SOH (Soul of Hospitality) Magazine’s Post

India’s hospitality market is ripe for consolidation, especially in key cities like Delhi, Mumbai, Bengaluru, and Lucknow. In areas such as Mahipalpur (Delhi) and Andheri (Mumbai), countless independent hotels operate below their potential due to lack of branding and professional management. By acquiring clusters of these hotels and bringing them under the umbrella of an international operator like Marriott or Hyatt, there’s a clear opportunity to raise ADRs, increase occupancy, and attract both corporate and international clientele. Bengaluru’s Whitefield and Electronic City also offer significant potential. These tech hubs see heavy business travel, yet many hotels lack the brand recognition needed to fully tap into this market. With a strategic acquisition and rebranding, these properties can see a substantial boost in revenue and guest loyalty. Even emerging cities like Lucknow, with its growing tourism and business sectors, offer opportunities for hotel clusters to be brought under global brands. By aligning with international operators, these properties can achieve scale, operational efficiency, and global reach. The time is right to identify these high-potential clusters, bring them under strong management, and unlock value in India’s growing hotel sector. #HotelConsolidation #RealEstateOpportunities #DelhiHotels #MumbaiHotels #BengaluruHotels #LucknowHotels #HospitalityGrowth #BusinessTravel #InternationalOperators

This $2.5 billion company is planning for the biggest public offering of the hospitality industry in India. And here’s what you need to know. This billion dollar company is The Leela Palaces, Hotels and Resorts. It was founded in 1986 and has carved a niche in India's luxury hospitality sector, with iconic properties like The Leela Palace New Delhi, and Udaipur. Here’s how this company was able to dominate this market: 1. Strategic expansion: Since Brookfield Asset Management's acquisition in 2019, The Leela has rapidly expanded its portfolio. This calculated growth has strengthened their market presence, making them one of the strongest players in the luxury segment. 2. Guest experience: The Leela's focus on excellence, personalized service, and attention to detail has built a loyal customer base, driving repeat business and positive word-of-mouth. 3. Innovative offerings: By continually reinventing their services, The Leela stays ahead of luxury trends. From curated local experiences to world-class wellness programs, they consistently exceed guest expectations. 4. Strategic locations: The Leela's properties are strategically located in key business and leisure destinations. This approach ensures high occupancy rates and positions them as the best choice for both corporate and leisure travelers. And this also positions them as a luxury hospitality brand. Thus, The Leela was able to become the market leader in the hospitality sector and could announce the largest-ever IPO in this industry. And with 11 top investment banks managing this IPO, the stock market future seems promising for the brand. What's your take on luxury hospitality brands going public? Source : https://lnkd.in/gPY8Q2vg #hospitalityindustry #MakingEquityEasy #AdvisorZaruriHai

Marriott plans to open 12 new hotels in India in 2024, adding approximately 1,200 rooms to their portfolio. This expansion includes luxury and mid-scale segments, with new properties in cities like Gwalior, Guwahati, and Shimla. What's up hospitality? Tune in to learn more about the latest updates in the hotel industry. #hotelsandhospitality #ExcellenceInService #hotelnews #hotelupdates

Celebrating Legacy: Iconic Indian Businesses from the British Era That Continue to Thrive Today India’s business landscape is rich with history, and many iconic companies that were established during the British colonial era have not only survived but flourished in the modern market. Among them is The Great Eastern Hotel, a true testament to enduring legacy and resilience. The Great Eastern Hotel: A Legacy of Luxury Founded in 1841, The Great Eastern Hotel (now The Lalit Great Eastern Kolkata) stands as one of India's oldest and most prestigious hotels. Initially built to cater to British officials, traders, and elite travelers, it became an icon of luxury in Kolkata. With its stunning Victorian-era architecture, high ceilings, and expansive design, it quickly became the go-to destination for dignitaries, writers, and travelers worldwide. Over time, like many historic businesses, the hotel faced challenges, particularly during the latter half of the 20th century, when it struggled with maintenance and management. However, a significant renovation in 2005, followed by a complete overhaul in 2013 under The Lalit Group, allowed the property to reclaim its place as a leading luxury hotel. Today, it continues to serve as a unique blend of heritage and modern luxury, offering contemporary amenities alongside its colonial charm. The legacy of The Great Eastern Hotel is inextricably linked with Kolkata's cultural and commercial history. Through various ups and downs, the hotel has stood the test of time, hosting historical events and iconic personalities. Its ability to adapt while retaining its original grandeur speaks to the resilience of businesses that started in the colonial era and continue to thrive today. In today’s competitive hospitality industry, The Lalit Great Eastern Kolkata continues to face stiff competition from global luxury chains like Taj, Oberoi, Marriott, and Hyatt. Yet, its unique heritage, historical significance, and positioning as a boutique luxury hotel provide it with a distinct edge. By embracing digital transformation, sustainability, and modern guest experiences, this iconic hotel continues to attract a new generation of travelers while preserving its heritage. The story of The Great Eastern Hotel is just one example of Indian businesses with roots in the colonial era that have successfully transitioned into the modern market. By blending tradition with innovation, these companies remain pillars of India’s rich business history and continue to shape the future of commerce and hospitality in the country. #TheGreatEasternHotel #IndianBusiness #Heritage #Legacy #Hospitality #Innovation #BusinessTransformation

