Category: Hospitality

PRS Oberoi, who put India’s first five star hotel on the global luxury map, passes away

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chairman Emeritus of the Oberoi Group, Prithviraj Singh Oberoi died on Tuesday (November 14) morning at the age of 94 years. Popularly known as “Biki”, PRS Oberoi is known for changing the face of Indian hospitality industry, had a net worth of $460 million, as per the latest data from Forbes.

His son Vikram is the managing director and CEO of EIH Limited (formerly known as East India Hotels), which owns and operates the Oberoi chain, which is currently spread across seven countries.

The cremation ceremony will be held at the Bhagwanti Oberoi Charitable Trust, Oberoi Farm, Kapashera, starting at 4 pm today. ” We extend a heartfelt invitation to those who know Mr. Oberoi to attend and pay their respects. Additionally, prayers will be held for him at our hotels and the Corporate Office today. As we mourn the loss of a true icon, we also aim to celebrate the extraordinary legacy Mr. P.R.S. Oberoi leaves behind. In the coming days, we will share details of our plans to honour and remember him.”

Biki was born in 1929, to late Rai Bahadur MS Oberoi, the founder of The Oberoi Group, who had his roots in the Punjab province in modern-day Pakistan.

The International Luxury Travel Market (ILTM) conferred him with the Lifetime Achievement Award in December 2012 He stepped down as the chairman and director of EIH Limited on May 3, 2022.

In 2007, a year before he got the Padma Vibhushan from the Indian government, he was felicitated by CNBC TV-18, at the India Business Leader Awards. In 2015, he was voted among CNBC TV-18’s Top 15 Indian Business Icons.

Other awards:
‘2010 Corporate Hotelier of the World’ award by HOTELS magazine,

Lifetime Achievement Award in 2014 by Forbes India Leadership Awards,

Oberoi finished his schooling  at St. Paul’s School, Darjeeling. Later, he graduated in Hotel management from Lausanne, Switzerland.

At the ripe old age of 83, in 2012, he roped in renowned American interior designer Adam Tihany to upgrade India’s first five star hotel, The Oberoi New Delhi. “A luxury hotel is like a beautiful woman. If you do not look after her and bejewel her from time to time, no one will desire her,” is one of the famous quotes attributed to Oberoi.

He established The Oberoi Centre of Learning and Development at New Delhi in 1967.

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Cricket fever boosts Indian hospitality; hotel reservations soar as World Cup returns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The ICC Cricket World Cup has triggered a remarkable surge in hotel and homestay reservations, particularly in cities scheduled to host matches featuring the Indian cricket team, exclusive data shared with CNBC-TV18 by Make My Trip reveals.

In an interview with CNBC-TV18 Puneet Chhatwal, MD & CEO of Indian Hotels Company, shared his readings on the current and future prospects of the hotel and hospitality sector.

Chhatwal expressed optimism for the hotel sector across various timelines, emphasising its potential for short-, medium-, and long-term gains.

One key factor contributing to the sector’s performance is the strong demand that has consistently outpaced supply. This dynamic has played a pivotal role in driving the hotel industry’s growth and profitability.

Talking about the World Cup, he said, “There is a big benefit in all the cities that the World Cup is being played, especially on the dates when you have favourite teams playing, there is a big increase in occupancy and in rates.”

On business, he said that Indian Hotels is setting ambitious targets for itself. Chhatwal expressed confidence in achieving a 33% margin by 2025, demonstrating the company’s commitment to financial excellence.

Chhatwal said the company plans to establish 15 exclusive Chambers, which are invitation-only clubs. Currently, the Chambers boast a membership exceeding 3,000, with expectations of continued growth in the exclusive club.

He also shared positive news about the industry’s performance, highlighting an expected double-digit rate increase at the industry level during the second quarter.

“With the wedding season around the corner, the festival season coupled with the World Cup, we see no reason why this trend that we witnessed in the last year should not continue in this year. There is nothing that makes us believe, including business on the books that we share within our fraternity,” said Chhatwal.

