EIH is looking for a Chinese partner with suitable property in either Beijing or in Shanghai for a new Oberoi-managed hotel venture. Mr P.R.S Oberoi, Chairman of the company, told reporters on Tuesday that EIH, in line with its stated policy of managing hotels rather than owing them for its future expansion, was considering taking the Oberoi brand to the fastest growing and globally crucial China market.

The group operates 29 hotels and three cruises in five countries under the luxury “Oberoi” and five-star “Trident” brands. However, he made it clear that the company was not contemplating any major capital expenditure this fiscal. The chairman said that EIH would only take up renovation work in Mumbai (Trident) and Bangalore at a cost of Rs 40 crore.

Mr Oberoi said proceeds of the rights issue and better cash flow last fiscal enabled EIH to reduce borrowing by Rs 1,100 crore. The consequent savings in the interest should have positive effect on the profitability in the current year, he hoped.

Finances of all the on-going projects here and abroad have been tied up. He indicated no new project would be taken up for financing in the next seven months before the fiscal end. In September, the flight kitchen at the Delhi international airport would be ready, he said.

Related Topics
comment COMMENT NOW