Liam Lambert steps down as president Oberoi Hotels & Resorts

Liam Lambert has stepped down from his current position as president of Oberoi Hotels and Resorts. After serving as director of operations, Europe, Middle East and Africa at Mandarin Oriental Hotel Group, Lambert joined the leading Indian luxury hotel chain (Oberoi) on May 01, 2009.

Liam Lambert

Lambert, an Irish citizen, has been a hotelier for over thirty years working in four continents and ten cities. In his capacity as president of Oberoi Hotels and Resorts Lambert was responsible for managing the Oberoi Hotels’ existing and future portfolio and was reporting directly to company chairman and chief executive PRS Oberoi. While Lambert has already distanced himself from the development affairs of Oberoi Hotels and Resorts, he will continue to hold office till April 2011.

Confirming the development, Oberoi Group spokesperson said that Lambert wanted to explore opportunities closer home and hence has expressed his desire to step down from his current position with the Indian hospitality chain. "He has moved on from The Oberoi Group to pursue his own interests. He has moved back to Europe, to be closer to his family," said the spokesperson. The Oberoi management is yet to zero in on a replacement for Lambert though.

PRS Oberoi promoted Indian luxury hotel company, East India Hotels (EIH) Ltd plans to raise Rs 1,300 crore through rights issue of equity shares. Owners and managers of 'The Oberoi' and 'Trident' brand of hotels, EIH has already received consent from its board to raise the money. In fact, the board has also constituted a Committee called the Rights Issue Committee to finalise the rights ratio, issue price and all other procedural modalities relating to the proposed rights issue.

The rights issue in the offing, is rumoured to be a part of the arrangement wherein Reliance Industries' acquired 14.12% stake buying EIH promoter holdings for a whopping Rs 1,021 crore. Reliance Industries Ltd (RIL) chairman and managing director Mukesh D Ambani is very likely to subscribe to EIH's rights issue and strengthen its holding in India's leading luxury hotel company.

Within a few days of acquiring promoter equity, PRS Oberoi's White Knight, Ambani hiked his stake in the luxury hotel chain to 14.8% by acquiring another 0.68% through open market trade. RIL's stake in EIH is held by its subsidiary company Reliance Industries Investment and Holding Pvt Ltd (RIIHPL).

EIH's other shareholder, Y C Deveshwar promoted ITC Ltd on the other hand has not specified its interest in the rights issue. Through its investment arm Russell Credit, the tobacco-to-hotels major has been buying into the Oberoi chain since 2000 and presently holds 14.98% stake. Its current holding is a shade less than the Securities and Exchange Board of India (Sebi) threshold limit of 15%, that triggers a mandatory open offer for another 20%.

The analyst community tracking the Indian hospitality sector and more so the RIL-EIH developments however are of the view that RIL and ITC will certainly participate in the rights issue.

However, there are question marks on whether Analjit Singh, chairman of Max India Ltd (MIL) will paricipate in this rights issue. Having already reduced his holding in EIH from 7% to 4% currently, Singh had officially gone on record saying that he was in discussions with Oberoi, to sell his current holding in the company.

Oberoi Hotels and Resorts (www.oberoihotels.com) is an award-wining proprietor and operator of some of the world’s most luxurious hotels and resorts.