Oberoi New Delhi to reopen in Jan 2018, ahead of schedule

The iconic Oberoi Hotel in New Delhi, which was slated to open in April 2018, will be thrown open ahead of schedule in January. The hotel has been closed for renovation, since April 1, 2016.

"The Oberoi, New Delhi, was originally scheduled to open in early April 2018, after complete renovation. The on-site progress has been very satisfactory and the new hotel is likely to open in January 2018.

The Oberoi, New Delhi, is expected to retain its iconic position in the Capital, which it has occupied since it first opened in 1965. The total cost for renovation will be Rs 500 crore ," P R S Oberoi, executive chairman, EIH Limited, told reporters after the company's 67th annual general meeting here.

Elaborating on the facilities that will be available at the renovated hotel, Oberoi said that it would house 218 guest rooms, including 32 suites.

The rooms will be large, with spacious bathrooms affording beautiful views. Earlier, the hotel had 283 guest rooms, including 17 suites.

"The tariff of the refurbished hotel would be much higher," Oberoi added.

Before closure, the hotel was making an annual profit of Rs 65 crore. The estimated revenue loss for the closure would be around Rs 110 crore.

In the first quarter, EIH posted total revenue of Rs 303 crore, as against Rs 279 crore last year. Profit after tax was at Rs 11 crore, compared to a loss of Rs 12 crore last year.

Responding to queries about the impact of Goods and Services Tax, S S Mukherji, executive vice-chairman, EIH, said that hotels charging over Rs 7,500 would attract 28 per cent GST.

"At this juncture, it is difficult to say how much GST would impact the company's revenue," he added.