According to the data provided by Make My Trip, there has been an expansion in the advance booking window for homestays in cities hosting the ICC Cricket World Cup. The percentage of bookings made well in advance (30+ days prior to check-in) has increased to 22% from 13% for this cricketing event. In comparison, for other periods, only 13% of bookings were made well in advance.

There is also a clear trend of longer stays during check-ins, particularly in hostels and homestays. The average duration of stay in hostels has risen from 1.6 nights to 2.3 nights, and for homestays, it has extended from 2.1 nights to 2.4 nights.

India is hosting the ICC Cricket World Cup after a hiatus of more than a decade. The nation is set to welcome 48 matches across 10 different venues, where the world’s top 10 cricketing nations will compete for the highly sought-after championship.

For more details, watch the accompanying video

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Domino’s slashes pizza prices up to 50% ahead of World Cup

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fast food giant Domino’s has slashed prices on its pizza range by up to 50% in the buildup to the cricket World Cup.

Starting today, customers can enjoy their favourite large vegetarian pizzas from Domino’s for just Rs 499, down from the previous price of Rs 799. Similarly, non-vegetarian pizza lovers can order large pizzas for an attractive price of Rs 549, a substantial drop from the previous rate of Rs 919.

The quick-service restaurant (QSR) chain hopes to use the offer to drive sales and fend off competition in a sporting event that has a festive fervour to it and sees a spike in delivery orders.

In addition to the substantial price reduction on large pizzas, Domino’s India has introduced Everyday Value offers to cater to a wider audience. The Howzzat50 offer gives customers a flat 50% discount on pizzas.

While the ODI World Cup naturally generates high demand for fast food, Domino’s India wants to get ahead of the competition by deploying a strategic price cut likely due to competition from other food categories and cuisines such as burgers and biryani in particular.

Domino’s has also seen some moderation in key input costs like dairy and cheese, which allows the company to pass on the benefits to its customers.

Domino’s India recently broadened its reach by launching 23 new outlets and venturing into one new city taking the total number of stores to 1,838 spread across 394 cities.

Additionally, the company introduced four new eateries for Popeyes and made its debut in two new cities, Manipal and Coimbatore, resulting in a total of 17 restaurants across four cities.

On September 27, Karan Taurani, a Senior Vice President and Research Analyst at Elara Capital stated that the pizza industry is encountering fierce competition, and its potential for growth might not be immediately apparent. In fact, when reviewing market share statistics over the past 3-4 years, it becomes clear that the pizza sector has lost ground within the larger quick-service restaurant (QSR) chain sector.

“If you look at the market share numbers over the last 3-4 years, pizza has lost market share as a category within the overall QSR chain. So, it’s a win-win for burger, fried chicken for aggregators like Zomato, over the near to medium-term,” said Taurani.

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World Tourism Day 2023 | Taking a slice out of rural India  

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sumit Pandey wears a smile reminiscing his three-day stay in Ladpura, a hamlet near Orchha in Madhya Pradesh. The rural experiences that he savoured are still alive—and he is planning a revisit in the winters.

 “We were a group of 8 family members and this was a truly exhilarating experience. Imagine getting up in the morning and moving around in the farms, making rotis on chullahs. We even planted roses and marigolds on the premises.” 

Forget making a trip to Paris and Maldives. How about swapping the luxurious ambience with a rustic, natural flavour—something that takes a slice out of India’s rural life? How about experiencing a bullock cart ride instead of taking a ride on a fancy car?  How about having rotis baked on chullah and local veggies straight from the farms?

Rural tourism—a relatively new concept has started expanding its base in Madhya Pradesh. The project was kicked off in 2019 and now has around 220 homestays in various villages. The tourists are offered various kinds of rural experiences like farming, milking a cow, drawing water from a well, playing a dholak and even cooking the local cuisines.  In the evening there is a cultural feast oscillating through folk songs and dances. The United Nations World Tourism Organisation (UNWTO) has defined rural tourism as a type of tourism in which a visitor’s experience is related to a wide range of products generally linked to nature-based activity, agriculture, rural lifestyle/culture, angling and sightseeing.

