Oberoi Hotels group will acquire an equity stake in a Pune-based company for Rs 254 crore, for development of a mixed use project including a Trident Hotel and a commercial complex at an investment cost of Rs 972 crore.
EIH Ltd, the flagship company of the Oberoi group, will acquire a 51 percent equity stake in Pune-based hospitality and commercial real estate firm Muttha Towers II Pvt Ltd, which had total assets worth Rs 175 crore at the end of March 2024. The target company was incorporated in 2019, and owns a parcel of land measuring 1.7 acres, said EIH.
“Investment in the target company will enable (EIH Ltd) to expand its business operations,” said EIH in a filing to stock exchanges.
The proposed Trident Hotel will have a capacity of approximately 175 keys, and will be spread over an area of 1.81 lakh square feet. The proposed commercial complex will have office spaces and food and beverage focused retail outlets spread over 4.08 lakh square feet, according to the filing.
The commercial operations of the development are expected to commence in Q1 of FY 2029-30, said EIH.
Separately, in another filing, EIH Ltd said it will invest in a new company to be incorporated in the United Kingdom, for hotel operations in London. EIH will own a 51 percent equity stake in EIH London Investments Ltd, by eventually subscribing to up to 12.75 million shares of GBP 1 each.
“Investment in the target company in the UK will enable (EIH) to have a hotel presence in London, with the UK being a key source market,” said EIH in the filing.
The UK firm will develop a luxury hotel -- The Oberoi, London -- for domestic and international travellers, at an investment of about GBP 15 million. The hotel will be operational by the fourth quarter of financial year 2027-28.
EIH Ltd made news over the weekend, with the Delhi High Court restraining Oberoi Group holding companies from transferring shares held by late PRS Oberoi. The case involves a legal dispute among PRS Oberoi’s children, regarding control over substantial holdings in EIH and a family villa.
EIH Ltd shares were up about 1 percent on Monday, 16 September, trading at Rs 384. The stock has gained about 53 percent so far this year since January, beating NSE Nifty 50, which has risen about 16 percent.
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