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Taj – Oberoi to take on international hotel chains

Mumbai, July 17 () : India’s reputed brand names Taj and Oberoi have sounded the alarm bells with major international hotel chains entering the sector with big plans.

Taj has told its shareholders that coming days would be tough with almost all the top 20 leading world hotel chains stepping into India. Global hotel brands operating in India are Marriott, Hyatt Hotels Corp, InterContinental Hotels Group (IHG), Hilton Worldwide, Accor SA and Starwood Hotels and Resorts Worldwide.

Icra, a market research agency report says more than 850 new properties will be opened in India by these international hotel chains in a span of five-eight years. Together they will be adding around 65,000-100,000 new rooms to the existing capacities.

Oberoi group has expressed concern with major international brands expanding their footprint in India. It noted that in the luxury segment, in most cities supply exceeds demand.

An analysis in EIH Ltd’s annual report said it operates hotels and cruisers under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. It presently owns 20 hotels in India under both brands. Taj Hotels Resorts and Palaces, operates through four brands and 93 properties in India.

Indian Hotels Co Ltd (IHCL), owners of the Taj Hotels brand and other popular brands such as Vivanta by Taj, Gateway and Ginger (through Roots Corp), bank heavily on its luxury hotels for revenue generation. IHCL’s latest annual report notes that major hotel chains are entering Indian subcontinent, Southeast Asia and AsPac (Asia-Pacific).

Oberoi EIH will open two hotels in Hyderabad with a total of nearly 550 rooms. A jungle lodge in Karnataka and two branded residences are on the cards. Lonavala, Guwahati, Dwarka, Gurgaon and Coorg will soon have Taj brand Vivanta hotels. Taj will open 10 Gateway hotels and 65 Ginger brand hotels.