30 Minute Interview

'Our strength is ownership and operations of hotels'

The Phoenix Group has earmarked over Rs 2,000 crore for establishing its presence in key gateway cities. Jaideep Singh, its VP (Operations), speaks to Neeti Mehra of its flagship property Radisson Plaza Resort & Spa Kumarakom and the group’s future plans.

Jaideep Singh Vice President (Operations), Phoenix group

What is the USP of the Radisson Plaza Resort & Spa Kumarakom?

The first Radisson Plaza in India, Radisson Plaza Resort & Spa Kumarakom is positioned as a destination resort and has our signature spa - Maya Spa. Our endeavour is to give an experiential holiday to our guests. We have built an artificial lake spread over four acres, which acts as an extension of the Vembanad Lake. It is built over 18 acres of land, and offers travellers a choice of 10 pool villas, 28 lagoon view cottages and 34 rooms. Currently, our sales and marketing strategy relies more on word-of-mouth publicity than advertisements.

Are you contemplating any tie-ups for medical tourism for this property?

We haven't ventured into this yet. There are two aspects to this concept - rejuvenation and treatment. We cater to the rejuvenation side at this point and would like to establish this as our strength at Radisson Plaza.

What is your strategy for development? Will you look to develop your own brand eventually?

Our strength is ownership and operations of hotels. We have opted for the franchise route so far and have worked with the Carlson Group, but are open to establishing relationships with other brands as we expand. Only after we reach critical mass in metro cities will we consider launching our own brand. Also, we will develop the Maya Spa as a signature spa brand for our properties.

What are your plans for the future?

Currently our portfolio includes the Radisson Plaza Resort & Spa in Kumarakom, Kerala, Radisson White Sands Resort, and Country Inns & Suites in Goa, and have invested nearly Rs 1,000 crore. Another project in Bangalore in Whitefield is in the pipeline - a 160-room five-star deluxe property, apart from a residential project in Goa. We are investing over Rs 2,000 crore on various projects. In the pipeline are four-star properties in Agra, Pune and Ahmedabad, apart from five-star properties in Hyderabad, Chennai, Jaipur and Udaipur - the latter which will be a resort. Eventually, we will contemplate including three-star properties in our portfolio as well.

How can traditional leisure destinations like Goa and Kerala be developed further?

The infrastructure for luxury markets needs to be world class. For instance, if hotels desire to build helipads, it should be permitted to attract the high-end traveller. Kerala is now broadening its outlook to cater to the domestic FIT traveller. There is a need to connect Kochi to the European market with direct flights, and also attract charters to act as a feeder, especially from the US and Europe.

Goa is maturing as a market and is also shifting from its dependence on the foreign traveller. Also, traditional charter markets such as Russia have been affected by an increase in price. From a 50:50 international to domestic ratio, the proportion of domestic travellers visiting the city is increasing gradually.

What are the challenges facing the hospitality industry?

Hotels are competing not only with other hotels but with alternate hospitality too. We have noticed that wherever the ARRs rise like in Bangalore, service apartments come up, which eats into business. Also, there is a hunt for talent, especially in the mid-level and lower levels. Hotels need to constantly benchmark salary scales against those of rival service industries such as BPOs and retail. Due to this we are contemplating starting a hospitality management school in Bangalore.