By Bikramjit Ray THE FRANCHISE business is a very different business and it is currently evolving in India, unlike countries like the US where it is an accepted norm, starts Vilas Pawar, CEO of Choice Hotels India in an exclusive interview with BW Hotelier. ’We are here and are waiting for the tide to change,’ asserted Pawar. This year has been a good for Choice in India, which had undertaken the task of ’cleaning out the system, in terms of parting ways with properties which were not meeting the brand’s standards, and consolidating the brand name by adding a few new properties. ’We’ve got 20 hotels online, within the system and 14 under various stages in the pipeline, either under construction or in various stages of signing up. We are looking at adding at least another 2 to 3 hotels this calendar year. Then we should be looking at adding an average of 2 to 3 hotels a year’, said Pawar, elaborating on the group’s expansionist agenda. Choice is looking at opening their franchises in Mt. Abu, Jaipur, Vadodara, Silvassa and Chandigarh, and hopes to have three of these operational by the conclusion of this year. Discussing the environment of the hotel industry in India and the challenges, Pawar told BW Hotelier, ’In India it’s very aspirational for people to make assets and hotels. Everybody wants to make a five star hotel.’ However he added that he believed, that in the past few years, people had started to gauge that it did not make financial sense because there were no visible returns on investment. ’-Given the land prices and, we see in various hotel industry meets that owners are complaining, saying that it doesn’t make sense for them to spend so much. The tide is changing now slowly, but it will take time.’ He claimed that the problem in the Indian market was that expectations were very high and that some organizations, under the pretence of putting up their brand, overpromised and under-delivered and that was why people were changing brands. ’Business is coming into India. The supply has been much more and the realistic costs as well as the cost of construction, all put together, does not make the hotel industry a very easy industry to be in. I think the fault lies on the part of the brands to not to spell out expectations correctly,’ said Pawar. Currently, hotels affiliated with choice have 65 per cent occupancy across the county, Pawar tells BW Hotelier, a number which he considers ’respectable’. On scouting for new ventures, Pawar says, ’We do go out and actively speak to people at the same time people approach us. It’s about a 50 per cent division.’ In his point of view, franchising is a mature concept and will take time to get traction in a country like India. ’When you are managing a property and have got the owners to spend money on it to make it to suit your brand specifications, they would naturally demand a good return. You can’t tell them then that the market dynamics are not there. He will say that he is not interested in the market, but in what was promised. Therein lies the problem of the mismatch of expectations,’ he comments on the challenges faced by groups that solely franchise, like his own. ’We don’t overpromise. Our business is franchising and we offer a platform for distribution and we expect the hotel to take advantage of it,’ says the Choice India CEO. ’We are looking at the next two years to really consolidate and start to grow. We have integrated our central reservation system for India a couple of months ago and are going to introduce our loyalty program next. We are investing into India with the perspective that we will grow slowly and steadily,’ Pawar tells BW Hotelier, optimistic about the hotel giant’s future in the country.
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By BW Hotelier BUDGET BRAND Beacon Hotels and Resorts recently opened T2 Beacon, an economy category hotel, in Mumbai. Conveniently located a mere ten minutes from the international airport and twenty minutes from the domestic airport, the hotel has 27 rooms, a meeting room for ten and a speciality restaurant serving Mughlai cuisine. The group claims that the property has been created, keeping in-mind, the business traveller and is ideal for that demographic. Andheri - Kurla road, one of the city’s busiest business districts, is also conveniently located within walking distance from the hotel premises. Owned by, Concept Hospitality Pvt. Ltd. (CHPL), an Indian magament company, the Beacon brand positions itself in the market as ’Smart & Efficient hotels’ with the intention of providing its customers ’value for money’. Unlike traditional full service establishments, hotels under the Beacon brand offer limited services and amenities, which they consider essential for a comfortable stay. Other than the new Mumbai property, the brand currently operates two hotels in Ajmer and Bangalore. Parent company, CHPL, has hotels, resorts and service apartments at over 24 locations across India and boasts of a pipeline of 25 projects in varying stages of development. Apart from Beacon, the company also has The Fern and The Fern Residency brands including a selection of independent hotels, under its wing. -
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By BW Hotelier INTERCONTINENAL HOTELS Group (IHG) has announced an advanced booking promotion across all its 251 hotels in the Asia, Middle East and Africa (AMEA) region, from beachfront InterContinental resorts to city-centre Holiday Inn Express hotels. From now until September 1, 2015, guests can enjoy up to 30 per cent off on bookings purchased in advance for stays from 1 June to 4 September 2015. IHG- Rewards Club members enjoy a further reward of an additional 5 per cent off - meaning a possible discount of up to 35 per cent - as well as their usual membership perks such as free internet, when booking during this period. IHG Rewards Club, the industry’s first and largest hotel rewards programme, with nearly 86 million members, is free and guests can join at IHGRewardsClub.com. The programme offers industry-leading benefits, including free internet for members across IHG’s family of trusted hotel brands. Guests are always guaranteed the lowest price when they book directly with IHG, or their first night is free, as part of the group’s Best Price Guarantee.
