Scope ‘N’ Hope
Hospitality investments have been long-term lucrative for owners as well as investors. Though the industry has faced a rather prolonged pandemic of over a year-and-a-half plus, it is all set to bounce back and expects a bright future ahead. While international hotel operating chains have been steadily upping their game and presence in India and will account for an almost 50 per cent share in the tourism and hospitality sector by 2022 (IBEF Report), the blue-blooded Indian brands who are in sync with the Government’s Make-in-India promotion are not only reinventing themselves but planning investments in new projects too. BW HOTELIER brings you their strategies and future plans.
Not looking at huge real estate investments
We are promoting both the Sarovar brands – Sarovar Portico that offers full-service three-star and four-star hotels with convenient access to commercial and tourist centres and Sarovar Premier that offers upscale five star properties that resonate with a cosmopolitan vibe. We are 95 hotels now and our next big aim is to touch the 100 mark. Out of these 95, 75 are the Sarovar brands. Then there are the Radisson brands we manage and then are the 10 Golden Tulip brands. Moving forward, we will be working on the Sarovar and Golden Tulip brands, continuing to remain an operator and not look at huge real estate investments though we will be setting up a fair number of hotels. We have acquired the land and the decision to start construction by March 2022 has already been taken. VIABLE OPTION If one was to buy land and build a hotel, given the current room rates, it surely is not a viable option to invest in a hotel, by and large and in most places now. If one owned a piece of land acquired some years ago or is a family-owned land, it can be a viable proposition. Then it is the time to invest and chances are that one will get a good deal. It will depend on people to people and company to company. For example, we bought the land of our Sriperumbudur property six years ago. In the current scenario, we would not dream of buying land there today. SCOPE FOR INVESTMENT For us, the best place to invest are the state capitals, be it Tier I, Tier II or Tier III. There is plenty of demand locally whether it is for weddings, government work, trading, imports or exports, foreigners or locals. There is enough demand in the state capitals for it to be the core business. Also, Tier II and Tier III cities will witness more growth than Tier I cities as the available land is more economical and at a lot of places, there is little supply of hotel rooms and the demand surpasses it. For example, at Rishikesh and Varanasi, both Tier II or Tier III towns, have a limited supply of hotel rooms. Therefore, the land will be a lot more economical than a metro. Another area that has picked up in the last two years is resorts, be it in Uttarakhand, Himachal Pradesh, Kashmir or Rajasthan. And then there is the forever lucrative and open religious circuit, be it at Tirupati, Vrindavan, Amritsar or Katra. LOOKING AHEAD Every Sarovar hotel is designed to meet the contemporary requirements of today’s traveller: from tech-enabled spaces to inspired design, from affordable luxury to chic boutiques, from value-driven essentials to pampered indulgence. This year, the Group introduced properties in Gurugram, Greater Noida, Mussoorie, Morbi, Rajamundhry and Dibrugarh and have plans to add another 770 rooms at 11 destinations including Katra, Puducherry, Indore, Gurugram, Sonepat, Srinagar, Jalandhar, Dwarka and Nepal between January 2022 and October 2022. |
Our business assessment of the market is critical
Hospitality still remains a lucrative investment opportunity despite the extended pandemic. Once it is arrested, the demand for hotel rooms will go back to pre-Covid19 levels though with a different market mix. A decision to invest in a hotel depends on a few key factors like location (micro-market or geographic pocket as well as the hotel’s specific location); demand density and the market segments of demand; the hotel segment ie luxury, upscale, midscale or economy; debt structure and the leverage that can be exercised. Making a good investment decision requires a well-considered balance of all these elements. ASSET LIGHT OPERATOR-FRANCHISE MODEL VS OWN SOME-MANAGE OTHERS Our current portfolio of 87 operating hotels has a well-balanced mix of owned vs managed or franchised hotels. Out of a total inventory of 8,500 rooms, we have 5,200 owned or leased rooms and 3,300 managed or franchised rooms. As a significant player in owned inventory, we understand the owner mind-set and the importance of profitability, managing costs and building strong cash flows. Going forward, we are more focussed on an asset-light growth model. The plan is to build the inventory of managed/ franchised/ manchised hotels. Owners see benefits like intelligent and sustainable hotel design, cost-consciousness, strong loyalty programme coupled with a network of booking channels, well-established sales team, travel trade and MICE and now the new emerging segments of MSMEs in a post-Covid19 