EIH Limited | The Oberoi Group

Media Releases

EIH Limited 61st Annual General Meeting, August 2011

August 09, 2011

First Quarter 2011-2012:
- Total Revenue increases by 25%
- EBIDTA increases by over 100%
Debt reduction of approximately र 1100 crores
Substantial savings in interest cost as a result of reduction in debt to further contribute to profitability during 2011-2012

Kolkata, 9th August, 2011:

Addressing the Sixty-first Annual General Meeting of EIH Limited (the flagship Company of The Oberoi Group) held in Kolkata today Mr. P.R.S. Oberoi, Chairman said "There was an expectation that global economies would see a recovery in 2011. Unfortunately, this is not happening. Global economies and the economic environment are volatile and the world is confronted with economic uncertainties which could impact the Company's business".

Mr. Oberoi also said that "The profitability of the Company for 2010-2011 would have been better than in 2009-2010 had it not been for an increase in interest costs amounting to र 54 crore."

The total Revenue for the year ended 31st March, 2011 was र 1142.95 crores as compared to र 907.27 crores in the previous year which represents an increase of 26%.
The EBITDA was र 334.05 crores as compared to र 257.9 crores in the previous year which is an increase of approximately 30%.
The Profit after Tax was र64.54 crores as compared to र 57.23 crores in the previous year which is an increase of approximately 13%.

The Dividend has been approved at 90 paise per Equity Share as compared to र 1.2 per Equity Share in the previous year. The Dividend will be paid on the expanded capital after Rights Issue. Had the dividend been computed on the number of issued shares before the Rights Issue, the Dividend would have been र 1.31 per Equity Share.

Mr. Oberoi added, "I am happy to say that the operating results of the first quarter of this Financial Year are much better than in the first quarter of the previous Financial Year:

Total Income has increased from र 205.16 crores to र 255.84 crores which represents an increase of 25%.
The EBIDTA has increased from र 25.95 crores to र 57.11 crores which is an increase of over 100%.
The Profit before Tax has increased to र 14.95 crores from a loss of र 28.07 crores".

Proceeds from the Rights Issue and better Cash Flow has enabled the Company to reduce its borrowings by about र 1100 crores. The consequent savings in interest should have a positive effect on the Company's profitability in the current year.

Mr. Oberoi added "The Oberoi Group continues to be recognised internationally by travellers as being amongst the best hospitality groups worldwide. This is a source of pride and satisfaction for all of us. For instance, Travel + Leisure , a leading international travel magazine has, in a recent readers' poll, ranked three Oberoi hotels 1^st, 3^rd and 4^th in Asia. Three Oberoi hotels have been ranked amongst the fifteen best in the world. Two Oberoi city hotels, The Oberoi, Mumbai and The Oberoi, New Delhi, have been ranked amongst the top city hotels in Asia.

Mr. Oberoi further added:

Trident, Bandra Kurla, Mumbai which completed its first full year of operations during the last Financial Year, is helping to consolidate our position in Mumbai.
The recent opening of The Oberoi, Gurgaon further strengthens our position within the New Delhi National Capital Region.

The status of other projects on hand is as follows:

Two hotels to be managed by us at Cyber City, Hyderabad are under construction. Trident, Hyderabad consisting of 326 rooms and suites is expected to open in the third quarter of 2012 followed by The Oberoi which will have 220 rooms and suites and will open in 2013.
Construction of the 252 room, The Oberoi, Dubai which is located at Business Bay, is progressing well and the hotel is expected to open in the second quarter of 2012. This hotel will be managed by a wholly owned overseas Subsidiary Company.
Planning of The Oberoi, Marrakech (Morocco) has been completed and construction is expected to commence shortly; this hotel will be managed by a wholly owned overseas Subsidiary Company. The hotel is expected to open in 2014. In addition to the hotel, branded residences for sale are planned on an adjacent site after the hotel opens.
The Oberoi Kabini Jungle Lodge, located in Karnataka will open in 2012. This will be a managed property.
The Company owns a 55 acre beach front site in Goa. Planning approval for luxury hotel is awaited.
MOUs have been signed in respect of hotel projects at Casablanca and Pune. Planning on these projects is ongoing. A resort hotel just outside Chandigarh is planned and construction is expected to commence later this year.
Architects for a new 250 room The Oberoi, Bangalore have been selected and planning has commenced. In addition to the hotel, 65 luxury branded residences are planned which will be sold when the hotel opens.
A new flight kitchen is under development at New Delhi International Airport and will be fully operational by September, 2011.

