Tag: Luxury Hotels

Indian Hotels CEO says these three growth drivers are yet to kick in

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

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Puneet Chhatwal, the MD and CEO of Indian Hotels Company (IHCL) is confident that the company will continue to post solid growth as demand continues to outpace supply, and three growth drivers are yet to kick in fully.

First, the foreign tourist arrivals is at an all-time low compared to pre-COVID levels. “I think there is some movement expected to happen there which will help our palaces and our iconic asset portfolio.”

Second, the performance in the US market is also below pre-COVID levels. The Tata Group hospitality firm has already started initiatives aimed at boosting its presence and performance there.

Third, Indian Hotels plans to open over 100 new hotels in the next three to four years. “This will really help because of the balance that we have created in capital heavy and capital light businesses.”

The Mumbai-based company aims to open 25 new properties in the new financial year (FY25). Including the Tree of Life properties, the total will rise to 34.

In February this year, IHCL announced a strategic partnership with Tree of Life Resorts and Hotels, now owned by the Ambuja Neotia Group. The collaboration allows IHCL to use its marketing and distribution network for Tree of Life’s 14 resorts nationwide.

Tree of Life, established in 2009, manages boutique hotels in various destinations, such as Mussoorie, Dared, Naggar, Udaipurwati, Kumaon, Binsar, and more. Situated away from city centres, these resorts offer guests a luxurious and exclusive retreat, providing opportunities to connect with nature and local culture.

“We are not into cost cutting. We are spending, we are supporting our new businesses, and we are looking at 30% plus compound annual growth rate (CAGR) on our new businesses, which requires more advertising, which requires more websites, which requires more, more people,” he said.

He also discussed the company’s strategy to capitalise on the new types of tourism–spiritual, medical, premium or luxury– which have started gathering steam.

Also Read | UBS sees an 18% upside in Indian Hotels on opportunities to accelerate revenue, profits

“We have been in Banaras, and we are doubling the size of the Taj Ganges because the demand level is so high. We have added a second hotel in Tirupathi, we have two hotels in Katra. We are in 50 plus spiritual destinations with 60 plus hotels,” Chhatwal added.

Another key driver of growth that the company is well positioned to capture, he noted, was destination weddings.

On April 24, IHCL reported a 29% year-on-year (YoY) increase in net profit at ₹438 crore for the January to March quarter.

Also Read | Indian Hotels Q4 | Tata Group firm declares dividend of Rs 1.75 per share, net profit surges 29%

The market capitalisation of Indian Hotels is around ₹82,708.53 crore. Its shares have gained close to 71.42% in the past year.

For the entire interview, watch the accompanying video

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Dubai to soon have a ultra-luxurious Moon shaped resort: All you need to know

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

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Dubai, home to the world’s tallest building the Burj Khalifa, may soon get a gigantic moon-shaped resort. A Canadian architectural company, Moon World Resorts (MWR), has proposed to build a destination resort resembling the moon to offer guests affordable space tourism on the ground, Arabian Business reported. The company is calling it ‘Moon Dubai’.

The ultra-luxurious hotel, with an overall height of 735 feet, is expected to be built in 48 months. It will be set up at the cost of about USD 5 billion (about Rs 40,000 crore).

Once constructed, Moon Dubai will add to the Emirate’s economy in the hospitality, entertainment, attractions, education, technology, environment and space tourism sectors, co-founder of the project Michael R Henderson said.

Also read: Lemon Tree expects hotel rates to go up 20% this financial year

The resort is the brainchild of MWR’s Sandra Matthews and Michael Henderson. It will have a ‘lunar surface’ and be surrounded by a ‘lunar colony’. The ‘lunar colony’ will give guests an ‘affordable space tourism’ experience on ground. The colony is projected to welcome 2.5 million tourists a year.

Once the resort is fully constructed, it will be able to accommodate 10 million visitors annually.

The mega-resort will have modern facilities such as a spa centre, vibrant nightlife, lounge, event centre, global meeting place and a ‘moon shuttle’. Moon World Resorts did not reveal the details of the moon shuttle yet.

It will also have a training platform for space agencies and astronauts.

The resort will have luxurious private residences called ‘Sky Villas’. The company will offer approximately 300 ‘Sky Villa’ units for purchase. Buyers will also become members of an exclusive club.

The project will operate under the LEED (Leadership in Energy and Environmental Design) Gold certification, which is a 5-star built-out standard and a 5-diamond resort operational standard.

Also read: Yemeni engineer envisions futuristic nuclear-fuelled sky hotel that never needs to land — find out more

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mandarin Oriental launches branded exclusive homes

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

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Mandarin Oriental Hotel Group has launched a branded collection of the world’s finest luxurious private villas and mansions, handpicked by the group for their outstanding quality and sought-after locations.

Mandarin Oriental Exclusive Homes is being launched in partnership with StayOne, ‘the like-minded community allowing luxury travellers to experience the finest one percent of homes’.

