The Telegraph
Thursday , August 7 , 2014
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EIH funds for twin projects

S.S. Mukherji (left) and P.R.S. Oberoi (centre) in Calcutta on Wednesday. Picture by Kishor Roy Chowdhury

Calcutta, Aug. 6: EIH Limited, the flagship company of the Oberoi group, will invest around Rs 1,000 crore to develop its properties in Bangalore and Goa.

S.S. Mukherji, vice-chairman and chief executive of EIH, today said the company expected the construction of these properties to start by 2015 after obtaining necessary clearances. “Other than Bangalore and Goa, we are not going to invest too much in other projects,” Mukherji said, adding that the company will continue to focus on management contracts.

The Bangalore property will have 250 rooms and 65 service apartments, while the property in Goa will have 80 rooms. Both the hotels will operate under the Oberoi brand.

Mukherji said the equity infusion in these two projects would be around Rs 400 crore. The rest will be financed through debt.

The construction of another hotel under the Trident brand in Navi Mumbai is expected to start later this year.

Besides planned projects in Africa and the UAE, the company is eyeing opportunities in China and Thailand. Executive chairman P.R.S. Oberoi said there was a need to attract more foreign tourists.

“The foreign visitor arrivals to India are very low compared with China, Thailand, Malaysia and Turkey. Phuket and Bali alone attract more foreign visitors than the whole of India. We must take urgent steps to aim at a quantum increase in footfalls. A target to attract at least 25 million foreign visitors in five years is achievable,” Oberoi said at the company’s 64th annual general meeting here today.