Hicsa

This is election year for us, when the decision making on major policy matters tends to take a back seat.

The opposition and the government embark upon scoring brownie points, naturally, and business travel takes a tumble. Businesses start their wait for the next government to take charge. Inbound tourism has been slow and there are reports to suggest that recent law and order incidents have also taking their toll on arrivals. Indians, too, are travelling less – just consider the fall in domestic air travel, as a good barometer. Therefore, times are challenging – keep your seat belts fastened and hold on till this bumpy rides gets over.

The time is ripe for city promotions, joint hotel

marketing efforts, and also in-dustry offers along with airlines and other travel products. As an industry, we need to kick up momentum for people to travel, create strong motivations. This is also a time for industry asso-ciations to get proactive, to work closely with state governments that have budgets to promote city specific destination traffic. It is not a time to sit back, but for renewed action with new fervour and determination.

We wish the deliberations at HICSA to take the lead forward. As the biggest gathering of leading stakeholders of the hospitality industry, there should be a learning curve that this platform provides to all the attending delegates.

– By NaviN Berry

Virtually everybody is here from the hospitality industry, the who’s who of owners, operators and investors who have a stake in India. Despite the economic downturn…

Most Hotels (across categories) in India have accepted online as an upcom-ing and important medium for selling Inventory. Some of the smarter

hoteliers who have understood the power of the medium are selling more than two-thirds of their inventory through online channels. Hoteliers have also be-come aware of the importance of comprehensive reviews, content, peer-ratings and User-generated content, and ratings on Trip Advisor. Gearing up for online sales and marketing has implied investing in understanding and setting up Extranet, managing OTAs and keeping track of the overall eco-system. Hote-liers are also keeping themselves abreast of changing dynamics in the space.

All of the foreign Hotel chains operating in India are available on the MakeMyTrip website. With the acquisition of the Hotel Travel Group and the ITC Group in Thailand, we also have access to over 80,000 hotels in the SE Asia region. The APAC hotel reservations market is worth US$100bn in FY11 and slated to grow 9% CAGR to US$118 bn by FY13. South East Asia market comprises 10% of the APAC Hotel Online Gross bookings and the growth in the former’s online market has outperformed APAC’s online growth as a whole. South-East Asia is also slated to eclipse Australia-New Zealand and become the third largest online market for hotel reservation services in APAC, behind Japan & China. – By Deep Kalra

Deep Kalra Founder and Chief Executive Officer, MakeMyTrip.com

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IndIa fastest GrowInG market for onlIne hotel bookInGs

Participation Mix – HICSA 2013

a special supplement on the occasion of the 9th annual hICsa Conference, 2013, day 1. 3rd april

Big Bang opening Affirms Hope in HICSA amidst Economy Slowdown

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There is light at the end of the hotel corridor!

2 HICSA SUPPLIMENT 2013

Name: Manav G. Thadani Born: Lucknow, India School Alumni: La Martinere College, Lucknow College Alumni: New York University, NY Marital Status: Married (Deepika) Children: Two - (Raman, 11) and (Amira, 7) Favorite Pastime: Current Affairs & Movies Favorite Sports (playing): Golf Favorite Sports (Watching): F -1 Favorite Domestic Vacation Destination: Goa Favorite International Destination: New York Favorite Cuisine: Anything Asian Favorite Restaurant (International): Penang in NYC Favorite Restaurant (Domestic): Trishna, Mumbai Favorite Hotel Chain (International): Peninsula Favorite Hotel Chain (India): Oberoi Top 3 Favorite Hotel Restaurants: -Wasabi by Morimoto at TajMahal Delhi -Spectrum on One, Fairmont, Dubai -T’ang Court, Langham, Kowloon First Job: Working at the family theatre selling tickets during summer First Hotel Job: Internship at Palms Coffee shop, Oberoi, ND First Paid Hotel Job: Front Office, Sheraton, Manhattan, NY First Paid Salary Amount: Rs. 100 per month Joined HVS: 1995 First HVS Assignment: Valuation of Embassy Suites, Columbus, Ohio First HVS India Assignment: Feasibility of BandraKurla Convention Centre, Hotel & Serviced Apartments Most Exciting International Assignment: Holiday Inn Express Development Strategy in Turkey – Spent 3 weeks traveling. Most Exciting HVS India Moment: Winning the bid for Lodhi during ITDC dis-investment for Aman. Ironically, the hotel is again re-branded to Lodhi. Why HICSA: Someone said HVS was a one-man show (after they had poached our associates) and we had to prove them wrong J First HICSA Key Note: Marilyn Carlson Nelson Most Powerful HICSA Panel: 4 Global CEO’s representing Marriott, Starwood, Hilton and Hyatt in 2013 Most Outspoken Key Note Address: A Frequent Traveler’s Perspective by Suhel Seth. Most Relaxing Hot Seat Session: Hot Seat – The Heady Mix - 2012 – a team of masseurs gave a massage to the panelists. Most Embarrassing HICSA Moment: Walking on to stage without mike or speech Most Asked HICSA Related Question: Can we get a discount/pass for registration? Total HICSA Attendees So Far: 4,270 and counting! Best HICSA Moment: Post HICSA Parties with the HVS team

20 Hotels where HVS had a Feasibility Role

Manav ThadaniChairman – South Asia, HVS Hospitality Services

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l ITC Central, Mumbai l LeelaKempinski, Gurgaon (NCR)l Vivanta by Taj, Gurgaon (NCR)l The Park, Hyderabadl Grand Hyatt, Mumbail Grand Hyatt, Goal Kempinski, Shahadra, New Delhil Premier Inn, Bangalorel Novotel HICC, Hyderabadl Novotel Airport, Hyderabad

l Pullman, Gurgaon (NCR)l Westin, Gurgaon (NCR)l Westin Mindspace, Hyderabadl Sofitel, Mumbail Vivanta by Taj, Whitefield, Bangalorel Holiday Inn Express, Ahmedabadl Country Inn & Suites, Sahibabad (NCR)l Raddison Blu, Paschim Vihar, Delhil Crown Plaza, Rohini, Delhil Hilton Doubletree, Gurgaon

Manav Thadani Meet the Man Behind 9 Years of HICSA

Westin Gurgaon

Pullman Gurgaon Central Park

The Park Hyderabad

Vivanta by Taj Gurgaon

HICSA SUPPLIMENT 20133



QHow does the India story look at this present moment?

The fundamentals are very strong. India is one of the very few countries where consistent growth has been seen in spite of economic uncertainties globally. For Carlson Rezidor hotels, India is a cornerstone of our Asia Pacific strategy and we are delighted to report strong growth in the region. We operate 64 hotels across India and our development pipeline of 44 ho-tels exemplifies our confidence in the future of India.

QAre we losing our pitch or are we steadying down to more realistic levels?

In light of the global economic crisis which has impact-ed the number of international travellers visiting India, we have focused on mitigating this by concentrating on India’s strong domestic tourism market and we are con-fident that demand in the market segments in which we operate will continue to grow, especially with the fast growth of the Gen Y traveler. The Indian hospitality industry is in a strong position to benefit from almost 6% GDP growth (2012/13). The potential in the overall hotel sector in particular in India is immense due to the continued shortage of available rooms to address the rising demand. However, in some gateway cities there has been a sudden increase in room inventory beyond current demand which we think will take 2-3 years to correct. We have established a strong presence in key regions such as Delhi NCR where we have 21 hotels and are now fo-cused on growing our portfolio in Tier II and III cities where there is a growing demand for international, mid-scale hotels.

QMajor chains so far have been going the organic

route, building greenfield projects. The emphasis so far has not been so much on conversions. Will this stay this way? And what will be your strategy towards conversions? And what is your typical story worldwide? We don’t see a major change in the manner the busi-ness is done in India where conversion opportunities are limited. We have a full portfolio of brands that ad-dress a broad cross-section of hotel market segments and our strategy towards conversion in India is decided upon a case-by-case basis, our focus is on the right brand for the right location. Currently, we are focus-ing on the growth of our Park Inn by Radisson brand which is conceptualized for new-build properties.

Q What kind of synergy do you see, if any, between your building hotels in India,

and tapping the Indian outbound for your overseas hotels. How does Indian Outbound fit into your hotel development story in India?As the number one international hotel group in India by number of hotels, we have established a great brand presence in India. Our strong presence here means that domestic travelers know and trust

our brands and level of service and that certainly influences their booking decisions when they travel beyond India. Our global brand campaigns, such as the Radisson Blu “Turning the World Blu” campaign, are implemented in India and that also increases awareness of our global brands.

Q How does India compare with other key markets? We are very fond of BRICS as

a region, that includes Brazil, Russia, India, China and South America.Carlson Hotels are prominent in the BRICS markets, especially in Russia and India. China continues to be a focus country for us and we hope to replicate our success in establishing our brands in India as we grow in China. The key difference between India and China is the size of the hotels. In India the average size is half the number of rooms as compared to China. In light of market differences, we have also kept our ‘”Coun-try Inns and Suites by Carlson” exclusive to India in Asia Pacific whereas our growth in China is driven by Radisson, Radisson Blu and Park Plaza.

Q How do you see growth, investments, ROI, design and development, manpower,

developing experiences between these five countries.The opportunities and challenges in each country are different. Carlson has always believed that despite be-ing a global hospitality company we need to think “local”. We were the first international company to set up an infrastructure in India and we re-main the largest international hotel company by number of hotels. We have invested in the country beyond our hotels through close affiliations with hotel schools to develop human resource skills for not only our hotels but also for the industry at large.

Just as in all markets, our growth in India will depend upon the economic environment. Land prices and the process of obtaining licenses continue to be a chal-lenge in India.