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By Ajit Balgi INDIA’S LOVE for whiskies is unsurpassed, our nation drinks more Black Label and Chivas than what is imported into the country! Smirnoff changed the game for white spirits in the latter half of the 90’s when it made vodka cool for men. Wines rose to fame at the turn of the millenniumand since then the drink industry has been evolving. So what are the upcoming trends in the Indian beverage scene? Here is my list: Whiskies from the Eastern World: Thanks to Jim Murray, first Amrut and then the likes of Japanese Yamazaki and the Taiwanese Kavlan shot to fame in India. India’s thirst for scotch withstanding, curiosity to taste the ’new world’ whiskies is growing. Fresh beers on top: Gurgaon set the wheel in motion for Brewpubs and now Bengaluru is catching up fast. People are willing to experiment and shun their cult lagers for a big frothy pint of Hefeweizen or classic India pale Ale. This tribe is growing and so are businesses who want to have a share of the Ale pie. If in Mumbai, take note of Gateway Brewing co a ’smart’ company which supplies fresh beer to multiple restaurants and bars from their brewery located on the outskirts on Mumbai. Prost! Aged & fat washed cocktails: Cocktail trends came into India from the west. International bartenders in city hotels, programs like the World Class from Diageo and the Bar Masters from Pernod Ricard have surely helped. Aging cocktails in oak barrels and fat-washing of cocktails using Olive oil, Coconut oil etc will happen soon as the Indian consumer is travelling and is well exposed and willing to move away from classics. S/he wants more! Flowers in cocktails: Edible flowers will rise to prominence in the Indian bartending scene. Flowers have found their place in hotel kitchens and will soon be seen behind bars. Chamomile, Rose, Calendulas, Hibiscus, Nasturtiums, and Lavender will be seen in cocktail menus. They will be used as garnishes, hot water infusions, in spirit macerations etc. To flowery days ahead! ’Made in India’ Did you know that India has the highest consumption of rum in the world? The credit goes to brands like Old Monk and McDowell’ Celebrations. Sadly these brands are hardly known outside the country. Then there are the India made liquors which are well know worldwide like Amrut, which chose the ’Outside In’ strategy, meaning they launched in India after creating a buzz in the west and a recent sensation, Desmondji’s agave spirit made from agave grown on the Deccan plateau which is replacing Tequila in Margaritas at some restaurants. They also make orange liqueur from Nagpur oranges and are priced at half the cost of a sweet import. India is willing to embrace quality local liquors which are well packaged. Indian wines too are improving and making a mark in the international wine circuit. Be proud to stock up on Indian products, the customers are proud to flaunt it. Rise of Indian Sommeliers: Indian consumers have starting believing Indians in the wine industry. The practice of an expat sommelier is not worth it, especially when we have our own pool of sommeliers. Sadly India is losing out on the better Indian Sommeliers who, just like astute bartenders, leave the country for greener pastures. Sipping Spirits: A new class of Indian consumer is looking for some fine aged spirits to sip on. Anejo Tequilas, fine whiskies, barrel-aged rums, cognacs and the rare armagnacs are moving slowly but steadily. People are developing a palate. So do provide them with their elixirs. Leaving you with some food for thought, Elvis Presley once said ’I happened to come along in the music business when there was no trend.’ Let’s Create!!! (The author is a wines and spirits professional who runs The Happy High, a beverage consulting, education and experiences company)
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By Bikramjit Ray RAHUL PANDIT, President and Executive Director of Lemon Tree Hotel Company has left his position in the company. According to sources within the company, Pandit is on leave currently and will be leaving the company on June 15. When BW Hotelier spoke to Pandit, he confirmed to us that he had left the company but was currently on leave. Though Pandit did not clarify where he was moving to, industry sources have told us that he is moving to the Taj Group of Hotels, heading one of their brands. Pandit, who graduated from IHM Pusa in 1993, began his career with Choice Hotels as a Management Trainee and then Resort Manager, before joining the Taj group in 1995. He worked for Taj till 2001 and joined The Lemon Tree Hotel Company in 2003 as part of the founding team in the role of-GM Operations and HR, with short stints before that at Spectramind as Training Manager and Grand Intercontinental Hotel, New Delhi as Front Office Manager.
