Hotels

Offering the essence of India

Captain Krishnan Nair Chairman Hotel Leelaventure The Leela Palaces & Resorts

Testament to the essence of India, The Leela Palaces & Resorts, India's finest deluxe hotels, are now moving into top gear. Industry veteran, Captain Krishnan Nair, chairman of Hotel Leelaventure Ltd, details plans to reposition and revitalise the brand in India and international markets

The Leela Palaces & Resorts has established a global leadership position in the five-star luxury hotel and resort industry for the discerning business and leisure travellers. Recently, Kempinski Hotels and The Leela Palaces & Resorts announced the extension of their exclusive management alliance in India. The agreement will cover 10 Leela hotels, (current and proposed). In addition to The Leela Kempinski hotels in Mumbai, Bangalore and Kovalam, a further five new hotels in New Delhi - Gurgaon, Udaipur, Chennai, Hyderabad and Pune will be included in the agreement in the next four years. The agreement also includes two additional city hotels, the locations of which are yet unspecified.

Recently, The Leela Group of Hotels - Mumbai, Bangalore and Goa - won the 2005 International Five-Star Diamond Award, with the chairman being given the lifetime achievement award. "We represent the three faces of modern India. The India which dares to take on the world with its world class technology, its great tradition enriched over the centuries and its obsessive desire to be hospitable to travellers from all over the world. But beyond all this is the simple fact: We love and enjoy people. It is this that has made us what we are. It is this that must inspire us in the years to come," explains Nair.

The game plan

"The first of the key strategies that the group is working on is repositioning The Leela Palaces & Resorts in the domestic and international hospitality market. Secondly, the group plans to increase its portfolio via the management model," says Nair.

He adds, "We have identified areas that are not being explored to their optimum use. It is surprising to note that our business from Germany is approximately eight per cent, which we aim to boost by an additional 15 per cent. Thus, to augment business from these markets, we will be appointing a Global Sales Agent (GSA) in Europe and a communication agency in Germany.”

"Another area will be to step up our sales and marketing efforts in an aggressive manner. This will involve offering specially-designed corporate packages as well as weekend offers for the domestic market with a special focus on 'edutainment' for children," Nair adds.

On the horizon

The Leela Kempinski, Mumbai is to invest US$ 20 million in renovations. These projects, taking place in 150 suites of the 423 suites, will be done in phases to minimise disruption to guests. "As part of our future plans for the brand, we plan to strengthen our presence in select cities in the north and south of India. Besides, we want every property we own or manage in the future to reflect 'The Essence of India'. At the moment, besides the 120-room extension to The Leela Palace Bangalore, we will invest close to Rs 1500 crore in our new properties in Udaipur, Chennai, Hyderabad, Kovalam and Pune. As for Delhi, our initial project ran into trouble and we are still awaiting our court settlement to the tune of Rs 200 crore. However, we finalised a property in Delhi, but it will be through the management route," states Nair.

Hotel Leela Venture has signed a management deal with Ambience Hotels and Resorts to manage a five-star deluxe hotel with 319 guestrooms and suites and 90 service residences, now under construction in Gurgaon. It also recently inked an agreement to market Kumarakon Lake Resort. Detailing the group's plans for an international presence, Nair says that at present all talks were at a preliminary stage. "We have taken a keen interest in the South Asian and the Middle Eastern markets of Doha and Dubai and although it is still premature to comment, a few international parties have expressed their interest in forming partnerships for these projects," explains Nair.

Nair believes…

Nair expressed that India, in particular the government, is only just waking up to the true potential of tourism and hospitality. "Today, the governments in both the centre and states are aware that the tourism sector is a formidable force in garnering foreign exchange and generating employment opportunities. Therefore, policies are being formulated such as FDI allowance, open skies policies, tax incentives, etc to provide a much-needed fillip to this vibrant and prolific industry. Having said that, I still feel that the government needs to increase its focus on a prime component to the growth of tourism - infrastructure," he says.