The Oberoi Beach Resort, Al Zorah | Image: Company website
EIH Ltd, the homegrown luxury hotel chain behind the Oberoi brand, is exiting the United Arab Emirates (UAE) hospitality market, according to media reports. This decision means that The Oberoi Beach Resort, Al Zorah, located in Ajman, will no longer be managed by the Oberoi Group after its contract with the local property owner was terminated. The 89-room luxury property, known for its suites and villas catering to high-end travellers, is set to be taken over by another international operator.
Al Zorah Resort, located just 30 minutes from Dubai, is a popular destination for luxury travelers, with room prices ranging from AED 1,000 to 8,000 (Rs 22,000 to Rs 1.8 lakh) per night. The resort has performed well in recent months, reportedly exceeding budget expectations, making the news all the more unexpected for the team.
According to a report by Mint, a company spokesperson confirmed that the management contract between EIH Holdings Ltd, a subsidiary of EIH Ltd, and Al Zorah Development Private Co Ltd would officially end on February 28, 2025. The spokesperson added that the decision was mutual and amicable. “The Oberoi Group remains committed to exploring new opportunities in the region,” they said.
The unexpected announcement was made by Vikramjit Singh Oberoi, managing director and CEO of EIH Ltd, at an emergency meeting held on Wednesday at Al Zorah. According to a report by The Economic Times, speaking before 400 employees of the resort, Oberoi shared the news of the partnership’s termination with Al Zorah Development Private Co Ltd, the property’s owner. Oberoi did not provide any specific reason for this abrupt decision, but assured employees that their jobs would be safe under the new management.
Employees shocked by Oberoi’s sudden exit
A resort employee, who spoke to Mint, said the news came as a shock. “Business had been outperforming budget expectations in recent months,” the employee said. “We were informed that the management would be handed over to another international operator within a few months. The owners reassured us that all employees would be retained, but we are still feeling insecure.”
Despite the reassurances from the property’s owners, employees are understandably anxious about the transition.
Oberoi Group’s plans in the region
Though the termination of the Al Zorah contract marks the end of Oberoi’s current presence in the UAE, the group has signaled its willingness to remain involved in West Asia’s growing hospitality market. With the luxury hotel market expanding, the Oberoi Group may explore new ventures in other parts of the region, maintaining its brand’s reputation for exceptional service and high-end hospitality.
First Published: Sep 20 2024 | 11:25 AM IST
