‘Hospitality industry going through an interesting phase’

Integrity. Agility. Efficiency. Collaboration. Sustainable Development. Respect. These are the six core values that act as the growth pillars for Chalet Hotels Limited. And it is to these values that Sanjay Sethi, MD and CEO of the Group attributes the performance delivery and long-term strong relationships with international brands such as Marriott and Accor.

Chalet Hotels, incorporated in 1986, is a part of K Raheja Corp and an owner, developer, asset manager and operator of high-end hotels in Mumbai, Pune, Hyderabad and Bengaluru. From one hotel in 2002 to seven properties with more than 2,500 keys today, its growth trajectory has been tremendous. When it comes to numbers, the Group has a market capitalisation of over Rs 6,000 crore. 

“The company’s DNA lies in identifying strategic locations and efficient and sustainable design and development of properties. Each asset is located in high-density business districts of metro cities such as the Mumbai Metropolitan Region, Hyderabad, Bengaluru, and Pune with high barriers to entry. Present across nodal cities in the country, the hotels in the portfolio play an integral role in driving the economic development of new business districts and the overall development of the economy,” explains Sethi, asserting every aspirational mixed-use space that Chalet offers is unique in its qualities and attributes.

Developing success stories

“It has been more than three decades of never-a-dull-day kind of a journey, speckled with moments of high-energy people engagement, crisis management, some innovative initiatives and lots of fun blended with a tiny little bit of stressful moments. All in all, an exciting journey so far,” is how Sethi defines his experience in the industry. For a seasoned hotelier like him, development process of hotels is all about the first-mover advantage and that is something he prides on. “Historically, all our properties have been the first luxury hotel or best brand in the market when they came up at a respective location and have been leading hotels in their respective markets,” he avers.

What’s interesting is that most of these hotels are in partnership with the Marriott Group. “We like to believe that we sign up a brand for our hotels as per what fits the individual location best. The drivers could range from the target segment of guests or the positioning of the hotels we build. It is based on the source market of our target audience and the play of the loyalty programme,” explains Sethi. 

The more than two- decade-long relationship of Chalet with Marriott International reflects the historical synergies between both brands and the commitment to the mutual growth. “However, the partnership is non-exclusive both ways,” Sethi insists. Chalet’s portfolio used to be a healthy mix of Marriott and Starwood hotels but one bought out the other causing it to seem a little one-sided affair. In recent years though, Chalet has forged a new relationship with Accor Hotels and Hyatt Hotels and is in conversation with other brands for its upcoming projects. 

Predicting trends

For any hotelier, it is important to understand market trends and customer requirements. In case of Chalet, this is where the act of predicting trends comes in. “Attempting to evolve business accordingly is a trend in itself. The way businesses capitalise on new trends determines their success. The hospitality industry is ever-changing and to stay ahead of the curve, we map our business strategy that aligns with the broad direction of the overall industry for the benefit of long-term business planning. We have had significant success in keeping pace with the latest market trends which are reflected in our long-term success story,” explains Chalet MD and CEO. 

Upcoming projects

Chalet, after remaining in south India for a while, has now forayed into the northern region of the country. The Group was recently declared as the successful bidder for the DIAL development of a hotel at the T3 in New Delhi. The hotel, expected to be commissioned in or before FY2026, will comprise 350-400 rooms and will be positioned in the five-star luxury segment. The Group also plans to enter leisure destinations like Goa and hill stations at drivable distances from metro cities. In Pune, Hyderabad and Bengaluru, where the Group is already present, Chalet will be expanding its portfolio. “We have a few ongoing projects including the new commercial towers in Bengaluru and Mumbai which are moving rapidly towards completion. The second phase of renovation at Westin Powai is underway and is expected to be completed by December 2022,” reveals Sethi. 

In Hyderabad, a 168-room new hotel is expected to be operational by the last quarter of the current financial year while at Novotel Pune, 88 rooms are on track for completion by October this year. Chalet is also evaluating the upgradation and conversion of the Accenture Learning Centre building at Bengaluru at 190 rooms to the erstwhile 324 rooms at Marriott Whitefield. That will take the total inventory above 500 rooms. 

Views on hospitality industry

Sethi feels the industry is passing through an interesting phase. “We witnessed tremendous growth in the last few years which was then affected by the Covid19 crisis. However, it remarkably bounced ‘back to normal’. This reflects the huge potential of the sector and its manifold growth in the future. The industry is making efforts to become more sustainable by creating jobs and helping conserve local culture and environment. Moreover, gender diversity in the hospitality industry has increased over the past few years and the number of women in the workforce is steadily increasing,” he shares. 

In a constantly evolving environment, hotels must continuously keep up with the very latest trends to ensure business growth – be it marketing efforts, business models or embracing the latest hospitality technologies, opines Sethi, adding, “Several international brands have entered the local market which has given guests multiple choices across a wide variety of experiences and price points. The industry is gearing itself to address the millennial and Gen Z mind-set through product and service innovation.”