QHow much do your hotels capture the essence of the country in which you are

building? Or, are they always international, in the sense, just international?In term of design development, we encourage in-ternational and domestic designers to include local elements respecting the local culture and traditions. We strive to appreciate and reflect local influences throughout our hotels, from décor to dining. The Great Kabab Factory dining concept is a good example of this whereby we have translated the Hindukush tradition of kababs for the dining preferences of our guests. Our “next generation” Park Inn by Radisson brand also honors local design elements through the interpretation of local colors in room décor and the RGB restaurant concept will showcase locally-inspired food and beverage.

For carlson rezidor hotels, India is a cornerstone of our asia Pacific strategy and we are delighted to report strong growth in the region. We operate 64 hotels across India and our development pipeline of 44 hotels exemplifies our confidence in the future of India.

Trudy Rautio India has shown consistent growth for hotels

Just as in all markets, our growth in India will depend upon the economic

environment. Land prices and the process of

obtaining licenses continue to be a

challenge in India.

p Trudy Rautio CEO & President Carlson Group of Companies

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Investing in Utility Efficiency at Hotels and Resortsowners and operators should conduct due diligence on their consultants and vendors, and treat investment in their buildings in the same manner as any other investment. I believe that an understanding of technology risk is essential, and the most successful investors in this area have developed approaches to mitigate risk and optimize returns.

QWhat is HVS Sustainability Services all about?

We are a division of HVS that focuses on reducing operating expenses at hospitality properties through diligence and informed, strategic investment. We evaluate opportu-nities to cut costs through both enhanced operational practices and equipment retrofits that conform with owners and operators’ investment objectives for a particular asset.

QWhy should hoteliers focus on their utility costs?

To put it simply, this is an area with significant economic potential that many business owners and operators overlook. Engineering is typi-cally seen as a maintenance function – with the primary purpose of operating critical build-ing systems and responding to guest issues and complaints. However, a growing number of owners have started to seriously invest in this area, and the savings can be quite tangible.

QHow significant is the opportunity? What do you see in

the marketplace?A: We have seen typical utility line item re-ductions in the range of 5% - 30%, correlating into increases in GOP of up to 3%. The lower end of this range is readily achievable through no-cost and low-cost strategies, but the higher end typically requires some level of capital investment in building infrastructure.

QSo you are suggesting that investment is required to achieve

the greater levels of cost reduction? How much should an owner be prepared to spend? That’s a great question, but there is no simple answer because of the wide range of build-ing types, commodity rates, and incentives available – not to mention brand standards and operational requirements. When HVS evaluates a property for utility efficiency op-portunities, our first step is to develop an understanding of ownership goals. Once I know the owner’s plans for the asset, I then look for specific investments that will match their goals.

Q What ROI could an owner expect?Because the equipment is typically a one-

time purchase, the savings begin immediately upon installation and commissioning, and can be quite significant over the investment hori-zon for the asset. We have identified numerous projects with a greater than 20% IRR over a typical five year hold. Other projects have more extended payback periods and lower returns; however, owners should also consider the potential for higher property valuation via income capitalization of the savings, which can

greatly enhance project economics.

QWhat is one project that every hotel owner should consider

investing in immediately?Although there is vast opportunity in many different directions, I typically recommend lighting retrofits at nearly every property we visit. The simple payback period is usu-ally within typical ownership horizon (2 – 4 years), and there are oftentimes incentives to offset the cost. New lighting fixtures such as compact fluorescent or LED technology also last much longer than older-generation lights, so maintenance and replacement costs are also reduced.

QWhat mistakes do owners typically make when it comes to

their buildings and utility efficiency?I’ve heard many stories from owners who have invested in equipment that has not de-livered as promised. I can’t stress enough that owners and operators should conduct due diligence on their consultants and vendors, and treat investment in their buildings in the same manner as any other investment. I believe that an understanding of technology risk is essential, and the most successful inves-tors in this area have developed approaches to mitigate risk and optimize returns.

Q So when you factor in risk, is it difficult to identify projects that

are viable for investment? I don’t think so, and in fact believe quite the opposite. There are literally thousands of good projects out there that use proven technol-ogy, have very clear cost/savings numbers, and can provide an enormous level of value to hospitality properties. The opportunity is out there – it’s just up to us to reach out and grab it.

About Kevin Goldstein and HVS Sustain-ability ServicesKevin Goldstein is Vice-President of HVS Sustainability Services, a consultancy which helps hotel owners and operators reduce their operating expenses through diligent facility management and informed, strategic investment into building equipment. Prior to joining HVS, Kevin was the Director of Development for Coastal Systems, a design/build firm which specialized in waterfront development of hospitality and mixed use destinations. Kevin has extensive experience in development, A&E project management, corporate social responsibility, and public policy.For further information, visit www.hvs.com/Services/SustainabilityServices

Kevin Goldstein Vice-President of HVS Sustainability Services p


Marriott to add five properties this year, room count to 5500

Q How has it been so far with Marriott hotels in India?

Our growth has gone reasonably well for us. Hav-ing started in 1999 with our Goa property, we have been here now for 14/15 years. You may call us local citizens with 18 operating properties, as of date, five more to open this year, and another 50 all signed and under construction. I am not mention-ing anything that is not signed. And with 18 to 36 months gestation for any project, we should expect to have between 73 and 75 properties operational by 2017.

Q To what extent is it a numbers game?

We are not in the numbers game. In fact, many would call us conservative. We sign only when all the elements have been considered and ready to go. We are not going to make any statement based upon speculation. Our portfolio is to have the best in class in every location in every lodging segment that we are in. It has always been for us

the pursuit of getting the best product in place in its respective class.

Q And how is the projected numbers looking for you in

India?We predominantly manage and not fran-chise. We have often walked out in the past from franchised deals. Currently, ev-ery property is managed, and 99% of the pipeline would also be managed, with the exception of one or two properties – some of these are with our international partners such as JHM.

In relation to our competition, our endeavour is to be the best in class. It is cur-rently established that Marriott is among the top 4 hotel developers in the country. We have currently 4300 rooms and should go upto 5500 rooms by the end of the year.

Q How will you manage this growth? Everybody

is complaining of inadequate manpower availability!From an HR point of view, perhaps we have been lucky. We have consistently been rated among the top ten companies to work with. “Best Places” has placed us at No. 7 slot. HR is a bit of a problem for the industry, for sure. What we are doing is to catch young and promising students, train them, guarantee them jobs and impart technical skills. We have created training programs and these are inbuilt into our hotels. But, like I said, from an industry perspective this does re-main a challenge. What we need are some world class colleges, perhaps on the model of PPP – there is little bit happening and I suspect pressure will only increase.

Q How much of your effort is based in local ethos? Or, are you just

Hotelscapes catches up with rajeev menon, vice president – operations to understand the dynamics of developing the brand in India. the chain will add 5 new properties this year.

Rajeev MenonVice President – Operations, Marriott India

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building international hotels, that are roughly the same everywhere you go?

We are a global brand and always make our-selves locally relevant. We work on extensive F&B relevance to local environments. In every city, some 25 to 28 of the best restaurants are in our hotels. With regard to design, there would always be small elements that will flow from local ethos, elements like crafts, painting – when you stare inside a Marriott room, you should get a sense of the city/place. But we are not in the business of building palaces, if you wish, to make them fit into local cultures.

Q How are the occupancy figures showing? Is there any shift

between international and local client shares?When we started with Renaissance Hotel in Mumbai in 2001, our occupancy pat-terns were 65 to 75% foreign and the rest Indian. Last year, I suspect the foreign por-tion was 30 to 35%. Overall, we could be in destinations that are not meant to attract the foreigner as much. But it is true that in India, there are numerous micro markets. Rates are under pressure, and even then, we did over 5% growth over the previous year. In reality, last year was a challenging year for India – for 2013, it is still early days but we remain cautiously optimistic. Yet, India remains one of the strongest performing markets worldwide. The years ahead also remain challenging with supply side in-creasing, and so are the costs. Demand must grow! At Marriott, however, we expect a 7% growth in REVPAR.

Q Are you doing any international promotions for the destination?

We sell overseas travel through our sales and marketing offices. These efforts are less desti-nation driven, more by hotels. We put across special brand offerings and last year we sold close to 800,000 room nights out of India into our global network. So would it be for our sales offices in other countries – they sell India as they do other countries.

Courtyard By Marriott Mumbai


Vella ramasawmy, mD, Kempinski India operations, in an exclusive interview with Hotelscapes, underlines the brand strategy for the Indian market, having opened the doors of its first independent property in the country, in east Delhi where it believes it will create a new market.

Q What are the first impressions/ feedback you are getting after having started the

new Kempinski? What is the special niche that you wish to create for the hotel? Kempinski Ambience Hotel Delhi has received a very positive and encouraging start so far. The response right from our inception has only gone to strengthen our belief that there has been immense value addition to our objective in terms of destina-tion building.

Kempinski welcomes everyone to taste the new symbol of luxury in India. We want to make our property an iconic building so that our guests take back incredible memories from every visit. Kempinski Ambience Hotel Delhi is a ‘lifestyle destination’ that is catering to social and MICE events. It is poised to be a true lifestyle destination with a European flair coupled with an Indian flavour.

We are targeting the MICE business, Social, Leisure Group &Transient/corporate at present.

Q It is an excellent property and has great MICE potential. How do you wish to take

this further?We are delighted to confirm volume business from MICE, leisure and weddings in the hotel. Offering over 70000 sq. ft. of banqueting space with the largest pillar-less ballroom of 25000 sq. ft. in a luxury hotel in India, we have invoked ample interest in people to experience our hospitality. Our exotic dining options with two specialty restaurants, an all-day diner and a high end bar have guests visiting frequently. With the launch of our spa in the coming days, we look forward to welcoming an increasing number of guests.