world, in partnering with us. INVESTMENT RISKS There are many factors that go into planning an investment in a hotel project. The first is the location and demand dynamics of that market. Is it a city or a leisure destination? What are the demand and competitive dynamics in that market? Is it an undersupplied or an oversupplied market? What kind of rate dynamics are being played out in that micro-market? In city hotels, we track commercial development around the micro-market and map out which industries will drive demand and more? What long-term demand build up will there be in that market? What current and future supply is there in the market? What kind of load factors do airlines do and what are the different means of transport in and out of that city? The key task is to analyse that market and confirm if it is growing and at what pace, especially about the hotel project itself. We determine what the strengths and weakness of the plot in question are. Assuming it is a robust and growing market, we work on a forecasting model ie scenario building – Best Case, Expected Case and Worst Case. This allows us to study risk and return scenarios. Based on the accepted risk-return matrix, we can then take a ‘go’ or ‘no-go’ decision. MORE SCOPE FOR INVESTMENT Be it metros, Tier II or Tier III cities, everything depends on demand and supply. Our business assessment of the market is critical. What are the risks and what is the expected return? In recent years, we have seen Tier II and Tier III doing extremely well across India and our expectation is that it is in these destinations where growth will happen in the future. |
Growth driven by the asset-light model  Vikas Ahluwalia, General Manager and National Head, Zone by The Park Hotels
ASSET LIGHT OPERATOR-FRANCHISE MODEL VS OWN SOME-MANAGE OTHERS As a company, we have a healthy mix of owned and asset-light models for all our brands. Our ownership interests are predominantly at THE Park Hotels across metros as we work towards growing our asset light portfolio with various hotel openings opening of hotels lined up this year – THE Park Indore, Zone Connect Darjeeling and Zone by THE Park Gopalpur to name a few. We would be happy to explore opportunities for investments based on the location and potential. The location and the potential of creating experiences for guests in the post-Covid19 scenario along with related infrastructure, air and road connectivity are some important elements in deciding these locations. INVESTMENT RISKS Infrastructure first being planned and promoted, and then not materialising creates a great challenge for investors. In today’s competitive scenario, one needs to focus on creating experiences like we, at THE Park Hotels, create Anything But Ordinary experiences and Zone by The Park Hotels, our upscale social-catalyst brand that allows guests to uniquely explore the city through the lens of social avatars. Guests can make use of the Zone Scale, a simple tool that helps us curate and recommend experiences based on what keeps it social for you in our city. MORE SCOPE FOR INVESTMENT We do see potentials for investment across all locations but in different formats. It could be mixed-use developments for metro cities, markets of a large city as the land costs are high and this will help in reducing the risk by monetising the costs. In Tier II and Tier III cities, especially ones under Smart Cities Mission, projects will be of interest along with untapped domestic tourist destinations. INVESTMENTS TILL DATE Based on the current pipeline of 16 hotel projects over the next three-five years, we see our growth driven by the asset-light model. We would be selective on new investments instead of investing in property upgrades at our existing hotels. INVESTMENTS IN UNTAPPED LEISURE DESTINATIONS Zone by THE Park Hotels and Zone Connect are strengthening its positions by tapping into untapped locations as we have recently signed up Zone Connect Darjeeling, Zone Connect Yadagirigutta and Zone Palace Phalodi. We are in the advanced stages of discussion with various partners for expanding in these regions and hoping to announce a few more projects soon. UPTICK IN OFFBEAT DESTINATIONS Now that the market has opened up and restrictions have been relaxed, WHO validation has come for Covaxin for international travel – domestic tourism has seen a new high. I foresee a surge in occupancies and ARRs for these destinations for the next year or so as we have some amazing destinations across the country – forests, beaches, mountains and world heritage sites. |
Aiming to add 20 more hotels to our portfolio