The above developments will increase our future revenue and profitability.

In conclusion Mr. Oberoi said, "India faces several challenges. Inflation needs to be curbed. Increase in interest rates and the recent scandals do not augur well for foreign direct investment. Terrorism has emerged as a key challenge and could be a deterrent to the growth of the country's travel and tourism industry".

For further information, please contact:

Ms. Nazreen Ahmed
Manager - Communications,
The Oberoi Grand,
15, Jawaharlal Nehru Road,
Kolkata 700 013.

Telephone : (033) 2249 2323

Ms. Silki Nanda
Director - Corporate Communications,
EIH Limited,
7, Sham Nath Marg
New Delhi 110 054.

Telephone : (011) 2389 0505

EIH Limited Press Release, May 2011

May 30, 2011

Total Revenue increases by 26% to र 1142.95 crores
EBIDTA increases by 30% to र 334.05 crores
Outlook for the current year encouraging

Gurgaon, May 30, 2011

The Board of Directors of EIH Limited (a member of The Oberoi Group) met on Monday, 30th May, 2011 and announced the Audited Results for the Financial Year 2010-2011.

The Company's Total Revenue, including Other Income, during the Financial Year was र 1142.95 crores compared to र 907.27 crores during the previous year. This represents an increase of 26%.

EBIDTA during the Financial Year was र 334.05 crores compared to र 257.91 crores during the previous year. This is an increase of nearly 30%.

The Profit before Tax was र 87.00 crores against र 88.99 crores during the previous year.

The Consolidated Total Revenue, including Other Income was र 1296.87 crores compared to र 1047.74 crores in the previous year.

The Company made a Rights Issue of 17,86,15,442 Equity Shares of face value र 2 each at a premium of र 64 per Equity Share (Issue Price र 66 per Equity Share). The Rights Issue raised र 1178.86 crores to the existing shareholders. The proceeds will help the Company to substantially reduce debt, bring down interest costs and enhance profitability.

A dividend has been proposed at र 0.90 per Equity Share. Following the Rights Issue allotment on 26th March, 2011 the number of Equity Shares on which the dividend will be paid has increased from 39,29,53,972 to 57,15,69,414.

The Chairman, Mr. P.R.S. Oberoi stated, "It was widely expected that the global economy would recover during the current Financial Year, reversing the trend of the previous two years. Unfortunately, this has yet to happen. The US economy is still slow. A number of European Union Member States still face the threat of a sovereign debt crisis. Oil prices remain volatile. If the political upheavals in the Middle East and North Africa intensify, oil price volatility will increase. The crises in Japan is also a source of concern, although it is too early to predict the impact of this globally. These factors paint an uncertain and challenging global environment. In contrast, the economic environment in India continues to be buoyant. Despite concerns over oil price volatility and rising inflation, the Indian economy is expected to continue to grow. The domestic economic growth will have a positive impact on the demand for hotel rooms."

Mr. Oberoi further added, "The Oberoi Gurgaon consisting of 202 keys opened on 12th April, 2011. We hope that the hotel will redefine the city hotel experience with a design philosophy of height, light and space. We expect demand to be strong for hotels in the National Capital Region. The Company's two luxury business hotels, The Oberoi New Delhi and Trident Gurgaon, are located in this region. The opening of The Oberoi Gurgaon will further enable the Company to take advantage of the strong demand for hotel rooms in the New Delhi National Capital Region."

Mr. Oberoi concluded by saying, "We expect the overall outlook for the current Financial Year to be stable with a continuing revival of demand for hotel rooms which began during the last few months."

EIH Limited Press Release, March 2011

Mr. P.R.S. Oberoi receives '2010 Corporate Hotelier of the World' award, November 2010

Mr. P.R.S. Oberoi receives '2010 Corporate Hotelier of the World' award

16th November 2010, New York, USA: Mr. P.R.S. Oberoi, Chairman and Chief Executive Officer of EIH Limited, the flagship company of The Oberoi Group, has been presented with the '2010 Corporate Hotelier of the World' award by HOTELS magazine. In its 29th year, the annual 'Hotelier of the World' award is determined by votes cast by readers of the magazine in more than 150 countries.