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By Simar Singh JW MARRIOTT'S Pune property-was conferred the Alice S. Award for Community Service at its annual Marriott companywide celebration. The award comes at the helm of an array of philanthropic and CSR related activities that have been pursued by the JW Marriott Pune for years. ’Marriott has globally recognized our team’s generosity and spirit of giving, to make a difference to the society. We help children with HIV/AIDS feel loved again. We protect Pune’s lush parks and gardens and also provide opportunities for local youth’, said Mielle Batliwala (see picture, second from right), the Director of Human Resources at JW Marriott Pune. Named after Alice Sheets Marriott, philanthropist and wife to the founder of the Marriott group, the award was created in 1992 to ’honour the Marriott legacy’ through the recognition and felicitation of an affiliated property, business unit or corporate department as well as their associates for excellence in corporate citizenship. Quoting Alice Marriott’s philosophy-’by generously giving our time, energy and resources, we enrich the lives of others’, Batliwala said that the award celebrated the team that best exemplified this spirit. Other awards given at the event included the company’s highest honour, the J. Willard Marriott Award of Excellence, which was given eight supervisor or peer nominated associates for their outstanding job performance and, the JW Marriott Jr. Diversity Excellence Award of which the Vienna Marriott Hotel was the recipient for promoting diversity and creating an inclusive atmosphere at their property. Speaking at the occasion in recognition of the contributions made by of the group’s employees worldwide, Global Executive Vice President and Chief Human Resources Officer, David Rodriguez, said, ’We know our associates across the globe keep Marriott’s deep-rooted culture and core values thriving. Our 2015 honourees work hard every day to make our guests feel welcome and we are so proud of everything they have accomplished both inside our hotels and in the communities they serve.’ Simar Singh is interning with BW Hotelier.
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By BW Hotelier CHOICE HOTELS International Inc. rolled out a revamped brand identity along with a new integrated marketing campaign in an effort to reposition itself in the market by making themselves the top choice for travellers who seek to make personal connections. Resting firmly on the foundation of the Rockwell based group’s 75 year legacy, this rebranding endeavour had its genesis in the realization of the changing requirements of upscale business travellers and milennials and the opportunity it presents for the hotel industry. To simplify the digital process of making hotel reservation, the group has introduced a completely redesigned website, www.ChoiceHotels.com (see photo). Aside from this, the integrated marketing effort includes an advertising campaign set against the anthem ’Should I Stay or Should I Go’? by The Clash, urging people to travel and make real connections with effortless and reliable bookings through their website. The campaign will air on radio and television as well as on the group’s hotels’ in-house televisions. Promoting their reward programme, Robert McDowell the Senior Vice President of Marketing and Distribution at Choice Hotels said that the ’Choice Privelidges’ offered rewards and perks that guests were looking for and that no matter where anyone was, a Choice hotel was never far and perennially welcoming. ’Our goal is to bring people together and welcome every guest, wherever their journey takes them,’ said McDowell. ’We want to stand out and show people that we understand what truly matters to them. Travel is not only about the destination. It’s about connecting with the people you are going to see there. Choosing to get out and go might not be the easiest option, but it’s the right one.’ Choice Hotels International is one of the world’s largest lodging companies. It has more than 6,300 hotels franchised in 35 countries and territories and has 603 hotels in the development pipeline.
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By BW Hotelier WYNDHAM HOTEL Group announced the global launch of its new loyalty programme in London on Sunday. Christened as, ’Wyndham Rewards’, the programme hopes to engage regular customers through a simplified reward structure. Part of a multimillion dollar-integrated umbrella marketing campaign, the programme has been conceived of and designed by the New York based People Ideas & Culture’s Group Company. To promote the loyalty plan, Norwegian actor Kristofer Hivju, best known for his role in Game of Thrones, has been roped in to play the role of the ’Wyndham Rewards Wyzard’. The character is the first advertising character to ever be used by the company and will play on radio and television spots, digital media assets as well as on the on-property collateral more than 7,500 hotels owned by the group, worldwide. The tagline that has been coined for the program is ’You’ve Earned This’ and Wyndham has invested a total of $100 million in the entire campaign. The executive vice president and chief marketing officer at Wyndham, Josh Lesnkick, said that the endeavour was an attempt to ’transform the landscape of loyalty’ and reward their members ’what they want most-a free night’. To kick off the programme, Wyndham is offering a summer promotion where members can earn three thousand points for a single stay at any of their hotels. This scheme is set to last till September 7, 2015.
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