As one of the leading international hospitality operators in India, we continue to grow our network with the partners on the back of a strong development pipeline. A perfect example of a collaborative partnership is our long-standing association with InterGlobe Enterprises. Since 2004, through this harmonious partnership, our Group has opened several projects together, having recently launched the 20th ibis hotel in India, with more in pipeline. Some critical drivers for a successful partnership include a synergetic relationship with owner-partners that paves way for more opportunities on the back of success and achievements that act as reinforcement. Furthermore, consistent efforts and diligence to put due plans to action, while at the same time brainstorming and looking out for likely propositions for future is another driver. We have realised that challenges are well tackled with regular engagement with our teams. We encourage team members and leaders to display an entrepreneurial spirit and for them to take risks and adapt to the changing industry scenarios. INVESTMENT PLANS FOR INDIA In the next three-five years, we are aiming to add 20 more hotels to our portfolio, adding approximately 4,000 more keys as additional inventory to the existing diverse network across India. This is inclusive and divided across the portfolio of distinct brands ie luxury, premium, mid-scale and economy. Some of the much-anticipated projects for our group will be Raffles Jaipur and Fairmont Mumbai, along with new launches across brands like Novotel and ibis. SCOPE FOR FUTURE EXPANSION AND INVESTMENT From a development perspective, we have been following the densification strategy – primarily coined to enhance and propose expansion in key cities with multiple hotels across our brand portfolio at varying price points to guests. The nature of demand we usually witness in Tier I cities across varied brands further aids this strategy and helps reinforce our presence in these markets. For Tier II and Tier III markets, our development team is always researching possibilities, based on a set of indispensable factors like location, travel sentiment towards the location, traffic, background, and historical importance, if any, and its alignment with our vision for a long-term project. BOUNCE BACK I believe the vaccination drive and the Government’s indication of general easing of inbound international travel will give rise to leisure and domestic tourism and bring back the much important big spending international traveller. But instead of a sudden exponential change, there will be a gradual steady shift in the restrictions. The Government is proceeding with caution, and rightfully so, given the current scenario where several unpredictable factors continue to persist. A well-planned strategy to slowly reopening businesses across countries and easing travel restrictions is a sensible move. STRATEGY TO INVEST IN UNTAPPED LEISURE DESTINATIONS The response on our recent foray into the ultra-luxury segment with the launch of India’s first Raffles in Udaipur has been extremely positive. This gives us the additional boost to expand our footprint in unexplored, off-beat destinations to cater to the new growing demand for untapped leisure destinations in India. We are always looking for new opportunities at such raw locations and our development teams are in constant search for the next project based on what different locations can offer. |
Envisioning robust presence in India
Atmosphere hotels & resorts will announce its development plans in India soon. Our business development team is actively working on identifying and evaluating preferred locations for investments in upcoming destinations. In the next five to seven years, we envision a robust presence in India. OFFBEAT DESTINATIONS HERE TO STAY To begin with, the primary factor that can be attributed to such phenomenal business in these offbeat destinations is the fear of Covid19 and the consequential demand of less populated yet exotic destinations. What also contributed to such ARR was the temptation to travel after being confined in their houses for a considerably long period which was informally termed as revenge travel. However, I do not agree in toto with this concept. Instead I feel as we go ahead, Nature will be the new luxury. People looking for an escape from the hustle-bustle of their daily lives in metros and major cities would prefer destinations around Nature and offer them a rejuvenating and refreshing experiences. This trend that we witness in the hills, beaches or destinations is here to stay for long. BOUNCE BACK On a personal note, I feel that now we should work on gradually easing our restrictions on inbound international travel. We have a major chunk of our population inoculated and so is true for most of the countries across the world. There is an increasing vaccination coverage in countries that account for a sizeable portion of our inbound tourism market, such as the United States, the United Kingdom, and Australia. So, restrictions need to be relaxed now along with measures like incentivising inbound international travel as this will go a long way in helping our industry bounce back. STRATEGY TO INVEST IN UNTAPPED LEISURE DESTINATIONS There is a goldmine of untapped destinations in India, especially in the Eastern and Northeastern regions. However, one strategy cannot be singled as a standard tool to harness the benefit of these destinations. The primary requisite for any developmental work to begin in these locations is the presence of a robust infrastructure. And here industry associations should leverage their position (which they are doing very impactfully) and presence to impress upon the Government to improve infrastructure in these regions in terms of connectivity and security. Once we have a developed infrastructure along with an investor-friendly policy regime, everything will follow on its own. |
