Articles for Business

Leela Could be the Next Big Thing of the 21st Century

By Louis Sailer WITH-30 YEARS of experience in the hotel industry, working in and visiting hotels all around the world, for the past one-and-a-half-years, I have had the good fortune of being the general manager of the exemplary Leela Palace in New Delhi. This a hotel that I would consider to be the best as far as my experience goes, with the ability to rub shoulders with some of the globally acknowledged bests. All over the world you do not find many hotels like Leela. Some may have beautiful lobbies but the guest rooms may not match up or there might be a fantastic suite but the rest of the product falls short of expectations. I like to call The Leela Palace a hotel that offers 100 per cent luxury. This probably has something to do with India itself. As a foreigner it is a complete privilege to get the opportunity to work and live in a country like India. There a lot of positives here with people being the main. For the hotel business world over, it is very difficult to rope in people who are genuinely committed to working. This is a trait that you find in the Indian labour. In America monetary want serves as the prime motivation, the desire to provide good service for big tips. In Europe, getting appropriate labour is a major problem because you have people coming in from Eastern Europe with absolutely no knowledge of the native language. India today is exporting its labour to all parts of the world and in all sectors. This is similar to the situation that was prevalent in China about a decade ago, but I can guarantee that within 5 to 10 years, when the indigenous demand for labour grows, Indians will be able to find great jobs here. Another thing that is different about the Indian situation is the level transparency, everything starts shoulder to shoulder. You have wealth and poverty side by side and despite this, unlike other countries, there is a general sense of happiness. This is what I learnt when I first came to Delhi One has to remember that it doesn’t matter what part of the world a brand comes from, as long as it has the ability to deliver on its promises, it will flourish and survive. Leela being essentially a Indian brand imbibes all the advantages of India, one like I mentioned before being the fact that Indian personalities are very genuine and are coupled with a willingness to serve. This is something that may exist if you go down towards Malaysia and Thailand, a sentiment echoing that of European offerings in the old days, but not anymore which makes this a very valuable and rare trait. So, I am confident, that once we take Leela global, we will not need to bow to anybody. Of course, there always are certain challenges that come with working in any type of environment. At The Leela, inside the hotel, the internal workings are almost a dream but we do have external challenges, structures such as the supply lines, certain restrictions and complexities of imports and the local availability of certain goods. It is not as easy to get all the things required to run an international luxury establishment unlike places like Dubai and Singapore. However, having said that, I have to say that Leela is the only hotel that outshines all the ones that I have previously worked for, in terms of the product offered. Some may believe that despite the fact that The Leela being a phenomenal hotel where absolutely no costs have been cut, it is overshadowed by the other bigger brands however, I see it from a different perspective. Leela is a unique offering. It doesn’t stress on the commercial aspect. It is a vision. The Leela has a certain love and an old world vibe about it unlike other American business propositions. It is essentially India. If you look at the intricate details everywhere, within our facilities, there is a rich maharaja look to all our suites and guest rooms. It is a representation of a true Indian palace with a modern look. We have certain elements which you would see in all historical hotels all over the world, but we are essentially Indian. This is reflected in the fabrics we use and the way the hotels are decorated- mother of pearl inlays in the writing desks, carved elephants, the silver elephants, the magnificent elephants at the entrance, etc. Each piece is created by an artist and has a story behind it. The Indian-ness is incorporated everywhere but in a very elegant, bespoke way and the guests love that. Our ambition is to make Leela what it should be, a bespoke global brand. There is space to grow both in India and abroad. We definitely need to finish off the triangle in northern Indian by including Agra and Jaipur in our portfolio. This is the typical travel route that international tourists explore. We are going to set ourselves up in all key cities and key destinations. However this is going to be very challenging for us because we never compromise. Leela is a combination of the product, name and services. I believe that we could be the new Ritz Carlton of the 21st century, which was at its best in the nineties when the whole brand really came to life. That is the potential and future of The Leela Palaces. The author is General Manager of The Leela Palace New Delhi. As told to Bikramjit Ray.