The initial selections of Mandarin Oriental Exclusive Homes are located in popular destinations throughout Europe and range from a Georgian-style manor house in a 600-acre private estate in the heart of the Cotswold’s, to idyllic beach-front villas in the South of France and the Balearics including a jaw-dropping villa on its own private island.

The service is provided by a team that has been meticulously trained by Mandarin Oriental and has exceptional local knowledge and insights of each destination, ensuring a truly exclusive experience for guests.

Mandarin Oriental and StayOne have worked together to identify and select only the finest homes in the most popular leisure destinations, each having been subject to a rigorous quality and safety checks, said a statement.

The homes have been selected to suit different customer needs with the best locations chosen for secluded intimacy, family-friendly attractions, and party scenarios.

Also read: Hyatt Hotels plans to open over 10 hotels in India this year

 “These handpicked luxurious homes fit naturally into our portfolio and their locations provide opportunities for our guests to combine a hotel visit with a villa stay and explore more of the destination in different ways – but all with the assurance of the Mandarin Oriental reputation,” said James Riley, Group Chief Executive of Mandarin Oriental Hotel Group.

The initial collection of Mandarin Oriental Exclusive Homes extends to Ibiza, South of France, Mallorca and The Cotswolds, U.K.

“Our home-owner members already provide the very best of luxury homes around the world, but our collaboration with Mandarin Oriental has created a unique offering in the luxury villa market. Mandarin Oriental is a globally respected and trusted brand delivering legendary service and bespoke experiences and will be the first luxury hotel group to extend their offering to the private home environment and provide a tailored holiday experience for guests,” said Thomas Bennett, co-founder, StayOne.

Also read: Hotel industry expects traction in occupancy, room rates in 2022: Study

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SoftBank’s Oyo reveals over $330 million annual loss despite revenue surge

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

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SoftBank-backed Oyo Hotels and Homes’ losses ballooned six-fold in the year to March, while its revenue more than quadrupled, a valuation report filed by the India-based hotel chain with local regulators showed on Monday.

The losses highlight a period of rapid expansion by Oyo into markets such as China, the United States and the United Kingdom, which has made the six-year-old startup one of the world’s biggest hotel chains by room count.

Oyo reported a net loss of 23.85 billion rupees ($332 million) in the year to March 2019, compared with a loss of 3.6 billion rupees a year earlier, according to the report filed with the ministry of corporate affairs. Revenue from operations surged to 64.57 billion rupees ($900 million) from about 14.13 billion rupees a year earlier.

Oyo said in a statement the report contained only “certain provisional financials” for the year ending March 2019. “These are not the final audited financials and the same will be issued later by the company along with the annual report that we issue every year.”

The report, prepared by a valuer in Gurugram, just south of New Delhi, said the financials for the year to March 2019 were unaudited and all figures were provided by Oyo’s management.

The growing losses at Oyo come as its major investor SoftBank struggles to raise funding for a second investment fund in the wake of the failed listing of office-rental company WeWork and amid questions about the path to the profitability of other marquee investments like Uber.

SoftBank, which has invested nearly $1 billion in Oyo through its Vision Fund, this month reported its first quarterly loss in 14 years, dragged down by an $8.9 billion hit at the Vision Fund.

Oyo’s operating expenses grew nearly five-fold year-over-year to 61.32 billion rupees, while total expenses hit 90.28 billion rupees, the report showed.

Gurugram-headquartered Oyo, valued at $10 billion, allows guests to book hotels through its mobile app and charges partnering hotels a fee on room revenue. It also franchises its brand and offers standardized amenities at hotels on its network.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Conrad Bengaluru’s success could pave the way for Hilton Worldwide to bring its other uber-exclusive hospitality brands to India

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

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Earlier this year, Conrad Bengaluru, India’s second uber-luxe Conrad and the world’s 34th, opened in the picturesque neighbourhood of Ulsoor Lake, Bengaluru. It has taken a few months for the hotel, part of Hilton Worldwide’s luxury portfolio, to find its bearing in a market that’s booming for upscale hospitality.

For Hilton Worldwide, Conrad’s two properties — the first one was in Pune — is also a means to test the waters in India. Their success indicates that the country is ready for the big hospitality brands that Hilton actually wants to bring in: a couple of Waldorf Astoria hotels that have globally redefined luxury hospitality like no other, and Curio by Hilton, a collection of unique hotels marked by exquisite design and offerings.

The Hilton group is in discussion with potential partners, confirms Daniel Welk, VP, operations, Luxury and Lifestyle – Asia Pacific, Waldorf Astoria Hotels & Resorts and Conrad Hotels and Resorts.

Bengaluru’s Captive Audience

A few months into operation, Conrad Bengaluru’s general manager Parag Sawhney, an industry veteran who has been with the hotel since its opening, analyses the Bengaluru market as one of the most exciting in India. “Bengaluru is home to offices of major companies across sectors such as Information Technology-enabled services (ITeS), manufacturing, multinationals, home-grown and global IT companies, as well as several good universities. Headlining these companies are often well-travelled expats who are now based in Bengaluru. And then there are their equally globally integrated Indian counterparts. We are catering to an evolved audience that understands luxury.”

