30 minute interview

'We are looking at management agreements'

Eyeing the potential of the Indian market, Hong Kong based Langham Hotels is charting out plans to enter with its brands, Langham and Langham Place. Harry Johnson, vice president - development (Asia Pacific), Langham Hotels speaks to Bhavika Jhaveri

What strategy will you employ in your foray into India?

We are looking at individual and strategic opportunities in key cities of Mumbai, Delhi, Bangalore, Goa, Chennai and Kolkata, which will strictly be management agreements. We recognise the importance of the Indian subcontinent as the country is growing exponentially. It has a discerning middle and upper class, and the Indian Government is taking some significant initiatives to develop the industry.

Which brands out of your portfolio do you plan to bring?

We intend to introduce our brands, Langham and Langham Place, the latter, which is under two-years old. While Langham is a classic, conservative and six-star deluxe brand, Langham Place is a modern five-star hotel. We have strategically positioned ourselves opposite brands like Ritz-Carlton and Four Seasons. We present a fresh and effective alternative to these brands.

The Indian hospitality sector is attracting investments from developers in international markets. Do you plan to follow a similar route?

We always look over the horizon. We are mini-developers, so we will be looking at a possibility of investing after we are comfortable with the market. However, it won't take place in the first or second phase. After we've completed our brand building exercise and established ourselves as a name associated with excellence, can we take the next step.

In a five-year horizon, how do you see the hospitality industry evolving?

As newer players are going to enter the market, and the supply in all possibilities is likely to rise, older players will reposition and reinvent themselves. The marketplace will see polarisation as few hotel groups would dominate the landscape and few will fall behind.

What trends do you think will shape the future of this industry?

Spas are a profitable revenue streamand that trend will catch on in India as well. We are also looking at Europe, where we plan to create a number of upscale retail outlets at the right location. With the right customers this venture can prove profitable. It can make significant contribution to the bottom line.