The Oberoi, Mumbai will finally welcome back guests on April 24 following an extensive renovation work.
East India Hotels has said that the total cost of renovation of its Oberoi property in south Mumbai, which was severely damaged during the November 2008 terrorist attacks in the city, is expected to be around Rs 160-180 crore.
"We have not yet assessed the total cost. But it (renovation cost) is between USD 35-40 million," Oberoi Hotels & Resorts' President, Liam Lambert, said.
Lambert said the total insurance claim for damage to the property and loss of profit were still being assessed. The hotel has received Rs 62-crore from the insurer, New India Assurance, he said.
"It (the insurance claim) is still being assessed by the New India Assurance. However, we have received an insurance payment of Rs 62-crore. The insurance is for two things -- loss of profit as well as damage to the property," Lambert said.
The Oberoi has been shut since the 26/11 attacks, unlike the adjoining Trident and Hotel Taj Mahal both of which partially reopened soon afterwards.
Lambert said that post renovation, the number of guest rooms have been reduced from 327 to 287 but the number of suites have increased as there is a demand for larger rooms.
"The number of suites have been increased to 73 from 23. We feel that arrivals in India will increase substantially in the next five years. The demand for luxury rooms will continue to grow as the customers look for space," he said.
Oberoi Hotels and Resorts' Executive Vice President (Mumbai), Devendra Bharma, however, said that the hotel was expected to wrap up the on-going negotiations on the total insurance claim shortly.
"I think soon. May be in the next one month or so," Bharma said.
The hotel was expected to register a 30-35 per cent occupancy during the summers (April-June period), Bharma said, adding it would pick up from winter onwards.
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