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MUMBAI: For years, it has been one of India Inc’s biggest guessing games: Who will succeed Prithvi Raj Singh (PRS) Oberoi, the 82-year-old chairman of the Oberoi Group? The suspense is finally over with the octogenarian having decided to anoint his son Vikram heir apparent at India’s third largest hospitality chain, including a portfolio of some of the world’s most premium hotel properties.

Vikram, 47, however, may have to wait a while longer since Biki, as the patriarch of the Oberoi family is fondly called, is not yet ready to hang up his boots, nor has he specified a time-frame for Vikram’s elevation. But the writing is clearly on the wall.

"He (Vikram) is the eldest. He will take over from me," the senior Oberoi told TOI in a rare interview. "Vikram has been more interested in the operations of the hotels while Arjun is on in the planning side," he said. Arjun, 43, is the son of Biki Oberoi’s late elder brother, Tilak Raj (Tikki) Oberoi. Oberoi also has a daughter — Natasha -- who is married and settled in Australia and has no role to play in the group.

The grand old man of Indian hospitality has only one advice to his son: "Attention to detail and people management", the two ingredients that define hospitality.

Recently, the roles of the two cousins — Vikram and Arjun - were clearly defined. Vikram was appointed chief operating officer of EIH (formerly East India Hotels), the company that runs the 30-odd Oberoi properties in India and abroad; his cousin, Arjun was named chief planning officer. Their roles were decided on the basis of their aptitude and interest, Oberoi said. "Now, I will focus more on development of new projects and strategy and won’t be that involved in day-to-day," he added.

The burden of expectation on Vikram will be enormous, following as he will in the footsteps of two legendary and consummate hoteliers -- his father, and his grandfather and founder of the group, Rai Bahadur Mohan Singh Oberoi. Not only will he have to manage the Rs 900-crore EIH, he will be expected to match Biki’s eye for detail and his personal touch, which have led to the creation of such uber luxury, landmark properties as the Amarvilas in Agra, Udaivilas in Udaipur, Rajvilas in Jaipur and Vanyavilas in Ranthanbhore (they are routinely rated among the top 10 hotels/resorts in the world). It’s also an example of an Indian brand that sells under its own name in south east Asia and Egypt, both big tourism destinations.

It’s not as if Vikram is new to the hospitality game. A science graduate from Pepperdine University in the US, he joined the group in the early 90s and was initially involved in the management of the Rajvilas in Jaipur. Arjun is a product of the University of Buckingham, and first earned his spurs in the food & beverage committee. Though both stepped into the board room of EIH within a few years, it was only in 2004 that they were made deputy MDs. Later in June 2007, both were promoted as joint MDs. While they continue to be joint MDs, their roles were recently more sharply defined with Vikram being made the head of operations.

The realignment, done keeping in mind the interests of the third generation of the family, also hints at a possible consolidation in the future. There is a possibility that EIH Ltd and its 36%-owned listed arm EIH Associated Hotels could be merged at some point of time. Biki Oberoi says it’s a possibility, but nothing’s been decided as yet. This also puts to rest talk of the Oberois dividing the group’s two hotel companies — EIH Ltd and the Rs 148-crore EIH Associated Hotels --- among the cousins. "Those are just rumours," said Oberoi.

The management rejig comes at a time when the Indian hotel industry is back on a strong footing after being bruised by the recent financial crisis and the terror attacks in Mumbai. The Oberoi group, like the Taj, Starwood and Marriott, is rushing to set up properties, buoyed by an expanding economy and growth in tourist traffic, which has raised the demand for rooms.

The Oberoi family holds nearly 34% stake in EIH Ltd. The hospitality chain has long been eyed by rival chain ITC, which has just under 15 % in the company. Recently, Reliance Industries also established a substantial toehold in EIH by acquiring just under 15%. Indian rules mandate that if a company acquires more than 15% in another, it triggers an open offer; the acquirer then has to be ready to buy another 20% from other shareholders. Oberoi described Reliance’s investment in EIH as financial in nature.

Biki Oberoi became the chairman of EIH Ltd in 2002, following the demise of his father. From a small hotel in Shimla in 1930, the group has grown steadily if not spectacularly. In 2007, Biki Oberoi’s chairmanship was extended for a period of five years. Even at this age, he is hands on and shows no signs of fatigue.