EIH Ltd, which runs the Oberoi and Trident group of hotels, has entered into a strategic alliance with Hilton International for a 15-year period for co-branding hotels in India under the Trident Hilton brand.
Nine hotels across India, including the Oberoi Towers in Mumbai, would be re-branded as Hilton Towers, following an agreement signed in Mumbai on Thursday.
EIH would pay a franchisee fee, a percentage of room sales for 15 years, P R S Oberoi, EIH, chairman, told newspersons in Mumbai.
He said Hilton would be responsible for marketing, promotion and reservations through the international network and ruled out any equity participation.
S S Mukherji, managing director, EIH, said the existing Trident hotels in Agra, Bhubaneswar, Chennai, Cochin, Jaipur and the proposed new hotels in Gurgaon and Mumbai would be re-branded as Hilton Trident.
Asked if Hilton would set up a hotel in India, David Michels, chief executive, Hilton Group, said, "We will try to understand the market here first and then possibly consider investing in India."
Oberoi said the agreement did not stop the Hiltons from adding rooms.
Both feel that the industry was looking up and the winter season "looks good" for India.
Mukherjee said under the alliance, EIH would continue to manage and operate all the hotels, most of which are owned by it or its affiliated companies, and would continue to undertake domestic marketing, promotion and reservations in India.
Michels said the new addition would give his customers a choice of nine locations in India and give access to Hilton Honours, one of the largest hotel loyalty programmes in the world.
"We expect the benefits from the alliance will significantly enhance foreign business and profitability of our hotels," he added.
The Oberoi Group owns and operates 30 hotels and four Nile cruisers in six countries under the Oberoi and Trident brands. The re-branding of the hotels is expected to be completed by March 31, 2004.
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