HomeTop StoriesOberoi Chief plans new ultra-luxury hotel brand

Oberoi Chief plans new ultra-luxury hotel brand

Vikram Oberoi, Managing Director and CEO of Oberoi Group, on stage at the Skift India Summit in Delhi-NCR on March 20, 2024, in conversation with Skift’s Sean O’Neill. Source: Skift.

Oberoi Group – known for luxury hotel brands Oberoi and Trident – is quietly developing an ultra-luxury hotel brand, the company’s top boss revealed on Wednesday.

“Some of those hotels will be in beautiful locations with a strong sense of place,” said Vikram Oberoi, managing director and CEO. “These will be much smaller hotels.”

The project to develop the new brand is known internally and temporarily as ‘Oberoi Nature’, Mr Oberoi said. He announced the project while speaking on stage at the Skift India Summit 2024 in Delhi-NCR.

The new brand will help support the group’s aim to double its total number of rooms by 2030 – a plan announced in November.

The growing pricing power of Indian hotels

Mr Oberoi’s plan to add an even more luxurious brand to the group’s portfolio fits into his broader view that hotels in India are generally not taking full advantage of the pricing power they possess.

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“If you compare us [India as a whole]Our rates offer fantastic value for money,” said Oberoi. “We can catch up with the rest of the world in terms of tariffs.”

According to Hotelviate’s Indian Hospitality Trends & Opportunities report 2023, rates for India’s branded and organized hotels average around $90 per night.

Oberoi said Indian travelers visiting Oberoi’s leisure and urban properties generally demonstrate a proven willingness to pay a higher rate than incoming international guests – a reversal of historical patterns for India as the country has an emerging economic becomes a superpower.

Oberoi Group’s growth plan

Over the past decade, Oberoi Group has barely expanded its pipeline, while rival players like IHCL (Indian Hotels Company), Aman Group and Rosewood have seen growth spurts. However, Oberoi Group announced in November that it planned to scale up.

“We want 50 new hotels by 2030,” Oberoi said on Wednesday.

In February 2023, Oberoi announced that he planned to open a series of “seven-star hotels” in India. The Oberoi Group of Hotels has entered into a Memorandum of Understanding with the Andhra Pradesh Tourism Department to build a seven-star hotel in Tirupati in India, reports New India Express. The tourism department has formally transferred a 20-hectare plot on Zoo Park Road near Alipri to the Oberoi Group on a lease and rent basis. The Oberoi Group also discussed interest in building seven-star hotels in Gandikota, Visakhapatnam, Pichchukalanka and Horsley Hills.

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Although Oberoi has a growth plan, Mr Oberoi said this would not come at the expense of quality.

“Our focus is not to be the biggest,” Oberoi said Wednesday. “That is not our playing field. Our focus is to be the very best. Our belief is that guests appreciate that and pay a premium for it. We invest enormous amounts – relative to our size – in the training and development of our staff.”

“We are far from perfect, but we strive for perfection.”

Accommodation sector share index performance to date

What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies that are publicly traded in global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations and timeshares.

The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies valued at more than a trillion dollars into one figure. See more performance from hotels and short-term rentals in the financial sector.

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Read the full methodology behind the Skift Travel 200.

Get the latest travel news and exclusive research and insights into hotels, airlines and tourism on Skift.com.

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