Expecting 60-plus properties in the next five years
The most important driver for brand mantra is transparency in dealing with the owners, right from the development stage and up to the tenure of the operations. We firmly believe transparency and honesty are imperative in developing lasting trust in the relationship with the owner. Next is flexibility. We understand every hotel is unique in the context of its location and the owner’s vision. Therefore, flexibility from the brand’s side, without compromising the quality, operating requirements, and the minimum brand standards, are important for the success of the asset. Sharing knowledge related to hotel business, development and operations is crucial to keep the owners on the same page, which otherwise might lead to differences and focus shift thus affecting the business. We follow a ‘hybrid’ management model wherein the owner is kept involved with the operations of the hotel to a certain extent so that they don’t feel disconnected with the asset. Our support to hotel teams and owners is diligent and timely, and doesn’t distinguish between franchised and managed assets. Our team is deeply involved with all the aspects of the hotel, be it design and development, renovation, pre-opening, or management of the member hotels. Over the years, we have developed techniques in our management system that help us in responding to a hotel’s unique management needs and requirements. INVESTMENT PLANS FOR INDIA We commenced operations as the master licensee of BWHR in India in 2016 with nine properties. Today we have 35 properties (21 operational and 14 under development), close to a four-fold growth in almost five years, discounting the pandemic period. We hope to regain the pre-Covid19 impetus in the coming months and expecting to have over 60 properties in in the next five years. SCOPE FOR FUTURE EXPANSION AND INVESTMENT Looking at the recent market trends, the Government policies in the past decade are focussed on decentralisation from Tier I cities that has resulted in tremendous growth opportunities in Tier II and Tier III cities. Couple of examples are the Smart City programme and the development of the state capitals that has seen a lot of movement in these cities. These are practically nascent markets when it comes to the hospitality sector, and hence present us with a high business potential. Moreover, considering the cost of real estate and development of a hotel is comparatively lower than the Tier I cities, and the demand weighs more in the demand-supply balance, the scope of development in Tier II and Tier III cities is quite significant. While the metros shall remain on a steady upward growth curve, Tier II and Tier III cities would witness an exponential growth in the coming years. While our focus is equally divided in all the location categories, being the global leader in the midscale and upper midscale space, BWHR enjoys a definite edge over the other international brands when it comes to Tier II and Tier III cities. For owners, they get to have an international brand and its services at competitive fees in locations that are primarily studded with stand-alone hotels or domestic brands. OFFBEAT DESTINATIONS HERE TO STAY The rapid recovery in the ARR of the leisure destinations could be attributed to the urge for travel after a long and trying period of lockdowns, travel restrictions, and uncertainty during the pandemic. This uptick might be a short-term phenomenon. I think it would be prudent to inspect this upward trend in leisure locations for some time before drawing long-term conclusions. BOUNCE BACK Today, the revenues have bounced back to 60-70 per cent of the pre-Covid19 figures. This indicates positive recovery. I think the industry should see a full recovery in the next six months. The current recovery is indicative that the domestic market is getting back on track. This would be further augmented with the revocation of the restrictions on international travel. My optimistic opinion is that the industry might exceed the pre-Covid19 performance. |
Looking at a strong growth journey
