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  1. 1. DIGITAL COMPETITION RADISSON BLUIn a world crammed with hotels that practically have the same look and feel, it often becomes reallydifficult for hotel brands to stand out from the crowd.The Rezidor Hotel Group called in our help to launch a digital summer campaign for Radisson Blu, apremium hotel brand that sets itself apart from the mass by focusing on a unique design andatmosphere in every single hotel across the world.We developed an online two-phase competition where we not only wanted to raise awareness on theexceptional design of the Radisson Blu hotels, but also wanted to give people the chance todemonstrate their design skills and personality. All in order to create the ultimate synergy betweenRadisson Blu and the desired style of its leisure travellers.The first phase let people discover and choose one of the hotels of Radisson Blu that matched theirstyle. Simply by answering two questions, people could take a shot at winning a design holiday for two,at their preferred hotel.During the second phase we wanted to get in tune with the style wish list of our leisure traveller. We setup a competition where people could create a personal mood board of their ideal room in a RadissonBlu hotel of their preference.Over a period of 8 weeks, a stunning 12.343 mood boards were submitted. Out of the 10 nominees,consisting out of 5 Mood Boards with the most votes and 5 Mood Boards selected by a designer jury, thefinal winner was chosen. The lucky one’s Mood Board is used as inspiration for a unique and newly builthotel room at the winner’s preferred destination which was opened in 2012.The winner also won a stay of 30 days spread within one year in his personal designed hotel room. Theother 9 nominees, who made it to the shortlist, won a 2 night stay for two in the winner’s hotel room.Carlson Rezidor Hotel Group opens first RadissonBlu Hotel in NagpurCarlson Rezidor Hotel Group has announced the launch of first Radisson Blu Hotel in here, in partnershipwith Bestech Hospitalities. The hotel adds to the portfolio of the company and brings it to 53 in India.Simon C Barlow, president, Carlson Rezidor Hotel Group, Asia Pacific, said, ―Carlson Rezidor has beenoperating in India for 14 years and it has been growing from strength to strength in this emergingeconomy. By 2015, we will have 100 operating hotels in India which reinforces our position as the largestinternational hotel operator in India based on the number of hotels. Our success in this market is in partdue to the strong relationship that we have with hotel owners. We have just signed a strategic partnershipwith Bestech Hospitalities to develop our Park Inn by Radisson brand in North and Central India, and the 1newly opened Radisson Blu Hotel Nagpur will be the fifth property that we are managing for Bestech.‖ Page
  2. 2. Over 10,000 square feet of event space has been provided in the 214-room hotel, which canaccommodate up to 1,000 people. The recreational facilities of the hotel include a spa, a fitness centreand an outdoor swimming pool.Additionally, the hotel also offers a variety of dining options such as Ethyl Bar and Lounge, Cakewalk Tealounge and Pastry Shop, The Creative Kitchen, Ni Hao and Indya Oye.KB Kachru, executive vice president, Carlson Rezidor Hotel Group, South Asia, said, ―There has been agrowing interest amongst hotel developers and owners in the Radisson Blu brand in India. 14 moreRadisson Blu hotels will open in key cities in India over the next three years. We are most honored to beonce again working with Bestech Hospitalities, our partner of ten years, to bring this vibrant, first classbrand to Nagpur.‖Hotel industry grapples with high attrition, risingstaff cost…The hotel industry in India is reeling under a severe manpower shortage.Currently, there are a little over one lakh quality rooms available in the country.On an average, the room to staff ratio is 1:1.75. Quoting Deloitte data, industry sources say there areover 400 projects under various stages of development with over 70,000 rooms in the next couple ofyears across the country.With more and more hotel projects being announced and the room inventory expected to almost double inthe next five years, the demand for trained manpower will shoot up.Mr T. Natarajan, Secretary, South India Hotels and Restaurants Association and also CEO of theChennai-headquartered GRT Hotels and Resorts, says more than getting skilled manpower, employeeretention has become a bigger challenge now.―People are prepared to hop to another hotel just for a couple of thousands of rupees more, withoutconsidering their career growth prospects and opportunities the current employer offers in the long run.‖Manpower shortage and attrition is ―the single largest problem the hospitality industry is trying to addresstoday,‖ says Mr Rajeev Menon, Vice-President, Marriott International.ATTRITION WOESAccording to sources, attrition in the industry currently hovers at 25-30 per cent — across different levels.To check attrition, hotel companies announced considerable salary hikes in the last six months, resultingin up to 30 per cent growth in employee cost.Being a service industry, where talent redeems the brand promise, employee cost on an average wouldbe 20 per cent. In the last one year, that has gone up to 30-35 per cent, denting the profitability of thecompany in many cases. 2 Page