Q Having a great brand such as Kempinski in East Delhi as your first property - may

not have been the most ideal way to start, what are your further plans with the brand in the country?Kempinski as a brand has always believed in build-ing destinations. Luxury is not destination specific for us – that is the reason we have been pioneers in heralding opulent properties into spaces that are not conventionally seen as hubs of luxuriousness and lei-sure. As per our insight, East Delhi is set to emerge like Gurgaon and Noida. It has the required infrastructure and can attract business from Delhi as well as Noida.

It benefits us that we are strategically located and are well connected to the city, Airport, Metro stations and prominent entertainment destinations in Delhi and Noida. We will in association with the government take definite efforts to maintain the surroundings, as we believe it is the right time for the ‘Rise of East Delhi’.

Q What is your arrangement with Kempinski in India? Also, what are the

plans for the holding company for further development of hotels?We would like to distinguish ourselves in terms of offering luxurious hospitality with European flair through our properties. The rate at which India is developing and becoming a global power to reckon with, there is a huge demand for the luxury segment hospitality that will continue to grow increasingly. We are currently looking at launching 3 Kempinski hotels in the top luxury segment in India by 2015. We are in no hurry to open up properties; we are here to live up to our global brand promise for our guests.

Kempinski makes its first independent foray

Vella Ramasawmy MD, Kempinski India Operations

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Kempinski Ambience Hotel Delhi


our hotels definitely see a higher ratio of domestic travellers, which further strengthens our belief in the brand promises we make to our guests. enhanced guests satisfaction has scored successfully with powerful brands underpinned by operational excellence embracing our european heritage and adapting for what is required by the local market.

Accor Partnering for Success in India

Jean-Michel CasséSenior Vice-President, Operations, Accor India p

QAccor’s managed a sizeable portfolio in India over the past

few years, how have the results been so far? How has the India growth story shaped up?

Foundations have been laid to ensure that Accor will be the leading International hotel operator in India by 2015. The vision of Innovation, passion and commitment to India is at the forefront of Accor’s expansion strategy.

Today, with 19 operating hotels, 3,732 rooms, 2 convention centers and strong presence in 11 cities, we are witnessing an increased brand compliance across network.

With 8 strategic openings and launch of 3 new brands last year, Accor has made a great deal of progress in laying the foundations for an extensive network with a multiple brand portfolio, which will cater to both domestic and international markets across multiple segments and throughout all key areas of sub continent.

Being a global hotel company Accor en-joys patronage from both international and domestic travellers. Our hotels definitely see a higher ratio of domestic travellers, which further strengthens our belief in the brand promises we make to our guests. Enhanced guests satisfaction has scored successfully with powerful brands underpinned by opera-tional excellence embracing our European heritage and adapting for what is required by the local market.

Accor has also proven expertise in managing purpose-built convention center and continues to be the leader in operating convention centers in India. We currently manage the Hyderabad In-ternational Convention Centre, which is one of South Asia’s largest, and finest convention centers and the Lavasa In-ternational Convention Centre. Between HICC & LICC we’ve hosted over 1,500 events and for some of our other hotels such as the Novotel Mumbai Juhu Beach, Novotel Visakhapatnam Varun Beach & Novotel Hyderabad Airport, MICE is a key contributor to our overall revenues.

QHow do you think the next three years will be for Accor in India?

India is the top most market among the three countries Accor has invested in. Ac-cor’s strategy is to establish a benchmark for its brands and after it has reached a significant number of hotels, it will divest provided it has the guarantee of retaining the management contract. The company will continue to invest in India.

Accor in India will have no less than 50 hotels in operation by 2015. We see a lot of opportunity and our strengths in three dis-tinct segments - upper midscale, economy and budget.

We will be opening hotels in Pune, Ahmedabad, Kolkata, Goa, Jaipur and Gur-gaon across the Novotel, Pullman, ibis and

Formule1 brands in the next 2 years. Hav-ing a portfolio of brands from luxury to budget allows us to tailor the right product and brand to cater to our customers, both today and tomorrow and ensure the right product to support our partners and ensure the projects and the investments they are making are viable.

A unique range of solutions, flexible part-nerships based on management contracts, joint development or leases and real time support from locally available development team will make a difference.

QWhat will be your marketing strategies & distribution drive for

2013?Accor’s growth strategy has been marked

by a powerful marketing approach and unique operational expertise derived from Accor’s skills and capabilities in all segments and all regions.

Strong distribution in India is a key to make a stronger presence and to be able to get a meaningful market share. The net-work is built on a strategy that gives each of the key markets its own hub that further enhances and strengthens the sales force giving the network the muscle it requires.

LeClub Accorhotels sees a significantly higher overall spend and length of stay for members versus non-members in the last one year. A consistently increasing member database reflects the guests’ trust and faith in our product.

QTalent acquisition is a big issue in the hospitality industry. What

is Accor doing to retain and hire the best staff force?

Accor’s aim is to be the most attractive employer in the hospitality industry by de-veloping people and implementing an HR pact to attract and retain high performers with clear and well-organised career paths and transmission of know-how.

Accor has implemented a global strong human resource policy to motivate and retain talented employees to ensure qual-ity service for the customers. Being ranked among top 100 companies for Great Place to Work is a testimony of the fact that we have amongst the lowest staffing ratios in India.

Accor is determined to hire young ver-satile talented staff that could be trained to multitask at various levels and will be capable of supporting the broad portfolio of properties, further experiencing faster career advancement. Accor Academie, in India will develop human resources to support this expansion by providing local training solutions, adapted to a country’s cultural characteristics.

Accor also develops and reinforces its cor-porate social responsibility in every country where it operates. The group and their em-ployees commit themselves with recognized partners to support people in need.


Standing Out in a Crowded Market

What sets Starwood apart is our portfolio of compelling brands which create emotional connections with our guests and build loyal-ty beyond reason. Our guests tell us that they desire our brands and will pay a premium for them. Brands are no longer just a guarantee of reliability – being a nice-but-generic hotel is not enough. Today, brands need to have personality, purpose and personalization. Price alone no longer defines value. Our unique and distinct branded experiences appeal to travelers. Starwood’s brands are getting more than our fair share of business because they are not differentiated from a price point but by lifestyle.

Starwood Preferred Guest (SPG), our award winning loyalty program, connects our portfolio of 9 brands and keeps our members coming back to our hotels. On an average almost 1 out of every 2 guests staying at our properties is an SPG member. With SPG Starwood has recreated loyalty, moving from points and perks to greater personalization for best guests.

Our aim is to be able to drive an emotional connect with the Indian audience for our brands so that Indians see our brands as their” own brands” and not just as brands operated by another Global hospitality chain.

The Indian traveller today is well travelled and a lot more aware of international brands and trends in hospitality. His expectations therefore are also far greater. Starwood’s brands are well known, and we make India an easier place to visit and work.

Today we are living in a time when things are changing more quickly than ever before. We believe that the companies that have succeeded are those that have the culture and the systems in place that enable them to change as quickly as possible. Darwin’s quote that it’s not the fastest or the strongest who survive but those who are able to adapt to change most quickly is so true in today’s world.

Personalisation is the heart of hospitality. What are we doing differently today is that we are recognizing the fact that the whole platform of digital technology, which in-cludes social media, is changing the way we are experiencing the world and how quickly we are sharing our experiences. How do we then as a hotel company leverage all that information about you as the customer and make sure that we offer an experience that meets your needs and expectations. We can do that as we have the platform of digital technology. We can do it when you want us to do it, and in your space. So it is ultimately the ability of the hotel company to recog-nize that you can use platforms of digital technology and social media to completely change the experience you want to give your customers which we believe is an emerging trend. The key really is how quickly and dif-ferently can we do this.

The world is changing in our favour. There are few companies in the world better positioned than Starwood to capitalize on

Darwin’s quote that it’s not the fastest or the strongest who survive but those who are able to adapt to change most quickly is so true in today’s world… personalisation is the heart of hospitality.

Dilip PuriManaging Director India and Regional Vice President South Asia Starwood Asia Pacific Hotels & Resorts p

globalization—we are intent on taking as much advantage as possible of this enormous opportunity. Starwood is on the front lines of globalization .Three billion people moving from poverty to prosperity in the course of a lifetime is unprecedented in the history of mankind—never has so much change come so fast to so many people. 70% of the world’s growth over the next decade will come from high growth markets, which is consistent with our pipeline in these markets.

For us, globalization means billions of new travellers creating new travel patterns. Dubai is an excellent example of how global-ization is changing the composition of travel. Located just eight hours from two-thirds of the world’s population, Dubai International Airport is today the fourth largest airport in the world for international passenger traffic, and is expected to be the largest by 2015. A digitally connected world is creat-ing business without borders, leading to new travel hubs around the world, as companies outsource technology and other operations, and more people work remotely, new travel patterns emerge.

And as global boundaries melt it is simply not possible to lead a truly global business from a boardroom in Connecticut. Starwood is perhaps one of the first Hotel companies to realize this and relocated its Global Headquarters to Dubai. Our Senior Leadership Team lived and worked just as anyone else living there would. They dealt with plumbers, bought groceries at the local supermarket and absorbed the sights, smells and lifestyles that has so far been alien to them. Seeing the world through a different lens brings insights that make us more agile in today’s rapidly changing world.

Relocation to Dubai gave Starwood ring-side seats to emerging markets. The world is on the cusp of a new Golden Age of Travel, and we believe Dubai is at the epicenter of this sea change.