Minesh Dave had stayed in Ladpura village a few months back with his family.  “What I liked most was the Bundeli food.  It was a blissful feel to live in the rural settings and inhale the village aroma. This is a different kind of tourist experience. Besides being extremely budget friendly, they are clean and the people are very hospitable.”

Uma Pathak a homestay owner in the village acknowledges that four years back she was sceptical about how the concept would fructify. “Today I am happy that I forayed into this business.  This has been a learning experience for me.  Besides the regular rural experiences, we also teach the tourists on how to make our local cuisines.”

Balbeer who owns a homestay in Madla village in Panna district is also very optimistic about rural tourism. “Since the last three years, the tourist graph has grown.”

Kamlesh Yaduvanshi, who has a homestay in Sabarwani dittos, says; “There are some days when the bookings are robust but there are also lean days. The village excursions offer tourists a unique insight into rural life, allowing them to connect with the local communities.”

Madhya Pradesh Tourism Board actively promotes rural tourism currently with its various activities. 

“We have embarked on an ambitious journey to promote rural tourism. This endeavour adopts a unique cluster-based approach within each cultural zone, placing the community at the heart of the initiative, This community-driven and community-led approach, holds immense promise for sustainable development, cultural preservation, and authentic experiences,” says Sheo Shekhar Shukla, Managing Director of Madhya Pradesh Tourism Board.

The Board has been implementing the project and has mapped a strategy to tap its potential for increasing the number of tourists. Marketing is still a challenge for these homestay owners and a multi-pronged plan should be chalked to rope in various stakeholders.

“This initiative represents a powerful model for responsible tourism, fostering economic growth while safeguarding local traditions and empowering the rural communities. By promoting rural tourism, Madhya Pradesh is not only enriching its cultural tapestry but also creating a more inclusive and economically vibrant state for both its residents and visitors,” said Manoj Singh, Director (Skill), MPTB.

Rural tourism has helped increase community participation, especially women in the tourism sector. Besides social development it has also helped economic growth in rural areas.

A recent study — The benefits of tourism for rural community development—published in Nature journal shows that using rural tourism as a revitalisation strategy is beneficial to non-urban communities in terms of their economic, socio-cultural, environmental, and leisure and educational development.

“The contribution from the economic perspective is particularly important. These findings suggest that national, regional, and local governments or community developers should make tourism a strategic pillar in their policies for rural development and implement tourism-related development projects,” notes the study.

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Mahindra Holidays set to expand in Uttarakhand with 1-2 new resorts this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra Holidays & Resorts, a renowned player in the Indian hospitality industry, is set to make a substantial investment of Rs 1,000 crore for the construction of 4-5 resorts in Uttarakhand over the next few years.

In an interview with CNBC-TV18, Kavinder Singh, the MD and CEO of Mahindra Holidays & Resorts, unveiled the company’s ambitious plans for expansion and development in Uttarakhand. The company has recently signed a Memorandum of Understanding (MoU) with the Uttarakhand government to establish and develop Club Mahindra Resorts in the picturesque state.

Singh shared insights into the company’s immediate plans, stating that they are eager to break ground in 1-2 resorts within Uttarakhand this calendar year.

He said, ” The government (Uttarakhand) is moving extremely proactively, and they have a good tourism policy in place which came out in 2023. The idea is to help us source those land parcels through the support of the government and then we start breaking the ground. Even as we finish this calendar year, at least one or two resorts – that is the objective.”

The decision to collaborate with the Uttarakhand government to build Club Mahindra Resorts aligns with the company’s vision to expand its footprint in prime vacation spots across the country. Uttarakhand, known for its breathtaking landscapes, pristine hill stations, and cultural richness, presents an ideal canvas for the creation of these resorts.

This strategic move not only signifies Mahindra Holidays & Resorts’ commitment to fostering tourism and economic growth in Uttarakhand but also offers travellers a chance to explore the beauty of the state while enjoying the luxury and comfort synonymous with the Club Mahindra brand.

With this substantial investment and the promise of 4-5 new resorts in Uttarakhand, Mahindra Holidays & Resorts aims to cater to the growing demand for unique and enriching vacation experiences. This exciting development is set to contribute to the state’s tourism sector while providing travellers with exceptional opportunities to create cherished memories in the heart of Uttarakhand’s natural splendour.