  3. 3. RISING EMPLOYEE COSTIndustry biggies such as Indian Hotels Company (that owns the Taj brand of hotels), EIH Ltd (part of theOberoi group) and Hotel Leela Venture have reported 17 to 29 per cent increase in employee cost duringcalendar 2010. For example, the employee cost for Indian Hotels moved up to Rs 113.37 crore for thequarter ended December 31, 2010 from Rs 88 crore in the comparable quarter of the previous year, risingby a third. Other expenses such as raw materials, power and fuel, on the other hand, grew on an averageby 12 and 15 per cent respectivelyWhile Indias government-run and private sector hotel management schools turn out a little over 10,000graduates a year, the yearly requirement is at least three times this number.―To top it all, IT-service, retail and aviation industries too nibble at the available talent pool, leaving only afraction of this for the hotel industry,‖ says Mr Menon of Marriott.Mushrooming stand-alone restaurants too poach trained hands from hotels, leading to attrition, says MrNatarajan.IN-HOUSE TRAININGTo ensure availability of enough talent, ITC Hotels, for example, has increased the number of candidatesfor management training three times to sixty, from this year. ―The idea is to have enough number ofpeople in pipeline to meet our future requirement as we are expanding fast,‖ says Mr Virendar Razdan,General Manager, Sheraton Park, Chennai.Unless hotel companies have in-house training and development programmes, it will be difficult to stafftheir properties well, says Mr Ajay K. Bakaya, Executive Director, Sarover Hotels and Resorts. Of course,Sarover too has been experiencing attrition issues, but manages to keep the numbers low, ―as we recruitpeople at lower level and put them through our training and development programmes and then promotethem as executives. The loyalty factor works,‖ says Mr Bakaya.―This is not enough,‖ says Mr Menon adding, ―The industry must come together to create enough talentand groom them to be industry-ready, preferably through public private partnerships.‖HHI Group of Hotels may go for Rs 350-crinvestment in next 3 years : Hospitality firm HHI Group of Hotels may opt forcapital infusion worth Rs 350 crore in the coming three years on expansion and is holding negotiationswith private equity (PE) companies for securing funds.Moreover, HHI is presently working on four projects in Patna, Raipur, Indore and Goa. The Goa propertyis a 180-room upmarket hotel in the prime south and may be opened by October 2013.The company feels that the current market conditions are not right for introducing an initial public offering(IPO). 3 Page
  4. 4. India Tourism Development Corporation earns overRs 22-cr profit in FY12The government-owned India Tourism Development Corporation (ITDC) witnessed a profit of over Rs 22crore during the last fiscal (2011-12), after experiencing losses for two consecutive years.The company, aimed at the progressive development, promotion and expansion of tourism in thecountrym closed the year with an increase in turnover by around 8 per cent as compared to the last year.PSUs turnover also increased from Rs 392.36 crore to Rs 423.06 crore, registering an increase of 7.82per cent.After an annual general meeting (AGM) here, ITDC Vice Chairman and Managing Director Lalit Panwarsaid, ―We have earned a profit of Rs 22.02 crore against losses of Rs 11.73 crore and Rs 20.51 croreduring 2010-11 and 2009-10 respectively.‖On increased turnover, he said, ―We undertook a series of steps including cost cutting measures andincreasing room occupancy rate by 8 per cent at ITDC hotels.‖ITDC has 1,200 rooms in 15 hotels across the country including the flagship Ashoka hotel.Carlson Rezidor to start 14 new hotels by 2012-endHospitality major Carlson Rezidor Hotel Group has decided to start 14 new hotels in India by the end ofthis year in various segments.The hotels will be in the firms four brands -- Radisson, Country Inns & Suites By Carlson, Park Inn byRadisson and Park Plaza.The firm is also developing upon past years growth momentum and also on track with its plan to haveover 100 hotels across India by the year 2015.The expansion is part of Ambition 2015 strategy to strengthen its international portfolio by minimum 50%to over 1,500 hotels by 2015Taj Hotels guest programme Taj InnerCircle bagsaward at 2012 Freddie Awards 4 Page
  5. 5. Taj InnerCircle, the frequent guest programme of the Taj Hotels Resorts and Palaces, was recognisedwith award of the Best Hotel Programme of the Year, Best Redemption Ability and Best Customer Serviceat the 2012 Freddie Awards held in New York.Taj InnerCircle bagged this award for the Middle East, Asia and Oceania region. Freddie Awards wasincepted in 1988 and honours excellence in frequent travel programmes.Taj Hotels offers Taj InnerCircle programme for its frequent customers. Apart from earning points, TajInnerCircle offers its members easier, faster and more flexible check-in and departure formalities.The members can save these points for rewards and enjoy member-exclusive benefits like price-offs onTaj Holidays, special offers on room tariffs, restaurants, private jets and spas across all their brands – Taj,Vivanta by Taj, Gateway Hotels and Ginger.Indias hotel and tourism sector lured Rs 4,041-crFDI during Apr-JanThe Indian Hotel and Tourism sector successfully attracted Rs 4,041-crore foreign direct investment (FDI)during April 2011-January 2012. In the recent times, Centre has announced that the Hotel and Tourismsector is a high priority sector.Centre released the FDI equity flows from April 2008 to January 2012 in the Hotel and Tourism sectoraccording to a report received from the Department of Industrial Policy & Promotion.In financial year 2010-11, the sector attracted Rs 1,405.15 crore worth FDI and it stood at Rs 3,566.32crore in FY09. FDI inflow in Indian Hotel and Tourism sector has witnessed considerable jump in the April2011-January 2012.Moreover, FDI has been permitted with the aim to boost investments in the hotel sector and to developjob opportunities in hospitality sector.Vantage Hospitality, Asian American hospitalityplayers introduced VanMYT Hospitality in IndiaVantage Hospitality Group and three prominent personalities, namely Mukesh Mowji, Yogesh Patel, andTarun Patel from the Asian American lodging community introduced VanMYT Hospitality in India.In addition, there are also plans to Vantage‘s Value Inn Worldwide and Value Hotel Worldwide brands inIndia via enhanced franchise model. This was announced at the Hotel Investment Conference South Asia(HICSA) held here last month.Roger Bloss President & CEO, Vantage Hospitality and Chairman of VanMYT said, ―Vantage Hospitalityhas been growing internationally, and to be able to have our brands enter India through a relationshipwith three esteemed industry veterans is very exciting. I am also pleased that VanMYT plans to emulateVantage‘s unique Freestyle Brand Affiliation model that allows hotel owners to ‗be in business forthemselves, not by themselves.‖ 5 Page
