Articles for Business

We Are Investing First and Foremost in Brand Equity: Kirschke

Bikramjit Ray BRAND OWNERS and operators like Carlson Rezidor need to ensure that our brands stay relevant, competitive, especially in a fast-placed world where digital is taking over. These were the opening words of Thorsten Kirschke, President, Asia-Pacific region, for the group. During an exclusive interview with BW Hotelier, Kirschke told us the issues of operating in a market like India. ’The investment climate in India--with land prices being where they are and interest rates staying the same--makes it very difficult to identify return on investment opportunities. Add that to the length of time it takes from the inception of a project to the opening and the lack of cash flows in that period, makes it a complex undertaking,’ he explained. ’In this kind of an environment, Carlson Rezidor, is investing first and foremost in its brand equity. So in an environment like India, we maintain the position that we have around the world of being asset light,’ he said. Carlson Rezidor has enjoyed a very strong position in India with 25 + years in the market and 74 hotels in operation and 43 in the pipeline, making them the leading international hotel operator in the country, according to Kirschke. ’We have, from the very beginning taken a long term view of India as a market. We’ve been able to develop relationships, partnerships that are meaningful, based on mutual trust and constant exchange and dialogue,’ he added. The group was going to continue, very clearly, to expand on their ’fortress India’ position, he told us, adding that it was by far Carlson Rezidor’s strongest market within the Asia-Pacific region. ’Things will not happen overnight, there is no one size fits all recipe, there’s no silver bullet. It is only through that deeply rooted understanding of its own dynamics that you will be successful,’ he added. The group has very ambitious plans of growth with around 170 operational properties in the next five years. ’We do not rest on our laurels. We are aggressively deploying new contract structures and bringing in new brands into the market to take advantage of the opportunities of the growing middle-class and hospitality trends that we see around the world. These are not unique to India, but of course, with the massive size of the population, multiplied by X,’ he said, explaining why he felt there was room to grow further in the market. The newest offering of Carlson Rezidor in India is its Radisson Red brand, which leverages the brand equity of Radisson as a worldwide brand. It’s a bifurcation of its legacy Radisson core into a ’different offspring’ that can cater to the evolving expectations of younger travelling demographics, Kirschke said. ’As the world in its entirety develops through globalization and digitalization, we see a changing consumer behaviour of hotels that emerges from very traditional, full service, upscale, luxury offerings to a more lifestyle geared experience that is more in-tune with realities of how people lead their lives today, professionally and leisurely,’ he added. Radisson Red is a brand typically around 150 keys, that looks at a reduced/select service/ select offering of services, doing away with offerings like 24x7 dining or a ball room with wooden panelling. It’s going to be flexible spaces, with emphasis on technology all designed into a lifestyle extension, according to him. ’Because of its smaller footprint and reduced back of house area, it provides for a better return on investment, not at all less important in a market like India where financing is extremely costly,’ he clarified, adding, ’we feel that we are addressing two major players in markets like India. We are looking at both sides of the equation--the consumer and the investor-developer community to take advantage of trends that we see unfolding in India. We’ve taken great care to make sure that Radisson Red is fit for India, because we have also seen that some other brands aiming at the same objective have not been successful.’ Existing owners have been given a sneak preview of the product and the group has also carried out deeper discussions with ownership structures to help gain a better understanding of their needs. ’The feedback and comments were encouraging, so give it some time and I think Radisson Red has great potential here’, Kirschke added. One of the challenges while in dialogues with investors and owners is to make sure that one deploys the right brand against their intentions in the markets where they are. ’We’ve seen it many times, that owners overcapitalize on their assets and then are unable to drive adequate returns. We want to be very transparent from the get go, we want to make sure that there’s a mutual understanding of what fits, what type of returns are expected and therefore, we continue to deploy all our brands equally. But I have to say that I am very bullish about the potential of Radisson Red,’ he concluded. The author is Executive Editor, BW Hotelier.