Mr. Oberoi received the award at a reception held at the New York Palace in New York on 15th November 2010.

The cover story of the November edition of HOTELS magazine refers to Mr. Oberoi as 'the founder father of modern luxury hospitality in India'. It credits Mr. Oberoi with growing the company 'into one of the world's most prestigious luxury hotel groups'.

In addition to providing leadership for the management of luxury hotels in several countries, Mr. Oberoi has been instrumental in pioneering the development of the new Oberoi hotels and resorts. The "Oberoi" brand has come to represent fine luxury hotels offering personalised service.

Mr. Oberoi is credited with placing Oberoi hotels on the international luxury travellers' map with the opening of several new luxury hotels in Mauritius, Indonesia, Egypt and hotels in India at important tourist destinations such as Jaipur, Agra, Udaipur, Ranthambhore and Mashobra in the Himalayas. Mr. Oberoi has directed the development of these hotels breaking ground in new destinations and redefining architectural and design standards in luxury hospitality.

Recently, The Oberoi Vanyavilas, Ranthambhore was ranked the best hotel in the world in Travel + Leisure magazine's 2010 World's Best Awards readers' survey. This is acknowledged amongst the most revered rankings in the international travel industry as it is the readers who determine excellence in travel. In the same readers' poll, The Oberoi Vanyavilas, Ranthambhore; The Oberoi Amarvilas, Agra; The Oberoi Rajvilas, Jaipur and The Oberoi Udaivilas, Udaipur were ranked 1^st, 2^nd, 3^rd and 4^th respectively in Asia and 1^st, 5^th, 13^th and 15^th respectively in the world.

Further notes to the Editor:
About HOTELS magazine:
Published for more than 40 years, HOTELS magazine reaches more than 99,000* readers each month in more than 150 countries through online and print communications, providing hotel owners, managers and chain executives with a global perspective on news, finance, development, technology, design, food and beverage, trends and more.

*Spring 2009 Total Audience Profile

Four Oberoi hotels ranked amongst 30 best in the world and 10 best in Asia, October 2010

Wildflower Hall, Shimla in the Himalayas rated India's Leading Spa Resort, October 2010

The Oberoi Zahra, Luxury Nile Cruiser receives Award of Excellence from Ministry of Tourism, Egypt, October 2010

The Oberoi Zahra, Luxury Nile Cruiser conferred 'Award of Excellence' by Ministry of Tourism, Egypt

6th October 2010, Cairo, Egypt: The Oberoi Zahra, The Oberoi Group's luxury cruiser on the Nile in Egypt, has been conferred the 'Award of Excellence' in 'Tourism and Biodiversity' by the Ministry of Tourism, Egypt. For the second year in succession, The Oberoi Zahra has been recognised for its unremitting commitment to excellence and remarkable effort in promoting tourism to Egypt. This year the luxury cruiser has also been acknowledged for its initiatives towards the conservation of biological diversity.

Instituted by the Ministry of Tourism, Government of Egypt, these are the most coveted awards in the travel and tourism industry in Egypt. Conferred annually in various categories, the awards recognise exceptional performance and contribution to promoting Egypt as a tourist destination.

Mr. Liam Lambert, President, Oberoi Hotels & Resorts said, "We are honoured and proud to receive this acknowledgement. This award is recognition of our staff's dedication to exceed guests' expectations and Oberoi Hotels & Resorts' relentless commitment to offering the highest standards of hospitality in a manner that is environmentally and socially sustainable."

Further notes to the Editor:

About The Oberoi Zahra, Luxury Nile Cruiser, Egypt
The Oberoi Zahra, continues The Oberoi Group's tradition of offering the highest standards of hospitality. Offering amongst the most spacious accommodations on the Nile, it is the only boat on the river with a full-service spa. The leisurely seven-night itinerary of the cruiser includes private docking in most ports allowing guests an almost exclusive viewing of the sites. Additional facilities on the cruiser include a theater, Library and Cigar Lounge, outdoor swimming pool, well-appointed gymnasium and a restaurant that offers a new menu every day and an elaborate a la carte service. www.oberoihotels.com/oberoi_zahra