  6. 6. VanMYT Hospitality has secured the exclusive right to develop its limited-service and select-servicebrands in Southeast Asia from Vantage HospitalityIHHR Hospitality mulls to adopt asset-light modelfor pan-India expansionIHHR Hospitality Pvt Ltd, which launched the countrys first branded spa resort Ananda, is contemplatingto adopt the asset-light model for pan-India expansion.Mahesh Natarajan, Vice President – Marketing, IHHR Hospitality Private Limited, said, ―To keep pacewith the development in the hospitality sector in India, we thought of following the asset-light route toexpand our hotel and spa brand.‖The brand, which owns and manages properties under the Ista Hotels brand, also plans to open IstaAhmedabad, a 175-room hotel by June this year. At present, Ista Hotels are operational in Bengaluru,Hyderabad, Amritsar and Pune.Underlining companys expansion and marketing strategy, Natarajan said, ―We would prefer taking upmanagement of greenfield projects for further expansion, however, we are also open to take upbrownfield projects. The marketing strategy would be to scout for locations near to the IT, telecom andautomobile hubs. We will be targeting metros and cities including Nagpur, Ranchi, Coimbatore, Bhopal,Patna.‖Apeejay Surrendra Park Hotels plans to launch new4-star brand by mid-2012Apeejay Surrendra Park Hotels Ltd will expand its management portfolio with the launch of a four-starbrand by middle of this year.Under this proposed brand, the group will take hotels on management contracts.On the sidelines of the Graduation Day of the Apeejay Institute of Hospitality, Navi Mumbai‘ s 2011-12batch, Vijay Dewan, MD, Apeejay Surrendra Park Hotels said, ―We plan to introduce a new four-starbrand for the properties being managed by our group. The new brand will be launched by Priya Paul, ourChairperson, by mid-2012.‖The group is looking at the average room inventory between 75 to 100 for this brand. In addition, thegroup will also be open to existing operational hotels which fit into the brand standards.A step towards its plans, the group has already started scouting for properties in cities like Guwahati,Chandigarh, etc.Delhi Development Authority looks to increasefloor space index for Delhi hotels 6 Page
  7. 7. The Delhi Development Authority (DDA) is planning to increase the floor space index (FSI) for the hotelsin Delhi to three. The move will help various hotels to add a number of rooms to their existing capacity.Earlier, DDA had earlier increased the FSI for hotels in Delhi from 1.5 to 2.25 in 2008 to add more roomsin expectancy of the tourists rush for the Commonwealth Games.Rajindera Kumar, member executive at Federation of Hotel & Restaurant Associations of India, said, ―FSIshould be applied to all hotels equally to help increase the room supply. If the FSI goes up, an additional5,000-6,000 rooms could be added in Delhi.‖The Federation of Hotel & Restaurant Associations of India is the apex body of the four regionalassociations representing the hospitality industry.Premier Inn may take up asset-light model forphase II of India expansionUK-based Premier Inn, which presently owns and runs hotels in Bangalore and New Delhi in India, ismulling to take up asset-light route for phase II of its expansion in India.Aly Shariff, Managing Director, Premier Inn India Pvt Ltd said, ―Indian economy is one of the fastestgrowing economies. When we entered the Indian market, we wanted to test our product and prove ourcommitment to this market. And hence, in phase I we decided to own and manage hotels. However, inphase II of development in India, we plan to follow asset-light route. We target to open eight hotels a year,which could be multiple Premier Inn at one location under management contracts. We might think of keystrategic investments in some properties.‖The company has announced that it is not keen to foray into franchise pacts.So far the company has identified 30 potential markets consisting metros, Tier II and III cities in India withthe aim to take up management contracts. The average room inventory for this will be 125-150 rooms.Net profit of Indian Hotels Company slips to Rs65.21 cr in Mar quarterIndian Hotels Company Ltd (IHCL), part of the Tata Group, has posted 31% decline in its net profit in theMarch quarter of 2011-12 to Rs 65.21 crore as compared to Rs 93.93 crore in the same quarter of 2010-11.Reports suggest that the net sales jumped 6% to Rs 560.15 crore during the March quarter of 2012 asagainst Rs 531 crore in the same period of 2011. An official statement from the company reads, ―Thehotel sector witnessed an improve- ment in room sales across some key markets driven by selectimprovement in demand, albeit with marginal growth in average room rates. Resultantly, net salesimproved by 6 per cent during the quarter.‖ 7 Page
  8. 8. The board of directors has proposed dividend of Re 1 per share for the fiscal 2011-12. The firm haswitnessed marginally higher net profit of Rs 145.35 crore. The overall sales rose 8% to Rs 1808.73 crorein the March quarter.IRCTC starts Hunar Se Rozgar hospitality trainingprogramme for poor youthThe Indian Railway Catering and Tourism Corporation (IRCTC) has initiated a new training programmeHunar Se Rozgar for economically backward youth across the country in the hospitality industry.Recently, IRCTC, under the aegis of the Ministry of Tourism, started the training programme at the IndianRailway Customer Care Institute in Delhi.The youth falling under the age group of 18-28 years and having a minimum qualification of passing class8 are eligible for the training. The programme imparts short-term training in housekeeping, bakery andmulti-skilled course in food production and Food and Beverages (F&B) industry. The trainees will be paida stipend.Rakesh Tandon, managing director, IRCTC, addressed the potential trainees and said that there is