The strong synergies between Middle East and India are strategically important to us. Not only because of the proximity between the two regions but also because of the number of Indians that work in the Middle East and the opportunities this can lead to in terms of cross exposure for our employees and career growth. As a global company we can offer that. The opportuni-ties for travel between these two countries are also very significant. Passenger traffic between the two countries has been grow-ing steadily at over 7% year on year. With Mumbai and Delhi featuring amongst the busiest routes from UAE, India remained Dubai International airport›s single biggest country destination in terms of passenger numbers in 2012.

It’s a paradigm shift, a change in mindset. How many companies would take a bold and smart step like this? It’s a game changing approach… an approach that helps us learn and grow as a company that continues to stand out in a crowded market.

From a company that primarily owned Hotels to a company that today owns brands and manages hotels, Star-wood has evolved from a US based company to a global enterprise. With over 1100 hotels in 100 countries, we

own nine internationally renowned brands: St. Regis®, The Luxury Collection®, W®, Westin®, Le Méridien®, Sheraton®, Four Points® by Shera-ton, Aloft®, and Element SM , and have one of the industry’s leading loyalty programs, Starwood Preferred Guest (SPG).

We presently operate 36 hotels in India under 6 of our 9 brands. These include hotels under the Luxury Collection, Sheraton, Westin, Le Meridien, Four Points by Sheraton and Aloft brands. There are 25 hotels under development in India we are well on track to achieve our goal to have 100 hotels operating, under development or manage-ment contracts signed by 2015.

Our dominant global position, compelling lifestyle brands, breakthrough SPG benefits and leading luxury portfolio lie at the heart of our competitive advantage and attract high-quality guests, customers and owners. This in a nutshell is what we believe separates us in a sea of same-ness and is what if you would like to call our Star Power.


Q How does SAMHI select a Brand for its assets?

At SAMHI we evaluate each opportu-nity based on what an individual operator brings to the table for our asset (in the short and long term) such as distribution reach of a brand, development cost involved, depth of its loyalty program and whether it is a correct match for the local demand/target clientele. We have so far signed 4 interna-tional brands and are open to working with other international and domestic brands to manage our future assets.

Q SAMHI now has both operating as well as under development

hotels – what are the key challenges you face?In developing hotels, the biggest chal-lenge we face is the disconnect between the brand’s technical services team and the operations team. Most of the time, we find that technical services teams fail to adapt to local environment, and dem-onstrate little commercial acumen with a constant reference to brand standards. One acknowledges that standards are good practice; however, they should be pragmatic and be linked to the return-on-investment anticipated. There are times we find that high development cost of an internationally branded hotel development makes it commercially unviable in most tier 2 and tier 3 cities in India, where the customer is price-sensitive and reluctant to pay a premium for a branded property over an unbranded one.

Secondly, certain operating standards originally designed for a western business environment may not be suitable in India. For instance, most international brands insist on using recycled/environment friendly “imported paper” (usually sourced from USA) used as a standard practice in their home country. This to be used in Indian hotels is neither cost effective nor environmentally friendly after travelling 10,000 miles! In fact domestic alternatives are far more economical and practical to use. Same is the case with guest room amenities and other prescribed imported items. Unfortunately, very few internation-al brands have understood these concerns. In our estimate, an international brand typically brings in additional 5% to 8% op-erating expenses compared to its domestic counterparts.

Yet another challenge is lack of global

marketing support to owners for launching new brands in the country. This adds to the burden of hotel marketing spend as well as results in slow business pick-up.

QThen how does SAMHI manage these challenges?

We have very robust relationships with our Hotel Operators and are very careful in selecting our partnerships. To ensure superior performance, SAMHI’s internal investment team gives serious consider-ations to the specific product, market and brand suitability before choosing an oper-ating partner for any asset in its portfolio.

In addition, to manage the operating assets, we have a dedicated team that reviews hotel performance very actively – commercial and physical product. We have deployed many tools and processes for this purpose on a daily, monthly, quarterly and annual basis.We also conduct regular mystery audits, market surveys and financial audits for our assets to ensure superior performance. We are further investing in developing the asset management analytical tool to make finer decisions as we move forward.

QWhat would you like to change in current owner-operator

relationship?I feel the operating agreements that define this relationship are lopsided and heavily weighted towards the operator. In particu-lar, the length of the term is too long. These 20+-year agreements restrict healthy com-petition and sometimes breed complacency and tolerance to non-performance. It is necessary for the industry to have more stringent performance tests, shorter tenure and enforceable termination rights, as it is the owner of the asset who is exposed to the higher investment risk! I do accept that owners also need to give operators reasonable and realistic targets based on macro market conditions. Further, owners should not over commit capital in their ho-tel projects, and should have greater market insight prior to developing hotel projects.

p Vinay Guupta Vice President SAMHI Hotel Investment Ltd

pover the last decade India has seen a significant growth in hospitality sector and almost all large international hotel brands have made an entry into India. Hotel ownership has also matured over this period to adapt to the fast changing hotel landscape! more recently, India has been witnessing participation of institutional investors within this sector. We interviewed Vinay Gupta, Vice President of samHI Hotel Investment Ltd, regarding the challenges faced by institutional investors in the present day scenario. samHI has partnered with international hotel operators such as marriott, accor, starwood and Hyatt to manage 22 of its hotel projects.

Dilemma of New Age hotel owners to match local concerns

It is necessary for the industry to have more stringent performance tests, shorter tenure and enforceable termination rights, as it is the owner of the asset who is exposed to the higher investment risk! I do accept that owners also need to give operators reasonable and realistic targets based on macro market conditions.


Arun Saraf Markets Mature as Mumbai City shows the way

HIcsa brings owners, investors and operators onto a single forum, opens up the sector, and helps stimulate growth for the industry as a whole. this is our contribution to the industry – it is our support to the industry.

QHICSA is now 9 years old. How does it feel to be hosting the event

all these nine years?It is the country’s leading hotel conference. It has evolved into a major forum, apart from those which the industry bodies like FHRAI convene. It has an unprecedented scale for the industry, with global CEOs attending and making it a world class forum. It brings owners, investors and operators onto a single forum, opens up the sector, and helps stimu-late growth for the industry as a whole. This is our contribution to the industry – it is our support to the industry.

QHow does it feel to be chosen by HVS, year after year? After all,

they are also choosing you, as their preferred venue?Certainly, this is also true, and we remain grateful to them. It is a testimony to the ho-tel, for its services, its facilities and its overall offering as a world class MICE venue. The Grand Hyatt is not only the best such facil-ity in the city, but perhaps the best in the country.

QI am sure you have been asked this many times. What makes the

hotel click? How do you keep up the standards?Sustaining standards is a difficult task, al-ways. It is keeping an eye on basics. When

you think your job has been done, that is the time when it has not! No effort is too small to worry about, no area is less relevant – every de-tail has to be looked into, all the time. There is never any letting go!

QHow has the Mumbai

hotel scene evolved?Evolved is the right wo r d . Te n ye a r s ago, there were few choices. Today, in every variant, you have choices. From no-frill hotels to the best in luxury. Mum-bai has the best to offer in every class. Going forward, this will happen to other cities in the country.

QAny caution that you may wish to mention, in this regard?

Yes, the industry, as we move forward, will not be able to absorb every cost. We will have to be cautious, as we build. Though I do say there are new customers for category hotels. I see demand growing, steadily and will go on, as well.

QWhere are you building, and what is the present status as a group of

your own?We have the Grand Hyatt in Mumbai, the Hyatt in Chennai and the Hyatt in Kolkatta. There is the Grand in New Delhi, the Hyatt regency in Kathmandu and the Yak & Yeti in Kathmandu. We recently opened doors of Hy-att Place in Hampi. In the next three months, we open Hyatt in Raipur; later in the year, we open Hyatt in Ahmedabad. Next year, we open Hyatt Andaaz in Delhi’s Aerocity. In 2015, we open Hyatt in Lucknow and in Gu-wahati. We have started work in Bodhgaya, but this is yet to be branded.

QYou seem to be wedded to Hyatt. The story here cannot be any

different?Hyatt takes care of my needs. I enjoy work-ing with them. Bu then other chains do not reach out to me, either. I am not married to Hyatt and I am also open to speaking with other brands.

QWe understand you were recently honoured by Hyatt?

Yes, I was recently honoured by Hyatt – we have 11 properties signed with them – six of these are operational and another five are under construction.

QDo they have other owners who have similar exposure to them,

like you do?I am sure there may be others, but possibly only in the US. I am not sure if there are any outside the US.

QComing back to the scene in Mumbai, how do you see the

market develop in terms of micro-markets, such as the airport area, the Juhu and the North and then central Mumbai?This has happened in Mumbai and other cities will follow suit. To us, The Taj and The Oberoi are really not competition – they are catering to another market. The Grand Hyatt is strictly catering to the BKC market place. People are choosing their hotels as per localities in which they have work to do. This is a global practice and it has come now to Mumbai as well.

Arun SarafManaging Director Grand Hyatt Mumbai

Grand Hyatt Mumbai


Dilip PuriManaging Director India and Regional Vice President South Asia Starwood Asia Pacific Hotels & Resorts p

As Luxury Gets Appreciated more in India, Starwood is Poised to Grow

The idea of luxury in hospitality is slowly but steadily evolving. The model of having beautiful rooms and nice staff that treats everyone in the same manner is passé and luxury to-day is redefining itself. It is all about

the individual’s wants and needs…a new level of personalization. Luxury is no more just about glamour and opulence. It’s about authenticity. So homestays can be luxe – if storified. Authentic stories might, in fact, be the ultimate in luxury. A number of new luxury brands that launched recently are taking a different approach – focus-ing more on lifestyle than wealth. It is making the luxury hospitality experience seem approachable to a much wider group of consumers.

