EIH to open luxury Oberoi Hotel in London

EIH Ltd, the hospitality firm that runs the Oberoi and Trident brand of hotels, has announced plans to open a luxury Oberoi Hotel in London and a Trident hotel in Pune.

The EIH board has approved an investment in EIH London Investments Ltd, a company to be incorporated in the United Kingdom, the company told the stock exchanges on Monday.

The company will invest £15 million to set up a luxury hotel with about 11 suites and 6 rooms. The hotel is expected to become operational by the beginning of 2028, the company said in a statement.

The total authorized share capital of the London arm is £30 million, or $39.4 million, comprising 30 million shares of £1 each.

The acquisition is expected to be completed by 30 September. EIH Limited and its subsidiary will own the majority stake in the UK company.

EIH Holdings will initially buy 1,000 shares of EIH London Investments. After that, EIH Limited plans to purchase an additional 12.75 million shares worth £1 in several batches.

The company board has also approved an investment to develop a mixed use project in Pune.

The project will include a Trident hotel spread across 181,000 sq. ft with about 175 keys, and a commercial development with office space and food and beverage-focused retail outlets across 408,000 sq. ft.

The total cost of the project is estimated at ₹972 crore, with commercial operations expected to commence in the first quarter of fiscal 2030, the company said.

The hospitality firm aims to acquire Muttha Towers II Pvt. Ltd, which has assets to the tune of ₹175 crore as on 31 March, for ₹254 crore. Muttha Towers, which was incorporated in 2019, owns a parcel of land measuring 1.70 acres.

Investment in the target company will enable EIH to expand its business operations, the hospitality firm said, adding that its promoters or group companies do not have any interest in this transaction.

The company’s expansion plans come amid a an inheritance battle between Anastasia Oberoi, daughter of late hotelier P.R.S. Oberoi and Mirjana Jojic Oberoi, and other family members over the execution of her father’s will.

Oberoi who died in November last year reportedly left behind two wills, and the dispute is over the shares held by the Padma Vibhushan awardee in EIH, Oberoi Hotels and Oberoi Properties.

The Delhi High Court on Monday granted interim injunction in favor Anastasia, who had moved the court claiming rights in shares of the companies.

EIH Ltd, which has a portfolio of 12 hotels in India and nine abroad, not only owns and manages its own hotels but also takes other hotels on management contracts for a fee.