Positioning itself for grandeur

Bharat Hotels, which operates The Grand Hotels and Resorts, is a force to reckon with in the premium segment. Farhat Jamal, its president & COO, explores the potential of the industry and shares the group's plans on how to tap it. By Dinkar Farwaha

Farhat Jamal President & COO Bharat Hotels

"As a hospitality company we are referred to as - 'One of India's fastest growing hotel groups'. Our development plans and execution of these have ensured that we are ahead of the overall hospitality growth in the country," says Farhat Jamal. The group, which operates all its hotels under the brand name 'The Grand', is present in the premium segment in Delhi, Mumbai, Goa, Srinagar (Jammu and Kashmir), Bengaluru (Karnataka), Udaipur (Rajasthan), Khajuraho (Madhya Pradesh). It is building luxury properties in Kolkata (West Bengal), Bekal (Kerala), Ahmedabad (Gujarat), Chandigarh, Jaipur (Rajasthan) and Noida (Uttar Pradesh). It is also venturing into the budget segment. "We are looking at the tier-II cities and other emerging destinations of the country for this model," informs Jamal. Inspite of the tremendous growth opportunities in the Indian market, Jamal believes that it is crucial for the Indian hotels to pursue international ambitions. He says, "It is very important to have a worldwide presence, as it establishes the chain as a major international hotel player instead of just a regional and national group." Taking the above factor into consideration, the group has announced its plan to enter Dubai. The group has tied up with the Nakheel Group, a large privately held real estate developer, to manage an upcoming luxury property, The Grand Fort Dubai at Jebel Ali, New Dubai. Bharat Hotels is also coming up with a luxury resort in Kohsamui (Thailand). "We are actively looking at other international opportunities, mainly in Europe and Asia," adds Jamal. "This will help us address the cyclicality of business that affects different parts of the globe at different times," he remarks.

Looking ahead

The buoyancy in the hospitality industry is completely dependent on the country's economic progress, according to Jamal. "Year on year, the country has posted high growth levels on all indices - this has naturally seen a growing interest in the Indian hospitality sectors by international majors, existing Indian players and also many new entrants to the industry," he adds. Jamal is of the opinion that the key drivers for the Indian hospitality industry in the future will be spa tourism, medical tourism, spiritual tourism and adventure tourism. With international brands and funds flowing into the Indian hospitality industry, Jamal believes that its impact will be good for the hospitality industry. "But I hope that the private equity players have a long term vision for the business," he is quick to add. According to Jamal, spiralling land cost is the biggest factor that is hindering the overall growth of the industry. "It is a huge deterrent for development of hotels in the mid-priced segment; a segment where most number of hotels are required," he says. He adds, "Lack of trained staff and high cost of electricity are the other challenges that the industry is facing." The group is countering the manpower challenge through its own hospitality institute, The Grand Academy. "We have already started with our first batch of students in the institute," he mentions.

Jamal believes

Jamal believes that it is the need of the hour to have better FSI norms, adequate parking spaces in the urban areas and infrastructure planning and improvement. When asked whether the US recession, which has halted the growth of other economies, would have any impact on the Indian hospitality industry, he replies, "Today, the hospitality industry is not so dependant on the US market. Our source markets have grown and become more global. There was a time when even the slightest variation in the US economy affected us in the hospitality industry. However over the past decade, the Indian hotel industry has consciously sourced varied markets and business has increased from markets like the ASEAN, Japan, Australia, Russia, Eastern Europe and South Africa." When asked about his vision for Bharat Hotels for the next decade, Jamal concludes, "We hope to position ourselves as a leading hospitality company with a varied portfolio known for its service, products and caring for its guests."