As the company forges ahead with its expansion plans in partnership with the Uttarakhand government, it not only exemplifies its commitment to the hospitality industry but also showcases its dedication to the promotion of responsible tourism and sustainable development in one of India’s most scenic states.

For more details, watch the accompanying video

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India’s capital prepares to host G20 delegates with authentic hospitality

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The G20 Leaders Summit, marking the culmination of India’s G20 presidency, will unite leaders and delegations from 20 countries in the heart of India’s capital city.

As a consequence, local hotels are experiencing a surge in demand. Reports indicate that over 20 hotels in the Delhi-NCR region have reached full occupancy as they prepare to accommodate global guests. Scheduled for September 9-10, 2023, the 18th G20 Heads of State and Government Summit in Delhi is anticipated to attract approximately 10,000 visitors to India.

Leading hotels in the national capital are diligently preparing to welcome G20 delegates with authentic Indian customs, showcasing India’s vibrant cultural heritage.

Among these distinguished hotels, the Taj Palace Hotel in New Delhi, a renowned establishment, is expected to host some of the most prominent international guests.

The reception will commence with a traditional Indian “aarti.” At the Taj hotel, the aarti ki thali has been thoughtfully curated with a peacock motif, symbolising India’s national bird. Additionally, guests will receive stoles crafted by Indian artisans and necklaces made from chandan and tulsi.

Nayan Seth, General Manager of Taj Palace Hotel, remarked, “The hotel is packed and most of them are G20 delegates. We are working on safety and security with local authorities. The welcome will be in the Indian manner to give delegates the flavours of Indian hospitality.”

The Maharaja Grand Table at Taj Palace Hotel has been exclusively tailored to cater to the discerning tastes of the G20 delegates.

Chef Mushtaq at Taj Palace Hotel stated, “We have created Indian and international dishes for the Maharaja Spread. Focus is on millets in the menu. We also have a special thaali.”

Most hotels in the national capital area are completely reserved for G20 delegates, notably the luxurious presidential suites, which have been reserved for VVIPs. Taj Palace Hotel’s luxury presidential suite boasts two bedrooms, a dining area, a living room, a small study, and a garden terrace. The suite is adorned with exquisite Indian cultural artefacts.

While the Taj Hotel has not disclosed the room rates for the presidential suite, sources suggest that presidential suites in any five-star hotel may cost between Rs 15-20 lakh per day.

One thing is certain: hotels are going to great lengths to fulfil all the unique requests and requirements of the G20 delegates.

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G20 Summit: Seeing additional demand in Agra, Lucknow and Jaipur, says Hotels Association of India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With less than two weeks to go for the G20 Summit in Delhi, the hotel industry has witnessed a surge in demand for rooms and other services with rates expecting to hit an all-time high. Sources have indicated that the cost of a presidential suite in top luxury hotels could be as much as Rs 20 lakh per day during the summit.

Ajay Bakaya, a member of Hotels Association of India (HAI) and MD of Sarovar Hotels in an interview to CNBC-TV18 stated that they are also seeing additional demand in cities like Agra, Lucknow and Jaipur as the government has announced a long holiday for Delhiites.

Bakaya highlighted that luxury hotels are completely packed and are charging rents close to Rs one lakh per day. However, he added that mid-market hotels have not yet seen a jump in demand.

Below are the excerpts of the interview.

Q: Give us a sense of what is the demand that we are looking at from September 5 to 10 and what is the actual supply of rooms in the Delhi-NCR region?

A: It is certainly an interesting time. Things are a lot clearer now as we get closer to the actual dates of September 5-10. The very upscale hotels, the more luxury hotels are chock-a-block, and the rents are closer to Rs 70,000 to Rs 1,00,000 but those hotels are all up to the brim and bursting at the seams.

On the other hand, mid-market hotels have not seen a jump in demand. The fact that the government of Delhi has declared a holiday during the period means it is a long weekend. So, G20 related to the mid-market and economy hotels have not seen a jump which was anticipated.