Hotel room rates across India are slated to remain high over the next few months, SWARAJ BAGGONKAR reports for Financial Express. This is primarily due to strong demand from the domestic market and fewer property openings during the last couple of quarters, the report says. Between April and June, the top eight cities — including Delhi-NCR, Mumbai, Chennai, and Bengaluru — saw just a 0.6% increase in rooms, according to data from hospitality consultancy provider Horwath HTL. Recurrent heatwaves and low business travel activity during general elections made a slight dent in hotel revenues, but industry executives expect a turnaround during the September and December quarters thanks to the festive and wedding seasons, respectively. Both occupancy and rates will remain up in Q3 and Q4 with foreign travel bouncing back and robust domestic demand for luxury travel, says Vikram Oberoi, MD and CEO of EIH, which operates the Oberoi hotels. However, the demand-supply mismatch will continue with only 50,000 branded rooms slated to be added by FY27, at a compound annual growth rate (CAGR) of 8%, the report adds. In contrast, the actual demand is at CAGR of 10%, says data from Hotelivate. Source: Financial Express (India) - https://lnkd.in/gVGhDb_3 ✍: Abhiraj Ganguli 📷: Getty Images #Hotels #Hospitality #HotelRoomRates #India

#ConclaveMumbai24 | Shaping Aspirations: Puneet Chhatwal On New Era Of Luxury & Exclusivity In India Join Puneet Chhatwal, MD & CEO of Indian Hotels Company Ltd, in an insightful discussion at the India Today Conclave 2024, as he delves into the theme of "Crafting Desire: Redefining Exclusivity." In an era where aspiration transcends traditional luxury, Chatwal will explore how the hospitality sector can adapt to meet the evolving expectations of consumers. Moderated by Sourav Majumdar, Editor of Business Today, this session promises to provide a fresh perspective on the future of hospitality in India, shedding light on the interplay between exclusivity, accessibility, and the burgeoning middle class. Discover how Indian Hotels is navigating this dynamic landscape to redefine what luxury means in a rapidly changing world. #AssetLight #AssetRight #HospitalityIndustry #LakshadweepIslands #EktaNagar #StatueOfUnity #InvestmentPlans #ExpansionStrategy #IndiaGrowthStory #HotelRenovation #TourismDevelopment #LuxuryHotels #TajInvestments Watch: https://lnkd.in/gWtPwHGV

As we transition into the second half of 2024, let's reflect on the progress in the Indian hotel industry so far: 🔹 146 branded hotels signed between January and May, up from 110 last year. Over 14,000 keys are now under development (HVS Anarock report). 🔹 New signings include Sofitel Jaipur, Vivanta by Taj Indore, The Indian Hotels Company Limited (IHCL)'s Gateway Sarnath, and a Taj Hotels India -branded hotel in Pushkar.   🔹 49 hotels with 3,000+ rooms opened during this period, featuring properties like voco Jim Corbett, an IHG Hotel and Pramod Lands End Resort, A Member of Radisson Individuals, Ronil Goa - a JdV by Hyatt Hotel, The Fern Hotels & Resorts- Residency, Gandhinagar, Bhiwandi-Pimplas and @Wisteria Resort, Dhari. However, some key metrics showed a decline: 🔻 Occupancy rates slightly fell from April to May, with an overall rate of 59-61%. 🔻 Declines in Mumbai, Kolkata, Hyderabad, and Pune, contrasted with increases in New Delhi, Chandigarh, Goa, Chennai, Bengaluru, and Kochi. 🔻 Average Daily Rates (ADR) down by 6-8% and RevPAR by 9-11% compared to April. Despite these challenges, the outlook remains promising. The Indian market continues to attract hotel brands, driven by robust economic growth and increasing spending power. The positive sentiment and ongoing developments signal a bright future. Let's continue to build on this momentum for a successful second half of 2024! 💪🏨🌍 #IHCL #Raddison #Vivanta #voco #Sofitel #TajHotels #fernhotels #RonilGoa #Indian_Hotels #Hotels #Luxurystays #Hotelmanagement #Hotellife #hotelstory #luxuryliving #Toursim #Luxurybrand #hotelservice #hospitalityindustry #boutiquehotel #hoteliers