We all recognise that India is the third largest economy in the world so not only is it extremely important for us to grow in India for the Indian traveller but it is equally important for us as an international company to grow in India for the outbound traveller. Basis on the strong economic drivers and the fact that with so many people crossing the borders either coming to India or going out of India, we remain committed to the country for the long-term. We are fully committed with all our resources to grow in India and that’s what we are looking at over the next 8-10 years. We are looking at a strong growth journey. INVESTMENT PLANS FOR INDIA We have a great story to share. We are primarily a management company or a franchise company which means we partner with owners who basically are real estate developers or are other ownership groups with whom we enter into a management contract or franchise agreement. This means that it is our investment with our partners and this is how we grow across the globe. In India, our story is looking fantastic as we have 21 operating hotels which means around 3400 keys and if we just look at how we are growing in the next 12 months, we are adding around 900 rooms which is almost 25 per cent growth on a room base which is quite a strong growth. And we are looking to double this number by 2024-25. This is basis the current pipeline of signed agreements that we have with us. These are mostly management contracts. A majority of the rooms are under construction and we know that these are real projects. In future, we will be adding more. We look at doubling our inventory in the next four-five years. BOUNCE BACK The trends have so far been good and look promising in the Indian context because we witnessed a lot of pickup in domestic travel. No one knows and it will only depend upon the extent on which this now variant of the virus plays out so we really don’t know as of now. Also, the Indian Government hasn’t yet made any important announcement but I think there will be some impact on the sentiment for some more time. However, if I were to take an example of what’s going on in Goa, Udaipur or other resort markets, these markets are completely full. Even domestic airline travel trends indicate the figures reaching the pre-pandemic levels. Hopefully, the virus doesn’t play out too bad and we are able to weather this storm as well and things will get better and the borders open. It is critical to grow in IT-driven markets which means that international travel is very important and the markets which are dependent on them like Bengaluru and Pune where we need the travel to be in full force. STRATEGY TO INVEST IN UNTAPPED LEISURE DESTINATIONS What this pandemic has taught us is to look at things differently than we used to. Untapped markets could be ones which are suburban locations or properties become destinations in their own right but these may be just half or one hour drive from any market. And these could be located outside cities like Hyderabad or Bengaluru. We are already witnessing it at our hotel in Shillim near Mumbai. Then there can be destinations which can be created out of a place which can work well for staycations or workcations or become great wedding or weekend destinations. We are also trying to deploy, at least from a Hilton’s perspective on some of the brands that fit in well there. For example, there are some boutique and non-cookie-cutter unique properties where we will deploy our Curio Collection by Hilton or a Tapestry Collection by Hilton brand because the consumer will appreciate it. |
Growing presence in leisure locations
Across the globe, including india, we follow an asset light business model, and, investment in assets is covered by our owners. Our focus is to invest in our brands, technology, tools and solutions that make the biggest difference to our guests, owners and teams, our loyalty offer and our talent to deliver the right experiences. This positions IHG as one of top hospitality companies, and drive returns for owners. This enables the specialists to do what they are best at. INVESTMENT PLANS FOR INDIA At present, we have 41 hotels in India across five of our brands and we are looking to add almost the same number in the next two-three years. Our growth strategy in India is to capitalise on the mainstream segment in line with the market demands. Our current pipeline is robust with 28 hotels under the Holiday Inn brand family, and also hotels under our luxury brand InterContinental, premium brand Crowne Plaza and our long-stay brand Staybridge Suites which recently debuted in India. We recently launched Six Senses Fort Barwara in Rajasthan, the first Six Senses property in India, to deliver elevated experiences to guests in the luxury segment. We see a growth potential of our global brands such as Regent, Kimpton and the recently launched Vignette Collection. Our upscale brand, voco is a great fit for the Indian market and we are in discussions with several partners to launch the brand. SCOPE FOR FUTURE EXPANSION AND INVESTMENT In recent years, there has been a significant increase in domestic travel in India that has created a demand for quality, branded accommodation across market, including Tier I and Tier II cities. Despite the challenges faced by the industry, we are well-poised to capitalise on the current market demand and are meaningfully expanding our presence across key markets in the country, with new signings and openings. This includes both metropolitan and Tier I, II and III cities. We have brands, especially in our essentials category that help owners to build hotels well-suited to Tier I, Tier II and Tier III markets. Our range of brands provides for the right returns model as a balance between the cost to build, the cost to operate and the expected