30 minute interview

'We have grown nearly 45 per cent against an industry growth rate of 30 per cent'

Sanjay Sethi Area director & General Manager at Taj Hotel Resorts & Palaces, Hyderabad

Sanjay Sethi, area director and general manager of Taj Hotel Resorts & Palaces, Hyderabad is a certified hotel administrator with over 20 years of experience in the business. He speaks to Biju Mathews about the Taj group's plans in Hyderabad and the current state of the industry.

How have you positioned your Hyderabad properties?

Currently, we have three operating hotels in Hyderabad. The Taj Krishna in the luxury segment, Taj Banjara & Taj Residency in the business segment and the Taj Falaknuma in the high-end luxury segment, which is yet to be fully operational.

Can you give us the occupancy and ARR figures of last year? How much are you targetting this year?

Our hotels are doing an average occupancy of 90 per cent in the so-called off-season and an ARR of Rs 6,000. We have grown nearly 45 per cent over our last year's revenues against an industry growth rate of 30 per cent. We look forward to 95 per cent occupancy with aggressive rates in the next year.

There has been a shortage of rooms in Hyderabad. Your comments?

There are roughly 1,250 rooms in the city, which is clearly far below the demand. I expect this phenomenon to be repeated for the next two to three years. By then the city would probably have an additional 450 rooms and about 2,500 rooms by 2005.

What changes have you brought in ever since you have taken over?

I am quite fortunate to take over these properties in Hyderabad, especially at a time when the hospitality business is at its best. My predecessor did a wonderful job with these properties and this gave me a good base to begin with. We have increased two more club floors at Taj Krishna taking the total club floors to four with personalised butler services. We have also improved our car programme and concierge services. We have planned major renovation plans at Taj Residency and we also plan to beautify the lake at Taj Banjara. Meanwhile, people-focused development has been an ongoing process ever since I have taken over.

What are your views on the hotel industry in Hyderabad? What issues would you want to address in the future?

The industry grew over 30 per cent as compared with last year's figures and is poised for exponential growth until 2009. The key issues concerning the industry are infrastructure development, reduction on luxury tax and calculation of tax on printed tariff. Infrastructure development is already in motion, while roads, networks and power supply issues need to be addressed. Although 80 per cent of our business is negotiated, the present system levies tax on the printed tariff, which is an extra burden on the customer.

What about future projects?

Our joint venture partner, GVK group, is looking at a 100-room expansion in the near future and it has also bid for a new 200-room property at Manikonda. However, all these plans are at the discussion stage and are yet to be finalised.