Success Story of Prithvi Raj Singh Oberoi: Meet the legend of the hospitality industry
Who is Prithvi Raj Singh Oberoi:
Prithvi Raj Singh Oberoi, worldwide known as Bikki Oberoi, is the chairman and chief executive officer of ‘Oberoi Hotel Group’ which runs a chain of luxury hotels. Bikki’s father Mr. Mohan Singh Oberoi was the founding Chairman of EIH Limited which was formerly known as East India Hotels- the flagship company of the Oberoi Group and the third largest hospitality chain in India. Bikki took over as the Chairman of EIH Limited after the death of his father Mr. Mohan Singh Oberoi in 2002
The Rise:
Due to some epidemic in his village Mohan Singh came to Shimla and started working as a manager at Cecil hotel. After sometime in 1927, seeing his natural ability to manage hotel, Ernest Clarke-the owner of the Cecil hotel- asked him to join him in managing Delhi Club. After working for him for many years, Clarke made him his partner in 1930.
Their business picked up far more than they expected. However, the debt also grew. In 1933, MS came up with a plan to free Clarke from financial mess and save hotels but soon Clarke died. MS bought his all the shares from Clarke’s widow for Rs. 20,000 and became the only Proprietor of Clarke Hotels in Delhi and Shimla. And here onwards the legacy of The Oberoi Group began.
Within next few years, he paid all the loans pending on Clarke’s. Fortunately, during the same period he received the offer to acquire the Grand in Calcutta which was owned by Stephen Arathoon-an Armenian real estate tycoon and was almost out of business.
In the negotiation deal with Mercantile Bank- the liquidators of the estate of Stephen Arathoon, he had to appoint a European manager. For this purpose, MS brought in his former employer at the Cecil- DW Grove. They both and along with other two hotel owners formed Hotel Pvt Ltd with an investment of INR 25, 000 in 1938.
In 1943, MS acquired the Associated Hotels of India chain and rented Delhi’s Hotel Imperial and then purchased the Grand for INR 89 lakhs. After paying off all other people involved their dues, the Oberois began a new journey.
Expansion:
Now, being all in all of the company he was cruising more confidently. In 1947 he opened Oberoi Palm Beach hotel and then started a travel agency named Mercury Travels which he eventually sold to his sister. After two years MS registered “The East India Hotels Ltd and brought all the hotels under it.
In 1951, another Arathoon hotel in Darjeeling was purchased. Next year the partnership of Hotel Pvt Ltd was dissolved. In 1955, Palace of the Maharajah Hari Singh was leased for. Following that MS bought the Swiss Hotel opposite Maidens where Lord Curzon used to live once.
Bikki Oberoi Joined the Business:
Prithvi Raj Singh aka Bikki was born in 1929 and in 1959, he got married and joined the family business. By then he has stayed in the best of the hotels for learning and observation. With his joining MS got into an agreement with ITT Sheraton for building a new 34 or 36 storey hotel in Bombay which was completed in 1973 had an expense of 180 Million.
Along with that to have a skilled workforce Oberoi started hotel management school in India which has been very successful. In 1969, by purchasing The Kathmandu Soaltee Hotel in Nepal the group jumped into international sphere for the first time. Also, they took over the management of Singapore’s Imperial Hotel and in next 2 years the chain spread out to Mena House in Giza, Egypt too.
Within next 5 years the group established itself in Sri Lanka- The Lanka Oberoi, Australia- The Windsor, and Bali-The Bali Oberoi.
Bikki Became the CEO:
The demise of MS’s elder son Tilak Raj in 1984 was a shock for the family and group. Now, the huge responsibility to be passed on to someone, hence, Bikki took over the position of the CEO.
Bikki capitalized every opportunity came on the way using the luxuries of the world and made the Oberoi brand we know today.
With the death of Mr Mohan Singh Oberoi in 2002, Bikki extended his team by taking in his son Vikram Oberoi and his nephew Arjun Oberoi- the son of Tilak Raj as Joint Managing Directors. His leadership enabled the group touch a total revenue worth INR 1142.95 crores in 2011. Now the group has also expanded into flight catering, travel and tour services, car rentals, airport restaurants, project management and corporate air charters.
Now the Oberoi family own 35.24% of East India Hotel, Mukesh Ambani’s Reliance Industries Ltd owns 18.5% and ITC has 16.1%. At present the hotel chain directly competes with Marriott International, Taj hotel, Hyatt hotels, and Hilton hotels.
Other Achievements
In this tremendous and fulfilling journey Prithvi Raj Singh Oberoi received some prestigious positions and many awards, some of them are as follows:
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- Bikki received the Padma Vibhushan award in April 2008.
- Morocco’s king Mohammed VI awarded him the Grand Officer Award ‘Alalavui Wissam’ in 2001
- Awarded ‘Lifetime Achievement Award’ by the 6th International Hotel Investment Forum in 2003
- The Department of Tourism, Government of India in 2004awarded him a special award for his significant contribution to the development of the tourism sector in India.
- South Asia Tour and Travel Awarded ‘Lifetime Achievement Award’ to the man in 2008.
- Was conferred Corporate Hotelier of the World award by HOTELS magazine in 2010.
His USP
He has the thirst to make his properties the best in the world. For that he used to keep himself abreast on each and every thing happening in the industry.
He was cool headed and extremely responsible and caring person when it comes to his business.
Recalling one incident, one of his employees said, Mr. Oberoi received a call from the GM of the Oberoi Mauritius informing him that the hotel has caught fire and villa after villa was coming down. He was briefing at that time. He told the GM to make sure all the guests and employees were safe and update him after every half an hour. Then he continued with the briefing calmly.
He was particular about details and used to get involved not only major things like selecting the location, or architecture of the property but also in minor things such as carpet of the floor, bathroom fittings etc.
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