Biki Oberoi, the man who built one of the finest hotel chains

His death brings to an end two generations of the family that built the Oberoi empire into an Indian hospitality powerhouse with a significant global footprint. Mohan Singh Oberoi, the man who started it all in 1934, passed away in 2002 and Tilak Raj, his older son, died prematurely in 1984. Since then, Biki was the man who steered the chain through its ups and downs, all the while ensuring that the Oberoi name continued to spell the finest in hospitality. Today, many of its properties are listed among the world’s best hotels. After a slump during the years when the pandemic hit the hotel industry badly, EIH’s performance has shown a dramatic turnaround, with 2022-23 consolidated revenue at ₹2,096 crore, up 101% from the previous year, and a profit after tax of ₹329 crore, up 446% over the previous year.

An indulgent but wise father ensured that his younger son learnt the business by living the life of his customers. Thus, after his overseas education, Oberoi spent years traversing the globe, staying at the best hotels and sampling their service and product standards first-hand. When the mantle of leadership fell upon him, he brought to his job the distilled learning of those personal experiences, with the result that getting a morning cup of tea right is more important to those who run the hotel chain than the artwork on display in the lobby.

The construction of the Oberoi in Mumbai was his big challenge early on, since the city’s hospitality landscape was defined by the majestic Taj at the Gateway of India. Smartly, Oberoi took a completely different route and built a hotel that dispensed with the usual vast banquet halls and intimidating chandeliers in favour of more intimate settings, including an exclusive club open only on invitation.

In his lifetime, Biki Oberoi built a sprawling chain of 32 hotels. He also took the chain overseas to seven countries, including Indonesia, Mauritius, Egypt and the United Arab Emirates, placing the brand square in the middle of the premium traveller’s wishlist. It was an aggressive move for an Indian hospitality chain, since Indian hotels then were still not known for quality. But the high standards Oberois set meant that its reputation travelled far, and when discerning global customers visited India, Oberoi became their preferred choice.

Through it all, his emphasis wasn’t as much on spread as it was on staying premium and contemporary. In 2012 ,when the group decided that the iconic Delhi property needed a refresh, it brought in Adam Tihany, widely considered one of the world’s pre-eminent hospitality designers who created the Beverly Hills Hotel, the Belmond Hotel Cipriani in Venice, the Four Seasons Dubai, and the Westin Chosun in Seoul, among others. But his crowning glory is the opening of the Vilas series of hotels in Udaipur, Agra and Jaipur, now considered a byword for uber luxury and fine living.

The low-profile Oberoi exemplified every inch the hotel magnate with his finely cut suits and his ever-present cigars. His one failing though might have been the neglect of the group’s finances, which led to the piquant situation of rival chain ITC Hotels building a 14.9% stake in EIH by 2000. With the threat of ITC raising its stake to a controlling one, Oberoi was forced to seek a white knight, and ended up selling a similar stake to Reliance Industries Ltd, which in subsequent years went up to nearly 19%. The two together, one a competitor and the other a giant conglomerate, now control nearly 37% of the company while the promoters have 35.7%. With Biki Oberoi’s death, uncertainty hangs over the future of the hotel chain given such an awkward shareholding pattern.

But that’s an issue for his successors, his son Vikram Oberoi as chief executive and nephew Arjun as executive chairman, to tackle. Biki Oberoi can rest in peace knowing he leaves behind a brand that’s among the best in its business.

Sundeep Khanna is the author of ‘Cryptostorm: How India became ground zero of a financial revolution’.