For luxury brands such as Montblanc, which is going to open a store in Conrad Bengaluru, the hotel offers a captive audience.

Boomtown Bengaluru has seen several luxury hospitality openings over the past year. Taj Bangalore has opened there and Four Seasons will also be throwing open its stylish doors. Shangri-La, a recent entrant, is looking at opening two more luxury properties in the city.

Hospitality consultants HVS, in its report Hotels in India – Trends and Opportunities estimates that over the next five years Bengaluru would see the addition of 10,731 rooms, with about 22.8 percent in the luxury segment, making it the second largest market for luxury hospitality after Mumbai.

It puts higher tourist arrivals and the rise in business and economic activity in the city as top reasons for the leap.

For Hilton to pick Bengaluru as a market for its second Conrad property, then, seemed like a natural choice.

Conrad’s Bengaluru Strategy

Sawhney says that the city, once famous for its gardens and now for economic growth and opportunities, boasts an audience that “is looking for experiences. It is very different from, say, Delhi’s luxury market which is more concentrated on possessions. Experiential luxury is higher up on a Bangalorean’s agenda and that is what we try and recreate through our restaurants, spas and other offerings within the hotel.”

Easy access to Bengaluru’s central areas such as MG Road, Commercial Street, Cubbon Park and the Central Business District has played a crucial role in Conrad Bengaluru’s success as both a luxury business hotel for executives visiting the city, a long-stay option for those who have to live in the city over a few months or a year or two, and a leisure weekend destination for locals.

“If the corporates bring in the MICE clientele, the growing importance of large weddings in the city helps us explore the wedding market,” says Sawhney. “South is a growing market for weddings and keeps our 17,000 sq ft of banqueting space and our Grand Ballroom occupied through the year. We even have a helipad in case there are guests who want to fly in to avoid the city’s notorious traffic. We have hosted events with companies such as IBM, Accenture, Goldman Sachs, Toyota and Jaguar at the hotel.”

For the leisure traveller, families who accompany people on business or even a busy executive who want some time out, Conrad Bengaluru charts out curated 1/3/5 day experiences. It could be a trip to the city’s many bazaars and the majestic Bangalore palace. It could be an experience of Bengaluru’s vibrant brewery culture.

“There are loads of experiences around the city— drives, treks, coffee estates and jungles of Coorg, a trip to Coonoor or Mahabalipuram that can be part of the luxury experiences packages we offer,” says the genial general manager.

But that’s outside the hotel. The posh property— which soars over 24 floors with 285 natural light-bathed guestrooms that open to panoramic views of Lake Ulsoor— also curates experiences for locals exploring luxury staycation ideas.

“Millennials form a large part of the immigrant and local communities in Bengaluru and for them, luxury is a personalised affair. They aren’t very fond of uptight service; they like to keep it relaxed so we have abolished dress codes within the hotel. They may not wear closed shoes or may walk in dressed in ripped, rugged denims. We have clearly seen the demographics change and hotels have to be prepared for that,” says Sawhney.

Tapping The City’s Love For Dining Out

Bengaluru has a progressive dining scene and major fine dining ventures are making a play for the market. Innovative fine and premium casual dining are among the experiences sought out by Bangaloreans if we go by the number of restaurants that open in the city every other day.

Conrad’s dining options are as varied as they are interesting. “We serve a variety of cuisines at the hotel,” says Sawhney. “We have created a variety of dining spaces and experiences to draw in local gourmands — a blend of Mediterranean, Pan-Asian with some influence of Japanese, to attract locals besides the in-house guests.”

The all-day dining Caraway Kitchen is a global cuisine hot-spot where guests gravitate for both breakfast and a decadent Sunday brunch. Expect to be surprised by Alaskan crabs on the Sunday brunch menu, besides unconventional cocktails.

The space segues into The Lobby Brew, close to the lobby, where you can order an espresso or unwind with a cocktail, even as you take in the expansive lobby with its gold overtones, jaali-patterned space separators and crystal chandeliers.

The elegant Mikusu, an Asian restaurant serves up a blend of Japanese, Chinese and Thai cuisines paired with sake. Indian Durbar, with its gold-leafed jaali work on walls, is the restaurant you go to for Indian cuisine, “literally food from Kashmir to Kanyakumari,” says Sawhney. “The curries, the kebabs, the haleems are drawn from the royal kitchens of the past and the food is slow cooked.”

The al fresco Tiamo bordering the infinity pool, with picture-perfect views, is just the space to enjoy Bengaluru’s balmy days and Conrad’s experiments with Mediterranean cuisine’s robust flavours.

Weekend staycations clearly draw in locals with the promise of eclectic dining experiences and facilities such as a yoga studio, a pool with a view, bespoke workshops and a fully loaded spa that offers an unusual sports massage along with several others. Locals, says Sawhney, play as much a crucial role in the success of a luxury hotel as its corporate, wedding and leisure guests from outside the city these days.

Deepali Nandwani is a journalist who keeps a close watch on the world of luxury.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow