EIH to manage Reliance property in Navi Mumbai

East India Hotels (EIH), which owns and manages the Oberoi and the Trident brand hotels, would enter into a management contract with Reliance for the latter's property in Navi Mumbai, chairman P R S Oberoi said today.

"EIH will probably manage the Reliance property which will come up at Navi Mumbai on their land," Oberoi told reporters after the company's AGM here.

Asked whether this model would be replicated in other cases, Oberoi said that it was the decision of Reliance Industries. "We have not said anything on these lines to Reliance."

The Navi Mumbai project would be a Trident property with a 160-room hotel and service apartments. Reliance has 15 acre in the area.

The shareholders of EIH approved the induction of Nita Ambani, wife of RIL Chairman Mukesh Ambani, as a board member of the company.

Mukesh Ambani-led Reliance group holds 18.53% stake in EIH through Reliance Industries Investment and Holding Private Limited.

Asked whether ITC, which holds 14.98% stake in EIH, was in a position to claim a berth in EIH board, Oberoi categorically said, "No". Earlier, Oberoi told shareholders that the promoters would continue to increase holdings in the company.

At present, promoter holding in EIH is 35.23%. Speaking about expansion plans, Oberoi said that the company had seen a couple of sites in Ahmedabad.

Other areas where Oberoi and Trident hotels were coming up were at Pune and Hyderabad, he said. The proposed Oberoi hotels at Bangalore and Goa were awaiting environmental clearances, Oberoi said.

About overseas ventures, Oberoi said that China was being looked as a serious destination starting with Shanghai, along with Marakkech, Casablanca, Dubai and Sri Lanka.

In all these cases, EIH would not own any property, but only go for management contracts.