The Hindu Business Line : EIH announces 12 new projects in India, abroad

EIH Ltd, a member of The Oberoi Group, on Friday announced 12 new projects in India and abroad. These include Oberoi brand luxury hotels and service apartments (both owned and managed), a world-class luxury train on the Rajasthan circuit, another luxury Nile Cruiser in Egypt with therapy cabins and a Flight Kitchen at Kolkata international airport.

New luxury hotels are to be built in Bangalore, Goa, Gurgaon, Siem Reap (Angkor Vat) Cambodia, the Maldives Islands and Dubai. EIH also proposes to build a world-class luxury train through a joint venture special purpose vehicle (SPV), in partnership with the Rajasthan Government and the Indian Railways.

The Goa hotel is located on a 50-acre beachfront site owned by the company. The 223-room Bangalore hotel will be built on an 8-acre prime site overlooking Hebbal Lake, and will be nearest to the new Bangalore International airport.

The luxury train project has received approval from the Rajasthan Government, and will ply on the Rajasthan circuit on a 7-day trip.

Addressing a news conference here on Friday, after addressing shareholders at the company's 56th AGM, Mr P.R.S. Oberoi, Chairman & CEO, EIH, said the three-mega hotel projects in Goa, Bangalore and Mumbai entail total investments of around Rs 1,150 crore.

Dubai venture

The 250-key Oberoi brand luxury hotel and 40 service apartments in Dubai, to be located at the Business Bay, is being executed jointly with a real estate company in Dubai belonging to the Aujan Group, and will involve investment of around $100 million. An agreement has been signed with the Saudi developer.

1:2 bonus approved

Shareholders on Friday approved a bonus issue in the ratio of 1:2, and also the proposal for splitting the share in the ratio of 1:5 (Rs 10 split into five shares of Rs 2).

PAT up 45 pc in Q1

Mr Oberoi said PAT for the first quarter ended June 30, 2006 has witnessed a 45-per-cent increase at Rs 24.68 crore against Rs 17.06 crore for the corresponding period of last financial year.

He put the total income for the quarter at Rs 203.35 crore (Rs 155.67 crore), recording a growth of 31 per cent. Operating profit has recorded a sharp increase of over 67 per cent at Rs 71.70 crore (Rs 42.81 crore).

The Maldives hotel, a $30-million project with a 60:40 debt-equity ratio, will see the Oberois holding a token stake of 26 per cent of the total equity. He said construction of the 437-room Trident Hilton Hotel in the Bandra-Kurla complex is progressing well, and is expected to open in 2008. Construction of a 150-room luxury hotel at a site located next to the Trident Hilton Gurgaon is expected to begin shortly.

On the proposed foray into the ready-to-eat branded foods segment by the Oberois, which would be a diversification, Mr Oberoi said a feasibility study has been commissioned, and that it would be a division of EIH, if the project fructifies.

Luxury train project

Mr Oberoi said once all clearances for the luxury train project are obtained, the project would be completed within 18 months from zero date. The total cost is said to be Rs 60 crore, with an equity component of Rs 20 crore, and EIH's share would be 60 per cent of the total cost.

Asked how will the package tickets be priced, he said: "we will charge 50 per cent more than Palace on Wheels".

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