Read More
Louise Daley AccorHotel’s New Exec VP & CFO Asia Pacific

By BW Hotelier LOUISE DALEY has been named Executive Vice President & Chief Financial Officer AccorHotels Asia Pacific. Having worked at AccorHotels for 25 years in senior executive roles and as the company’s representative on joint venture businesses, Louise was previously CEO for Accor Plus, the group’s loyalty subscription program in Asia Pacific. Under Louise’s leadership, Accor Plus grew to 45 sales offices in 11 countries and membership expanded more than 30%. Prior to this, Louise was CFO for Accor in the Pacific, as well as being Director of Accor’s joint ventures Accor Vacation Club, Reef Casino Cairns (a public company), Executive Health Solutions and Accor Advantage Plus. In addition to these roles, she was Chairman of the AccorCorporate Social Responsibility Committee in the Pacific. Louise now takes on one of the most senior roles within AccorHotels Asia Pacific, working closely with Chairman and CEO, Michael Issenberg and the executive team. ’Louise was a natural fit for this important role because she understands AccorHotels and our business on a number of levels and commands the respect of both her teams internally and our external partners,’ said Michael Issenberg. ’She worked closely with her predecessor Kim Mooney, who passed away in May, and has a deep understanding of the strategic vision of AccorHotels and our aggressive plans for growth.’ Louise has completed an Executive MBA in Singapore, has a Diploma in Hospitality and Catering Management, a Bachelor of Business (Accounting) and is a Certified Practicing Accountant (CPA). She has lived and worked in Australia, Thailand, and briefly in Japan, and has been based in Singapore since 2011. Louise is also a regular speaker and panelist at industry events, and is a member of both the Australian and Singaporean Institute of Company Directors. ’I am honoured to take up this position with AccorHotels and am excited to lead strong teams in driving the future growth of the company in Asia Pacific,’ said Louise.

Read More
A Culinary Gem Celebrates 25 Years with Unique Meal

By Bikramjit Ray IT IS not often that a restaurant turns 25 and still stays relevant. The Karavalli, which is the star of the Gateway Hotel Residency Road Bangalore there, is an important part of restaurant lore of the city as well as South India. BW Hotelier had the opportunity to interact with Chef Naren Thimmaiah, executive chef of the hotel and the man who is synonymous with the restaurant he started working in when it was just one year old. One of the unique features of the restaurant, is the fact that the chefs and teams work tirelessly with their suppliers as well as others in the market, to get the best produce available in the area for the table. ’Even when we have a contract with a supplier, I still have the right to refuse if I am not happy with the produce,’ Thimmaiah tells us. The secret of the success according to Thimmaiah was the fact that the food at the restaurant was made in strict accordance to mothers and grandmothers’ recipes. ’The menu at Karavalli represents the cuisine of Goa, Mangaore and Kerala covering the Goa Portuguese, Konkani, Bunt, Havyaka Brahmin, Namboodri, Moplah Muslim, Syrian Christian and Kodava cuisines,’ Thimmaiah added. The food hasn’t changed and neither has the recipe. One of the secrets is that instead of making the food in portions like in a commercial kitchen, much of it is cooked in one go, like at home. The success can only be measured by the fame and of course, on a more practical angle, revenues. Karavalli, according to Thimmaiah contributes to 32 per cent of all F&B income of the hotel. The restaurant celebrates its 25th anniversary in a very unique way. ’We knew that most of the people who come to eat at our restaurant would not want to be part of a gala evening celebrating the special day,’ Thimmaiah says, so the management came up with a unique proposition, the restaurant is celebrated throughout the anniversary with special meals for select guests, people who have been regulars at the restaurant, be they the who’s who of Bangalore or ordinary citizens, hosted by the Chef, GM and his team. The menu is a collection of the greatest hits which numbers quite a few of the over 80 dishes which have been featuring on the menu for decades and reflects the single-minded dedication of Chef Thimmaiah and his team. In The Photo: Standing left to right: Ramachandran. K.V, Vasudevan Pillai,’? Balachandran. K, Naren Thimmaiah, Ganesh Sheregar.-Kneeling left to right: Jeronimo D’Souza, Gurudas Natekar, Lata Prakash, Uday Shetty. The author is Executive Editor, BW Hotelier.

