Oberoi, Ktdc To Set Up Hotels In Kerala

East India Hotels, owners of the Oberoi chain, has entered into a joint venture with the Kerala Tourism Development Corporation. Christened Oberoi Kerala Hotels and Resorts, the joint venture will set up three premium hotels in the state at Bekel, Thekkady and Alleppey at an initial investment of about Rs 330 crore.

The Oberoi group will hold an 80 per cent stake in the venture, while the balance 20 per cent will rest with KTDC. The move was confirmed by officials of the Oberoi group as well as KTDC.

"The joint venture has been formed for setting up these properties. We are not in a position to comment further on the issue," a senior executive with East India Hotels said.

 

Senior KTDC officials said, "Land has been allotted to the joint venture company and construction is expected to start shortly.

In the first phase, around Rs 330 crore is envisaged to be invested in the project. During the second phase of fresh capital investment, KTDC would increase its stake to 26 per cent.

According to hotel industry analysts, the popularity of Kerala as a tourist destination has resulted in hotel chains making a beeline for the state.

Foreign tourist arrivals to Kerala have gone up by 102 per cent, from 1.04 lakh in 1994 to 2.11 lakh in 2000. The influx of domestic tourists too has increased 300 per cent to 51.56 lakh in 2000, from Rs 12.84 in 1994.

Founded in 1934, the Oberoi group operates in 7 countries with 37 properties, including the luxury Oberoi Hotels and Resorts and the superior first class Trident Hotels.

The group is also engaged in flight catering, airport restaurants, travel and tour service, car rentals, project and corporate air charters.