About Oberoi Hotels & Resorts
Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of luxury, impeccable service and quiet efficiency. Internationally recognised for all-round excellence and unparalleled levels of service, Oberoi Hotels and Resorts have the distinction of receiving innumerable awards and accolades. Luxury as a unique, memorable and personal experience is core to the Oberoi philosophy. It encompasses every element of a guest's stay at the hotels that creatively combine breathtaking locations, luxurious environs and the best of modern amenities with personalised service delivered with care. Presently, there are 19 luxury Oberoi hotels, resorts and cruisers across five countries. www.oberoihotels.com

About The Oberoi Group The Oberoi Group, founded in 1934, operates 31 hotels and cruisers under the luxury 'Oberoi' and five star 'Trident' brands in India, Egypt, Mauritius, Indonesia and Saudi Arabia. The Group is also engaged in flight catering, managing airport restaurants, travel and tour services, car rentals, project management and corporate air charters.
www.oberoihotels.com | www.tridenthotels.com

EIH Limited Annual General Meeting, August 2010

Oberoi Hotels ranked amongst the best in Asia and in the world.

Steady growth. 10 new projects under planning and development.

Profitability in 1st Quarter better than in the previous Quarter.

24th August 2010, Kolkata, India: Addressing the Sixtieth Annual General Meeting of EIH Limited (the flagship Company of The Oberoi Group) held in Kolkata today, Mr. P.R.S. Oberoi, Chairman stated, "The Oberoi, Mumbai which was destroyed by the terrorists in November, 2008 re-opened on 24th April, 2010. The Oberoi, Mumbai has been well received by guests". Mr. Oberoi also said, "The Oberoi, Mumbai is now amongst the best in the region".

Mr. Oberoi added, "Travel + Leisure, a leading international travel magazine, has, in a readers' poll, ranked one of the Company's hotels as the Best Hotel in the World; four Oberoi Hotels have been ranked as number 1, 2, 3 and 4 Best in Asia and four Oberoi Hotels have been ranked in the first 15 in the world. No hotel company has received such distinction in the past. The above honours bear testimony to the levels of excellence and service standards that the Company has strived to maintain".

Mr. Oberoi also said, "The demand for hotel rooms in India should grow in this Financial Year. Whilst room rates should begin to improve, margins are likely to be under strain due to high inflation. Appropriate measures have been taken to contain costs, wherever possible, while ensuring service excellence".

The difficult financial landscape of 2009-2010 impacted the Company's performance during that Financial Year. As a result:

Total Revenue for the year ended 31st March, 2010 was Rs. 907.27 crores as compared to Rs. 1078.47 crores in the previous year;
The Profit before Tax was Rs. 88.99 crores as compared to Rs. 273.26 crores in the previous year;
The Profit after Tax was Rs. 57.23 crores as compared to Rs. 170.44 crores in the previous year.

Nonetheless, the previous year's Dividend of Rs. 1.20 per share had been maintained.

The operating results of the first quarter in this Financial Year are better than that of the first quarter in the previous Financial Year, without considering the estimated income from insurance claims accounted for in the previous Financial Year.

Thus:

Total Income for the first quarter increased from Rs.166.39 crores to Rs.205.16 crores. This represents an increase of 23.3%.
The Earnings before Interest, Depreciation, Taxation and Amortisation ("EBITDA") increased from Rs. 15.78 crores to Rs. 25.95 crores. This represents an increase of nearly 65%.

Mr. Oberoi further added, "On 12th July, 2010, we opened our first overseas Flight Kitchen venture at Mauritius. The Kitchen is owned through a wholly owned subsidiary. The 10,000 meals per day capacity Kitchen has cost us approximately US $ 24 million".

Mr. Oberoi pointed out that the Company had completed the following projects/acquisitions:

On 30th June, 2010 EIH International Limited, a wholly owned subsidiary of EIH Limited completed the acquisition of the 45.85% equity interest of Amex Investment Limited in its international hotels Joint Venture Company EIH Holdings Limited for US $ 45 million. With this acquisition, EIH Holdings Limited was now a wholly owned subsidiary of EIH International Limited.
The 440 key Trident at Bandra Kurla, Mumbai opened on 1st December, 2009. The hotel had been well received and occupancies were stabilising.

The opening of Trident, Bandra Kurla, Mumbai and the much anticipated successful re-opening of The Oberoi, Mumbai will ensure that the Company had the requisite inventory of rooms to cater to future demand.