Read More
New Appointments At AccorHotel India

By BW Hotelier ANJUMAN NARULA (see photo right) has been appointed as the new Associate Director of Sales- Ecommerce at AccorHotels India. In her new capacity, Narula will be responsible for strategizing and managing execution of Ecommerce related activities with a view to driving online sales. Narula brings with her an experience of over 9 years in online Sales and Marketing. Narula was previously associated with Bharti Airtel where she played an instrumental role in increasing Average Revenue per user through new improved and segmented product offerings and driving new product launches, product design, development and promotions. Prior to this, Narula was also associated with Google for a period of three years where her role involved managing Google AdWords portfolio for North America automotive clients like Ford, Nissan/Infiniti, Chrysler and GM. New Manager Business Intelligence Soumonath Chatterjee (see photo left) has been appointed as the ’Manager ’ Business Intelligence’ at AccorHotels India. With a career spanning over 10 years across diverse roles in hotel operations, consulting and development, Chatterjee has been responsible for executing Hotel Management Agreements for operating and brownfield properties for JHM Interstate (India) Hotels & Resorts as Manager ’ Hotel Development. In the past he has also worked with companies such as Cushman & Wakefield in Hospitality Consulting and Transactions and across various operational roles at Taj Group of Hotels. He is alum of the prestigious IMHI program at Essec Business School, Paris where he completed his MBA in International Hospitality Management.  

Read More
Ashwin Bhat named SWISS’s new Head of Cargo

By BW Hotelier ASHWIN BHAT has been named as SWISS’s new Head of Cargo, effective October 1, 2015. He succeeds Oliver Evans, who is stepping down from the post. Bhat, who is currently Head of Global Area Management at SWISS’s Swiss WorldCargo division, succeeds Oliver Evans, who has decided to step down from the post after some 13 years. Bhat, who is 46 and an Indian national, joined Swiss WorldCargo in 2002. After several years serving in various capacities within Pricing, Revenue Management and Controlling, he was appointed Head of Area Management Asia, Middle East & Africa in 2010. Responsibility for the Americas was added to his remit in November 2012. For the last two years he has served as Swiss WorldCargo’s Head of Global Area Management, in overall charge of worldwide sales of the SWISS cargo product. ’Ashwin Bhat is a proven airfreight specialist,’ says Harry Hohmeister, CEO of SWISS. ’We look forward to continuing our collaboration with him, and we wish him every success and satisfaction in his new capacity. I also offer Oliver Evans our sincere thanks, on behalf of our Board of Directors and our entire Management Board, for his own exceptional commitment and for the outstanding work and performance of his Cargo team over the past few years.’

Read More
Marriott, TripAdvisor Tie-up to Offer More on Booking Platform

By BW Hotelier MARRIOTT INTERNATIONAL and TripAdvisor have announced they are expanding their partnership and will add Marriott’s global hotel portfolio to the TripAdvisor Instant Booking platform. Starting later this summer, travelers shopping for hotel rooms on TripAdvisor will be able to make a booking at any of Marriott’s more than 4,200 hotels around the world without leaving the TripAdvisor site experience. The agreement also signifies a strategic partnership between Marriott and TripAdvisor to introduce new customers to Marriott’s portfolio of 19 brands. ’TripAdvisor is a perfect partner for Marriott, both strategically and culturally,’ said Arne Sorenson, CEO and president of Marriott International, Inc. ’Our new agreement demonstrates how the growth strategies for our two companies are aligned in the travel space.’ ’TripAdvisor has created a new distribution model that changes the game in the travel industry by addressing key concerns of hotel suppliers,’ said Shafiq Khan, senior vice president, channel strategy and distribution of Marriott International, Inc. ’The result is mutually beneficial to both partners from a strategic and economic standpoint. Marriott’s partnership with TripAdvisor will make it easy for consumers to book with our hotels, and allows Marriott to build a direct relationship with these guests even before arrival. The agreement also maintains our ability to control where the rates and inventory for Marriott’s hotels are displayed. Our partnership will continue to enable us to offer the best benefits, such as Marriott Rewards and Ritz-Carlton Rewards points to our customers who choose to book directly on our channels, including Marriott.com.’ TripAdvisor first launched its Instant Booking platform to U.S. consumers in June 2014, with a gradual roll out to other international markets expected over time. The platform provides an efficient hotel booking experience for travelers. With Instant Booking, travelers may simply click on the ’Book on TripAdvisor’ button to initiate a reservation. TripAdvisor reminds consumers throughout the process that their booking is powered by Marriott and provides the traveler with links and phone numbers to contact the hotel’s customer service associates directly. Unlike with other intermediaries, all customer support inquiries will be handled by Marriott representatives. ’We are excited to deepen our strategic partnership with Marriott International, an innovative hospitality leader,’ said Stephen Kaufer, president and CEO of TripAdvisor. ’We welcome Marriott to the Instant Booking platform, which provides travelers with a new, simplified booking functionality and an opportunity for Marriott to expand its relationship with guests before, during and after the trip.’

