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Hospitality Industry Charts New Path To Generate Revenues
Posted by Pradeep Sadanapalli | May 1, 2008 | 285 views
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Loading ...The recent dip in hotel occupancies have led hotels to check out of the plain-vanilla room concept. The hospitality industry is now gearing up for alternate hospitality formats such as residential hotels, destination resorts, condo hotels, vacation ownership and private residents club.
Sample this: Four Seasons is developing a destination resort in Puthenkayal, Kerala, which will have 75 villas and also 20 branded, luxury private residences. Similarly, The Leela Group’s property in Gurgaon too will have 90 apartments called ‘The Residence’ aimed at the long stay guests. At the same time, India’s largest real estate player DLF is building India’s first residential hotel in Goa with the Hilton Group. DLF plans to invest $2 billion to have six hotels on similar format in the next five years.
Around 11% of the hotel demand in the country is from long stay guests. Since there are not many branded serviced apartments in the country, at present this demand is being met by hotels. Opines The Leela Palaces Hotels and Resorts president Onno Poortier: “It’s not just about higher room rate, long stay guests at the residential apartments of the property also use F&B outlets of the hotels, adding to its revenue. Also, Delhi doesn’t have any branded serviced apartment, so it will fill the gap.”
The Gurgaon hotel is the first property that The Leela Group will not own but only manage. The hotel, scheduled to start operations in October, is owned by the Ambience Group.
According to HVS Hospitality Services, India lacks international standard destination resorts such as the Sentosa Island in Singapore. But projects such as the Himalayan Ski Village and some other upcoming ones will surely qualify as destination resorts. Four seasons is also planning some more destination resorts in the country besides the one in Kerala, which will be operational only by 2012. “We are also exploring opportunities to offer a similar product (destination resort) in Jaipur and Udaipur,” said a Four Season’s official.
Last year branded hotels witnessed a decrease in occupancies in Bangalore, Hyderabad and Pune. Though the
supply is still crunched, according to industry heads, upcoming hotels want to target new segments to ensure good occupancies in the long run.
Counters HVS Hospitality Services executive director Siddharth Thaker: “It’s not because of occupancies that alternate hospitality formats are finding way in India market. It’s because the demographics of the country are changing with average population becoming younger and also disposable incomes have been increasing. This has led to a demand for alternate lifestyles such as holiday homes and destination resorts.” Whatever the reason be, for now it’s innovative times for the hospitality industry.
SOURCES:
Economic Times
Topics: Hospitality, Business News |
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