ahuge potential in the hospitality industry.Continent Worldwide Hotels partners Home-LikeHotelsContinent Worldwide Hotels inked joint venture pact with Home-Like Hotels of India.Continent Worldwide, a Turkey-based hospitality and multi brand franchiser firm, has collaborated withHome-Like Hotels Group for adding, affiliating and upgrading 80 of its member hotels with the UrbanCollection, Swiss Inns and Ancyra Inns & Hotels brand names.Ethem Zagikyan, Managing Director of Continent Worldwide, said, ―We are proud to align with Home-LikeHotels, a successful hotel management group which clearly believes in and supports our brand growthstrategy. We look forward to a partnership of our brand alliance and furthering our association with Home-Like Hotels."According to the pact, 40 member hotels of HLH will be upgraded to become the members of ContinentWorldwide brands and the remaining of the hotels will be affiliated post June 2013.Amrik Singh Khokhar, Managing Director of Home-Like Hotels, said, ―We are delighted to add ContinentWorldwide brands as a hotel management partner and we believe that upgrading of these 80 memberhotels will improve visibility & operating results of our member hotels. We have another possiblearrangement with Continent Worldwide that with new brand standards of Continent HLH will also expandout of India to other countries as well.‖ 8 Page
  9. 9. Louvre Hotels Groups Royal Tulip opens in NaviMumbaiLouvre Hotels Group has opened its first property Royal Tulip in Navi Mumbai in collaboration withConcrete Builders. It is aiming close to 50 properties with nearly 5,000 rooms by 2015 under its differentbrands.Louvre Hotel Group Managing Director (South Asia) Vimal J Singh said, ―At present we have 1,000 roomsspread across our brands – Tulip Inn and Golden Tulip, and another 97 rooms with the opening of RoyalTulip in Navi Mumbai.‖The group developed Royal Tulip in South Asia and is hoping to develop another two under the samebrand in Goa and Bangalore.From the new hotel here, the company is eyeing 50% occupancy during the first year of operation and 60-70% during the third and fourth year of operation.The room tariff of the luxury hotel starts from Rs 1,800 per day and climbs to Rs 3,500.The firm has 20-25 properties currently under different stages of development across India.Mahindra Holidays & Resorts buys Royal CourtsJaisalmer from Divine Heritage HotelsMahindra Holidays & Resorts India has bought Royal Courts Jaisalmer, a 74-room resort from DivineHeritage Hotels.The firm acquired 100% equity share capital of Divine Heritage Hotels Pvt Ltd, said Mahindra Holidays &Resorts India (MHRIL).Thirty five rooms of this 74-room property have been part of Club Mahindra network under an inventoryarrangement.MHRIL Managing Director Rajiv Sawhney said, ―Rajasthan is a key destination on Indias tourism mapand with Club Mahindra, Jaisalmer we strengthen our footprint.We will continue to add capacity inlocations where Indians holiday.‖MHRIL provides family holidays mainly via vacation ownership memberships. The Club Mahindra is theflagship brand, the other brands provided by the firm are - Zest Breaks, Club Mahindra Fundays,Mahindra HomeStays and Mahindra Travel.Keys Hotels aims at 50 properties by 2015-16Keys Hotels is looking at 50 properties by the financial year 2015-16 with an overall investment worth Rs 9610 crore. Page
  10. 10. The mid-market brand of Berggruen Hotels have 11 properties currently and 16 are under development.Out of the overall investment, Rs 386 crore has been used already.The company inked six new properties in Mumbai, Pune, Amritsar, Goa, Alibaug and Noida. It is pursuingmore opportunities across India.Out of the 27 properties, 13 are owned and 14 are under managed hotels.Keys Hotels has sub brands such as Keys Resorts and Keys Apartments. Presently, it has 1,078 roomsthat will be climb to 2,638 rooms by the fiscal 2013-14 .The firm has 1,100 employees currently and it is mulling to take the overall workforce to 4,000 by FY16.Sahara Group acquires New Yorks iconic PlazaHotelSahara Group has decided to purchase controlling stake in New Yorks landmark Plaza Hotel for $570million, said Elad Properties, an Israeli-owned real estate firm.Elad Properties, an Israeli-owned real estate company, and Saudi-based Kingdom Holdings Co jointlyowns the luxury hotel.Elad stated that it would get 1.6 billion shekels for its 60% stake and the remaining will be get theremaining.Kingdom will enjoy 25% stake after the completion of the deal.Daiwik Hotels to set up hotels in pilgrim centreswith Rs 600-cr investmentDaiwik Hotels, a hospitality service provider, has announced its plans to set up hotels in pilgrim centresacross the country with an investment plan of Rs 600 crore.In the same development, the company announced a soft launch of first Daiwik Hotels in Rameswaramone of the pilgrimage centres of Tamil Nadu.Daiwik Hotels MD and chief executive Debashis Ghosal, said, ―In the first phase we will be investingaround Rs 180 crore across five projects. In the second phase we are looking at around Rs 600 croreinvestments...That will be around 2016-17. We will have a presence in key pilgrimage centres (across thecountry).‖The first property in Rameswaram was spread across 1.1 acre land, attracting investments of Rs 29crore.Daiwik Hotels has appointed Marg Limited, an infrastructure developer, to manage and operate the hotelsunder the brand name Daiwik.Moreover, the company is looking at setting up similar properties in Madurai, Kanyakumari, 10Tiruvananthapuram and Srisailam in the next couple of years under the first phase. Page