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Indian Accent to Open at New York’s Le Parker Meridien

By Sourish Bhattacharyya INDIAN ACCENT is going global. The New Delhi restaurant that has wowed critics and customers by giving a global twist to Indian cuisine, and winning every award that was to be won, is opening its first international clone in New York’s Le Parker Meridien, a Starwood hotel, some time in October or November this year. The Chairman of Old World Hospitality (OWH), Rohit Khattar, signed and sealed the agreement with the West 56th Street hotel’s management even as news came in of Indian Accent’s debut on the World’s 100 Best Restaurants list. OWH, incidentally, operates two hotels in Delhi ’ Broadway, which is turning 50 next year, and The Manor ’ and a host of restaurants, including the 25-year-old Chor Bizarre in New Delhi and Mayfair, London, besides a much sought-after luxury catering service. ’We have been evaluating multiple opportunities and invitations to open in major world cities, but none as exciting as New York,’ Khattar said in a media release announcing the opening. ’After two years of looking for the right space, our search ends at the beautiful Le Parker Meridien, which will be home to Indian Accent later this year.’ Khattar and OWH’s Corporate Chef (Luxury Dining), and the man behind Indian Accent’s unprecedented success, Manish Mehrotra, were in New York recently to take one final look at the location before putting signature to bond paper. Le Parker Meridien is famous for the magnificent views it commands of Central Park, apart from its proximity to MOMA, Carnegie Hall, Broadway theatres and Fifth Avenue’s shopping magnets. The hotel at present has two restaurants ’ Burger Joint, a fun burger place with a one-page menu, and Norma’s, a breakfast hangout open from 7:00 a.m. to 3:00 p.m. ’ and a coffee and cocktails bar named Knave. Indian Accent, by the looks of it, will certainly pep up the hotel’s minimalist F&B offering. A visit to New York will never be the same again. The author is Consulting Editor of BW Hotelier.-

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Starwood introduces 10-point Plan for Sheraton Hotels and Resorts

By BW Hotelier STARWOOD HOTELS & Resorts Worldwide has introduced Sheraton 2020, a 10-point plan designed to put Sheraton Hotels and Resorts firmly back into the global spotlight. Sheraton 2020, a nod to the plan’s five year vision, includes a new $100 million Sheraton-focused marketing campaign; the launch of the new premier tier, Sheraton Grand; continuous innovation of the Sheraton guest experience; an unwavering commitment to service excellence; the implementation of revenue and profit-driving initiatives to benefit owners and developers; and a goal of opening more than 150 new Sheraton hotels worldwide by 2020. ’Sheraton is Starwood’s largest, and most global brand, with a nearly 80-year history as a pioneer and true beacon of hospitality around the world,’ said Adam Aron, Starwood CEO on an interim basis. ’With Sheraton 2020, we are marshalling the formidable might, muscle and creativity of our organization, which has famously distinguished itself as the industry’s premier brand builder and innovator. This is a top priority, and we will act boldly to put Sheraton back on its rightful pedestal as a global hotel brand of choice, everywhere.’ According to Dave Marr, Global Brand Leader for Sheraton, work is well underway on Sheraton 2020 with initiatives scheduled to roll out as soon as June and a new brand positioning and global advertising campaign launching in September of this year. ’Sheraton 2020 was created with an eye toward maximizing value for owners’ assets, and we thought it was important to share our plans first with them while at the NYU Hospitality Conference,’ said Marr. ’Our teams around the world are already hard at work to swiftly and consistently execute against this action plan.’ The 10 points of Sheraton 2020 include: Introduce new Sheraton brand positioning: Reinvigorate Sheraton with a new vision to define and crystallize what Sheraton stands for as a brand; Create a new visual identity for Sheraton that incorporates our current, iconic logo; Enhance the digital experience and develop compelling content. Turn Heads, Change Minds, Deliver Guests-$100 Million Sheraton marketing campaign: Roll out a multichannel global advertising campaign, beginning in 2015 through 2017; Execute the richest Sheraton-focused SPG promotions in Starwood’s history; Ramp up media buzz and social strategy to meaningfully engage consumers across all channels. Launch Sheraton Grand: Elevate 100+ premier Sheraton hotels to new Sheraton Grand tier to better match guests’ expectations, showcase Sheraton’s best properties and create a halo effect across the portfolio; Focus first on global gateways to lure high-value travelers and create a worldwide network; Encourage more owners to renovate properties to achieve new Sheraton Grand stature. Earn owners’ confidence in Sheraton: Laser-focus on revenue and profit-driving initiatives and programs to boost owner value; Balance building and conversion costs with exceptional guest experience; Reevaluate brand standards and fee structures to improve owner economics. Ignite Associates’ passion for Sheraton: Enlist Sheraton General Managers as leaders of change on the frontlines; Connect Sheraton’s people to new brand vision and their role in bringing it to life. Get service right at Sheraton--Every day. Every time. Everywhere: Maniacal ’ and consistent ’ focus on excellence in service delivery, including cleanliness, condition of rooms and responsiveness to guests; Inspire and incentivise our hotels to reach new Guest Experience and Quality Assurance goals; Tackle lowest-performing hotels, move the middle, and learn from the top. Reclaim Sheraton’s status as THE meetings brand: Become go-to brand for top planners and customers ’ take back group share; Kick off global customer blitz; amp up booking rewards and incentives. Innovate the Sheraton guest experience. Continuously: Offer unique and imaginative premium sleep, entertainment, fitness and bath experiences; Invigorate Food & Beverage ’ more relevant, more profitable; Unleash the potential of Sheraton Club. Differentiate Sheraton through design: Transform public spaces and guestrooms through smart, intuitive, forward-looking design; Leverage lobby design to drive revenue. Strengthen Sheraton by opening 150+ new hotels by 2020: Through conversions, adaptive re-use and new-build projects, develop the right properties in the right markets with favorable returns for owners and their investors; Create a flexible new-build product that enhances hotel profitability in secondary and tertiary markets.

