Indians have a penchant for hospitality. In fact, the service in hotel brands operating in India is known to be a notch above the required standards. Whether it’s five star luxury or even a strong mid-market product, there is no doubt that hotels in India know how to keep their guests happy. Therefore, it is natural for our home-grown, internationally renowned hotel brands to look abroad, especially with the substantial growth in out-bound tourism.
International chains with connects to India are busy harping about their desi connect, from staff — waiters to concierges, who speak Indian languages— to breakfast offerings which offer everything from the staple idlis to more complicated (and often vegetarian) delicacies. Why should it be international chains that strive to make their service ‘more Indian’, when someone with the same DNA can match our expectations?
In the expansion plans of many chains, from those that have had international properties for years and have been looking at profit centres to chains that are looking to go abroad after making a mark in India, there seems to be a trend to look at certain areas of the world. Areas where Indian tourists like to travel.
BW Businessworld reached out to some of India’s leading hospitality brands to find out what the lure was for that international hotel. According to Rattan Keswani, deputy managing director, Lemon Tree Hotels, and chairman, Carnation Hotels, the youngest of the hotel companies that BW contacted, his three brands, which own 4 per cent of the organised mid-market inventory in India, represent the brand across the upscale, midscale and economy space. These brands are targeted to profitably service the needs of varying consumer segments, he says.
According to him, it is all about going where the need exists. Following the trail of Indians who travel around the world. “Our customer has matured and has high disposable income. He/she actively travels for business besides taking at least two short breaks or holidays round the year to multiple Indian and international destinations. We want to be able to extend the brand’s reach in those dense international leisure locations where Indians frequently travel,” he says.
Besides continuing to strengthen his company’s position in India, Keswani’s says the aim is to capitalise on the overseas opportunity in an attempt to cater to the discerning needs of the Indian traveller even outside the confines of the country. “To fast pace this objective, we have recently announced our association with Raine and sHorne’s franchise in Dubai, to help us explore opportunities in the GCC (Gulf Cooperation Council) area with a clear objective of opening eight hotels across the region in the next three years,” he says.
Suma Venkatesh, senior vice president, Real Estate & Development, Taj Hotels Resorts and Palaces, a brand which is already present in four continents and 11 countries, says, “Our ambition is to be globally reputable, not globally present; we know that the Taj brand carries with it a legacy of service and values and we want to ensure that is brought to the markets that matter to us through the lens of our defining factor — our Tajness”.
The company’s focus is on growing its footprint in key metro cities. These cities are growing exponentially and the inbound travel market — both domestic and international — is matching that pace, she says.
“Internationally, the US and the UK continue to be our primary source markets and we have an established presence there with hotels in San Francisco, Boston, New York and London,” she says, adding that it is important for Taj to grow in markets in which customer crossover comes MENA — specifically Muscat, Doha and Abu Dhabi, South East Asia including Thailand, Singapore, Vietnam, Cambodia, and Greater China — both Hong Kong and the mainland — are targets for global expansion in the coming years for Taj, which currently has two more hotels in the pipeline in the UAE and one in Hainan Island, China.
Rajiv Kaul, president of The Leela Palaces, Hotels & Resorts, which operates exclusively in the ultra luxury segment, says the group plans to operate only in the bespoke hospitality space. “Having achieved a strong presence in India with nine award-winning properties in key cities and leisure destinations, we now plan to expand to newer markets outside India. Our beach resorts in Goa and Kovalam have received much global appreciation and acclaim, so it is only logical that we continue our Indian Ocean journey with a presence in the Maldives and Seychelles. Our immediate expansion plans include the Middle East, which is a growing source market for our hotels,” he says.
Kaul says the company’s objective is to offer the inimitable Leela brand experience in popular international destinations.
The Leela brand currently owns and operates nine properties across India and the next cycle of growth will be through an asset light strategy with management contracts. “Our plan is to continue to operate in the bespoke luxury hospitality space and be very selective with the destinations we choose for expansion. Internationally, we are looking closely at the Maldives, Seychelles, Abu Dhabi and Dubai,” he says.
bikramjit@businessworld.in
BW Reporters
Bikramjit Ray is Executive Editor of BW Hotelier.