In the last five years, Starwood has doubled its luxury room count to meet growing global de-mand for luxury travel. There are over 150 luxury hotels under the St. Regis, Luxury Collection and W brands, which is the largest luxury footprint in the world – nearly as big as Four Seasons and Ritz-Carlton combined. Over 90% of Starwood’s luxury pipeline is in emerging markets, reflecting

India we believe is emblematic of the change that is seen in growth markets around the world and starwood is comfortably poised to be at the forefront to harness the implications of this change.

new demand for luxury in these countries.

W is one of our fastest growing brands and we already see a huge traction for the brand with the In-dian traveller. W London Leicester Square was awarded the Favorite new overseas hotel at the Conde Nast Traveller India Reader’s Award 2011 and St Regis bangok was awarded this in 2012. W Mal-dives was voted the best Resort Hotel by Lonely Planet Reader’s Choice awards and W Senstosa has recently been awarded the Best New Opening Hotel by Travel & Leisure … a reiteration of the power of our luxury brands.

The Indian traveler chases luxury and Indian Hotel brands are strongly established in this space and have set bench marks for luxury around the world. It will be interesting to compete with them in this space. Wealth creation around the world is fuelling luxury leaders like Starwood. It would be interesting to see how this pans out in India as we differentiate ourselves with our distinct lens on luxury through 3 compelling brands W, St Regis and Luxury Collection.

It is not just the wealthy and the super wealthy who are travel-ing and staying in high-end and luxury hotels; it is, in fact, many professionals who are spending 50, 100, 150 days a year on the road. The last few years has seen a huge number of wealthy individuals whose desire for luxury seems almost insatiable. The profile of this individual has changed - today’s luxury consumer is multi-national and cross-generational, defined more by his interests and mindset, his psychographic rather than his geography and demographic.

Today, 85 percent of Starwood’s luxury guests hail from generations X and Y, and the company is uniquely positioned to cater to this emerging and ever-more global generation of affluent travelers. Starwood continues to aggressively invest in the creation, renovation and restoration of its luxury pipeline in anticipation of a seismic growth of global luxury demand. Luxury makes up fifteen percent of Starwood’s total pipeline, and 90 percent of its future luxury hotels will open in emerging markets, including 4 W Hotels in India in Goa, Gurgaon, Noida and Mumbai and a St Regis in Noida. This growing cadre, which we call Generation LuXurY, moves across our portfolio of luxury hotels for business and leisure, and demands personalized service at every turn.

Modern luxury has not replaced tradition; they sit at the same table, but in slightly differ-ent clothes. Today, one may have the means and the desire to enjoy a luxurious experience, but may have no desire to wear a suit. Some of the world’s connoisseurs wear jeans, focus on enjoying themselves and partake in popular culture and design. This is the change that we see and anticipate in India too.

The average Indian today is well travelled and a lot more aware of international brands and trends in hospitality. He has a taste and appetite for luxury. We are a global company and we believe that as we grow our footprint in India and the Indian customer becomes familiar with our brands, it will generate demand for our brands globally. The Indian consumer when he travels abroad will seek our brands.

India we believe is emblematic of the change that is seen in growth markets around the world and Starwood is comfortably poised to be at the forefront to harness the implications of this change and the opportunities it can bring.

W Mumbai


HICSA MICE AD_43.78X28.54.indd 1 28/03/13 1:03 PM


HICSA MICE AD_43.78X28.54.indd 1 28/03/13 1:03 PM

Hubris, my friend, is a potential problem. Many a hotelier across the national spectrum, as an industry, can be accused of vision, business acumen, farsightedness, meticulous planning, and equally running the danger of falling victim to the deadly virus of hubris,

or the absence of a common trait like modesty. Yes, friends as an industry, we could do with a greater sense of modesty, as an expression to the world at large.

When I was talking on this subject with Manav Thadani, he said he has often asked his clients if they were looking for ROI or ROE, where it was a return on EGO that was being sought. Ego is the big issue. The reasons are not far to seek.

Over the years, evaluations have gone through the ceiling. Many of the present day successful hoteliers, have seen their net worth increase ten to twenty times, even perhaps more. A property worth just Rs. 40 crores, fifteen years ago, is now worth a whopping Rs. 1,200 crores! Small town hoteliers have seen similar rises in their capital estimation. Modesty runs the danger of automatically becoming the first casualty.

Business is just streaming in. Yes, ARRs may be down, but still giving handsome cash profits to most of them. All over India, banquets and receptions of that typical Indian wedding, and corporate events have given a new boost. Our hotel’s banquets have taken over from the tra-ditional ‘baraat ghars’. In fact so heavy is the demand that halls are being booked months in advance – if rooms are going that full, not the banquet halls!

Hotels are still a much envied activity – there is a lot of room/opportunity to dole out favours. And there are plenty on the receiving end, willing to be beneficiaries. So, there are limitless opportunities to do ‘favours’. Which also can add to the ego quotient.

CSR is sadly lacking for most of the industry. And while the bulk of the industry may be God fearing, and the owners doing their daily puja, very reverentially, CSR is another ball game. It is acknowledging your debt to society, to your immediate neighbourhood. It is not your personal gratitude to the Godly powers that be! Apart from several token acts of kindness, there is little structured CSR done by the industry, enough to boost its image of giver to society, rather than one of “islands of affluence” in a sea of poverty and missed opportunities.

What’s the point of this column? That in a forum such as this, the hospitality industry also needs to debate what sort of image does it enjoy with the society at large. How is it perceived by the world around it? And what should it do, to improve its image? And this is important!

In a society where the chasm, the gap between the haves and haves-not is only widening, where perception can fast become the reality in the absence of effective communication and where we continue to risk being grossly miss-understood. And the message must go across to all the publics outside – that hospitality is not about wining and dining, but an essential service to society and a responsible citizen at that!

A few leading representatives from the industry have been making pleas to the government for industry status for the hospitality sector. And, without any success, for many years now, this pursuit has been going on, even though somewhat mindlessly.

These representations are being made for the sake of India’s tourism, and therein possibly lies the rub, we believe. Tourism has proved to be a bad word, a word that spells luxury and af-fluence and therefore waste, in a country where essential items for a decent living are still not available for the vast majority of its people. Imagine in this scenario we are talking of taking holidays, in the pursuit of enjoyment. Tourism does not bring votes.

Times have changed, and dramatically in more ways than one. • When we hark back to 25 years ago, India needed tourism for it earned precious foreign

exchange. Other avenues like foreign remittances, IT industry, among others, are richer.• The very definition of tourism has undergone a major metamorphosis. In our dictionary,

tourism is now considered as a small subset of the larger travel picture. Tourism is now pure leisure, as against other more steady streams of visitors, such as business travel, returning PIOs and NRIs, business and government delegations.

• The vastly expanding hospitality industry, the ever increasing inventory is not being built for foreign tourism – it is just catering to travel and travel within India that has grown exponen-tially. In fact, it is the growth of the Indian travel business that is fuelling growth in the sector. Across the country, across all segments, it is the Indian traveller that is regarded as the prime source of business. In some cases, as much as 70 to 80% of the business is Indian, whether business or leisure. This is need-based development.

• Even among the foreign visitor segment, it is business and trade and industry that is proving more reliable than the pure leisure.

If Indian hospitality industry continues to chase tourism, we will not go far. What we need is to change our stance – we need to redefine or rather separate travel from tourism, show how travel is the big picture and it is for travel that we need infrastructure status.

Recently, I met a hotel staff during a national holiday celebration. Strayed into a discus-sion as to why hotels cannot be given a day off, I quickly realised why infrastructure status is necessary. Hotels form an essential service to society, just as much as does a telephone exchange, or an airport, or the local police. On any given day, there are countless people travelling through the length and breadth of any country, and India is no exception. These people need the comfort of a home, even if be a holiday. The room service must operate, and so must the kitchen. Just like your own home, away from home. It is an essential service. And one that needs infrastructure status, as it is capital intensive, technical and long gestational.

hotels would do better

to drop their tourism fixation.

travel is the big Picture and more

aligned with Infrastructure

needs

the hotel Industry could Improve

upon its modesty Quotient, and Get real with

Proper Csr in Place as an

Industry. a hotel must be viewed as an essential service and not as an Island of

affluence

Navin Berry Chief Editor Hotelscapes

p

Editor: Navin S Berry [email protected] Projects: Priyaanka [email protected]: Saurabh [email protected] Design: Ashok Saxena, Neelam AswaniHotelscapes at HICSA is being printed through our online office at Grand Hyatt Mumbai, courtesy HVS India. Tel: 91-11-43784444; Fax: 91-11-41001627. E-mail: [email protected]


the Park Hotels have a steady route to growth, without the usual fanfare that accompanies many an announcement in the hospitality industry. It reflects the understated strengths of the brand itself.

QWhere was the need for this branding, at this stage of the in-

dustry when the chips are down. We understand you have spend some 12 crores of rupees towards this effort.The Park Hotels is where unusual expe-riences are possible. We are known for creativity and innovation that is ingrained in our collective DNA. As we continue to grow, we realized the need to communi-cate boldly the strength of our brand . The fresh design language strongly reflects contemporary India and our ethos. It is strikingly bold and captures our personal-ity perfectly.

Keeping pace with changing times is necessary across industries. The hotel industry too needs to look into offering a new promise and experience as per the de-mand of the consumers and continuously look at revamping the experience offered at the hotel.

Any industry which succeeds to do this gains the confidence and loyalty of its con-sumers irrespective of the economic times we are in. The spent included marketing research, creation and designing as well as implementation of anything but ordi-nary experiences that will take place year around across all our hotels.

QWhat is the scope of this branding and what do you hope

to achieve?The rebranding process is brought to life through a range of applications including digital, signage, collaterals and a highly impactful brand video. Through the ex-

The Park Unveils a New Brand Identity

Priya PaulManaging Director The Park Hotels p

ercise, we have developed a few experiences that are ‘ANYTHING BUT ORDINARY’. These experiences are delightful surprises that makes staying at The Park more memorable. From the moment a guest arrives, to the moment they leave and beyond, we want them to experience the remarkable. So that no matter where life takes you next, you take a part of The Park with you.

