West Delhi hotels expect better 2013

NEW DELHI: The high-end hospitality properties operating in West Delhi have posted better results in the fourth quarter of 2012. Along with policy initiatives like allowing FDI in retail is filling up the sector with hopes for a better year ahead. Despite abysmal GDP growth rate.

"Reform in retail FDI, among others, has signaled the economy back on track," said Rubal Chaudhary, general manager of Hilton Janakpuri. Speaking on the previous quarter's performance of his hotel, he believed that the proposed reforms would boost the hospitality business. Hilton Janakpuri recently completed three years in West Delhi.

The other two hotels in West Delhi — Radisson Blu Hotel in Paschim Vihar and Jaypee Siddharth in Rajendra Place — are also optimistic about signs of a revival with the return of business customers.

Kanchan Rizvi, director of sales & marketing, Radisson Blu said, "MICE segment was a major source of business and revenue for the hotel in the quarter of October-December." They cashed in on revenue from rooms, F&B and residential weddings.

Manju Sharma, director of Jaypee HotelsBSE 3.39 % said, "India — a destination for investment and expansion for many sectors — is contributing positively for the hotel industry. The economic activity has been quite aggressive. This resulted in good business from the corporate segment for Jaypee Hotel Siddharth." Also In-bound tourism has contributed positively towards their business.

Replying to questionnaires, Hilton reported a 12 per cent growth in the year 2012, Jaypee said that the occupancy in 2012 increased by 6.79 per cent, whereas the fourth quarter occupancy was at 90 per cent and finally Hilton without divulging figures said that they were satisfied with the performance, although they were not able to meet the pre-budgeted numbers.

Explicating the performance Rizvi said, "Demand was available in the market but due to increased supply in the city average rate was under pressure." In a January 2013 report by Jones Lang LaSalle on the hospitality sector in the National capital region, they say that the market is going to be flooded with supply. The report had stated that 19 hotels were currently under construction in the capital with a total 4,785 rooms being built.

Source: Economictimes.com

Aman New Delhi hotel renamed The Lodhi

NEW DELHI: At midnight on Thursday, the elitist Aman New Delhi hotel in the western fringes of Lutyen's Delhi, was renamed The Lodhi, a throwback to its former name (Lodhi Hotel) when it was owned by the government.


The renaming follows the hotel's owner, real estate firm DLF's decision to sell back Amanresorts — the luxury hotel chain — to its original owner Adrian Zecha for $300 million. DLFBSE -4.96 % will retain the marquee Delhi property, but will give up the Aman brand name, since retaining the brand would have meant paying a massive fee.

Once a red brick-colored government hotel with a socialist hue all over it, the 1965 property metamorphosed into a popular melting pot for the cream of Delhi during its four-year romance with Amanresorts. Its patrons include Rahul Gandhi and Robert Vadra, who are often seen at its health club, bars and restaurants.

The hotel also has a luxury apartment block in its compound, where some of India's richest businessmen and executives, including DLF promoter Rajiv Singh, stay. Despite its aura, the hotel has not been the best of performers, though it made profits in 2011-12 after losses of .`101 crore in 2010-11. The perception of it being an expensive hotel — with rooms starting at $650 (over Rs 35,000) for a night and meals that can set you back by Rs 10,000 — made it somewhat inaccessible and high brow.

Robyn Bickford, a sprightly Kiwi who is joint general manager of the property with her husband Manav Garewal, agrees. "It was seen as a very remote, very elitist hotel. The perception is that it is very expensive," she says. With the renaming, she adds, all that will change. The hotel, of course, will face its set of challenges, now that the Aman tag is lost and 'Amanjunkies' — people who swear by the resort chain — seek other places to stay. "That, and the fact that selling a standalone property in Delhi, without a strong pull factor, will be difficult," says a hospitality consultant who did not wish to be named.

Bickford and her team, though, are not perturbed. They are keen to change the mystery around Aman, and have been at it for the past one year "since the decision to retain this property while selling the other Aman hotels was taken by DLF". The dark-alley restaurants have become more bright with the use of natural light and corridors now have a dash of artwork and installations.

Traditionally, the pricing has been high for the property, and that, says Bickford, will stay for now. "We have decided to hold the rates till March 2014 to see how it does and then we will take a call." What has changed over the past year — since they took a call to start changing the property slowly — is the mix of foreign and Indian guests. Now, 30-40% of the guests are Indians.

The rates for Indian residents have been kept 40% lower than the rack rates and this summer, it might drop even further, attracting more Indians, maybe some business travellers as well. Bickford recalls that with Aman, there were a lot of restrictions — no pricing flexibility, very high management fees and marketing was handled out of Singapore.

The hotel has also decided to open itself up to the younger lot in the city and has turned trendy. For one, it will use the social media — Twitter, Facebook, Pinterest — to attract the mid-to-late-20s crowd, making it a hub for young people. It has been working with artists and fashion designers, doing trunk shows, putting up art around the hotel that is mostly on sale. "You can have a meal for two for Rs 3,000 with a drink or two," she says.

"The challenge for us is to sell this new hotel as a 'not really expensive hotel' and appeal to the younger set as well." The 40-room hotel, with 28 apartments is spread over 7 acres and was rebuilt with Aman specifications when DLF bought the chain for $400 million in 2007. It spent Rs 400 crore to rebuild it. But once it was decided that the Aman tag will go, irrespective of who buys the chain, DLF went about refurbishing the property.

When DLF bought the chain in 2007, the Indian economy was riding high and the company had big plans in the hospitality space. It had tied up with Hilton to build 100 hotels. When the downturn set in, the plans were put on the backburner as their core real estate business was suffering and needed all the attention that they could give to get it back on track. By 2009-10, the company made its intentions clear to sell non-core assets to reduce its mounting debt.

"The Aman brand would have given them a much better marketing presence because of its global network," says Aashiesh Agarwaal, real estate analyst at EdelweissBSE -3.36 % Securities.

Source: Economictimes.com