  11. 11. Oriental Hotels sees net loss of Rs 4.08 cr in JunequarterOriental Hotels has registered net loss worth Rs 4.08 crore in the quarter ended June 30, 2012, due tothe crisis in Europe along with the opening of a new hotel at Coimbatore.The company clocked net profit of Rs 3.39 crore in the quarter ended June 30, 2011, said Oriental Hotels.Moreover, the net sales of the firm climbed to Rs 62.74 crore in the June quarter as compared to Rs55.02 crore for the year ago period. The firm also started a new hotel with 180 rooms in Coimbatore.Ginger to start 54 more hotels by 2016Ginger, a budget hotel chain from Tata Group, would be taking up a flexible approach on selectinglocations for expanding operations as it mulls to start 54 hotels in the upcoming 3-4 years.Prabhat Pani, CEO and Director of Roots Corporation, which manages the chain of Ginger Smart BasicsHotels, said, ―We are flexible that means if we are looking at a city for having a presence but if anothertown gives us an opportunity, we will have a presence there. We are open to it.‖Roots Corporation Limited (RCL) is an arm of The Indian Hotels Company Limited (IHCL).The company would not only emphasis on tier-I cities and metros for expanding operations. The firm hadalready made capital infusion worth Rs 400 crore until now.Worldhotels plans expansion in IndiaGermany-based international hospitality company Worldhotels is mulling expansion in India.Announcing its collaboration with four-star Golkonda Hotel, the firm has stated that they would operate 20properties in India by the next year.Presently, the firm operates 12 hotels consisting Worldhotel Turquoise in Chandigarh, Asiana Hotel inChennai, The Claridges in Delhi, Pride Park Premier in Gurgaon, The Sahara Star in Mumbai, AmbyValley in Pune and Matthan Hotel in Bangalore.Christina Spykerman, senior director of Sales (Asia Pacific), Worldhotels has said that the firm enjoyspresence in 65 nations. It operates 500 hotels in 260 destinations with over 100,000 rooms in inventory. .Roots Corporation opens Ginger hotel in FaridabadRoots Corporation Limited, a subsidiary of Indian Hotels Company Ltd. (IHCL), has announced the 11opening of a Ginger hotel here in Haryana. Page
  12. 12. The 91-room hotel is located at Fun City Mall near the National Highway and is about 40 kilometres awayfrom the airport and eight kilometres from Faridabad railway station. The hotel offers gym, conferenceroom and meeting room.Prabhat Pani, CEO & director, Roots Corporation Limited, said, ―We are very happy to open our very firsthotel in Faridabad. The hotel will meet the needs of travellers visiting the NCR region which has seenrapid growth in industrialisation and urbanisation but has retained the sanctity of its culture.‖Under the expansion plans, the company is considering to pump in Rs 600 crore to open 55 newproperties across the country in the next four years.However, under the initial plans, the company mulling to open multiple hotels in bigger cities like Delhi,Mumbai, Chennai and Kolkata, but is also considering to set up properties in smaller places like Nagpur,Patna, Coimbatore and Kochi.Of the proposed 55 properties, seven hotels are under construction in Noida, Greater Noida, Chennai,Bengaluru, Jaipur, Chandigarh and Amritsar and will be opened in the next 12-15 months.Hotel industry witnessing recovery, room tariffjumped by 12% during H1 of 2012 in IndiaAmid jump in demand for hotel rooms from domestic travellers, the hotel tariff rose by 12% during the firstsix months of this year in India, said recent Hotel Price Index (HPI) report. The reports suggests that thehotel industry in India is on strong recovery path.The report said, ―In India, the overall rate rose 12% following a surge in demand from domestic travellersas overseas destinations became more expensive.‖In about five years, travellers paid more for their hotel rooms in the first six months of this year all acrossthe globe and on an average hotel prices jumped by 4% last year. HPI was unveiled in 2004 and it looksat prices that people pay for their hotel rooms across the world.Hotels dot com President David Roche said, ―The hotel industry bounced back in the first half of this yearfrom a number of natural and political crises in 2011, and it is encouraging to see growth in the sector.‖Royal Orchid Hotels opens Regenta Central atChandigarhRoyal Orchid Hotels, a hotel chain with properties in thirteen Indian cities, has announced the opening of 12Regenta Central at Chandigarh. Page
  13. 13. The hotel is located at NH 21 near Chandigarh Airport in Zirakpur. The hotel will have 66 rooms alongwith bar, speciality restaurant, conference hall and other facilities.With the addition of this hotel, the total number in companys portfolio swells to 23 hotels across 16 citiesin India.Leelaventure to open five new propertiesLeelaventure is in a view of opening five new properties to firm its existence across the nation. Theorganization currently having seven hotels across the nation and is in a view to have properties at variousother cities such as Agra, Ashtamudi, Jaipur, Bangalore and Noida. Apart from all these cities, a newproperty is almost ready and by the third quarter of the current fiscal year.The company said, ―For Noida an letter of intent (LOI) has been signed with one of the leadingdevelopers in Noida, who are setting up a mixed use complex admeasuring about 70,000 sq mtrs. Theproject envisages the Leela Palace Hotel with 250 guest-rooms and the Leela residences with 100 units.‖The company, in a sponsor presentation said that the plan is to have development through the managedproperties and a blend of company-owned.Accor surpasses 1,00,000-rooms mark in Asia-PacificGlobal hotel operator Accor announced that it crossed the 1,00,000-rooms mark in Asia-Pacific with theopening of IBIS Hong Kong Central and Sheung Wan.Accor runs 536 hotels in 16 nations across Asia-Pacific and enjoys presence in Australia, New Zealand,Thailand, Indonesia, South Korea and Vietnam. It runs 179 economy and budget hotels in Asia-Pacific,consisting seven IBIS and one Formule 1 in India.The opening was announced by Accor Asia-Pacific Chairman and Chief Operating Officer MichaelIssenberg at the 2012 Economy Hotels World Asia conference in Singapore.As per the Accor research report, six in every ten travellers in Asia prefer global economy hotel brands todomestic brands. 13Accor enjoys foothold in 92 nations with 4,400 hotels and 530,000 rooms. Its portfolio of hotel brands Pagecomprises of Novotel, Suite Novotel, Mercure, Sofitel, Pullman, MGallery, Adagio, ibis.