QHow is the performance of The Park Hotels during the last year,

and how does 2013 look?For the year 2012-13 , we have managed to in-crease our occupancy, though the ARR has got impacted and has been under stress . Though we have managed to retain our revenue for the group at Rs. 300 crore and maintained EBITA at Rs 83 crore for the group. For 2013, again, the ARR will be under pressure specially in cities like Delhi, Chennai and Hyderabad.

QIndian hoteliering is becoming intensely competitive, and where

does this leave a boutique brand such as yours ?The Park offers guests a luxurious experience in a contemporary setting. Our hotels are a focus for those in love with the local culture and art. We are constantly evolving to keep with the changing needs of modern day travel-ler. Our spaces reflect the various moods of the city as well as the traveller.

We are business-like during the day, and during the nights our spaces turn into high energy zones with music and entertainment everyday of the week. This makes us the pre-ferred choice.

Unlike others, we are not a cookie-cutter brand of hotels; all our hotels have a different design philosophy that is inspired by the city and its culture. We offer guests a kaleidoscopic view of the city’s art culture cuisine and nightlife.

QYou have the best of central locations in every city, but in many towns the

market have moved elsewhere?The markets have grown to include suburbs of many metro cities but have not moved out of the central locations. Most of our guests do choose us because of our location that is cen-tral to business districts, government offices as well as close to the shopping areas. This clearly caters to both their personal and profes-sional needs of leisure and corporate travellers.

QWhat is your message to your fellow hoteliers, at this time when the

economy is not showing too impressive growth, elections are round the corner and corporate travel is also expected to be slow.To be patient, as I see a lot of positive growth to happen.The Park Hyderabad



With the recent comprehensive renovations, the look, the feel and the facilities of the ashok have undergone an incredible evolution.

The Ashok Unfolds a strong refurbished outlook for its hotels

Lalit PanwarVC & MD, ITDC


QHow is the new look Ashok New Delhi performing? As the flagship

property, what are the new bench-marks the hotel has achieved?The Ashok symbolizes the traditional gran-deur and hospitality of India. With the recent comprehensive renovations, the look, the feel and the facilities of The Ashok have un-dergone an incredible evolution. The hotel’s 550 rooms comprising of 77 club rooms with lounge facilities, 160 suites and one Presiden-tial Suite continue to provide the guest with the best in terms of services and facilities.The Ashok guests assess the hotel as: “The Ashok is a jewel in India, an amazing place”. For, here they experience “very high stan-dards of service”, as The Ashok has “made hospitality an appreciative art”.The Ashok is the proud recipient of two Na-tional Tourism Awards from the Ministry of Tourism in the last 2/3 years under differ-ent categories. The Hotel was conferred the National Tourism Award 2009-10 in the category of “Best Convention Centre” by the Ministry of Tourism and in the year 2011-12 as the “Best Hotel Based Meeting Venue”.

QHow is the overall performance of other ITDC properties? We un-

derstand the share prices of ITDC are witnessing a new high? To what do you attribute these successes?The overall performance of other ITDC prop-erties has improved considerably in the last 2-3 years and the Share Price of ITDC has risen from Rs 109/- per share (in June 2012) to Rs 2217/- per share (on 28 January 2013).Introduction of new initiatives and re-defined dynamics of success as introduced – have been responsible for ITDC to meet the pre-defined targets.

QApart from the Hotels division, we understand you have diversified

into other productive streams. Please share these and also other areas where you are playing the role of catalyst in tourism matters?To reinvent itself in the changing sce-nario, ITDC besides consolidating its remaining business area has diversified

into new service-oriented business activities like consultancy and execution of tourism and engineering projects, training/educa-tion in the tourism and hospitality sectors, event management in India and abroad and mounting of SEL shows in the country as well as venturing into niche segments of Cruise Tourism and Medical Tourism.As the premier implementing agency of the Ministry of Tourism’s initiative “Hunar Se Rozgar” aimed to provide skill development for the country’s unemployed youth, ITDC has exceeded the target to train 5000 stu-dents during the year 2012-13.

QYou have a large inventory of ho-tels in Delhi – how do you promote

them and make them grow. What kind of product segmentation have you made and to what success?ITDC have the total of 900 rooms in Delhi. The Delhi based hotels viz. The Ashok, Hotel Samrat and Hotel Janpath are aggressively promoted for capturing the domestic seg-ment and MICE segment with cost effective attractive packages and offers.

QIs there any talk of growing your brand? Offering your expertise to

remain asset light and acquire more properties through management con-tracts? Are there any joint ventures under way with State Governments?ITDC has the complete backup of services under viz. Tours & Travels, Duty Free Shops, Entertainment, Project Consultancy, Engi-neering Consultancy and Event Management under a single roof. The Group has the know-how and expertise to acquire more properties through management expertise under the franchise model as offered to stand alone hotels in the country.MOUs have also been signed with State Tour-ism bodies viz. Tripura Tourism Development Corporation to develop Tourism in the State and build a Hotel under the Public Private Part-nership (PPP). ITDC has also entered into an MOU with M/s Hindustan Salts Limited and its subsidiary M/s Sambhar Salts Limited with the objective to develop tourist centres in the State of Gujarat, Rajasthan and Himachal Pradesh.

QHow is the economic slow down affecting your hotels and your

growth plans?Economic slow down has its affect on the Industry as whole. However, to face the issue ITDC is concentrating on tapping the domestic as well as MICE segment. ITDC has already initiated the process to set up India Global Tourism & Hospitality University (IGTHU) in Haryana to train manpower as well as under-take research activity for the Tourism Industry in an effort to bridge the gap between demand and supply of manpower in the industry.



HICSA happens this year on the 3rd and 4th of April against a backdrop of slowing economic growth both within the country and around the world. The downturn in India coincides with high inflation, which has limited the extent to which the RBI can use lower interest rates to revive growth. Most hotel markets across the country have seen occupancy and average rate declines of 5-10% as a result of the slowdown, which has been further

exacerbated by increases in room supply. However, as has been noticed in previous years, our markets have exhibited strong increases in demand in the last twelve months and occupancy levels therefore only dropped in markets where the supply increase exceeded demand increase. Goa, Pune and Mumbai are examples of markets where occupancy levels actually increased in the last twelve months. Our analysis has revealed that the performance of individual hotel markets has much lower correlation to GDP growth as compared to the correlation with the supply-demand imbalance. Thus, with a reduced proposed supply pipe-line over the next five years, we believe that most hotel markets will start seeing occupancy increases in the next 24 months and average rate increases thereafter. With pressure on revenues, there is a greater focus on reducing costs and companies are proactively working on reducing payroll and utility costs. Companies looking to build new hotels will need to spend a lot more time on planning and due diligence to ensure their ho-tels are not over-improved and that they do not overspend, as beyond a certain point, any additional expenditure will not result in a higher occupancy or average rate. Funding for hotels remains a challenge and despite the presence of private equity players in the country, most new hotels are being developed with a combination of bank debt and personal equity. The availability and cost of debt is therefore of critical importance to the growth of the hotel industry and remains one of the biggest challenges for new hotel con-struction today. While the hospitality sector has consistently asked for infrastructure status and the host of benefits that come with this label, there are no signs from the government indicating anything will happen on this front without riders and we at HVS are not opti-mistic about our chances in the near future. However, we hope that banks will ease some lending terms such as longer tenures and more flexible repayment schedules, especially in the initial years when the hotel is still improving its performance and cash flows have not stabilized. The theme within the Indian hospitality industry over the next 12-18 months will be one of consolidation, whether it be in terms of an individual hotel’s performance in its market, or in terms of serious investors looking to grow their portfolios by acquiring distressed assets from “hobby investors”, a group that got into the industry for a Return on Ego and not for Return on Investment. We are seeing an increasing number of such opportunities in the marketplace and believe the next 12 months will be defined by several meaningful transactions.

Kaushik Vardharajan is Managing Director of HVS Hospitality Services for South Asia. He joined HVS’s New York office as an Analyst in 2001 and moved to the New Delhi office in October 2008. Kaushik has worked on over 1,000 market studies, feasibility analyses, and valuations in North America and India, with a special focus on large mixed-use projects and portfolio valuations. Kaushik is also a Member of the Royal Institute of Chartered Surveyors (RICS) and is part of the Valuation Working Commit-tee of RICS, which is responsible for establishing professional standards for property valuations in India. He has also taught courses and spoken at New York University, Johnson and Wales University, and the Indian School of Business.

State of the Industry

Kaushik VardharajanManaging Director of HVS Hospitality Services for South Asia p

HVS Global Summit 2013 – Hosted by HVS India

Aiming at global collaboration and exchange of ideas, HVS Hospitality Services organises a global summit once in every two years. The summit serves as a strategic retreat where rep-

resentatives from 30 offices across all services, worldwide, regroup and visualise the future of the company.

This year’s summit, hosted by HVS India (held in New Del-hi), brought together 115 delegates, including 21 spouses/

companions. It offered a good mix of work-relat-ed activities and recreation across the four days. The showcase events of the summit were The HVS Great Amazing Race and the Farmhouse Theme Dinner on Day 3. The former tested the participants’ skills at leadership, time manage-ment, communication, coordination and quick thinking. Competing in teams, close to 120 participants raced across the city (including a metro and auto rickshaw ride) solving clues and collecting points. The race culminated into a special dinner at a farmhouse with an ethnic Indian theme complete with tarot card readers, elephant and camel rides, puppet shows, me-hendi artists and bangle sellers among others.

