30 minute interview

Dawn of a new Day

Mandeep Singh Lamba Head, Dawnay, Day Group

Dawnay, Day Hotels India, London-based Dawnay, Day Group's newly-formed hospitality arm, will invest over US $200 million in India over the next few years to build hotels. Heading this new venture is Mandeep Singh Lamba, former president and CEO of Fortune Hotels, who shares his views with Bhavika Jhaveri

Can you elaborate on Dawnay Day's hospitality foray into India?

We are expecting to cash in on the growing tourism industry and increase in corporate travel that has pushed demand for hotel rooms to an all-time high. We believe there is tremendous potential for growth in the business segment, and we expect to mark a substantial presence in this market by offering corporate executives and foreign tourists a superior product.

How many hotels do you plan to set up in the initial phase?

We plan to establish 10 hotels by 2010 and build a total of 30 hotels comprising 4,000 rooms by 2016. The hotels will be owned and managed by us; we will fund it through a combination of debt and equity. We are looking at occupying the four-star space as it is least represented at present and it is this segment which will witness a huge growth in future. Each hotel would have 100 to 125 rooms of around 30 square metres and the average price per room would be about US $100. We will gradually develop three-star hotels as well.

What are the key locations that the group is looking at?

We are currently in discussions to acquire properties in Pune, Mumbai, Chennai, Hyderabad and New Delhi. The work on the first hotel would begin within six months but no land deal has been signed yet.

Are you looking at acquisitions as well?

We are open to it to expand our brand profile, but it is not a preferred route.

Under what brand will Dawnay, Day Hotels operate?

We haven't decided on the brand name yet but it will not be Paramount, the name under which we operate our hotels in the UK market.