Oberoi Group partners with Reliance

The Oberoi Group is headed towards a strategic partnership with Mukesh Ambani-led Reliance Group for developing hotels and real estate property complexes in Bangalore and Goa. The hotel and leisure group’s patriarch, P R S Oberoi, said at a press conference after the 61st AGM of EIH Ltd on Tuesday that the Reliance Group, the “friendly investor” in EIH, could be the strategic partner of the group in a separate venture.
The emerging alliance, other than the present one in EIH, between the two groups will “most probably” be formalised in the near future. “We are preparing the plans,” Oberoi said. The proposed initial “multi-use” projects in Bangalore and Goa would be based on a new business model, not experimented by the 1934-founded Oberoi group. The Reliance group would be the key investor in the planned venture. Land, properties, EIH brand and management would be the contribution from the Oberois.
A new joint venture — would be floated to take up such future projects, the EIH vice chairman, SS Mukherjee explained. “In Bangalore, 8.2 acres of prime land and a 55-acre existing leisure property in Goa, both belonging to EIH, are being taken up for a residential-cum-hotel project, he said..” Oberoi said that at the centre of the project in Bangalore — to be named Oberoi Residency — would be an Oberoi-branded luxury hotel, which would “service” 60 apartments. “But these apartments are to be sold. Hence, they would not fall in the category of ‘serviced apartments’. In Goa, where EIH has beach front sites, a similar concept would be applied to build another Residency. “This business model could be replicated at leisure and city environs,” Mukherjee added. Oberoi indicated such a hotel-centred joint venture residency project overseas might come up in Marrakech in Morocco. Pune can also be another such project location. Oberoi also said that the new strategic