Kolkata, Aug 5 (IANS) Hospitality major EIH Ltd, which runs hotels and resorts under the Oberoi and Trident brands, would be focusing more on managing properties instead of owning them, its chairman P.R.S. Oberoi said here on Wednesday.
“Currently, we own a substantial part of our properties. In fact, only three hotels – the Oberoi Gurgaon, Trident Gurgaon and Trident Hyderabad – are managed and the rest are owned by us. But managing the properties than owning them is the way forward,” Oberoi told media persons after the company’s 65th annual general meeting here.
“In future, our endeavour is to manage more properties and not own them, that is how most companies are now operating. Currently, we own 80 percent of our properties but in the future that will go down. Few years down the line, I would hope to see almost 90 percent of the properties to be managed,” said Oberoi.
While the industry is expected to remain subdued due to higher supply of rooms, the company is hopeful of increasing its revenue to Rs.1,400 crore from the Rs.1,366 crore it earned in 2014-15.
“The performance of the hotel industry has been subdued mostly because of higher supply of rooms in almost all locations across the country. The scenario is likely to continue unless there is a drastic change. But we hope to improve our performance and targeting a revenue of Rs.1,400 crore,” said Oberoi.
Talking about its overseas projects, Oberoi said its hotel in the United Arab Emirates and in Marrakech, Morocco were progressing and scheduled to open by April next year.
The company is also hopeful of getting environmental clearance for operating the proposed Reliance property in Navi Mumbai.
“The project has been stalled because we are yet to secure the environmental clearance. Once that is done, the construction will start. We are hopeful of getting the clearance,” added Oberoi.