AccorHotels to bring global brands to India

French hospitality major AccorHotels is exploring the possibility of bringing some of its international brands to India, besides strengthening existing brands, said a top executive. “Currently, we have 10 brands operating in India out of the 30 established brands,” said Jean-Michel Casse, chief operating officer — India and South Asia, AccorHotels. “Raffles and Banyan Tree will be coming to India soon.” In June 2017, AccorHotels entered into a management pact with Surya Palace Hotel owners in Vadodara and rebranded it as Grand Mercure Vadodara Surya Palace. This will be followed by converting an existing property in South Goa to the Novotel brand.

As of now, AccorHotels has 53 properties with 9,700 ‘keys’ (rooms) operating in India. By year end, this will increase to 55. There are plans to add 30 more over the next five years to take the total number to 15,000 ‘keys’. Mr. Casse was in Chennai to inaugurate the first combo property in the city and second in the south (Novotel-ibis). The new property will start functioning from Sunday. The first combo property (Novotel-ibis) was opened in Bengaluru during 2011, followed by New Delhi (Novotel-Pullman).

accorhotels

“Following six years of successful run of Bengaluru hotels, we decided to start a combo property here. Chennai is already home to Novotel and ibis hotels along with Formule1. The next Novotel Hotel will be opened at Chamiers Road and Mercure in Oragadam, by April 2018,” he said. In Chennai OMR, Novotel has 153 ‘keys’ and ibis 189 ‘keys’. Novotel and ibis remain the most prominent brands with a network of 15 and 18 hotels respectively across the country, he said. “It is very difficult to measure the benefits of combo hotels. But it certainly saves around 15% of the capital expenditure with common infrastructure facilities such as air conditioners, laundry, kitchen and staff,” he said.

Daniel Chao, area general manager, ibis Chennai OMR, said, “Professionals, individuals and business travellers are the target audience. As part of a special inaugural offer, the hotels offer the scheme of ‘stay for three nights and pay for two nights’.”

  • The Hindu

+++

DLF's $5 billion plan for 25,000 hotel rooms

Cheaper hotel rooms are something that India desperately needs today. Already the room rentals in India during peak season rival that of major cities like New York and Tokyo. Reason being, the lack of enough rooms and a heavy demand. If the government is indeed serious about attracting the foreign tourist to visit India for a holiday or business purpose, it needs to look into this issue soon and do the needful. Or else, it will lose precious tourist dollars to other cheaper countries. Meanwhile…

DLF will invest about $5 billion or Rs 20,000 crore to build and operate more than 25,000 rooms in the next 7-8 years. The New Delhi-based real estate major is also in talks to set up nine super luxury hotels across India.

Analysts said DLF could fund the $5 billion investment through a 30:70 debt-equity gearing. It costs about Rs 40-50 lakh to set up a high quality, five-star hotel room including the cost of procuring land etc, according to analyst estimates. Puneet Jain, analyst at Kotak Institutional Equities, told DNA Money that DLF will have as many as 75 hotels running in the next 7 to 8 years.

oberoi amarvilas

“However, the hotel segment will not have a significant impact on its revenue in three years,” Jain said. India’s top realtor will supply 4,000 to 5,000 rooms each year starting 2010 with the first hotel, the Hilton Garden Inn, set to open in Saket, New Delhi by end of 2008. It is already setting up a luxury property at the DLF Golf Course in Gurgaon along with Four Seasons, apart from a 200-room serviced apartments project in Goa with Hilton.

Of the $5 billion to be invested, around $2 billion will be spent on creating this “residential” category of hotels, sources said. Apart from this, DLF will also have all-India presence in recreational clubs and business hotels.Last year, it had acquired international chain Aman Resorts for a presence in the luxury hotel segment abroad.

Analysts say the challenge that DLF would face for its projects would be in execution. India is not churning enough architects and civil engineers to feed the real estate boom. But investment bank Goldman Sachs, in a recent report, said DLF is better-placed than most peers to execute on its pipeline given its strong management team, scale and strategic tie ups.

Article courtesy: DNA India. Above picture of The Oberoi Amarvilas hotel courtesy Skyscrapercity

+++