EIH, the flagship company of Oberoi Group, has retreated from the UAE, The Economic Times reported citing sources.
The luxury hotel chain’s departure follows the termination of its contract with the local property owner, marking the end of its management of The Oberoi Beach Resort, Al Zorah in Ajman.
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The 89-room property is expected to transition to another international operator’s management.
Prices of the rooms start at about Dh1,000-Dh8,000 ($272- $2,177) a night.
The change was confirmed by a company spokesperson from EIH Holdings, a subsidiary of EIH to Mint.
According to the spokesperson, the management agreement with Al Zorah Development would conclude on 28 February 2025.
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By GlobalDataThe spokesperson further described the decision as “mutual and amicable”.
As reported by The Economic Times, EIH managing director and CEO Vikramjit Singh Oberoi conveyed the termination of Al Zorah Development, the property owner, to approximately 400 employees.
While the specific reasons for the contract’s termination were not disclosed, Oberoi assured the staff of job security under the new management.
Mint quoted an employee as saying: “Business had been outperforming budget expectations in recent months. We were informed that the management would be handed over to another international operator within a few months. The owners of the property reassured us that one of the key terms agreed with the new operator was that all employees would be retained. But we are feeling insecure.”
Despite the Oberoi Group’s exit from the UAE with the Al Zorah contract ending, the group’s interest in West Asia’s burgeoning luxury hotel sector remains, The Business Standard reported.
Recently, Oberoi Hotels unveiled its plan to build a presence in London, UK, with a new Oberoi Hotel by March 2028.