Overall, it was a highly productive Global Summit with all the preparation for it paying off. Post-Summit trips to Agra and Jaipur too were organised for those interested.

HVs organises a global summit once in every two years. the summit serves as a strategic retreat where representatives from 30 offices across all services, worldwide, visualise the future of the company.

the theme within the hospitality industry over the next 12-18 months will be one of consolidation.


The paNelAn independent panel of six judges short-listed hotels across various categories from amongst 37 nominations received this year. It is important to note that judge’s discretion has only 5% weightage in the short-listing process with an aim to bring in as much objectivity as possible to the exercise. The panel comprised:

ashish JaKhaNwalaCeo and md, samhIAshish Jakhanwala is the Chief Executive Off icer a nd M D of SA M H I, a hotel development and i nvest ment compa ny,

which he co-founded in January 2011. He has 15 years of experience across functions in the hospitality industry including investment, development, operations, planning, corporate finance and business advisory services.

Cyril JaCoB md, arChetyPe GrouPCyril Jacob is Managing Director of Archetype in India since 2007. He has more than 20 years of project management ex-perience in various East

and South Asian countries. Archetype is a multi-disciplinary construction consultant, present in India since 2006 with its Project Management division.

homi aiBaraPartner, mahajan and aIbaraHomi Aibara has been a Partner at Mahajan and Aibara since 1987. His industry specialisation includes Real Estate, Hos-

pitality and Tourism both within the country and overseas. 25 years of experience has provided him with opportunities to direct multiple assignments in master planning, market assessment, feasibil-ity studies, negotiating management contracts, tender processes and divestment among others.

riTu BhaTia Kler md, total InteGrated desIGn (tId)Ritu Bhatia Kler started the office of TID India in 1995. She developed and promoted TID India, and handled the design co-

ordination between clients and designers of TID International in Singapore.

sourish BhaTTaCharyyaexeCutIve edItor, maIl todaySourish Bhattacharyya is a popular food and travel writer with 27 years of ex-perience. As the Executive

Editor of Mail Today (The India Today Group), he reviews restaurants every Friday, writes a food column every alternate Saturday and supervises the Special Initiative pages covering Travel.

maNav ThaDaNiChaIrman – south asIa, hvs hosPItalIty servICesManav Thadani has con-ducted various feasibility and market studies, and performed hotel valua-

tions for many major hotel chains and investment banks around the globe during his tenure with HVS since 1995. Prior to joining HVS, he gained six years of operational experience in various hotels in New York City. He moved to the London office in 1997 and then opened the HVS New Delhi office with Partner and HVS Founder Steve Rushmore. In addition, he also oversees the Russia office of HVS and the re-launched Sustainability Services in India and Americas. Manav is also responsible for successfully holding the Hotel In-vestment Conference - South Asia (HICSA) since its inception in 2005.

The proCessAll nominated hotels competed for a total of 100 points across 12 criteria. Three of these criteria (that make up 40% of the scores) were Development Cost per Key, Construction Tenure and TripAdvisor Rating and since these are quantifiable parameters, all nominated hotels were awarded points in advance for the same.Since the inception of HICSA Hotels of the Year Awards, more than 190 hotels have been nominated in various categories. While a few surprises and disappointments are expected, it is important to note that the methodology of short-listing the finalists has been consistent over the past five years. The winners are ultimately chosen by HICSA delegates through an online voting process. This year, some of the home-grown brands have outscored international brands largely on the back of low development costs, which is clearly more investor-friendly. In addition, hotels that took longer to build and are over-specced have clearly lost out on these important parameters. Regardless of the controversies the awards may have created, the fact is that they acknowledge the best new hotel developments in the South Asian region from amongst the nominations that have been received.

Hotel of the Year Award HICSA 2013

The FiNalisTs – 2013Based on the above methodology, the finalists are:

HIcsa Hotels of the year awards – the methodology. the HIcsa Hotels of the year awards were instituted by HVs India to honour and recognise the most outstanding hotel developments in the previous year in south asia. the finalists for 2013 have been recently announced and it has stirred up a controversy like never before. Hence, HVs thought it necessary to communicate the rationale and methodology employed for the short-listing process.

The 100 points across the 12 criteria are distributed as given below:Criteria Maximum PointsDevelopment Cost 15Construction Tenure 15TripAdvisor Ratings 10Location (Access and Visibility) 10 Location (Proximity to Demand Generators) 5 Hotel Facade and Public Areas 5Guest Rooms (Interiors, Design and In-room Amenities) 10F&B (Restaurants) 5 F&B (Meeting and Banqueting) 5Other Facilities (Spa, Retail and Entertainment) 10Corporate Social Responsibility 5 Judges Discretion 5Total 100


Carlson announces leadership change in South Asia

JW Marriott Experience “True Luxury” the Marriott Way!

As we all know, the Carlson Group has doubled its presence in India in the past 2 years, finishing 2012 with 63 hotels in operation and 43 hotels under development and maintain-ing its status as the largest international hotel operator in

India by number of hotels.To support the growth in India, the company is strengthening South

Asia’s leadership team by promoting K.B. Kachru, Executive Vice Presi-dent for South Asia, as Chairman for South Asia. K.B. is the founder of Carlson’s hotel business in India. He has been instrumental in building the company in India over the past 15 years, and Carlson Hotels considers it very important that the company maintains continuity and preserve its position as the number one international hotel company in India by number of hotels.

To fill in K.B.’s current role, Raj Rana, a 22-year veteran of Carl-son Rezidor has been appointed Chief Executive Officer for South Asia. Raj will start his assign-ment in the Delhi office on April 1, and will work alongside K.B until June 30. Both will assume their new roles on July 1.

In his new role as chairman, K.B. will continue to drive the growth of the company’s hotels in South Asia, as well as mentor Raj in his new role as chief execu-tive officer.

Raj, a U.S. national born in Delhi, was most recently the vice president, Radisson Fran-chise Operations, Americas, based in Minneapolis. Raj joins the South Asia management team with a wealth of international hotel management experience, having held numerous senior positions at Carlson Rezidor hotels in the United States and in Europe over the past 22 years.

The new appointment of Raj Rana also marks the beginning of the next phase of growth for Carlson Rezidor in India, where the company is on track to have 100 operating hotels by 2015.

to support the growth in India, the company is strengthening south asia’s leadership team by promoting K.B. Kachru, executive Vice President for south asia, as chairman for south asia. K.B. is the founder of carlson’s hotel business in India.

KB KachruExecutive Vice President for South Asia p

Raj RanaChief Executive Officer for South Asia pp

to fill in K.B.’s current role, raj rana, a 22-year veteran of carlson rezidor has been appointed chief executive officer for south asia. Raj will start his assignment in the Delhi office on 1 April

Simon BarlowPresident Asia Pacific, Carlson Rezidor

Anticipated Arrivals, Intriguing Enhancements, expe-rience the simple elegance of the JW brand, through stunning properties in gateway cities and distinctive resort locations around the world. The JW Marriott brand is part of Marriott International’s luxury port-folio and consists of beautiful properties that speak and

reflect “quite luxury” enthused with a warmly authentic touch, putting guests at ease in an environment of relaxed elegance and sophistication.

The JW brand hotels and resorts are focused on fostering a sense of well-being through state-of-the-art fitness centers, award-winning spas and imaginative cuisine. It is here that luxury is experienced through the richness of authenticity, discovered in the beauty of craftsmanship and delivered with an intuitive response to personal expectation.

The JW Marriott Brand journey in India began in 2001 with the launch of the iconic JW Marriott Mumbai, which is also known as the Marriott’s flagship brand in India. The JW Marriott Mumbai offers a sanctuary of highly crafted luxury. Spread over 16,500 sq feet, this dis-tinctive JW is among the area’s most indulgent locations for meetings, weddings, events and receptions. The hotel has gone through a meta-morphosis offering a beautiful, elevated blend of elegance and modern style gilded with signature service that makes it stand out amongst other Mumbai luxury hotels.

Following close in the footsteps of this leader, was the 2nd JW branded hotel, which Marriott launched in Chandigarh in 2011. The hotel is embodied with an effortless elegance and sophistication, admist beau-tiful environs which allow thoughts to transform into success stories. Cuisines are crafted with passion, care and local flavours.. True to the brand values, the JW is where your privacy is always valued, yet your presence never forgotten..

The JW Marriott Pune, the 3rd JW branded hotel in India is a property which was launched as a Marriott, but was converted to a JW as recently as March 2103. Here, you’ll discover a place where ideas find room to grow. Ingredients of nature are transformed into exquisite culinary experiences.

The JW growth story if full of promise in India. 2013 will have 5 new JW’s across key markets in India. To begin with we have the stunning JW Marriott New Delhi Aerocity, soon to open in the second quarter of 2103. The first JW Marriott in the capital offers an indulgent and lavish experience with diverse fine-dining and entertainment options, one of the largest indoor banquet facilities in the capital, the distinctive Quan Spa, JW Fitness, the hotel’s state-of-the-art health club and a spectacular outdoor, heated swimming pool with uninterrupted views of the aerospace.

Also set to launch in the second quarter of 2013 would be the JW Mar-riott Bengaluru, with a winning location that caters to both business and entertainment through its close proximity to many FORTUNE 500 com-panies and the city’s most premium shopping arcade. Offering 10,400sq feet of indoor and outdoor space, stylish meeting spaces,beautiful ban-quet settings and a culinary offering catering to global tastes,this JW will offer its guests the freedom to focus on things that are important to them.

The JW Marriott portfolio currently includes 60 properties offering 24, 803 rooms in 23 countries across the world.

JW Marriott Mumbai


Our nine distinct lifestyle brands, powered by a global booking platform and the award-winning Starwood Preferred Guest® loyalty program, give our partners a competitive advantage.