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Starwood in Talks with Independent Hotel Owners to Launch Tribute Portfolio in India

By Sourish Bhattacharyya STARWOOD HOTELS & Resorts, South Asia, is in discussions with potential partners for an Indian rollout of the global hospitality behemoth’s tenth brand, Tribute Portfolio, which opened its account with Miami’s iconic ocean-front hotel, Royal Palms South Beach, launched in 1939 and located on the world-famous Collins Avenue. ’Our goal is to have at least one Tribute Portfolio hotel up and running in the country by the end of 2015,’ Sudeep Jain, Starwood South Asia’s Vice President (Acquisition & Development), said in an exclusive interview with www.bwhotelier.com. The Tribute Portfolio, incidentally, will be Starwood’s second global aggregation of independent hotels, first being The Luxury Collection, whose most visible representations in India are ITC’s 10 elite hotels, including the ITC Maurya in New Delhi. It is yet another affirmation of Starwood’s determination to stay on top of the upper end of the hospitality business. Starwood visualises Tribute Portfolio as a chain of independently owned ’upper upscale hotels’, to quote Jain, ’with an independent identity of their own and a story behind them.’ These are owner-driven hotels with character that are reputed locally, but do not have access to the kind of sales and distribution systems that Starwood can bring on board. For the global chain, which has seen turbulent times in recent months, starting with the resignation of its former CEO, Fritz van Passchen, this may prove to be a masterstroke that will help it drive numbers as well as quality to stay at the top of the luxury and upper upscale segments of the business. Tribute Portfolio is expected to complement The Luxury Collection, a 21-year-old brand, which has seen its global footprint expand three times in the past decade, registering 60 per cent of this growth in the last five years alone. Starwood’s CEO Adam Aron is predictably bullish. ’We believe Tribute Portfolio will be an exciting solution for hotel owners of distinct properties who wish to maintain their independent spirit, yet benefit from Starwood’s powerful distribution, loyalty and sales platforms,’ he said, and added: ’Our mission with Tribute Portfolio is very simple: bring great hotels in great destinations to our loyal SPG members, who make up more than half of all Starwood stays.’ Dave Marr, Senior Vice President of Brand Management, North America, and Global Brand Leader for the Tribute Portfolio, pointed to the obvious benefit: ’Nearly 50 per cent of upper upscale hotels in the U.S. are independent, and likewise, 60 per cent of four-star hotels globally are not affiliated with a brand flag. This provides Starwood with a vast landscape to grow Tribute Portfolio.’ The idea of Tribute Portfolio was born out of an international survey that revealed 89 per cent of the members of the Starwood Preferred Guest (SPG) loyalty programme were interested in staying at independent hotels, particularly for leisure travel and special occasion trips to unique destinations. Additionally, 70 per cent of the members said they had already stayed at an unbranded hotel property. Aron pinpointed the obvious advantage. ’We recognise that independent hotels also attract guests who are not already affiliated with SPG,’ he said. ’Tribute Portfolio will provide a clear opportunity for us to grow our SPG member base and deliver more loyal guests across all of our Starwood hotels worldwide.’ Explaining how Tribute Portfolio came about, Jain recounted: ’We heard what our customers told us. They are looking out for independent properties with a local flavour, and not generic hotels. But they also expressed apprehensions about the quality standards of these hotels.’ The message of the owners of these hotels, according to Jain, was unambiguous too. ’They said to us, ’We love our independence but we fall short on sales and marketing’.’ For Starwood, this feedback provided a business opportunity waiting to be snapped up. With one new brand of hotels, which should have 100 addresses flying the SPG flag by 2020, the global chain would be able to offer a smorgasbord of hotels with a history and character to its SPG members, adding to it the guarantee of consistent quality and service standards. In turn, it would provide marketing muscle to the owners of these hotels, without binding them down to each one of the prescriptive brand standards that the other Starwood hotels have to follow. The advantages for the owners couldn’t be clearer. By aligning with Starwood, to put it the way Jain does, the owners of independent hotels get access to a global network of more than 5,000 sales representatives and 20 million Starwood guests ’who are willing to open their purses a lot more’. More importantly, they can run their hotels ’without the handcuffs of strict brand controls’. The Author is Consulting Editor of BW Hotelier.