However, we are getting additional business demand in Agra, Jaipur, Lucknow, cities closer to Delhi where people can get away on these days, so it works both ways.

Q: Are there enough five-star rooms for an event of this magnitude? You are talking about 10,000 delegates, they will all have to be put across five-star hotels. Is there enough supply? Are there enough rooms in the system?

A: If you pool Delhi-NCR together they are stretching out into Gurgaon, they are stretching out across Yamuna etc., then it is manageable. Of course, it would be nice if we had 50 or 100 percent more capacity. But with what we have, it’s okay. People are not exactly lining up on the doorstep.

Q: We also hear that State Bhavans, Airbnbs are going to be drawn into the arrangement for the G20 delegations as well. Are you also assisting the government on getting the State Bhavans ready, some of the Airbnb’s ready. How is that functioning?

A: I can’t talk on behalf of Airbnb. I’m not familiar with that zone at all. I think the State Bhavans would be more for government dignitaries, government functionaries than for the international customers coming in, that’s my sense.

Q: Could you give us a sense of the kind of special arrangements that the hotel industry has been asked to make by the government for the G20?

A: Top end, uncompromising on security. Probably a lot more than we do routinely. So, the security numbers have certainly multiplied, the security processes, the touchless processes, all of that I think we are more than alert and awake around the clock. And in anticipation we are doing drills, we are doing all sorts of process checks to make sure we don’t fall on that area. So, there is a huge focus on security, over and beyond what you’d normally see in a hotel room in Delhi.

Q: Will there also be a lot of demand for people wanting to get out of the city during the period? It is going to be a holiday, everything is going to be shut in central Delhi, you are not going to be able to move, so do you get a sense of a lot of people wanting to move out, go to nearby areas for short vacations?

A: Big time. There is huge demand from the domestic customer. In fact, a lot of the Delhi people are happier moving out than staying in Delhi. So, there is domestic demand in Jaipur, Agra, Lucknow and the likes. Also, it is fueling some kind of a small revival in the hills which have suffered in the last month or two due to weather. So, we are seeing demand slowly pick up. A lot of delegates will also take time to get away from Delhi into closer destinations. So yes, demand there has picked up anywhere from 30 to 60 percent.

Q: A lot has been spoken about presidential suites during the G20 Summit. According to some reports, the prices may go up to Rs 20 lakhs, this would be up almost 100 percent from a normal day in the year, is that correct?

A: No, I wouldn’t say so. The take on presidential suites is very simple. Either people can afford them, or they can’t afford them. Presidential suites are seldom discounted, if at all. So, this Rs 20 lakh number, maybe one or two suites in the whole of Delhi. And, this is not this not doubling from what you’d normally charge. If there’s a head of a company or head of a large industrial conglomerate coming in, he would pay the same amount. I don’t see a change in that. The increase would be in your standard rooms more than the suites.

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Chalet Hotels plans 1000 more rooms across India; MD says all are under development already

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chalet Hotels is in the process of developing approximately 1,000 more rooms, which are currently at various stages, across the country. K Raheja Corp-backed Chalet Hotels, a premium hotel brand in India, currently manage  upscale hotels in Mumbai, Hyderabad, and Bengaluru under renowned names like JW Marriott, Westin, Marriott, Marriott Executive Apartments, and Renaissance.

In March this year, Chalet Hotels entered an agreement to acquire The Dukes Retreat in Khandala, Maharashtra. Recently, Chalet Hotels unveiled plans for a Taj Group collaboration in Delhi T3 (airport terminal) and a Westin property in Hyderabad.

In an interview with CNBC-TV18, Sanjay Sethi, CEO and MD of Chalet Hotels said that the group has introduced 88 new rooms in Pune, which are about to become available. Additionally, an office tower in Bengaluru, of which three floors have already been occupied. An office tower in Mumbai is also ready for leasing, and its operations will commence shortly.

He further added that these two offices, in conjunction with the impact of the new Hyderabad hotel, the renovation of The Dukes, the Pune expansion, and the upcoming construction of the Delhi hotel (slated to begin in the next few weeks and be completed within two years), all contribute significantly to its growth strategy. Furthermore, have plans for a new hotel in Airoli, Navi Mumbai. Collectively, these capacity additions are expected to be highly advantageous.

