HBI Staff | Hyderabad 
EIH Ltd, the operator of the Oberoi chain of luxury hotels and resorts, is making a surprising exit from the key hospitality market of the United Arab Emirates (UAE). On Wednesday, Vikramjit Singh Oberoi, the managing director and CEO, announced the decision to 400 employees at the Oberoi-run Al Zorah property in Ajman, following the sudden conclusion of its partnership with the local state government, which owns the property. No reasons for the decision were shared during the emergency meeting.
The 89-room luxury property, including suites and villas, is located 30 minutes from Dubai and caters to high-end travelers. Room prices range from INR 22,000 to INR 1.8 lakh per night.
According to two sources, including an employee with direct knowledge of the situation, the announcement came as a complete shock. “Business had been exceeding budget expectations in recent months. We were informed that management would be handed over to another international operator within a few months. The property owners assured us that a key condition with the new operator is that all employees will be retained. However, we still feel insecure,” the employee said.
A company spokesperson confirmed that EIH Holdings Ltd., a subsidiary of EIH Ltd., along with Al Zorah Development Private Co. Ltd., the owner of the hotel, jointly informed employees that both parties have mutually agreed to terminate the management contract for The Oberoi Al Zorah, effective from February 28, 2025. The property owners have assured employees that their jobs will be retained. The Oberoi Group also reaffirmed its commitment to exploring future opportunities in the region.
source : MINT