  14. 14. Accor started expansion in India and manages three properties in Hyderabad.Profitability of Premium hotels to decline: CRISILResearchThe profitability of premium hotels in the five star and five star deluxe sector may decline in the presentand upcoming financial years, according to CRISIL Research.The profitability will be hit due to the fall in both occupancy rates and also room rates, which will impactthe operating margins. The pressure is expected to rise further in the coming days.Binaifer Jehani director - CRISIL Research, said, ―Operating margins will drop to their decadal lows in2013-14.‖The margins fell to 16-17% in 2002-03 and 2003-04.CRISIL said that the poor demand growth, room additions will impact the occupancy rates of premiumhotels. Since global economic slowdown impacts both business and leisure travel, annual demand growthfor premium hotel rooms may vary around 7% during 2012-13 and 2013-14.InterContinental Hotels may open 190 hotels in by2016 in IndiaInterContinental Hotels Group (IHG) is mulling to open 190 hotels by 2016 in this nation as part ofexpansion strategy.InterContinental Hotels Group Global Sales (Leisure Sales & Services) Key Account Director TonyChawla said, ―We are going to aggressively expand our presence in India. We will open 180 to 190 hotelsin the country by 2016.‖The hotels will spread across all the seven segments it functions. It also said that the mid-segmentbrands Holiday Inn and Holiday Inn Express will be the main segment. 14 PageCurrently, the hospitality chain has 12 hotels in India.
  15. 15. The InterContinental Hotels Group has 3,886 hotels under franchise pacts and manages 646 hotels.Carlson Rezidor to start 14 new hotels by 2012-endHospitality major Carlson Rezidor Hotel Group has decided to start 14 new hotels in India by the end ofthis year in various segments.The hotels will be in the firms four brands -- Radisson, Country Inns & Suites By Carlson, Park Inn byRadisson and Park Plaza.The firm is also developing upon past years growth momentum and also on track with its plan to haveover 100 hotels across India by the year 2015.The expansion is part of Ambition 2015 strategy to strengthen its international portfolio by minimum 50%to over 1,500 hotels by 2015InterContinental Hotels to start 150 hotels by 2020across IndiaInternational hospitality playerInterContinental Hotels Group (IHG) is mulling to start 150 hotels acrossthe country by 2020 as part of the expansion strategy.Currently, the hospitality chain has 12 hotels spread across India.The firm presently has three of its international brands in India - InterContinental, Crowne Plaza andHoliday Inn. The hospitality company is mulling to unveil its fourth brand -Holiday Inn Express - in Indiathis year.The hospitality group runs hotels as a franchiser, manager and on an owned and leased basis. 15The InterContinental Hotels Group has got 3,886 hotels under franchise pacts and manages 646 hotels.The number of the company-owned hotels all across the globe is just 10. Page
  16. 16. The hospitality company has over 6,66,000 guest rooms in more than 4,500 hotels in about 100 countriesand territories across the globe.India may witness addition of 50,000 new hotelrooms in next 5-6 yearsIndia is likely to add an overall of 50,000 new hotel rooms across different categories in the upcoming 5- 6years in top six cities – Bangalore, Chennai, Delhi, Hyderabad, Kolkata and Mumbai, according to thefindings of research report titled Indian Hospitality Story 2012 & Beyond released by Cushman &Wakefield (C&W), India‘s leading real estate consultancy firm, along with industry body Confederation ofIndian Industries (CII).The report suggests that NCR will register the highest number of rooms at 17,550, followed by Mumbai at10, 200 and Bangalore at 9,400 in the coming 5-6 years. It has also claimed that 4% fall in the averageoccupancy rate has been seen along with 5% fall in the average room rate this year as compared to lastyear.This report was unveiled at the 4th International CII Hospitality Fair- 2012 which was held here today. Thereport was released at the first day of the 3 - day exhibition by Union Tourism Minister Subodh KantSahai.The report has evaluated the different nuances of the Indian hospitality sector of top six cities and it offersan overview on the performance, growth and outlook of this industry.By the end of this year, 14,800 new rooms will be added in India. Out of the overall expected supply for2012, 2000 new hotel rooms have forayed into the market.Akshay Kulkarni, regional director - Hospitality, South and South East Asia, Cushman & Wakefield, said―India‘s hospitality sector has been witnessing interest from a variety of segments ranging from - MICE,Wellness Tourism, Spiritual & Pilgrimage Tourism, apart from the traditional business or leisure travel.The demand has been strong from both foreign as well as domestic tourists. Given the rather diverse 16nature of demand, the hospitality industry is also looking at creating adequate products to service thevaried tourist requirements. With the support and initiatives by the governments at various levels, the Pagehospitality sector is moving towards comprehensive growth.‖
  17. 17. Speciality Restaurants launches new restaurant atBengaluruSpeciality Restaurants Limited has recently opened its new restaurant ‗Mainland China‘ at Bengaluru, onSeptember 22, 2012. The location of this new facility is 28/2 Siddapura, Whitefield Main Road, Bengaluru- 560 066.With the addition of this restaurant, the total number of restaurants (including franchise restaurants) andconfectionaries of the company move to 79 and 13 respectively.Mainland China is a flagship chain of Speciality Restaurants. It has the leading chain of fine diningChinese restaurants in India that serves real Chinese cuisine from the main provinces of China. Thisrestaurant already has 42 outlets across leading cities such as Mumbai, Kolkata, Bangalore, Hyderabad,Pune, New Delhi, Gurgaon, Noida, Guwahati, Nashik, Chandigarh, Ludhiana, Vadodara, Ahmedabad,Surat, Bhubaneswar, Lucknow, Mangalore, Cochin, Aurangabad, Durgapur, Dhaka (Bangladesh) andmany others.‘Change’ can enhance productivity of Indian hotelIndustryConsistent change has positively impacted the productivity of Indian hotel industry as it helped inincreasing the functionality apart from enhancing its popularity in other nations. In the past one decade,the standards of facilities and also the services in hotel industry have undergone major changes with thehelp of technology, environment-friendly services, pricing, market segmentation and regional preferences.Market analysts are of the opinion that the Indian hotel industry has registered good jump in roominventory in different categories such as upscale luxury, boutique and budget hotels. It is believed that theoccupancy and the room rates have seen persistent gains from both local and global tourists.In an exclusive interview to SME News about the Indian hotel industry, Kamlesh Barot, president ofFederation of Hotel and Restaurant Association of India, said, ―The rise became possible for the industrydue to the considerable jump in both inbound and domestic tourists in India. And according to me, the 17tourist arrival to India will only go up in the near future.‖ Page
