Oberoi Hotels' parent company, EIH, has recently unveiled its strategic move to enter the London market by establishing a new Oberoi Hotel by March 2028. This expansion plan includes the formation of a new entity in the UK with an authorized share capital of £30m, in which EIH and its subsidiaries will hold a controlling 51 percent stake. Moreover, EIH, which is also known as the flagship company of the Oberoi group, is set to acquire a majority 51 percent equity stake in Muttha Towers II Pvt Ltd, a Pune-based company involved in hospitality and commercial real estate.
In another significant development, Reliance Industries (RIL), a major stakeholder with 18 percent ownership in EIH, has announced a joint venture with Oberoi for managing three properties, including one in the UK. The entry of Oberoi Hotels into the UK market is particularly noteworthy for Indian hospitality brands in London, where competitors like the Taj Group currently operate two hotels. This move aligns with a broader trend of Indian companies expanding their footprint in international markets, with the Hinduja Group also participating in London's luxury hotel sector by redeveloping Winston Churchill's former Old War Office.
The investment in Muttha Towers II Pvt Ltd by EIH aims to bolster its business operations and facilitate the development of a mixed-use project in Pune. This ambitious project, with a total cost of Rs 972 crore, will encompass a Trident Hotel along with a commercial complex featuring office spaces and food & beverage retail outlets. EIH's strategic investment in this Pune-based company, which owns a 1.7-acre land parcel and is expected to commence commercial operations in the first quarter of the financial year 2029-30, underscores its commitment to expanding its presence in both the hospitality and commercial real estate sectors.