To learn more, visit us at starwoodhotels.com/development or call +91 124 6768 000

ALOFT BENGALURU WHITEFIELD

ALOFT COIMBATORE SINGANALLUR

ALOFT CHENNAI, OMR - IT EXPRESSWAY

Kumar SitaramanCHAIRMAN & CEOAUROMATRIX HOLDINGS PVT. LIMITED

“Auromatrix is proud to have partnered with Starwood

Hotels to bring its young design-oriented and tech-savvy

Aloft hotels to India. Aloft provides a highly differentiated

experience which resonates with guests and stands out

in the cluttered upscale segment. Thanks to Starwood’s

strong sales and marketing network and award-winning

SPG® loyalty program, our hotels have ramped up quickly.

We couldn’t ask for a more professional, experienced

and flexible group to partner with.”

©2013 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Aloft, Element, Four Points, Le Méridien, Sheraton, St. Regis, The Luxury Collection, W, Westin and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its af� liates.

INNOVATING. GROWING. LEADING.

THE POWER OF STARWOOD PARTNERSHIP.

THE WESTIN GURGAON, NEW DELHI

THE WESTIN SOHNA RESORT & SPA

Amit BhosaleEXECUTIVE DIRECTORAVINASH BHOSALE GROUP

“As an owner of multiple Starwood branded

hotels, Starwood has successfully shown

that through its powerful distribution

systems and fresh approach to lifestyle

branding, a company can operate multiple

hotels within the same city and grow

market share for each. Our recently opened

Westin Pune Koregaon Park has emerged

as a market leader within

a short period of time.

We look forward to

growing our partnership

with the launch of our

next hotel, under

Starwood’s iconic

W brand.”

Anil BhallaCHAIRMANVATIKA GROUP

“Vatika Hospitality and Starwood Hotels have enjoyed

a strong, successful collaboration on Westin hotels

in India. We can rely on the Starwood team to execute

at a high level, providing valuable development and

operational support and delivering market-leading

revenue performance. As we expand our hospitality

portfolio, leveraging Starwood’s differentiated

lifestyle brands and strong global platform will

be an important part of our strategy.”



We look forward to



Starwood’s iconic



THE WESTIN PUNE KOREGAON PARK

loyalty program, our hotels have ramped up quickly.

GDG13017IndiaTestim_Hotelscapes.indd 1 3/27/13 4:12 PM


Our nine distinct lifestyle brands, powered by a global booking platform and the award-winning Starwood Preferred Guest® loyalty program, give our partners a competitive advantage.

To learn more, visit us at starwoodhotels.com/development or call +91 124 6768 000

ALOFT BENGALURU WHITEFIELD

ALOFT COIMBATORE SINGANALLUR

ALOFT CHENNAI, OMR - IT EXPRESSWAY

Kumar SitaramanCHAIRMAN & CEOAUROMATRIX HOLDINGS PVT. LIMITED

“Auromatrix is proud to have partnered with Starwood

Hotels to bring its young design-oriented and tech-savvy

Aloft hotels to India. Aloft provides a highly differentiated

experience which resonates with guests and stands out

in the cluttered upscale segment. Thanks to Starwood’s

strong sales and marketing network and award-winning

SPG® loyalty program, our hotels have ramped up quickly.

We couldn’t ask for a more professional, experienced

and flexible group to partner with.”

©2013 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Aloft, Element, Four Points, Le Méridien, Sheraton, St. Regis, The Luxury Collection, W, Westin and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its af� liates.

INNOVATING. GROWING. LEADING.

THE POWER OF STARWOOD PARTNERSHIP.

THE WESTIN GURGAON, NEW DELHI

THE WESTIN SOHNA RESORT & SPA

Amit BhosaleEXECUTIVE DIRECTORAVINASH BHOSALE GROUP

“As an owner of multiple Starwood branded

hotels, Starwood has successfully shown

that through its powerful distribution

systems and fresh approach to lifestyle

branding, a company can operate multiple

hotels within the same city and grow

market share for each. Our recently opened

Westin Pune Koregaon Park has emerged



We look forward to



next hotel, under

Starwood’s iconic

W brand.”

Anil BhallaCHAIRMANVATIKA GROUP


a strong, successful collaboration on Westin hotels


at a high level, providing valuable development and

operational support and delivering market-leading

revenue performance. As we expand our hospitality

portfolio, leveraging Starwood’s differentiated

lifestyle brands and strong global platform will

be an important part of our strategy.”



We look forward to



Starwood’s iconic



THE WESTIN PUNE KOREGAON PARK

loyalty program, our hotels have ramped up quickly.

GDG13017IndiaTestim_Hotelscapes.indd 1 3/27/13 4:12 PM


as a result we have a robust pipeline with the largest number of hotels in the midscale, economy and budget segments actively under construction in India. We are also evaluating new models, including selective franchising for some of our brands.

QWhat does your development path look like and can you share

which markets and cities are you en-tering over the next few years? India is a key growth market for Accor. It’s a market where our number of hotels is more than set to double by 2014 from the existing 19 hotels operational at present. During 2013 we will add another 10 hotels to this network of operating hotels. Between now and 2014 we will be opening hotels in New Delhi, Kol-kata, Chennai, Bengaluru, Pune, Ahmedabad, Goa, Jaipur, Agra and Trivandrum across the Pullman, Grand Mercure, Novotel, ibis and Formule1 brands. Having established and strengthened our op-erations in India via a hub and spoke model, we are offering and will continue to improve our deliverability to our customers and part-ners with a pan-India presence, by providing a lodging solution in all primary and key second-ary cities in the country – across micro markets and across budget ranges. We are actively re-viewing opportunities to enhance our presence across secondary and selective tertiary markets. We will commence operations in Jaipur and Goa this year, our first hotels targeting the lei-sure market. At the same time, we are seeking opportunities for developing hotels in other countries in the region including Bangladesh, Nepal, Sri Lanka and Bhutan.

QWhich brands from Accor are particularly relevant for the In-

dian market?

Accor works on giving solutions to investors

Lokesh SabharwalVice President – Development Accor Hotels in India, Nepal, Bangladesh and Sri Lanka p

Novotel and ibis continue to be our most recog-nized brands, with the Novotel in HITEC City, Hyderabad being our first operation in the country since 2006, attached to the Hyderabad Internation-al Convention Center that we continue to operate. ibis was the first internationally branded economy hotel in India and we now have 7 hotels operational with another 15 under active development. We have learnt and adapted the product to suit Indian customers’ expectations without having altered the spirit and integrity of the brand.We are also witnessing new opportunities across markets for other Accor brands; having launched our upscale brands Sofitel and Pullman and the budget Formule1 in the country. There is a huge potential for our Mercure brand which blends the product specifications of an international mid-market hotel with the requirements of a local market. In a way, Mercure celebrates and thrives on the diversity of a complex market like India.

QWhat can hotel investors expect from Accor as an operator in India?

Accor has been one of the few international hotel companies that have committed a significant in-vestment towards the Indian hotel sector, across segments and markets. We are now actively in-creasing our presence in the sub continent for our luxury, upscale and mid market hotels via manage-ment agreements while continuing to selectively invest in the economy and budget segments. As a result we have a robust pipeline with the largest number of hotels in the midscale, economy and budget segments actively under construction in India. We are also evaluating new models, includ-

ing selective franchising for some of our brands. We approach our potential partners with the point of view of offering a solution to them. There is a genuine attempt to understand the vision of the ownership and combine it with on-ground market intelligence. We believe this flexibility is what hotel investor’s appreciate. We are collaborative rather than being prescriptive. At design level, this collaborative ap-proach leads to GFA optimisation, appropriate room sizes and optimum design. Hence, public spaces and F&B facilities in a hotel are based on market requirements rather than purely being driven by a strict brand requirement.At an operational level, Accor is a return focused operator. Our hotels enjoy autonomy in decision making and are therefore very successful in de-livering good GOP results. To sum up, we believe having invested ourselves, our awareness of the landscape and pressures faced by our owners as well as their needs, allows us in supporting our partners better.

Sofitel Mumbai




Select results of the owner’s survey by HVS IndiaHVs India shares some of the interesting results of its very first owner’s survey. collectively owning around 21,000 rooms, the survey sample set is diverse with a healthy mix of owners with individual and multiple hotels across varied market positionings.

The survey identified the top five challenges faced by hotel owners in India:l Scarcity of quality manpowerl High cost of capitall The lengthy approval and licensing processl Alignment of owner and operator expectations– Brand standards often override owner’s objectives– Development assurances do not match operating deliveries– Management contract agreements tend to be pro-operator with little/no penalty for poor performancel Rising development costsA few also highlighted rising operating costs, particularly payroll related, to be a challenge.

In response to the top three requirements from the Indian government for a more enabling en-vironment, the owners have very emphatically sought:l Single-window clearance to develop and operate hotelsl Investment-friendly taxation policiesl Improved tourism infrastructure including airports, roads and utilities

Additionally, they have requested for Infrastructure Status for the hotel industry that is anticipated to result in the banking sector offering a longer loan term at lower interest rates than present.

p Manav ThadaniChairman – South Asia, HVS Hospitality Services

p

Q Do you think brands add value to your hotel(s)?

The information received from the respondents was statistically aggregated and is not representative of HVS’ or an individual’s views in any manner.

Q A fun-question – Who would you like to

see as India’s next Prime Minister?

Q Over the next two years, how do you see the following changing?

Q What would be your preferred source of funding for hotel assets?

Q How satisfied are you with the performance of your current hotel brand?


Hicsa

Documents

largest online market

hotel travel group

formers online market

online channels

online sales

apac hotel reservations

apacs online growth

growing market