returns can be met whilst we continue to deliver on our brand promise for guests. BOUNCE BACK The safety of the people is of paramount importance, and we are in support of the initiatives undertaken by the authorities to protect people across the country. From a business point of view, the effective and increased pace of the vaccine rollout, coupled with easing of restrictions has helped us drive business to our hotels across segments which has supported us in recovery. Additionally, we have implemented a number of measures to capitalise on the increasing domestic and international travel demand. Ensuring guest safety and maintaining the right cleaning protocols through our ‘IHG way of Clean’ programme continue to remain a top priority for us. We have had several initiatives to provide the right training and operating procedures to our colleagues so that they can function in an evolved business environment and continue to offer true hospitality to our guests coming from different markets. With our solutions focussed approach, we have introduced newer technologies across our operations to enhance guest experiences with minimal social contact. INVESTING IN UNTAPPED LEISURE DESTINATIONS While a majority of our portfolio is concentrated in urban locations, we are increasingly growing our presence in several leisure destinations as well. Our strategy for the country is in line with the market demand, and we are expanding our presence at the right location and with the right partner. |
To adopt different strategies
We are a hotel management company where we pursue an asset-light model with a significant portion of our portfolio managed directly by us. We have a robust operations strategy as a part of our India Unification Plan (IUP) as well as globally but we remain open for selective franchising. As a brand, we will continue to remain flexible and adopt different strategies across the globe as and when we see opportunity. This, coupled with the adoption of the right technology to facilitate smooth operations as well as health and safety, will hold us in good stead. BRAND MANTRA AND EXPERIENCE We have in place strong operational architecture to drive excellence and create value for every stakeholder. One of our focus areas has been to increase owners’ revenue by enabling managed hotels to achieve stabilised minimum Gross Operating Profit (GOP). We also enable owners to maintain profitability and achieve benchmark targets for retention or recovery of the business. Through our deep understanding of the market, partner and guest expectations, we have managed to maintain nearly 100 per cent renewal rate and have maintained this trajectory throughout the pandemic as well. All of our managed hotels have been organised into six regional clusters to leverage the scale and synergies of the network to deliver operational efficiency and savings. Large clusters are supported by epicentres (or base hotels) to enable efficiencies through centralised production hubs for managed hotels. We continue to foster a culture of performance, recognise high-performing GMs and hotels, identify hotels to champion clustering initiatives. We achieved the 100-hotel landmark in India recently. This achievement is a matter of immense pride especially given how recent times have impacted businesses, partners, owners, employees, and guests, alike. INVESTMENT PLANS FOR INDIA Currently, we have over 100 operating hotels in India and are present in more than 60 locations including all major metro cities and Tier II centres with good connectivity, trade, and tourist interests. For the next three-five years, our primary focus will be to open more leisure destinations and strengthen our domestic network. As part of this, we will undertake development of Tier I and Tier II locations and strategic trade centres. We aim to open 60 new hotels in the next five years. With an estimated hotel opening rate of 15-16 every year, we aim to add over 6,000 new jobs over the next three years. Our playbook for Indian hospitality has made a significant impact in the industry and as we move ahead to even greener pastures, we will continue enhancing our brand portfolio by adding newer brands such as Radisson Individuals which offers independent hotels and local/ regional chains the opportunity to be part of Radisson Hotel Group and Radisson RED which promises to usher in a new culture of unconventional, bold, and unique hospitality. SCOPE FOR FUTURE EXPANSION AND INVESTMENT Within our portfolio, we have seen some interesting trends as travel purpose is gradually shifting from project-based long stays to regular travel in metro cities but in Tier II and Tier III cities based on project/ client locations. We will look at expanding with unique offerings in these cities while going deeper into India’s regional pockets. Over 50 per cent of business conversions can come from Tier II and III cities. Scope for expansion exists in both – metros and Tier I and Tier II cities. Different activities will see different regions rise to the front. For example, MICE has shown green shoots of recovery with small groups from the distributor’s meet in leisure, Tier I and Tier II destinations. In new segments, the entertainment sector has shown resilience in recovery with group stays in Tier I and Tier II cities. Weddings and socials as a segment continue to support our hotels in Tier I and Tier II cities. |
