|
View Point
A tale of two hotels
By a strange coincidence two of India's fine hotels - the Sea Rock in the western
metropolis and the Great Eastern in the eastern metropolis have begun to see
light at the end of the tunnel. For a dozen years both have in varying degrees
waited for new owners to come and rehabilitate them. The SeaRock was a victim
of the Mumbai bomb blasts in 1993, and the Great Eastern of privatisation from
the moment talk of disinvestment in a Left-governed started around the same
time. The SeaRock managed by ITC-Welcomgroup, had just repositioned itself,
when the blasts put an end to its normal functioning, as a mid-town five-star
deluxe property. The Great Eastern, over a century and a half old reminder of
the Raj and with an enviable location in the heart of Kolkata, had started falling
on bad days thanks to the ills of the public sector. Interestingly, it was the
workers at the Great Eastern who blocked all efforts for a change in ownership;
while at SeaRock the workers kept receiving their salaries all these years without
doing any work.
The hospitality industry and the media have been keenly interested in developments
regarding both hotels. Restoration of the SeaRock will give Mumbai the much-needed
400-plus rooms in an accommodation-starved city. The Great Eastern, when restored
to its pristine glory, will add to Kolkata's attractions and will offer another
choice of a super deluxe heritage hotel. In an editorial comment, the Indian
Express put it more aptly: "A privately run, transformed Great Eastern
will add around 200 business-traveller standard hotel rooms in Kolkata's small
kitty" it says adding, "that's an argument impossible to beat in a
city that seems to be rediscovering the virtues of enterprise. The Great Eastern
was once a grand establishment. Kolkata was once a grand metropolis. How matter
to welcome the rebirth of one than to hope the same for the other."
One has to give credit to the state government for not giving up. An excellent
arrangement initiated with the French Accor group when Jyoti Basu's chief ministerial
was scuttled by adamant workers and unions. And, as the editorial points out,
"When China's Novotel Peace Beijing Hotel's `comradely' credentials didn't
impress the unions". Finally, it is the present chief minister who persevered
and succeeded.
The SeaRock suffered structural damage and repairs got bogged down due to differences
between the owners and the managing company. The hotel's future has been resolved
by its sale to a third party. The buyer is the Suresh Nanda promoted Claridges
Group. And, the successful bidder in Kolkata, as the media has widely reported,
is Lalit Suri of Bharat Hotels. Both have forayed into hoteliering from other
businesses and aspire to big league status as chain builders. Suri, who made
a beginning with what is his flagship in Delhi, the Grand Inter-Continental
as far back as the 80s (it was one of the Asiad 82 projects which finally got
off the ground in 1986).
|
The Sea Rock in the western metropolis and the Great
Eastern in the eastern metropolis have begun to see light at the end of
the tunnel
|
In a bold move he ventured into Kashmir where he acquired
Srinagar's family Palace Hotel overlooking the Dal Lake, renovated and expanded
it. It outbid many others in cornering three ITDC properties under disinvestment
- the premier Ashok Bangalore (south India's first five-star hotel), Lakshmivilas
in Udaipur and Ashok Temple View in Khajuraho. And then a greenfield deluxe
hotel in Goa. He has invested a huge amount in renovations. For his latest catch
he says he would be spending as much as Rs 120 crore to "turn it around".
He is paying Rs 52 crore for Great Eastern. He will freeze the operations once
he takes over the property but is confident that the hotel will be back in operation
within a year. The entire renovation may take another twelve months. With a
presence already established in three metros and three prime tourist centres
and an eye for properties abroad, Suri's dream of big ticket hotelier does not
seem difficult to achieve. As a member of the Rajya Sabha he reminds you he
has been espousing the cause of tourism's hospitality sector in Parliament,
strengthening what he has been doing outside as president of the Hotel Association
of India (HAI) and past president of India Initiative of WTTC (World Travel
and Tourism Council). Suresh Nanda who presides over the Claridges Group has
besides the Delhi and Mumbai hotels, resorts in Mussoorie and Corbett. He recently
announced plans for four more hotels in Kolkata, Bangalore, Chennai and Hyderabad.
The total investment is of the order of Rs 750 crore. More chains, more investments
and more rooms is what is the need of the hour.
With uncertainties over the Sea Rock and The Great Eastern fading out, the industry
now looks with high expectations to their new avatars.
|
