At 82, Oberoi group's Chairman, PRS Oberoi to diversify the 78 year old brand

NEW DELHI: Oberoi group Chairman PRS Oberoi plans to leverage his 78-year-old iconic hotel brand to enter other segments of the luxury business, including branded condominiums and premium foods. This will be the first instance of an Indian business house extending its family brand in the luxury space beyond its core business.
In an exclusive interview with ET, the 82-year-old hotelier said he will build the first Oberoi-branded residences in Bangalore and is considering launching Oberoi-branded food in the premium segment.
"You see, today you cannot build a hotel by yourself in any city. Land is too expensive. You have to have multi-use. It can be hotel, service apartments, residences (condominiums). We are planning one in Hebbal in Bangalore. We have a nice piece of land, overlooking a lake. We will build Oberoi residences and sell them on our own," Oberoi said. "If we do it right, two-thirds of a hotel's cost can come from there," he added.
Oberoi will follow in the footsteps of global hotel giants such as Four Seasons and Ritz Carlton that have launched branded residences worldwide and have similar plans for India. International luxury brands like Armani and Versace too have launched branded condominiums.
In India, business houses such as the Tatas and Godrej have already forayed into the real estate space, but have restricted themselves to the affordable and the premium categories.
Oberoi said he wanted to foray into the food segment, but hasn't "anything planned yet." Launching branded chocolates is an option, but it is not a big market, he added. "We have to find something that has a bigger market. Food has been on my mind for some time, though distribution is a problem," he said.
The octogenarian indicated he isn't hanging up his boots yet and would lead the race for the lease for the New Delhi property that houses the landmark Taj Mahal hotel operated by Tata Group.
"It's a good location and there are not many hotels in Delhi," he said, adding that what Taj is paying this year—17.5 per cent of gross revenues-—might be an indication to future bidders and he feels it will be a tough contest between hotel companies, who are likely to bid aggressively. If he manages to win the lease, he will spend at least Rs 250 crore to rebuild it like a luxury hotel.