The Oberoi Hotels group, known for its luxurious properties in India, is making waves in the international market with its recent ventures. The group’s flagship company, EIH Ltd, is set to acquire a majority stake in Muttha Towers II Pvt Ltd, a Pune-based company, for approximately ₹254 crore. This move will pave the way for a mixed-use development project, including a Trident Hotel and a commercial complex, with a total investment cost of around ₹972 crore.
With this acquisition, EIH Ltd aims to expand its presence in the hospitality sector and tap into new markets. The target company, Muttha Towers II, was established in 2019 and holds assets worth ₹175 crore. The deal also includes a prime land parcel spanning 1.7 acres, providing ample space for the development.
The upcoming project in Pune will feature a Trident Hotel with approximately 175 keys, covering an area of 1.81 lakh square feet. Additionally, the commercial complex will encompass 4.08 lakh square feet, offering office spaces and food & beverage outlets. Operations are expected to commence in the first quarter of the financial year 2029-30.
In parallel to its Pune venture, EIH Ltd is also venturing into the UK market with the establishment of EIH London Investments Ltd. The company will focus on hotel operations in London, with plans to develop The Oberoi, London. EIH will acquire a 51% equity stake in the new venture, investing approximately GBP 15 million. The hotel is projected to cater to domestic and international travelers, with operations set to begin in the fourth quarter of the financial year 2027-28.
Despite its ambitious expansion plans, EIH Ltd recently faced legal challenges related to share transfers within the Oberoi Group holding companies. The Delhi High Court issued a ruling prohibiting the transfer of shares held by the late PRS Oberoi, leading to ongoing disputes among the heirs. On the financial front, EIH Ltd’s stock witnessed a 1% increase on September 16, trading at ₹384. Year-to-date, the stock has surged by 53%, outperforming the NSE Nifty 50 index.
Overall, EIH Ltd’s strategic investments in Pune and the UK signify a significant growth trajectory for the Oberoi Hotels group. By enhancing its hospitality offerings both domestically and internationally, the group is poised to strengthen its position in the competitive hospitality industry.
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