< PreviousGM’S DIARY 10 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com With the intermittent lockdowns, curfews and restrictions hitting the wedding business hard, hoteliers are riding with this tide by proposing thoughtful celebration options to guests BY VINITA BHATIA MUCH ADO ABOUT ‘I DO’ Courtyard and Fairfield by Marriott Bengaluru ORR tradi- tionally stayed away from social events like the big fat Indian wedding. It was not because the business was not welcome. Rather, the brands were focused on the corporate crowd, business travellers and millennials who sought comfort, quiet, privacy, and unique experiences at its premises. However, along came the pandemic and upended this tranquil equilibrium. That is when Pranay Verdia, Multi-Property General Manager, Courtyard and Fairfield by Marriott Bengaluru ORR hotel realised that weddings can be a key demand driver. “We see a surge in wedding and wedding-related events, post Q4 2020. The general sentiment is to conduct all events that could not take place in 2020,” he stated. Moreover, there is also a conscious mindset to have smaller wed- dings with intimate bespoke events. This is gaining ground with the second wave of the pandemic sweeping across the country. “This development put everyone on tenterhooks just as things began to normalise,” Verdia noted. According to him, weddings are yet to peak to pre-pandemic levels, but he expects this business to revert to normal by Q4 2021. Business hotels and properties located at a city’s outskirts have been the biggest gainers of the scaled down wedding trend. For starters, most of them had not explored this cus- tomer segment earlier. Moreover, since the scale of operation is smaller, they can quickly pivot their processes to cater to this new business stream, as compared to larger hotels. They can also provide a plethora of options across various budgets for guests to choose. CHANGING NUPTIAL DYNAMICS The wedding industry is amongst the biggest revenue generation streams for hotels. The ‘Digital Classified in India 2020’ report by KPMG India and Google pegged India’s wedding market at $50 bil- lion with a rapid annual growth rate. With almost half the country’s 1.3 billion-strong population below 30 years, it is safe to expect 11 million weddings annually. This steady flow of nuptials has given a fillip to an entire range of products and services, from wedding planners to florists, design- ers, videographers, makeup artists and of course, hotels. Moreover, given the pivotal role marriages play in the country’s cultural frame- work, these ancillary industries have been growing from strength to strength. However, the frequent lockdowns, intermittent curfews with re- strictions have dealt a massive blow to this sector. Verdia is grateful that over the course of time, a set of dependable guidelines has been established for the hospitality segment. “Hotels can now fo- cus on this segment by employing necessary safety and security measures,” he stated. GM’S DIARY www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 11 MAKING WAY FOR INTIMATE EVENTS Traditional Indian weddings feature lengthy guest lists, which made it a highly lucrative business for hotels. Now, this has shrunken significantly with a cap on the number of guests who can attend weddings. Of course, this has hurt hotels’ rev- enues, but Verdia would rather look at the upside. “The positive side to this is that since the scale of the wed- ding is small, the turnaround time also reduces accordingly, enabling hoteliers to cater to more events,” he pointed out. Taking a less traditional approach, many guests are opting for intimate weddings in accordance with the lo- cal government guidelines. Hotels have been forced to reinvent them- selves to cater to the new norms, needs and hygiene requirements. Verdia believes that tough times call for quick thinking. “These are erratic times and we have learned to be agile. We con- stantly curate customised and unique experiences that are be- spoke in addressing customer needs. There is no fixed format for success, we need to be willing to continuously experiment and ex- plore,” he claimed. Additionally, several guests are choosing to host ‘virtual weddings’ by live streaming the ceremony for families and friends. This is another opportunity that hotels can tap. “While the format of the event is virtual, in terms of the food experi- ence we can deliver hampers right to an invitee’s doorstep simultaneously across different destinations. With the presence of a brand like Marriott across so many cities in the country, experiences like this can be easily be curated,” he stated. In a country where parents plan for their