There is enormous headroom for growth in the hotel sector: Sanjiv Puri, CMD, ITC Limited. In his address at the 113th AGM of ITC Limited, Sanjiv Puri stressed on the fact that there is a huge scope of growth and investment in the hospitality sector considering the very low population to hotel room ratio in India. While the world average supply of rooms to 1000 people is 2.2, in India it Is 0.11. This translates into huge headroom for growth in the sector in India.   Source: ET Hospitality World https://lnkd.in/d-s7mUsP

HOTEL SECTOR RESULT ANALYSIS Q3 DECEMBER 2023 2. EIH LTD PART 2 EIH Limited Within EIH 13 Hotels The Oberoi, New Delhi • The Oberoi, Mumbai • The Oberoi, Bangalore • The Oberoi Grand • The Oberoi Udaivilas • The Oberoi Vanyavilas • Trident, Nariman Point, Mumbai • Trident, Bandra Kurla, Mumbai • Maidens Hotel, Delhi (Managed by EIH) The Oberoi Amarvilas Trident, Gurgaon • The Oberoi Gurgaon • The Oberoi Sukhvilas • Trident Hyderabad The Oberoi Rajvilas • The Oberoi Cecil • Trident Chennai • Trident Bhubaneswar • Trident Agra • Trident Jaipur • Trident Udaipur • Trident Cochin EI The Oberoi, Bali • The Oberoi, Lombok • The Oberoi, Mauritius • The Oberoi, Sahl Hasheesh, Egypt • The Oberoi MarrakechH Holdings Ltd Managed Hotels: • The Oberoi Beach Resort Al Zorah • The Oberoi Zahra, Nile Cruiser International presence 497 rooms under The Oberoi Brand (excluding India) 1. The Oberoi, Marrakech | 84 2. The Oberoi Zahra, Luxury Nile Cruiser | 27 3. The Oberoi Beach Resort, Sahl Hasheesh, Egypt |102 4. The Oberoi Beach Resort, Al Zorah | 89 5. The Oberoi Beach Resort, Mauritius | 71 6. The Oberoi Beach Resort, Bali | 74 7. The Oberoi Beach Resort Lombok | 50 CONCLUSION The return on capital employed is 15.6 percent and the return on equity is 11.4 percent. On an equity capital of Rs 125 crore, reserves are Rs 3380 crore and borrowings are a low Rs 198 crore, with all of it lease liabilities. Debt has reduced from Rs 510 crore to Rs 198 crore in the past 3 years. The company had a blockbuster December quarter helped by a rise in occupancy rates in its luxury hotels with operating margins as high as 44 percent. FII’s and DII’s hold substantial stakes of more than 17 percent in the stock. The stock has returned 156 percent in a year and is a buy on corrections with valuations reasonable and growth rates attractive.      

Indian conglomerate Reliance Industries Limited has joined forces with luxury hotel group Oberoi Hotels and Resorts to co-manage three hospitality projects spread across India and the UK. Which Are the Three Properties? Anant Vilas in Mumbai: It is conceived as the first metro-centric property as part of the luxury ‘Vilas’ portfolio run by Oberoi. Located in the mixed-use destination of Bandra Kurla Complex in Mumbai, Anant Vilas seeks to augment the hotel footprint of the business district. Stoke Park, UK: This subsidiary of Reliance Industries Limited owns sports and leisure facilities in Stoke Poges, Buckinghamshire. The facilities include a hotel, sports facilities, and a golf course. Oberoi will assist Reliance in upgrading its facilities and making it a world-class destination. New Project, Gujarat: This unnamed upcoming project in the western state of Gujarat is also envisaged as another iconic project to augment the tourism potential in the state. Other Deals: Last year, Reliance paid nearly $100 million for a controlling stake in Mandarin Oriental New York, a five-star hotel in midtown Manhattan, through the purchase of its Cayman Islands-based parent. #theoberoi #relianceindustries #hotels #restaurant #projects #horecatimes