He said, “We are also looking at adding 130 rooms in our Bengaluru hotel. So, we have got about 1,000 rooms under various stages of design and development.”

Regarding expansion, Sethi mentioned that the third and fourth quarters consistently exhibit robust performance, primarily driven by a robust segment of weddings within the meetings, incentives, conferences, and exhibitions (MICE) category. Moreover, international corporate travel tends to be notably high during the latter half of the year.

For more details, watch the accompanying video

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Indian Hotels MD & CEO says demand will continue to outpace supply going forward

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian Hotels Ltd.’s MD & CEO Puneet Chhatwal believes that hospitality as a sector is now becoming more consumerism driven other than just being hospitality and food & beverage driven.

The chief of the hotel chain, which operates the Taj Group of hotels along with other brands, said that Indian Hotels currently has 79 hotels in the pipeline, out of which five of them were opened in the March quarter and another 11 were signed. “I think our guidance has been we will open 20 hotels this year,” Chhatwal told CNBC-TV18 in a post-earnings interaction.

Chhatwal also spoke about how demand remains strong and will continue to outpace supply as not many new hotels have been constructed during the pandemic times.

Indian Hotels reported revenue growth of 15.8 percent during the June quarter, while the 30.5 percent growth in net profit was aided by an 82 percent jump in other income.

MD & CEO Chhatwal said that the year has begun on a good note for Indian Hotels but seasonality had a role to play in the results. “Quarter three is traditionally the strongest, quarter four is the second strongest. And if you get quarter one as a good start, I think then you’re ahead,” he said. “If we start on a good note, the quarter three and quarter four can only augment the performance of quarter one and quarter two,” he added.

Indian Hotels’ collaboration with Tata Neu has helped the company innovate over the last few quarters in introducing newer concepts. This has helped drive loyalty-driven revenue for the company. “Our new F&B innovations, our smart renovations and ancillary businesses like private membership club, like chambers, the renaissance of the Taj Club Lounges is all helping us to drive premium performance,” Chhatwal added.

EBITDA margin for the quarter stood at 28 percent compared to 29.8 percent during the same period last year. Chhatwal said that the standalone margin for the India business is still at 36 percent and that he continues to maintain the 33 percent margin target for the consolidated entity by financial year 2025.

Other Key Takeaways From The Conversation:

• In the process of getting permissions for Taj Sea-Rock
• Should have clarity on Taj Sea-Rock by end of financial year 2024
• International business is profitable for Indian Hotels
• Some business management fees come directly to IHCL for accounting reasons. All of that added back makes international business very profitable.

For more, watch the entire interview here:

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Drugmaker Lupin says US FDA concerns in its Goa, Pithampur units are resolved

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Drug firm Lupin Ltd on Thursday, August 17, said the company has received correspondence from the US FDA that it has now addressed the concerns raised in the warning letter for its facilities in Goa and Pithampur Unit-2, Indore.

This comes after the satisfactory evaluation of the corrective actions taken by the company in response to the warning letter that was issued on November 6, 2017, according to a stock exchange filing.

“We are pleased to be informed by the US FDA that we have addressed the concerns through our corrective actions related to the November 2017 Warning Letter. We are committed to being compliant with good manufacturing practices, and to uphold global quality standards, and ensuring the quality of our products,” said Managing Director of Lupin Nilesh Gupta.

Also, on July 12, Lupin informed the stock exchanges that US FDA inspected its Nagpur oral solid dosage facility from July 3-11. The inspection closed with the issuance of a Form 483, with two observations.

Lupin develops and commercialises a wide range of branded and generic formulations, biotechnology products, and APIs (active pharmaceutical ingredients) in over 100 markets in the US, India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions.

The company has 15 manufacturing sites, seven research centres, and more than 20,000 professionals working globally.

Shares of Lupin Ltd ended at Rs 980.05, up by Rs 38.50, or 4.09 percent on the BSE.

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