30 Minute Interview

"We have to find the pull of the brand"

Markus Mueller recently took over as the area director (sales & marketing) for the InterContinental Hotels Group for the south west Asia region. He talks about his vision for the market and the group's increasing presence in India. By Sanjeev Bhar

Markus Mueller Area Director (Sales & Marketing), InterContinental Hotels

As the new area director (Sales & Marketing) for IHG in this region, what is going to be your focus?

There are certain questions which need to be answered before a hotel deal can be signed. For instance, whether it is possible to fill the hotel or not once it has been constructed; can the hotel deliver what it is has promised to offer; and whether a new property will meet all the criteria from the perspective of sales and marketing. My role would revolve around these key areas in order to identify various locations and their feasibility to accommodate our brand value when the opportunity comes our way.

IHG has been in the Indian market for a substantial period of time. Are there any plans to launch other IHG brands in India?

The InterContinental Hotels Group has a total of seven brands in all and we have only concentrated on three brands for India viz. InterContinental, Crowne Plaza and Holiday Inn. This has been a conscious decision after conducting research of the market situation that exists here. Before bringing in a brand to a country, we have to find out 'the pull of the brand' existing in various markets. Right now, IHG is focusing on increasing its presence through the existing brands because there is immense scope for them. The other brands, Holiday Inn Express, Indigo, Staybridge Suites and Candlewood Suites do not figure in the blueprint right now but could be expected in future when the market matures with time.

Why has IHG intentionally backed away from any franchise branding agreement in India?

India's hotel sector is on a growth track. Because of this, almost everyone is jumping into the business, resulting in a lack of focus. Many (businessmen) know how to own hotels but not necessarily how to run them. There is a lack of professionalism in managing hotels in India with very few good hotel management companies. Therefore, we are concentrating on extending our management expertise with our brands in India.

In the future, what will be the yardstick to gauge IHG's presence in the Indian market?

IHG has recognised the importance of this market. We are not looking at smaller hotels anymore. At present, India is second only to China on our radar as a growing market. We have signed 10 management contracts last year and announced six more during Hotel Investment Conference South Asia (HICSA) this year. Furthermore, the group has invested over a million US dollars for our South West Asia headquarters in Gurgaon. We have strengthened our base by hiring three members for the development team. Additionally, we will boost the core of our design and engineering departments as well as focus on hotel construction. We are also conscious of the training needs and will work towards achieving a strong HR development team. All these speak volumes for our commitment towards India.