From masses to classes: Is Mukesh Ambani gunning for hotel business?

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Key Points

Recently, Ambani entered the finance industry with Jio Financial Services..

Now comes the news that Reliance has entered into an understanding with The Oberoi Hotels and Resorts (Oberoi Group) to jointly manage three properties across India and the UK the upcoming Anant Vilas Hotel in Mumbais Bandra Kurla Complex, the Stoke Park in the UK, and another planned, unnamed hotel project in Gujarat..

In 2010, Ambani's RIIHL bought a 14.12% stake in EIH (East India Hotels) Limited, the flagship company of the Oberoi Group..

But his purchase of hotels in London and New York and building new ones in BKC Mumbai and in Gujarat indicate a slowly unfolding play which many might see culminating in Ambani buying out ITC from EIH...

The hotel industry is facing the challenges of being under-invested and demand has consistently exceeded supply in recent times, EIH executive chairman Arjun Singh Oberoi had said last month..

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