  18. 18. As 100% foreign investment under the automatic route in the hotel and tourism related industry is allowedin India, it is expected that the hotel industry will witness high growth along with considerable rise inIndias GDP, improvement in the per capita income and increased spending power.Moreover, the strong promotion activities have led to rise in international visits to India. It is believed thatCentre encourages industry growth with reforms such as liberalisation of the regulatory framework,investment friendly schemes, extensive support for creating world class infrastructure, initiating better airand land connectivity, incentivising regional set-up in tier 3 and 4 cities.Barot also said, ―I would like to thank Centre on behalf of the hotel industry for the different initiativestaken to enhance the productivity of the hotel industry. Although, issues such as manpower is causing lotof problems for the sector but it is hopeful that the steps initiated by government will prove fruitful in theupcoming period.‖A similar opinion was also voiced by Union Minister of Tourism Subodh Kant Sahai. He said, ―Attentionmust be paid to increase capacity in the budget hotel space along with training manpower to cater to thegrowing segment.‖This statement came at the 4th edition of International Hospitality Fair (IHF) and 1st edition of Retail andconvenience expo. Sahai also said that tourism industry is the third highest foreign exchange earner andaims to tap 1% of the world traveller into India.India is giving new definition to the business of hospitality with unlimited tourism and untapped businessprospects.Leela Palace may add 1,500 rooms in next 5 yrsThe Leela Palaces Hotels and Resorts is mulling to add about 1,500 rooms in the coming five years,which will raise the overall count to 3,500.It is based on projected average cost of a room and the investments may vary around Rs 1,500 crore.The city-based hotel chain will unveil entry level five star hotel Essence across India. 18The addition of rooms consists plans to establish Essence by The Leela. The company has said that the Page
  19. 19. Chennai-based property, a sea facing hotel, would be having 326 rooms. It also establishing a propertyclose to Taj Mahal in Agra at about Rs 200-crore investment.Oberoi in collaboration with Lemon Tree toestablish hotels in BhopalThe Oberoi group has disclosed its wish to set up several hotels in Bhopal, Madhya Pradesh, incollaboration with the Lemon group. As per the company‘s release, it is said that Jaideep Kang, Oberoigroup and Vikramjit Singh, national director of Lemon Tree Hotels, shared this plan with Minister forUrban administration, Babulal Gaur and Tourism Minister, Tukojirao Puar, in a meeting at New Delhi.The hotel delegates were invited to Bhopal and were guaranteed for complete assistance in setting up thehotels.These two delegates of the concerned organizations were also invited to join in the three-day Investorsmeeting that will be held around October 28, 2012, at Indore.India Tourism Development Corporation earns overRs 22-cr profit in FY12The government-owned India Tourism Development Corporation (ITDC) witnessed a profit of over Rs 22crore during the last fiscal (2011-12), after experiencing losses for two consecutive years.The company, aimed at the progressive development, promotion and expansion of tourism in thecountrym closed the year with an increase in turnover by around 8 per cent as compared to the last year.PSUs turnover also increased from Rs 392.36 crore to Rs 423.06 crore, registering an increase of 7.82per cent.After an annual general meeting (AGM) here, ITDC Vice Chairman and Managing Director Lalit Panwarsaid, ―We have earned a profit of Rs 22.02 crore against losses of Rs 11.73 crore and Rs 20.51 croreduring 2010-11 and 2009-10 respectively.‖On increased turnover, he said, ―We undertook a series of steps including cost cutting measures andincreasing room occupancy rate by 8 per cent at ITDC hotels.‖ITDC has 1,200 rooms in 15 hotels across the country including the flagship Ashoka hotel. 19 Page
  20. 20. HHI Group of Hotels may go for Rs 350-crinvestment in next 3 yearsHospitality firm HHI Group of Hotels may opt for capital infusion worth Rs 350 crore in the coming threeyears on expansion and is holding negotiations with private equity (PE) companies for securing funds.Moreover, HHI is presently working on four projects in Patna, Raipur, Indore and Goa. The Goa propertyis a 180-room upmarket hotel in the prime south and may be opened by October 2013.The company feels that the current market conditions are not right for introducing an initial public offering(IPO).Louvre Hotels plans to open 50 hotels in India by2015French hospitality chain Louvre Hotels, has announced its plans to set up 50 hotels in India by the end ofthe 2015.Mr VJ Singh, groups managing director (South Asia), said, ―Right now we are operating nine hotels inIndia and looking at adding 10 more by the end of this year so at the end of 2012 we will have 20 hotelsoperating in the country. We plan to add 10 to 12 hotels each year from there on. So our target is 50hotels in 2015.‖Mr Singh was here to open the groups first hotel in eastern India in association with Shiraz Hotels.The plan to establish 50 hotels will mostly be through management contract. The company will providethe brand and the expertise while the other partners of the company will own them.The group currently has a portfolio of seven brands, ranging from one to five stars. Besides domesticexpansion, the group is also looking forward to setting up hotels in Nepal, Bangladesh and Sri Lanka allthrough management contract by the end of 2012.After its alliance with Golden Tulip Hospitality Group, Louvre Hotels Group has become the 8th largesthotel chain in the world, with more than 1,000 hotels in 42 countries.Indian hotel groups plan expansion in Sri LankaTaj Group of Hotels, owned by Tatas, is mulling $150-million investment for expanding and refurbishingits three properties in the country. ITC may invest $78.5 million for setting up a new hotel in the capitalcity of the nation.Taj and ITC are part of the important hotel brands that have declared plans to establish hotels in the 20island nation. The other prominent global brands consist of Shangri-La, Four Seasons, Ritz Carlton and PageRaffles.
