Oberois break up with Hilton

NEW DELHI/KOLKATA: Come April 2008, Trident Hilton Hotels will be re-branded as Trident Hotels, including Mumbai’s landmark Hilton Towers.

This follows a decision by East India Hotels, the owners of the Oberoi Group of hotels, to terminate its strategic alliance for marketing and co-branding with the US-based hospitality chain, Hilton International.

Currently, there are seven Trident Hilton properties across the country in Gurgaon, Agra, Jaipur, Udaipur, Bhubaneshwar, Chennai and Cochin, apart from Mumbai property, with a cumulative inventory of 1,900 rooms. The Oberoi-Hilton alliance came into effect in 2004. Following the break-up, Mumbai’s Hilton Towers will now be re-branded as Trident Towers.

EIH chairman PRS Oberoi said, “We wish to independently pursue the development of the Trident brand in India but could not do so and maintain the Hilton alliance at the same time.”

EIH has already chalked out an aggressive expansion plan for the Trident brand in the country, with new properties set to open at Bandra Kurla in Mumbai, at the new international airport in Bangalore, and at Hitech City in Hyderabad, adding another 1,300 rooms in the process.

Kolkata, Chandigarh and Delhi are the other prospective destinations for the Trident brand, a senior company executive said. Speaking to ET, EIH vice-chairman S S Mukherji said Hilton’s multi-brand strategy in India could dilute the positioning of the Trident brand. “Using the Hilton name along with mid-market brand such as Garden Inn can send confusing signals to the customer,” he added.

Till date, Hilton has been pursuing a three-pronged development strategy for India, including a 75-hotel JV with the real estate major, DLF Group, with a focus on the mid-market segment. The DLF JV is limited to three brands from the Hilton portfolio, including Hilton, Hilton Garden Inn and Homewood Suites. The first Hilton Garden Inn property is expected to get operational at Saket in Delhi in the first half of 2008.

Hilton International also continues to pursue hotel development with independent developers for other brands in its portfolio. The alliance between the Oberoi Group and Hilton was a 15-year franchisee agreement for eight Trident-Hilton properties.

Industry analysts said going forward Oberoi Group would position the Trident brand as a five-star first class business hotel. Even rivals see the parting of ways between EIH and Hilton as a positive development.

Dipak Haksar, vice-president, ITC Hotels, told ET, “EIH has taken a robust step. They have a strong brand through their own distribution system. It also shows the confidence they have in developing and growing the Trident brand in the country.”