Ushering in Swiss hospitality

Poised to make a debut in India with a combination of business and leisure hotels, Mövenpick Hotels & Resorts is looking to bring a slice of Switzerland to the country, Jean Gabriel Pérès, president and CEO, Mövenpick Hotels & Resorts reveals. By Neeti Mehra

Jean Gabriel Pérès President and CEO Mövenpick Hotels & Resorts

Jean Gabriel Pérès is excited to be in India. "India has a history and Indian hospitality revolves around 'Atithi Devo Bhava' or 'Guest is God' which is famous worldwide. Mövenpick Hotels & Resorts' move into India will combine this belief with the modern hospitality practices that are taught in the Swiss hotel schools - arguably the best in the world," he says, adding that the market is open to foreign operators with an understanding of Indian culture.

Focus India

The company hopes to capitalise on its strong presence across Europe and the Middle East (including Egypt), both regions which are frequented by Indians to build brand awareness. "Many affluent Indians know Switzerland as a clean and safe country and they associate our brand with these attributes," he says, speaking of Mövenpick Hotels & Resorts, which is associated with upscale hotels with a great culinary reputation, personalised services, new concepts and a fresh image. "Ideally Mövenpick Hotels & Resorts seeks to operate ten to twelve hotels in India - a combination of resorts (Goa, Kerala) and business hotels (Bengaluru, Mumbai, Pune, New Delhi, Gurgaon, Hyderabad/Secunderabad). Such a network will provide seamless movement opportunity for the business and leisure traveller," adds Pérès. The company will soon be commencing its sales and marketing process.

The company follows an asset light policy and does not have any plans to invest in India currently. "However, India continues to provide opportunities to investors, especially in the hospitality sector. Our group maintains excellent relationships with owners of properties who could take on the role of investors, singularly or through joint ventures, if we close in on a potential opening," he says, further adding, "Our approach is deliberately focused and conservative. The most important aspect for us is our relationship with our partners and we have been delighted with progress with our first hotel opening in Bengaluru next year. We believe franchising arrangements will dilute this concept and therefore would not like to traverse that route, even though such arrangements may be financially rewarding."

Looking ahead

Speaking of development, he feels there are plenty of capital seeking opportunities in the hospitality industry. "Banks should show some more caution in financing development in unproven locations, particularly where land has been offered as (inflated) equity by owners. This should prove positive to sustainable development, renewing focus on business fundamentals rather than speculative short-term land deals," he says. However, he feels that the greatest constraints to hotel development have been the planning and permitting processes rather than capital in India.

He lays importance on guest loyalty programs too. The company runs a guest recognition programme called 'Cherish' across all hotels in the Middle East and Asia. The company will also ramp up its sales and marketing efforts. It currently has 12 regional sales offices located in key European, Middle Eastern and Asian markets and will structure a network of sales offices in key Indian cities such as Mumbai, Delhi and Bengaluru. Mövenpick Hotels & Resorts has an IT credo to enhance the guest experience where hotels are places of relaxation, entertainment and business productivity. "Technology convergence and 'bundled technology' services are key differentiators, that not only drive brand loyalty, but further enable and enhance the guest experience, improve operational effectiveness and lower overall IT total cost of ownership," he says.

Pérès believes

Pérès believes that the branded budget hotel market will see huge growth across India in the coming years. "Hotels within mixed use projects will perform particularly well and major developers have started the process of development of such facilities," he adds.

He believes that creative restaurant design, coupled with serving multicultural foods with an ethnic twist will be imperative. "Themed places are bound to appear in abundance and will be the deciding factor in the guest's loyalty to our brand," says Pérès. With guests becoming more demanding, it will be the trained and motivated employees who make a difference. "We employ a large number of Indian nationals in our existing properties outside of India, particularly in the Middle East. We hope to be able to provide these colleagues the opportunity to return home and use their skills and knowledge of the company for the benefit of our customers in India," says Pérès.