EIH Associated hotels limited was incorporated on 21st March 1983 as a public limited company in the state of Tamil Nadu and obtained Certificate of Commencement on 10th June with brand name "Pleasant Hotels". In 1989 name of the Company was changed from Pleasant Hotels, Ltd. to Oberoi Associated Hotels, Ltd. effective from 25th October.

The Oberoi Group holds the controlling interest in EIH Associated Hotels Ltd (EIHL) (erstwhile Oberoi Associated Hotels). The Rane Group promoted the Company. Later, company proposed to set up "Ramada Madras" a 5 star deluxe hotel adjacent to Chennai airport. For the purpose of technical installations and utilities Gherzi Eastern Ltd., a Mumbai based company, was appointed to provide detailed architectural planning and designing. On 1st November 1996 name of the company has been changed to EIH Associated Hotels Ltd. with effect. Company has also opened its deluxe hotel "Rajvilas" in Jaipur.

In 2001, EIH Associated Hotels Ltd has acquired about 1.62 lakh sq ft of space at the Bandra-Kurla complex in Mumbai from the Mumbai Metropolitan Regional Development Authority for Rs 121 crore. Company owns and operates the Oberoi hotels. ITC has marginally hiked its stake in EIH to 14.9 per cent during September 2002. The move has sparked speculation about ITC's intention regarding one of the most prestigious hotel chains in the country, which owns and manages the Oberoi group of hotels. The company did not predict any possible move by ITC, which has a stake in EIH.

Products & services:

EIH Associated hotels are the operator of the Oberoi and Trident brands and the third- largest hotel chain behind Indian Hotels and ITC. Company provides its services at "International Quality standards". EIH associated hotels has chain of hotels at various tourist & business locations. Company has hotel named "Ramada Madras" a 5 star deluxe hotel adjacent to Chennai airport.

Company has various Business collaborations to provide High Quality & Satisfaction Standards for its customers. Company has its deluxe hotel "Rajvilas" in Jaipur. The Trident is the brand name used by the Oberoi Group for its 4 star & 5 star categories of hotels. EIH Associated hotels have a management agreement with EIH Ltd for management of The Trident. EIH Ltd charges a management fee of 12.5% of gross earnings for its services. Company owns & operates various hotels in Domestic & international places. In India, Company has presence in Delhi, Mumbai, Banglore, Cochin, Udaipur, Sawai madhopur, Jaipur, Agra, Shimla etc. In international space company has hotels in Mauritus, Australia, Indonesia, Saudi Arabia, Egypt etc.

Valuation:

Company is expanding its fleet to new areas and increasing its room capacity. At current market price, stock is trading at 16.24 P/E multiple of its FY2011 Estimated earnings. We recommend investors buy "EIH Associated hotels limited" with medium to long-term investment horizon.