‘Guest first’: For Biki Oberoi, quality tops
One thing that every general manager at Oberoi properties knows is that if Biki was visiting his hotel, he would often ask the guests what they didn’t like.
For him — even in his sunset years — picking up the phone and directly engaging with customers was the ‘Biki way’ where 99.99 per cent wasn't good enough.
The Oberoi’s quality had to be 100 per cent. The least that the staff members at the hotels aim for is 9 on a scale of 10.
Earlier this week, Prithvi Raj Singh ‘Biki’ Oberoi (93), chairman and director of EIH, relinquished his post. He passed on the baton to the younger generation — nephew Arjun Oberoi and son Vikram Oberoi. He is leaving behind a huge legacy to inherit.
Unlike some Indian brands such as the Leela Palaces Hotels & Resorts, that retained the premium positioning at the cost of an over-leveraged balance sheet, EIH has been very disciplined in its approach, says Rashesh Shah, assistant vice-president, ICICI Securities. “Its balance sheet provides strength to weather the challenges while strategic property locations provide visibility to ride on the longterm tourism growth story,” adds Shah.
EIH on Wednesday reported a consolidated net profit of ~15.85 crore in the fourth quarter ended March 2022. For the full year that ended on March 31, the company incurred a loss of ~95.06 crore, compared to a loss of ~375.44 crore in the previous financial year, a regulatory filing showed.
Nandivardhan Jain, chief executive officer (CEO), Noesis Capital Advisors, concurs. He says, “EIH is not in the numbers game. It wants to grow, but with the right assets that reflect the true ethos of Oberoi Hotels. The prime focus is on quality.”
Oberoi’s “guest-first policy” manifests itself across various functions — whether its guest service, staff training, hiring or attention to detail.
Recognising the importance of quality in hospitality management much ahead of time, he established ‘The Oberoi Centre of Learning and Development’ at New Delhi in 1967. Till date, it’s considered among the best in Asia.
What Biki inherited in 1984 from father and Oberoi Group founder Rai Bahadur Mohan Singh Oberoi, was an ambition and a nine-hotel chain.
Thirty eight years later, not only has the group grown in size but, more importantly, the name associated with a trading community has turned into a lux global hospitality brand.
With 33 properties (2 Nile cruisers) across seven countries, Biki helped showcase to the world, the potential of Indian hospitality.
In 2008, he received the Padma Vibhushan, India’s second highest civilian honour.
In addition to providing leadership to the management of luxury hotels in several countries, Oberoi has been instrumental in pioneering the development of Oberoi Hotels and Resorts.
Whether it’s the Oberoi Udaivilas, Udaipur, The Oberoi
Rajvilas, Jaipur, The Oberoi Beach Resort, Bali, The Oberoi Zahra, the luxury Nile cruiser in Egypt, or a clutch of other super luxurious resorts in India, he spearheaded the development of all. If there’s one common thread that runs across the statements of people who worked with him or had business dealings with him is the quintessential focus on guests and a non-compromising quest for quality.
This is one of the reasons why EIH wouldn’t sign up a management contract with just any asset owner.
Dilip Puri, founder and CEO, Indian School of Hospitality, who worked with Oberoi, Indian Hotel Company, and Starwood in India, Australia, and Africa, says, “Profit has always been secondary to quality for Oberoi, one of the reasons why they aren’t as big as their peers.”
This strategy allowed Oberoi to carve a niche of being among the best hotel brands in the world, he pointed out.
“You can take the name of the Oberoi in the same breath as Four Seasons, Peninsula, Mandarin Oriental or any other great international luxury brand,” adds Puri, who was under Biki’s tutelage as a 22-year old.
Biki has been the chief architect, designer and planner in every one of his hotels. He clearly asked his expert teams to keep their egos aside when they make grandiose plans — as his properties were built for his customers. There have been times when just to get it right, he made several visits to each property. He firmly believed that the best way to improve service was to be present at the property. “He is a very tough task master,” says Manav Thadani, founder, Hotelivate — a management consulting firm for the hospitality sector.
“Mr Oberoi is the ultimate, consummate hotelier. He has created a legacy that comes once in a century. There’s no one who comes close to him. He has fashioned many leaders and legends, who have worked under him, said Thadani.