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Megu Introduces Fresh Flavours with a Brand New Menu

By BW Hotelier THE AWARD_WINNING culinary team of Megu at The Leela Palace, New Delhi, has recreated the magic of oriental aromas by giving a complete makeover to the restaurant’s menu. Introducing fresh seasonal ingredients combined with authentic Japanese flavours and cooking techniques, the menu is delicately balanced with Megu signatures and new creations, especially vegetarian delights, to cater to every palate. The Sushi and Sashimi experience starts at INR 600 and a three course executive lunch INR 1500 onwards in the new menu. The team at MEGU curates a perfect experience each time. The menu features delicacies from the East that include Tuna Tartare, Yellowtail Carpaccio, Salmon Daikon, Yuzu Akami, Crispy Chicken, Seared Rock Lobster, Shitake Asparagus, Corn Fed Chicken Breast, Grilled Sea Bass, Grilled Lamb Chops and an assortment of delicious MEGU rolls like Soy Akami & Black Truffle, Seared King Salmon Belly, Spicy Hamachi, Spicy Tuna, Pizza Sushi Roll, Dragon, Spicy California, Toro Salmon, Spicy Ebi Cracker and much more. As a special tribute to vegetarian and healthy preferences, the new menu at the New Delhi restaurant includes special rolls like Avocado and Cucumber, Vegetable Rainbow, Enoki Tempura Roll, Green California Roll, Avocado Tempura Roll and Asparagus Tempura. The iconic American restaurant chain’s first venture in India, MEGU is synonymous with luxurious high-end dining with avante-garde preparations, class-apart service amidst the dramatic interiors of the restaurant with a signature crystal Buddha under colossal Bonsho bell making for a divine interlude.

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Lords Hotels Reaches Out to Victims of Nepal Earthquake

By BW Hotelier LORDS HOTELS & Resorts distributed relief material in villages adjoining Kathmandu over May 20 and 21, 2015. The villages include Bella village, Kavre; Dhurpur Village, Pachkhal-II, Rani Pari village, and Labsi Bote Village. 175 packets of relief material, containing food, clothing and medicines, was distributed. The team lead by President of Lords Hotels Deepak Sethi. Lords Hotels & Resorts has two properties in Nepal with both escaping the effects of the devastating earthquake with very minor damages. The aid which was distributed was purchased with donations pooled in by each member of Lords family spread over 22 different locations in India and Nepal. Mr Rishi Puri, Vice President of Lords Hotels & Resorts told BW Hotelier, ’It is a time of misery and grief in Nepal but I am proud of how our staff from all our properties donated overwhelmingly to collect this relief material. Instead of just expressing grief, it is better we do something for those who survived’. The relief material was distributed in villages adjoining Kathmandu.

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Only Skills Can Face the Challenges of the Hotel Industry

By Irfan Mirza MANY BELIEVE that one of the biggest challenges faced by the hospitality industry in India is the drawing and retention of quality manpower, something that is often blamed it on the exodus of people abroad. However, this does not hold true in the contemporary scenario and the real problem in the inability of Indian hotel management institutions to arm their graduates with the requisite skill sets, spurred by a misplaced focus on quantity over quality. It is true that a lot of people in the past used to seek job opportunities abroad, but now the scenario has changed and this can be attributed to the voluminous influx of large hotel chains in the country. These chains want to hire skilled professionals, have dedicated departments to look at their welfare and offer them a good pay scale. There definitely is a demand as well as an opportunity for professionals looking to enter the hotel industry, and many institutions have sprung up, seemingly to take up the challenge of feeding this need. Unfortunately, they horrifically fall short. The primary reason for this short fall could be placed in the fact that that some of the institutes are not teaching skill based knowledge. Consequently, what is happening is that everyone wants to offer students a 3 or 4 year bachelor’s degree programme which is unstructured and badly prepared. Additionally, they do not have the essential foundation of infrastructural capability and faculty, essential for any educational organization. What is taught lacks quality and the students and the industry take the hit. The graduates are unable to secure jobs for themselves above the rung of waiters and cooks and the industry need is not satiated. To become a waiter or a cook one can do a six month course, but a person holding a bachelor’s degree after three years of what should be intensive training, should have the ability to easily slip into and flourish in their managerial responsibilities. Contrary to this ideal, just recently when I happened to go a five star hotel, I found graduates who have been working as waiters for the past three years! Knowledge, skill and professionalism are the three takeaways for any student in this field. To imbibe these three assets food craft institutes need to emphasize on a skill based courses. Infrastructural competency is key to attaining this, many hotel management institutes in India are attached to hotels, which have only two or three rooms and two or three tables and chairs, and they call it a hotel management institution! The faculty consists of freshly passed out graduates without any industry experience. To fill this gap we decided to set up a quality institute, at par with international standards and that is how V M Salgaocar Institute of International Hospitality Education (VMISIHE) was conceptualised. Goa, as a location for the institute, was chosen based on the realization that its presence would not only help the student community but also, help the industry as such, to give proper training for any of the hotel staff, to help them in such a way to bring up the service level. It took about 8 years for us to set up this institute and it is on par with the international standards. All our equipment is imported and we have very experienced faculties for all course subjects. One of the things our syllabus does is evolve and adapt to changing trends, such as those in technology, in the hotel industry. We aspire to impart specialised skills as well as develop the attitudes and personalities of our students through a well rounded and hands-on programme, something which is essential to sustain the hotel industry bandwagon. The author is-Director, VM Salgaocar Institute of International Hospitality Education (VMSIIHE) in Goa. As told to Bikramjit Ray.