Investing in people, brands, technology and resources
As the world’s largest hotel franchising company by number of properties, our commitment to making hotel travel possible for all starts with our franchisees. Together, we elevate our family of 22 iconic brands through innovation, quality and design, operational efficiency, strategic growth, and guest experience to shape the legacy of owners worldwide. With approximately 9,000 hotels and over 90 million Wyndham Rewards loyalty members, the asset-light business model has significant cash generation capabilities, leading to limited exposure to operating costs, incentive fees and capital requirements for owned assets. We manage 5 per cent of our global portfolio and proactively partner with third-party operators to manage our hotels. BRAND MANTRA AND EXPERIENCE Our mantra is ‘we put our owners at the centre of everything we do.’ We make a compelling value proposition for franchisees through industry leading central reservations systems, trusted brands with segment-leading consumer awareness and market share. We have the world’s most generous rewards programme with over 90 million enrolled members and continuous guest-facing digital innovation, enhancing guest experiences. We are committed to operating our business in a socially, ethically and environmentally responsible way. INVESTMENT PLANS FOR INDIA We currently have a portfolio of 51 hotels in Eurasia (48 in India), and a development pipeline of around 30 hotels with seven expected to open in 2022. At Wyndham, we invest in people, brands, technology, and resources, and our franchise business model offers potential for higher profit margins than managed hotels because it is less-resource intensive. A key focus at Wyndham is the continued growth of our asset-light, highly profitable, and cash generative franchising business. Additionally, the brand story has been consolidated with the ‘by Wyndham’ endorsement and the introduction of new brands like Registry Collection and all-inclusive brand Alltra. SCOPE FOR FUTURE EXPANSION AND INVESTMENT Although we have signed and opened hotels in metros, including recently signed 300 key Ramada Plaza at Mumbai Sahar Airport or opening of hotels across Bangalore and Delhi in the last 24 months, Wyndham has expanded in leisure and Tier II and Tier III markets. UPTICK IN OFFBEAT DESTINATIONS While the industry experienced unforeseen challenges and setbacks from the lack of demand from international shores, Indian customers have revived the hotel sector with a surge in leisure travel, banqueting and social functions. We have witnessed an 80 per cent recovery from 2019 levels, primarily due to the surge in domestic staycations. We aim to leverage Indian customers’ desire to travel and explore India, in line with the PM Modi’s call for action on Dekho Apna Desh. INVESTMENT IN UNTAPPED LEISURE DESTINATIONS With signings and openings in Jaipur, Mohali and Varanasi, we are focussing on domestic leisure destinations. We pursue multiple avenues of growth to generate returns for our stockholders and use our scale and distribution, variety of brands, guest loyalty, and franchisee network to add new hotels to our system. Our long-established franchising experience and ability to innovate, together with favourable macroeconomic and lodging industry fundamentals, continue to support our organic growth worldwide. Moreover, we intend to use our cash flow to return capital to stockholders, invest in the business, and pursue external growth opportunities. We have built our portfolio of renowned hotel brands primarily through acquisitions, enabling us to meet travellers’ leisure and business travel needs across a wide range of price points, experiences, and geographies. We have established an extensive track record of successfully integrating franchise systems and enhancing the performance of brands post-acquisition by leveraging our operating best practices, significant scale, Wyndham Rewards loyalty programme, and access to global distribution networks, producing substantial cost synergies for our franchisees and us. |
Ajay Bakaya, Managing Director, Sarovar Hotels And Resorts
Mahesh Aiyer, CEO, Carnation Hotels Pvt Ltd
Puneet Dhawan, Senior Vice President of Operations - India & South Asia, Accor
Souvagya Mohapatra, Managing Director (India, Bhutan, Nepal, Sri Lanka operations), Atmosphere Hotels & Resorts
Atul Jain, Chief Operating Officer - India, Bangladesh and Sri Lanka, Best Western Hotels & Resorts
Dhruv Hoon, Vice President Development – India, Hilton
Sudeep Jain, Managing Director, South-West Asia, IHG Hotels & Resorts
Zubin Saxena, Managing Director and Vice President Operations, South Asia, Radisson Hotel Group
Nikhil Sharma, Regional Director, Eurasia, Wyndham Hotels & Resorts
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