Employees have been formally notified, marking the Oberoi Group’s exit from the UAE market.
This move follows a similar transition two years ago when The Oberoi Dubai was rebranded as Anantara Downtown Dubai, with the hotel’s management transferred to Minor Hotels.
Sources familiar with the matter told ET that Managing Director and CEO Vikram Oberoi, along with Chief Human Resources Officer Shailja Singh, visited Al Zorah to brief the teams about the development.
The sources added that the owner investors are in discussions with other global hotel chains to take over the management of the property.
“EIH Holdings Ltd., a subsidiary of EIH Limited and the operator of The Oberoi Al Zorah, along with Al Zorah Development Private Company Ltd., the owner of the Hotel, jointly informed employees yesterday that both parties have mutually and amicably agreed to terminate the management contract for The Oberoi Al Zorah, effective 28th February 2025,” said a Oberoi spokesperson.Al Zorah Development Private Company Ltd. has assured employees that they will be retained by the company moving forward, the person added. “The Oberoi Group remains committed to exploring opportunities in the region,” the spokesperson said.
In 2017, The Oberoi Group announced the opening of The Oberoi Beach Resort, Al Zorah.
The property is located 25 minutes away from Dubai International Airport, Al Zorah has been masterplanned by Solidere International and is a joint venture with the government of Ajman.
The Al Zorah Development Company marks the partnership between the government of Ajman and Solidere International and is a free zone company under the laws of Ajman, UAE.
This development coincides with an ongoing inheritance dispute within the Oberoi family. As reported by ET in its September 16 edition, members of the family are embroiled in a legal tussle over inheritance, a matter that arises at a critical juncture for the hospitality group, which is currently planning an expansion.
Ranged on one side are Vikramjit Oberoi, Natasha Oberoi and Arjun Oberoi, opposing Anastasia Oberoi, the late PRS Oberoi’s daughter by Mirjana Jojic Oberoi. At the centre of the dispute are two wills, said to have been drawn up by PRS Oberoi. Anastasia Oberoi has moved the Delhi High Court, alleging that stepbrother Vikramjit Oberoi, stepsister Natasha Oberoi and cousin Arjun Oberoi are attempting to obstruct the execution of her father’s will.
Last week, the Delhi High Court ruled in an interim order that shares in EIH Ltd, Oberoi Hotels and Oberoi Properties that were held by the late PRS Oberoi can’t change hands. The court is hearing the case filed by Anastasia against her siblings and cousin.
EIH Limited, the flagship company of The Oberoi Group posted revenue from operations of Rs 526.5 crore in the quarter ended June, up from Rs 498 crore in the year earlier. The chain posted a profit of Rs 97 crore for the quarter ended June, down from Rs 106 crore.
