'Gachibowli has emerged as distinct hyper-local market within Hyderabad'
Hyderabad has been one of the key markets for hospitality in India, especially due to its position as an important business hub and as a state capital. In this market stands the Sheraton Hyderabad Hotel, which has a new-found preference among visitors due to its close proximity to the new location of the US Consulate in the city. Thus, visitors coming for their visa appointments are showing a renewed interest in this premium property. Against the backdrop of these changed dynamics and the importance of Hyderabad, BW HOTELIER spoke with Samit Kazi, Cluster Director of Sales and Marketing, Marriott Hotels (SAMHI Cluster), to understand the market, the emerging trends and revenue sources. Excerpts:
As a Sales & Marketing professional, how do you see the hospitality market in Hyderabad?
The MICE and wedding segments have long been robust markets in Hyderabad. Nevertheless, during the Q4 2022 and Q1 2023 periods, the landscape has shifted, and we have observed significant corporate activity across all brands. One of the most significant accomplishments for Hyderabad was the E-formula race, which was a major victory for the city's hotels.
Please tell us about the leading hospitality marketing trends that you noticed? How do you keep up with the latest trends?
Hotels are experiencing a significant surge in demand from the domestic market, but demand from large multinational corporations and RFP accounts has remained stagnant. Local accounts and SMEs are the ones driving the momentum. Although international travel has returned to normal, ongoing news of inflation and layoffs by major corporations are preventing larger companies from travelling. As a result, our focus will be on attracting local accounts that are interested in longer stays, MICE events, and weddings.
How do you see the changing dynamics of Gachibowli and how do you intend to leverage it?
Gachibowli has emerged as a distinct hyper-local market within Hyderabad, and it is currently the largest contributor of office space in the city, driving a tremendous demand for real estate in the area. Recently, the US Consulate in Hyderabad relocated its headquarters to Gachibowli, and opened a new office that is the largest US Consulate facility in Asia. We expect to see even more robust demand in both the retail and corporate segments in the future. In response to this, the Sheraton Hyderabad Hotel has introduced tailored US Visa Stay Packages for travellers who require a visa or passport.
What are the main sources of revenue for your hotels in your cluster?
We have observed a healthy balance of room nights from retail, corporate, and group bookings. Retail continues to be the largest contributor to our cluster, with Marriott.com and Marriott Bovoy being the top contributors.
How important is F&B and MICE for you? What is the contribution of these two in your overall annual revenue?
Our plan is to capitalise on the strong visibility of Shaadi by Marriott Bonvoy and Marriott Bonvoy on Wheels to boost our food and beverage (F&B) business. F&B continues to be a significant revenue generator for us, contributing around 30-32 per cent of our total revenue.
Tell us a little about your pricing strategy and what are the steps that you initiate for maintaining a healthy RevPAR?
In 2023, our focus is on achieving an optimal segment mix to drive higher revenue per available room (RevPAR). We have already made significant progress towards this goal in Q1, with strong room revenue performance and room occupancy maintained at 75-76 per cent. Going forward, we aim to increase our average daily rate (ADR) and RevPAR through a robust mix of retail and group bookings.
