Oberoi Hotels has exited the Mumbai airport lounge business after its lease ended, with no plans to re-enter the segment. The profitable unit generated INR122 crore in FY25, representing 4.4% of EIH’s revenue.
Vikram Oberoi, CEO of EIH, confirmed the decision, stating that consolidation by the airport operator, Adani Group, makes renewal unlikely. The lounges are now managed by TFS, a Mumbai-based company.
EIH plans to offset the revenue loss by expanding its in-flight catering business, which earned INR 490 crore in FY25, about 20% of its total revenue. The segment is buoyed by strong demand, including partnerships like IndiGo’s premium meal services.
“We aim to compensate for the loss with increased in-flight catering growth,” Oberoi said.
With the lounge business concluded, the 75-year-old hospitality group is redirecting resources to its core operations, focusing on airline and luxury hotel services.
Source: Financial Express
