Hotels

The business of brand and expand

Nakul Anand Divisional Chief Executive - Hotels, ITC

Speak of ITC Hotels, and what comes to mind is hospitality that mirrors Indian culture and heritage. Nakul Anand, divisional chief executive - hotels, ITC, believes that its business, mid-market and heritage hotels will see extensive growth in India

ITC Hotels entered the hotels business in 1975 with the acquisition of a property in Chennai, which was rechristened Welcomgroup Chola Sheraton. Today, it is considered to be amongst India's finest and fastest growing hotel chains, having in its fold over 66 hotels across more than 50 destinations in the country.

To strengthen its international marketing base, the group joined hands with the Sheraton Corporation, which is part of the Starwood Hotels & Resorts. This successful marketing franchise lasted for almost 30 years, spanning 10 properties with the ITC-Welcomgroup Sheraton brand. However, both groups recently decided to bring this relationship to an amicable end as they plan to explore alternate means to expand their hotel brands in India. Industry grapevine indicates that ITC is currently in talks with Carlson Hospitality to form a similar alliance for the Regent brand.

The game plan

Nakul Anand, divisional chief executive - hotels, ITC, says, "ITC Hotels is today one of India's select hotel chains and its distinctive logo of hands folded in the traditional ‘namaste’ is widely recognised as the ultimate in Indian hospitality."

Welcomgroup's properties are classified under four distinct brands:

• ITC-Welcomgroup Hotels are super deluxe and premium hotels located at strategic business locations.
• WelcomHotels offer five-star hospitality for the discerning business and leisure traveller segment.
• Fortune Hotels offer full service properties all over India, including smaller towns and cities, ideal for budget travellers.
• WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience.

The group has pioneered the concept of historic evolution, marketing, advertising and design achievements in the hospitality industry. Branding led to the creation of separate categories of rooms, each with a different service design, aimed at different target segments. The different room categories have been branded Executive Club, Sheraton Towers and lately, ITC One. The Sheraton Towers and ITC One introduced the winning concept of a 'hotel within a hotel'.

Says Anand, "In addition to receiving the approval of the Indian corporate world, ITC-Welcomgroup was featured as a 'Superbrand' - a status awarded to the organisation by the Superbrands Council (the Council comprises eminent personalities from the world of branding). ITC-Welcomgroup has also been voted amongst the 101 strongest brands in India. Added to this serpentine list of accolades are its branded restaurants such as Dakshin and Dum Phukt, exclusive to ITC-Welcomgroup Hotels, spread throughout the country. "We have also concentrated on unique strategies such as 'Eva' - exclusive rooms dedicated for single lady travellers," Anand says.

WelcomEnviron defines the Welcomgroup's commitment to the environment. Each hotel operates keeping in mind the 'Reduce, Re-use and Recycle' concept. On the business front, the most prolific strategy, that will undoubtedly change the future business of ITC Hotels, is the amalgamation of ITC Hotels and Ansal Hotel with the parent company ITC . "On account of this back merger, out of Rs 14,000 crore set aside by the parent company as the business development budget for the next five years, hotels will be one of the key focus areas," says Anand.

On the horizon

Recently the group forayed into the service apartment segment in Chennai and is scouting for properties in Pune, Goa, Ahmedabad, Amritsar and Ranchi for further hotel development.

"As part of our plans to expand the brand, ITC Hotels is planning to build three new super deluxe luxury hotels in Chennai, Bangalore and Hyderabad at a cost of Rs 1,000 crore. These hotels would be functional in the next two to three years," elucidates Anand. ITC intends to expand the network of company-owned hotels and is also looking at international locations especially Dubai and Far Eastern regions.

Anand believes…

"Over the years, ITC Hotels has taken pride in its market intelligence prowess and utilised it to its optimum," expresses Anand. From its concentrated focus on premium and luxury hotels, it has moved on towards business hotels, budget hotels and heritage hotels. "India is a vast market with a potential variety of client bases. Today, the Indian economy is booming and the government is now becoming more proactive towards the tourism and hospitality industry, thus ensuring that the future of both these industries looks prosperous. This phenomenon in turn is fuelling corporate business travel, leisure travel and budget travel. Another area that the industry is set to invest considerably into will be the enhancement of IT," said Anand.

"In terms of locations in India that will witness rapid hotel development, both metros and non-metros will see immense growth in the near future. Tertiary cities that have so far not been given much importance will now step into the forefront and will also see a significant rise in hotel rooms," concludes Anand.