Why Oberoi Is Building A Hotel In Makaibari — A Working Tea Estate

When EIH Limited announced plans this week to develop an Oberoi luxury resort inside the Makaibari Tea Estate in Darjeeling, the detail that stood out was not the brand name or the price point — it was the location itself. Any hotel built there would have to coexist with daily agricultural work, not replace it.

Makaibari is not a vacant hillside waiting to be turned into a destination. Established in 1859, it is one of the world’s oldest working tea estates, spread across 1,236 acres of steep Himalayan terrain, with forests, factory buildings, worker settlements and tea production continuing uninterrupted.

That constraint is precisely what makes Makaibari attractive to Oberoi.

The proposed resort, a 25-key property scheduled to open in 2030, will be developed under a management agreement between EIH Limited and Luxmi Tea Co Private Limited, which owns the estate. The hotel will be designed by Bangkok-based Nava Design Studios and developed within the estate rather than as a standalone enclave.

Makaibari is globally recognised as the world’s first fully certified organic tea estate, a status it has held since 1988, and has long practised biodynamic and permaculture farming. It is often cited as a model for sustainable agriculture and community-led development.

“Makaibari is a living legacy shaped by nature, craftsmanship and community over 150 years,” said Rudra Chatterjee, Managing Director of Luxmi Tea Co Private Limited. He said the hotel would prioritise sustainable practices and local employment, with a focus on training and long-term skilling.

Unlike plantation stays that isolate guests from production, Makaibari’s agricultural cycles — harvesting, processing and seasonal rhythms — remain central.

At 25 rooms, the Oberoi Makaibari will be among the group’s smaller properties. While the site allows for limited future expansion, the initial scale reflects deliberate restraint.

Located around 35 kilometres from Bagdogra International Airport, the resort will be accessible without being embedded in Darjeeling’s crowded tourist circuits. From a business perspective, it also fits EIH’s asset-light strategy, which relies increasingly on management contracts rather than ownership.

The Makaibari resort is part of EIH’s wider pipeline of 29 upcoming hotels and luxury cruisers scheduled to open by 2030, adding more than 2,200 keys across India and select international markets.

Oberoi’s leadership has pointed to growing interest in destinations beyond India’s established luxury hubs. While Darjeeling has long attracted visitors, high-end hospitality options in the eastern Himalayas remain limited.

“Makaibari’s natural beauty and historical significance make it an extraordinary setting,” said Arjun Oberoi, Executive Chairman of The Oberoi Group, adding that the company sees long-term potential in the broader eastern Himalayan region.

Tea remains Makaibari’s core purpose. Tourism will remain secondary. “Our priority is to honour this setting and contribute meaningfully to the communities that have long been its custodians,” said Vikram Oberoi, CEO of The Oberoi Group.

For Oberoi, it is a bet on restraint. For Makaibari, it is a careful opening — one that will be judged by how little it changes what already works.