As many as 1.4 lakh shares changed hands in the counter on BSE.

EIH was down 0.4% to Rs 600.65 with 19,657 shares changing hands in the counter on BSE.

Both, EIH and EIH Associated Hotels scrips surged over the past few months. From a low of Rs 91.25 on 28 October 2005, EIH Associated Hotels rose to Rs 163.20 by 16 January 2006.

EIH had surged to Rs 603.55 by 16 January 2006, from a low of Rs 434.50 on 20 October 2005.January 2006.

EIH Associated Hotels is considering acquisition of two of EIH's hotels, The Oberoi Cecil at Simla and the Trident Hilton at Bhubaneswar. The board of directors of EIH and EIH Associated Hotels meet seperately on 23 January 2006 to consider the proposal.

EIH Associated Hotels is managed by the EIH Group and owns two properties, the Chennai-based Trident Hilton and the Jaipur-based Oberoi Rajvilas.

EIH largely caters to the business segment. The hotels are operated under well-known brands 'The Oberoi' and 'Trident' in the five-star category and the budget category respectively. EIH has a strategic alliance with Hilton International.

The hotel industry is witnessing a pick-up in occupancy rate and higher average room realisations (ARRs).