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East India Hotels (The Oberoi Group) Report 2% Net Profit Growth

By Sourish Bhattacharyya THE EAST India Hotels (EIH Limited), which owns and operates the Oberoi and Trident hotels, besides a host of other travel- and tourism-related services, today announced a net profit of Rs 96.63 crore for FY2014-15, or a marginal 2 per cent growth above its FY2013-14 figure of Rs 95.04 crore. It reported a profit before tax of Rs 151.25 crore. The company’s total revenue (including other income) for FY2014-15 saw a 4.5 per cent spike, rising to Rs 1,366.30 crore, compared with Rs 1,278.94 crore in the previous fiscal. The company, in a media release announcing the annual results from its headquarters in Kolkata on Sunday, pinpointed two factors responsible for the sluggish rise in the net profit ’ one, the increased depreciation charges caused by the change in the calculation method as mandated by the Companies Act 2013 (the company took a hit of Rs 33.28 crore on this account), and two, an additional expense for corporate social responsibility initiatives, also laid down by the company law, that added up to another Rs 2.38 crore. Without the depreciation and CSR charges, according to the company, EIH Limited’s profit before tax would have been higher than last year by Rs 35.63 crore and the profit after tax, by Rs 24.92 crore. Explaining the circumstances under which the company had to perform in the financial year gone by, Vikram Oberoi, Managing Director and CEO, EIH Limited, said, ’In the past few years, the Indian hotel industry has been facing the double challenge of weak demand and increased supply of rooms. In spite of these challenges, EIH was able to increase its market share leading to a strong profit growth.’ The performance of the EIH Limited stock when the bourse opens on Monday will show whether the market has bought this view. The company also used the opportunity to announce the opening of three luxury hotels in 2016, including, as I had reported earlier on www.bwhotelier.com, one each at Al Zorah in Ajman (United Arab Emirates) and Marrakesh in Morocco. The third, The Oberoi Sukhvilas in Chandigarh, being developed in collaboration with Punjab Deputy Chief Minister Sukhbir Singh Badal’s Metro Eco Green Resorts Ltd., promises to be one of the country’s most sought-after luxury addresses. It is coming at the site of a failed hatchery project of the Badals. EIH Limited’s media release quoted Vikram Oberoi as saying that the Al Zorah hotel will be ’managed by a wholly owned overseas subsidiary of the company and is expected to open in the second quarter of 2016.’ Besides the 100-room resort hotel on a 12-km waterfront, the Al Zorah property will have a luxury residential and retail development and an 18-hole golf course. In Marrakesh, apart from the 84-keys luxury hotel, ’branded villas’ are also being planned for sale. The hotel, which was to be operational by late 2015, will now be open in April 2016. It will be managed by a wholly owned overseas subsidiary of the company. The media release said the company is also looking at another property in Morocco, this time in Casablanca, also to be managed by the wholly owned overseas subsidiary of the company. The hotel, located on what has been described as a prime ocean front site close to the central business district, will be operational in the last quarter of 2018. The Oberoi Sukhvilas, which adjoins a 400-acre forest, will have a 20-acre hotel plot consisting of luxury villas with private swimming pools surrounded by extensive landscaped gardens. The Oberois are back to doing what they do best ’ raise the bar for luxury hoteliering. The author is the Consulting Editor of BW Hotelier.-

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