EIH Hotels , the flagship company of The Oberoi Group, has announced the signing of a management agreement for a luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project represents a significant milestone in the Group's long-term strategy to curate exceptional hospitality experiences in extraordinary natural settings.

Historic Tea Estate Setting

Makaibari Tea Estate stands as one of the world's oldest and most storied tea estates, established in 1859. The estate is celebrated for its dramatic Himalayan vistas, lush primary forests and rare biodiversity across 1,236 acres (500 hectares). The property includes one of the world's oldest functioning tea factories, constructed entirely of wood, bamboo and cast iron, offering a rare view into living industrial heritage.

Recognised globally as the world's first fully certified organic tea estate in 1988, Makaibari has pioneered biodynamic and permaculture farming long before such practices became mainstream. The estate's longstanding commitment to sustainability extends beyond agriculture, establishing a model for community development including fair labour practices, livelihood enhancement and long-term support for worker families.

Resort Development Details

The Oberoi, Makaibari Tea Estate, Darjeeling will feature 25 keys and is scheduled to open in 2030. The resort is being designed by Nava Design Studios Co. Ltd., Bangkok, and developed in partnership with Luxmi Tea Co Private Limited. Located 35 kilometres from Bagdogra International Airport, the resort will preserve an atmosphere of seclusion amid the natural beauty of the eastern Himalayas.

The resort has been master-planned with the potential for additional keys in the future, allowing for thoughtful expansion in harmony with the landscape. The experience will be crafted to reflect the timeless character and extraordinary setting of Makaibari, rooted in heritage, tea culture and the region's breathtaking terrain.

Leadership Perspectives

Mr. Rudra Chatterjee, Managing Director of Luxmi Tea Co Private Limited, highlighted Makaibari as a living legacy shaped by nature, craftsmanship and community over 150 years. He emphasised the estate's pristine forests, panoramic Himalayan views and rare biodiversity as truly exceptional features. The hotel will play an important role in training and skilling local people, enabling long-term employment opportunities within The Oberoi Group, with every aspect of development prioritising sustainable practices to ensure the estate's existing flora and fauna remain fully protected.

Mr. Arjun Oberoi, Executive Chairman of The Oberoi Group, described the project as an inspiring addition to their development portfolio. He noted Makaibari's natural beauty, artisanal traditions and historical significance as making it an extraordinary setting for an Oberoi resort. The partnership reflects their commitment to creating transformational experiences in destinations where nature, culture and heritage come together in meaningful ways.

Mr. Vikram Oberoi, Chief Executive Officer of The Oberoi Group, emphasised their priority to honour the exceptional setting and contribute meaningfully to the communities that have long been its custodians. The company is committed to creating sustainable employment, advancing skill development and strengthening long-term community initiatives.

Expansion Strategy

This announcement comes as EIH Hotels continues to advance a robust expansion plan, with a development pipeline of 29 upcoming hotels and luxury cruisers scheduled to open by 2030. These projects across India and select international destinations will add approximately 2,251 keys to the portfolio. A significant proportion of these developments will be operated under management contracts, underscoring the strategic importance of this model in the company's long-term growth roadmap.

With The Oberoi, Makaibari Tea Estate, Darjeeling, EIH Hotels further strengthens its vision of shaping iconic destinations anchored in heritage, nature and an unwavering commitment to excellence.

EIH Hotels , the flagship company of the Oberoi Group, has successfully repaid its commercial paper obligations, leading to the withdrawal of its credit rating by CARE Ratings. This development underscores the company's strong financial position and commitment to meeting its financial obligations.

Key Highlights

• CARE Ratings has withdrawn the credit rating assigned to EIH Limited's Commercial Paper program.
• The rating withdrawal comes after EIH Limited's request, following the complete repayment of its commercial paper obligations.
• EIH Limited, part of the Oberoi Group, operates 29 hotels with a total room inventory of 4,144 rooms.

Financial Position

EIH Limited's financial position is reflected in its recent balance sheet data. Here's a snapshot of the company's key financial metrics:

The company's financial data shows significant growth in total assets and equity over the past year, indicating a strengthening financial position. This robust financial health likely contributed to EIH Limited's ability to fully repay its commercial paper obligations.

Implications for Investors

The withdrawal of the credit rating following full repayment of commercial paper may be seen as a positive signal for investors. It demonstrates:

1. Cash flow management: EIH Limited's ability to repay its short-term debt obligations on time.
2. Financial stability: The company's capacity to meet its financial commitments without the need for commercial paper funding.
3. Reduced reliance on short-term debt: Potentially indicating a more conservative financial strategy.

Conclusion

EIH Limited's repayment of its commercial paper and the subsequent credit rating withdrawal by CARE Ratings highlight the company's financial strength and financial management. As the hospitality sector continues to recover post-pandemic, EIH Limited's balance sheet may position it for future growth and expansion opportunities in the luxury hotel market.

Investors and stakeholders may view this development as an indicator of the company's financial health and its ability to navigate challenges in the hospitality industry while maintaining its financial position.