Read More
Vikram Reddy Appointed GM, Four Seasons Hotel, Mumbai

By BW Hotelier FOUR SEASON’S veteran Vikram Reddy, made the shift from Jakarta to Mumbai--taking over as the Four Season Mumbai’s new General Manager. A native of Hyderabad, Reddy has degrees in Accounting and Economics from the Osmania University in Hyderabad, and Business Administration from the California State University in Long Beach. While still at school in the US, Reddy grew passionate about hospitality when he got a taste of possibilities working part-time in a hotel in Anaheim, California. ’The wide range of experiences and combination of skills needed made every day exciting!’ he recalls. ’I learned from my mother the art of graciousness towards guests at home, and the hotel business is just a continuation of this,’ he added. Reddy takes great pride in his work and is a shrewd businessman, entirely focused on success. ’I expect to maintain the highest standards both in myself and my staff,’ he says. At the start of his career, Reddy worked for three small California hotel companies as Financial Controller in short order, following which he joined Four Seasons in Bali as the Director of Finance in 1993. Reddy spent four years at the group's iconic Jimbaran Bay property before transferring to the Four Seasons Singapore as Area Director of Finance in 1997, overseeing the hotels in Bali and the Maldives. Reddy was encouraged to move into Operations and give his career a different dimension and soon went onto serve as Director of Rooms at Four Seasons Singapore and then Hotel Manager at Four Seasons Philadelphia until 2004. In 2004, Reddy returned to Asia as General Manager of the Four Seasons, Jakarta, where he and his family have resided for the last 11 years. His dream is to return to his birthplace ’ Hyderabad, India ’ and open a Four Seasons Hotel there.

Read More
IHG Opens 10th Holiday Inn in India at Panchkula

By BW Hotelier INTERCONTINENTAL HOTELS Group (IHG) has opened Holiday Inn Chandigarh Panchkula - its first hotel in Chandigarh and 10th Holiday Inn hotel in India on the Kalka Shimla Highway. The 127-room hotel is set at the foot of the Morni Hills, an area well-known for its views of the Himalayas, and next to the Panchkula Golf Course. The hotel has easy access to tourist attractions such as Sukhna Lake, Rock Garden, Cactus Garden and the famous Sector 17 market which is ideal for shopping and dining. For guests travelling for business, the hotel is located near the business districts of IT Park, Mohali, Baddi and Zirakpur. Chandigarh Airport and Railway Station are both within a short drive from the hotel. With eight meeting rooms and event spaces, Holiday Inn Chandigarh Panchkula can hold business meetings as well as events, for up to 500 people. A well-equipped fitness centre, spa and an outdoor swimming pool completes the experience for guests. The hotel has a number of dining options. Guests can indulge their taste buds at Chingaree, which showcases the best of Indian cuisine. Guests can also choose from Caf- G, the all-day dining restaurant, which features live cooking stations or can grab a quick bite and a coffee at Deli while Stills, the lounge and bar, offers a variety of drinks and bar snacks. Shantha de Silva, Head of South West Asia, IHG said, ’As the gateway to northern India, Chandigarh has emerged as a popular destination for both business and leisure travellers. We are delighted to open our first hotel here under the Holiday Inn brand and are confident of delivering a great hospitality experience to guests visiting the city. This move is in line with our ambitious expansion plans to grow Holiday Inn and Holiday Inn Express across India ’ these brands currently make up more than 85 per cent of our development pipeline in the country.’ IHG currently has 22 hotels open in 14 cities in India across its portfolio of hotel brands: InterContinental Hotels & Resorts (1), Crowne Plaza Hotels & Resorts (8), Holiday Inn Hotels & Resorts (10) and Holiday Inn Express (3). IHG expects to open another 47 hotels across India over the next three to five years, including 24 Holiday Inn hotels. Holiday Inn is one of the fastest growing hotel brands in the world, with 87 hotels and 20,100 rooms open across the Asia, Middle East and Africa (AMEA) region and a further 50 properties in the company's development pipeline in AMEA. Globally there are almost 1,200 Holiday Inn properties open and 267 properties due to open within the next three to five years.

Read More

Subscribe to our newsletter to get updates on our latest news