 financial year - was compared with Rs 247.59 crore earnings in the same period a year back, according to a company statement. "The company delivered its best-ever performance, reflecting sustained operational excellence and continued demand across both business and leisure segments," it said. Revenue was up 11 per cent at Rs 866 crore while EBITDA rose 13 per cent to Rs 389 crore. "These record results mark a milestone year and the strongest financial performance in EIH Limited's history. They reflect the company's unwavering focus on operational excellence and underscore the enduring appeal of our brand. With a robust financial position, EIH Limited is well-positioned to drive continued growth and create long-term value for all stakeholders," the statement said. For the full fiscal, the firm posted a 14 per cent rise in net profit to Rs 769.90 crore on a revenue of Rs 2,880 crore. EIH said it has a robust pipeline of 21 properties to be completed by 2029, comprising 19 hotels, 2 luxury boats, and a Nile cruiser. This expansion includes eight hotels to be owned, invested in, and operated directly or through joint ventures by EIH, 13 properties (including the 2 luxury boats and a Nile cruiser) to be managed by The Oberoi Group. The development pipeline spans 12 hotels in India and 9 international hotels and cruises across London, Egypt, Bhutan, Nepal, and Saudi Arabia. Upon completion, 16 hotels (including the boats and cruiser) will operate under the Oberoi brand and five hotels under the Trident brand, representing a total inventory of approximately 1,473 keys. Arjun Oberoi, Executive Chairman, The Oberoi Group, commented, "This has been a milestone year for EIH Limited, delivering record financial results. Our robust performance reflects our long-term vision, strong governance, and unwavering commitment to excellence. With a solid financial foundation, we are well-positioned to drive strategic growth across key markets while creating sustained value for all our stakeholders." Vikram Oberoi, CEO, The Oberoi Group, further added, "These results highlight the relentless dedication of our teams and their pursuit of operational excellence. As we continue to expand our footprint, we remain steadfast in delivering exceptional guest experiences driven through our values and culture that places our guests and their wellbeing at the centre of everything we do." EIH's board has recommended a final dividend of Rs 1.5 per equity share (75 per cent on the face value of Rs 2 each) for the financial year 202425.
Time of India
21-05-2025
- Business
- Time of India
EIH Limited posts PAT of Rs 770 cr for FY25, revenue at Rs 2880 cr for the fiscal
EIH Limited , the flagship company of The Oberoi Group has reported a consolidated profit after tax of Rs 262 crore for the fourth quarter of fiscal year 2025, up 6% year on year. The luxury hospitality chain reported revenues of Rs 866 crore, up 11% year on year. For fiscal year, 2025, the chain reported consolidated revenues of Rs 2880 crore, up 10% year on year. EIH Limited reported a profit after tax of Rs 770 crore for the full fiscal year, up 14% year on year. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Moose Approaches Girl At Bus Stop In Yogyakarta Jw - Watch What Happens Happy in Shape Undo EIH Limited has a pipeline of 21 properties to be completed by 2029, comprising 19 hotels, 2 luxury boats, and a Nile cruiser. This expansion includes 8 hotels to be owned, invested in, and operated directly or through joint ventures by EIH Limited, and 13 properties to be managed by The Oberoi Group. The development pipeline spans 12 hotels in India and 9 international hotels and cruises across London, Egypt, Bhutan, Nepal, and Saudi Arabia. Upon completion, 16 hotels (including the boats and cruiser) will operate under the Oberoi brand and 5 hotels under the Trident brand, representing a total inventory of approximately 1473 keys. Live Events Arjun Oberoi, executive chairman, The Oberoi Group said fiscal year 2025 has been a 'milestone year' for EIH Limited, delivering record financial results. "With a solid financial foundation, we are well-positioned to drive strategic growth across key markets while creating sustained value for all our stakeholders," he added. Vikram Oberoi, CEO, The Oberoi Group said as the chain continues to expand its footprint, it remains 'steadfast' in delivering 'exceptional' guest experiences driven through its values and culture that places its guests and their wellbeing at the centre of everything it does.
