Oberoi in alliance mode for scale
Hospitality major Oberoi Group is said to be in advanced negotiations with Bangalore-headquartered realty developer Puravankara Projects (PPL) to develop four hotel properties in the south, according to an industry source.
By Urvashi Jha & M Rochan, TNN |
BANGALORE: Hospitality major Oberoi Group is said to be in advanced negotiations with Bangalore-headquartered realty developer Puravankara Projects (PPL) to develop four hotel properties in the south, according to an industry source.
Construction of the first project, located in Hebbal, north Bangalore, is expected to begin by the end of the fiscal. Mr Vikram Oberoi, joint managing director, the Oberoi Group, told ET that his company had initiated talks with PPL but did not divulge details.
In a bid to cash in on the demand for rooms, especially at the higher end of, the Oberoi Group has charted out an aggressive expansion plan in the south. The group is keen on taking the management-contract route to expand its business in India and abroad.
The group till date holds a significant equity in each of its properties. ‘‘We are quality driven, and unlike our competitors, are not chasing numbers. But given the escalating price of prime real estate, it makes good business sense to partner with property owners and develop hotels,’’ Mr Oberoi added.
The Oberoi Group has six ongoing projects in the country, with over 1,100 rooms under development.
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This includes Trident hotels in Mumbai, Bangalore and Hyderabad, a luxury hotel property in Gurgaon, and leisure hotels in Khajuraho and Goa. As on date, the group has 15 projects under development in nine countries, including India.The company has entered into management contracts for these projects. Sharing details on the domestic growth strategy, Mr Oberoi mentioned that the intention is to grow both brands (Oberoi & Trident) in India whereas international expansion will largely be driven by the Oberoi brand. ‘‘For the domestic market, we are in the process of unveiling a new brand positioning for Trident within the next six months,’’ Mr Oberoi added.
The Trident re-branding exercise follows the Oberoi Group’s decision to terminate its strategic alliance for marketing and co-branding with the US-based hospitality chain Hilton International, he added.
The alliance presently covers eight hotels across India under the ‘Trident Hilton’ brand. Puravankara Projects has already announced an over Rs 500-crore investment plan, spread over three years, for its hotel projects in the south. To start with, the company plans to set up luxury and business class hotels in Bangalore, Kochi and Coimbatore.
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PPL recently signed an MoU with Ibis, the budget offering from France-based Accor Group, to set up a 250-room hotel in Bangalore, managed by Ibis. Earlier this month, the Oberoi Hotels & Resorts was ranked Asia‘s leading luxury hotel brand by travel professionals across the world. ADVERTISEMENT
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