  21. 21. Sri Lanka is aiming to position itself as a island for tourism sector. It is hoping to lure 2.5-million tourists bythe year 2016, surge from 855,000 during 2011. This calls for surging the inventory of hotels rooms, to5,000, in the upcoming five years.Taj also got plans to get more hotels across the island nation with the aim to raise the number of rooms ithas by 2016 (from 600 presently).ITCs plans have not been finalised yet, but it has found land in Colombo.Tulip Inn opens multi-cuisine restaurant ParkPavilionTulip Inn, a month-old hotel in Kolkata, has announced the launch of its first dining outlet – Park Pavilion.The restaurant is located on the first floor of the hotel and offers an assortment of cuisines such as Thai,Japanese, Chinese, Mexican, Italian, Lebanese, Continental and Indian.On this, Tulip Inn‘s Regional Director, East Sarbendra Sarkar said, ―The dining experience at ParkPavilion is a gourmet treat. Much thought has been put into the styling of each plate.‖On the other hand, talking about the specialty of this new eating point, Executive Chef RamprasadMajumdar said, ―Guest demand is our main focus. We believe to cook the food in customer‘s way.‖Hotel Hindusthan International forays in PuneHotel Hindusthan International (HHI) has unveiled its new property here. It is the hotels first five-starcategory property in this city.The hotel, which will be started soon, has been designed as a contemporary business destination and italso provides leisure opportunities for relaxation, dining and entertainment.HHI also got one hotel each in Kolkata, Bangalore, Varanasi and Bhubaneshwar. This is the fifth hotelfrom the HHI Group.Lemon Tree may start 100 hotels in India by 2020Lemon Tree Hotels, a hospitality chain, is mulling to start 100 hotels in the country by 2020 with an overallroom capacity of 10,000.Presently, the firm owns and manages 18 hotels under Lemon Tree Premier, Lemon Tree and Red Foxbrands. It is shelved entry into real estate sector in collaboration with US-based investment companyWarburg Pincus.This information was offered Patu Keswani, Lemon Tree Hotels Chairman and Managing Director, on the 21sidelines of the Hero Mindmine Summit 2012. The firm is starting two more hotels in 2012.Keswani also claimed that the firm may secure money from financial institutions or expected to go public Pagein the upcoming two-three years.
  22. 22. Swiss International plans to launch 45 hotels by2017 in IndiaSwiss International has announced its entry into the Indian hospitality market. The Switzerland-basedcompany plans to set up 45 hotels spanning business and five star categories, in India by 2017.The Chairman and Managing Director of Swiss International Hotels and Resorts South Asia, AnupamNarayan, said, ―The plan is for 50 hotels in India and South Asia, out of which 40-45 will be set up in Indiaonly. The other five will be in countries like Sri Lanka, Maldives, Nepal, Pakistan, Bangladesh andBhutan.‖Swiss International also plans to manage resorts at tourist destinations like Kerala and Goa. About 50 percent of the hotels will be under the five star category, named as Swiss International while 30 per centunder the business and four star category, named as Spirit Hotels.By the end of 2012, the company aims to sign two management contract deals.Goa govt to offer 50% concession on luxury tax tomid, upper-segment hotelsThe state government has decided to provide 50% concession on the luxury tax to mid-and upper-segment hotels during off season spanning from May 1-September 30.The tourism and trade industry has claimed that the decision will help them mitigate the surge in air fareswhich had impacted the rates of off-season packages.Manohar Parrikar, state Chief Minister, who is also the State Finance Minister, recommended in theannual State Budget that all hotels are given 50% concession of tax payable during the off-season.The Travel and Tourism Association of Goa (TTAG), which has been favour to such concessions, saidthat the move will help in making monsoon package more lucrative since the strong air fares had madeoff-season packages expensive.Market projections says that almost 1,500 medium and big hotels will bag profit from the incentives andthe smaller hotels are exempted from paying luxury tax.The incentives will also spare hotel employees from witnessing lay-offs during the off season.The hotels that provide a room for Rs 500-Rs 1,500 are placed 5% tax; those offering a room at Rs1,500-Rs 3,000 are charged 8% tax, and the hotels that charge above Rs 3,000 a room, needs to pay10% tax during the peak season. 22 Page
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