Hotels

Mark of Indian hospitality

P R S Oberoi Chairman East India Hotels

PRS Oberoi, chairman, East India Hotels, wants to continue the Oberoi tradition of pioneering the hospitality industry and striving for excellence in high-potential locations from the Middle East and Africa to Asia Pacific

'We are committed to meeting and exceeding the expectations of our guests through our unremitting dedication to every aspect of service', reads the mission of East India Hotels (EIH) owned by the Oberoi Group.

Founded in 1934 by M S Oberoi who mortgaged all his assets, including his wife's jewellery, to open the group's first hotel - The Clarkes in Shimla - the Oberoi Group has grown phenomenally. Today, it owns and manages 30 hotels across Asia, Africa and the Middle East and five luxury cruisers across six countries under the Oberoi and Trident brands. The group is also into airline catering, management of restaurants and airport bars, travel and tour services like car rental, project management and corporate air charters.

The group opened its first Trident Hotel in Chennai in 1988 and the chain has expanded ever since to locations like Agra, Udaipur, Kochi, Jaipur, Bhubaneshwar and recently in Gurgaon. The group also operates Trident Hotels in the Saudi Arabian cities of Jeddah and Khamis Mashayt.

The game plan

The group has seen the development of new luxury resorts in India and overseas in the last few years. In India, these include The Oberoi Rajvilas in Jaipur, The Oberoi Amarvilas in Agra, Wildflower Hall in Mashobra (Himalayas), The Oberoi Vanyavilas in Ranthambhore, The Oberoi Cecil in Shimla and The Oberoi Udaivilas in Udaipur. Overseas, the new hotels are The Oberoi in Mauritius and The Oberoi Sahl Hasheesh in Egypt. "The group's new resorts have created a reputation for the highest levels of luxury among resort hotels around the world," says P R S Oberoi, chairman, EIH. Recently, The Leading Hotels of The World (LHW) accredited spas at six Oberoi resorts in India as 'Leading Spas of the World', making them the only spas in India to achieve that status.

Recognising the importance of quality training in hospitality management, the group also established The Oberoi Centre of Learning and Development in New Delhi in 1966. Today, this institution is considered among the best in Asia with approximately 100 students graduating each year. "We aim to be a company that aims at leadership in the hospitality industry by understanding its guests, and designing and delivering products and services which enable it to exceed their expectations," ascribes Oberoi.

Keeping in step with its vision, the group recently announced a strategic alliance for Trident Hotels with Hilton International Company. This covers nine hotels with approximately 1,900 rooms across India under the Trident Hilton brand. Today, the Trident brand is no longer the mid-market brand that it initially positioned itself as but is now vying for a share of the five-star market.

Another effective strategy that the group has adopted to spearhead its global market penetration is the setting up of an international sales and marketing network with sales offices in New York, London, Dubai, Singapore and several cities within India. These offices enable hotel bookings through a private reservation system.

A distinctive feature of the group's hotels is its well-trained staff. "We see a multi-skilled workforce, which consists of team players who have pride of ownership, translating the organisation's vision into reality. We are also an organisation where people are nurtured through learning and skill improvement, and are respected, heard and encouraged to do their best. Moreover, we see a multinational workforce which has been exposed to different cultures, problems and situations and can use their experience to train the local employees, whether in India or overseas," Oberoi says.

The group also claims to follow environmental practices. "We show our commitment to the ecology by using natural products and recycling items, thereby ensuring proper use of diminishing natural resources," he says. In the same spirit, The Oberoi Group also supports philanthropic activities that range from education to assistance for the mentally and physically challenged and is a keen contributor to the conservation of natural and cultural heritage. Oberoi says, "We need to be conscious of our role in the community, supporting social needs and ensuring employment to the local population."

On the horizon

EIH is now considering the merger of some subsidiaries with the company to help the promoters increase their stake to 51 per cent. "We are looking at it and are evaluating the outcome. This is the trend of today's corporate world as it simplifies accounting and saves money," he says. EIH has six subsidiaries: Mercury Travels , Mashroba Resort, Rajgarh Palace Hotel and Resorts, Oberoi Kerala Hotels and Resorts, EIH International and Mymtaz Hotels.

The Oberoi Group is now planning to expand to Thailand, Cambodia, South Africa and the UAE (Dubai) through management contracts. "We also plan to build a 450-room hotel in Bandra-Kurla in Mumbai at an investment of Rs 600 crore and buy a property in Bangalore. The company has already acquired the land and appointed an architect for the project," Oberoi says.

EIH also plans to undertake several new projects both at home and abroad but will opt for management contracts of properties with little or no equity participation. "We have too many assets when we should be having more managed-hotels within our portfolio. Our aim is to rectify this position and raise the number of managed hotels within India from just one currently to at least six or seven in the next five years," Oberoi says. EIH is also looking for hotels in Hyderabad, Kolkata, Pune, Delhi and Ahmedabad.

Currently, the group is in talks with leading international venture capital firms to raise funds for its expansion. The group is looking at raising close to Rs 1,000 crore through this route.

Oberoi believes…

With India making a mark for itself in the global tourism and hospitality arena in the last few years, tourism in the country is expected to grow manifold. Oberoi predicts, "As a result of this boom, we are going to witness an unprecedented growth in the Indian hospitality business. Not only will metros be areas of hotel development but also emerging tourist and business destinations of the country. On account of competing on a global scale, India will also witness a rise in mergers with international firms. This will lead to Indian hotel brands entering international markets especially the Middle East and Far East countries."