The status of other projects on hand is as follows:

The Oberoi, Gurgaon consisting of 202 keys was expected to open during the fourth quarter of the current Financial Year.
Construction of the 103 key Trident hotel at Dehradun was on schedule. The hotel was expected to open in the spring of 2012.
Construction of the 229 key Oberoi hotel at Cyber City, Hyderabad was under way. This was in addition to a 323 key Trident hotel also under construction at the adjacent site. Both hotels were expected to open in phases beginning in the summer of 2012.
Construction of the 252 key Oberoi hotel in Dubai located at Business Bay was progressing. The hotel is expected to commence operations in the last quarter of 2011 or in the first quarter of 2012.
Planning had commenced on Oberoi hotels in Abu Dhabi and in Oman.
Planning for The Oberoi, Marrakech, Morocco is under way.
Management Contracts for a hotel at Scorpio Bay, Greece and a second Oberoi hotel in Mauritius have been signed.
The new Flight Kitchen in Delhi was expected to be operational in March 2011.
The Flight Kitchen at Cochin was expected to be commissioned shortly; while the Calicut Flight Kitchen was expected to commence operations in early 2011.

In conclusion Mr. Oberoi further stated, "The last two and half years have been challenging due to the global financial crisis and the terrorist attack on Mumbai in November 2008. I am confident that we have the trained work force and the commitment to meet the challenges of the future and emerge stronger and more profitable".

EIH Limited 61st Annual General Meeting in Kolkata On Tuesday, 9th August, 2011

Oberoi Hotels ranked amongst the best in Asia and in the world.

Steady growth. 10 new projects under planning and development.

Profitability in 1st Quarter better than in the previous Quarter.

The difficult financial landscape of 2009-2010 impacted the Company's performance during that Financial Year. As a result:

Total Revenue for the year ended 31st March, 2010 was Rs. 907.27 crores as compared to Rs. 1078.47 crores in the previous year;
The Profit before Tax was Rs. 88.99 crores as compared to Rs. 273.26 crores in the previous year;
The Profit after Tax was Rs. 57.23 crores as compared to Rs. 170.44 crores in the previous year.

Nonetheless, the previous year's Dividend of Rs. 1.20 per share had been maintained.

Thus:

Total Income for the first quarter increased from Rs.166.39 crores to Rs.205.16 crores. This represents an increase of 23.3%.
The Earnings before Interest, Depreciation, Taxation and Amortisation ("EBITDA") increased from Rs. 15.78 crores to Rs. 25.95 crores. This represents an increase of nearly 65%.

Mr. Oberoi pointed out that the Company had completed the following projects/acquisitions:

On 30th June, 2010 EIH International Limited, a wholly owned subsidiary of EIH Limited completed the acquisition of the 45.85% equity interest of Amex Investment Limited in its international hotels Joint Venture Company EIH Holdings Limited for US $ 45 million. With this acquisition, EIH Holdings Limited was now a wholly owned subsidiary of EIH International Limited.
The 440 key Trident at Bandra Kurla, Mumbai opened on 1st December, 2009. The hotel had been well received and occupancies were stabilising.

The status of other projects on hand is as follows:

The Oberoi, Gurgaon consisting of 202 keys was expected to open during the fourth quarter of the current Financial Year.
Construction of the 103 key Trident hotel at Dehradun was on schedule. The hotel was expected to open in the spring of 2012.
Construction of the 229 key Oberoi hotel at Cyber City, Hyderabad was under way. This was in addition to a 323 key Trident hotel also under construction at the adjacent site. Both hotels were expected to open in phases beginning in the summer of 2012.
Construction of the 252 key Oberoi hotel in Dubai located at Business Bay was progressing. The hotel is expected to commence operations in the last quarter of 2011 or in the first quarter of 2012.
Planning had commenced on Oberoi hotels in Abu Dhabi and in Oman.
Planning for The Oberoi, Marrakech, Morocco is under way.
Management Contracts for a hotel at Scorpio Bay, Greece and a second Oberoi hotel in Mauritius have been signed.
The new Flight Kitchen in Delhi was expected to be operational in March 2011.
The Flight Kitchen at Cochin was expected to be commissioned shortly; while the Calicut Flight Kitchen was expected to commence operations in early 2011.

Sixtieth Annual General Meeting of EIH Limited, August 2010

Audited Results of EIH Limited for the Financial Year 2009-2010, May 2010