young children’s weddings and educational goals side by side, the pandemic might have hit their dreams hard. However, hoteliers are rolling out the red carpet to ensure that the day they always dreamed for is nothing less than surreal – armed with mask, sanitiser and a warm, reas- suring smile. HI Fortunately, he can pull out some pages from the Shaadi by Mar- riott initiative. This offers a variety of premium wedding experienc- es, while subscribing to strict government guidelines that guarantee the safety and wellbeing of its guests and associates. KEEPING IN SIMPLE The ever-shifting curfew and lockdown rules have definitely affect- ed the size and budgets of guests planning weddings. In turn, it caused a ripple effect on the revenue of various businesses involved in the supply chain, including hotels. Many properties are seeing mass cancellations or requests for later dates. While acknowledging this, Verdia stated, “Customers are well aware of the constantly changing guidelines and are willing to work alongside hotels to ensure that it is a win-win situation for both parties. A bit of flexibility needs to be exercised by both to ensure smooth execution of events.” This flexibility is essential because traditional Indian weddings are based on auspicious dates. Most would rather proceed with smaller gatherings comprising only close family members than cancel the function. According to Verdia, that is an advantage for hoteliers. “Cus- tomers are understanding as well of the changes in rules being implemented and are willing to work with hotels accordingly. But yes, there is a risk of potential revenue loss due to cancellations,” he admitted. Interesting, over the past few years, destination weddings, es- pecially at exotic locations, had become quite popular. The sus- pension of international flights has encouraged couples and their families to consider local hotels for their nuptials, which is music to the ears of hoteliers. “Destination weddings have seen a drop with only a few domestic destinations currently available in India. We have noticed a trend where people are shifting from traditional wedding halls to hotels. This is primarily driven by their confidence in the safety and hygiene measures taken by branded hotels,” Verdia opined. Since the scale of the wedding is small, the turnaround time also reduces accordingly, enabling hoteliers to cater to more events. We have noticed a trend where people are shifting from traditional wedding halls to hotels. This is primarily driven by their confidence in the safety and hygiene measures taken by branded hotels.” —Pranay Verdia, Multi-Property General Manager, Courtyard and Fairfield by Marriott Bengaluru ORR 12 | MAY 2021 | HOTELIER INDIA BY VINITA BHATIA Perseverance, determination and a refusal to back down from challenges helped Chander Baljee, CMD of Royal Orchid Hotels build a network of 60 operational properties, within two decades NEVER SAY NEVER, EVER Chander Baljee is a strong believer in serendipity; a well-founded belief if one examines his life’s jour- ney. His family runs the popular Baljee’s restaurant in Shimla since 1953, and a visit to the hill station is in- complete without dropping in to enjoy some piping hot sweetmeats. Chander joined the business in 1972 to help his father and broth- er open an upmarket restaurant, ‘Fascination’ on the premises. Soon, it became the go-to destination for the city’s young crowd and tourists. A chance conversation with a regular customer, who was then the Deputy Director at Mysuru’s Tourism Department, proved to be a life-changer. “This gentleman would visit our restaurant for tea and urged me to visit the southern state for business. I simply agreed,” Chander reminisced. Most would dismiss this as just another polite chat with a cli- ent. However, when the Deputy Director wrote to Chander about the expiry of Hotel Metropole and Vrindavan Garden Hotels lease and that the state government was re-opening bids for both prop- erties, the latter decided to pursue this opportunity. Despite the palpable opposition from his family, he travelled from Himachal Pradesh to Mysuru to submit tenders for the hotels. COVER STORYwww.hotelierindia.com HOTELIER INDIA | MAY 2021 | 13COVER STORY 14 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com We already have a sturdy pipeline of general managers. Four HODs were recently recruited as general managers in our newly opened hotels. won. People told me that I was crazy to invest on the place located on the city’s outskirts and that putting up a hotel there was reckless. However, I did not have the money to invest in a city-based hotel,” Chander stated. So, he deposited INR 5 lakh with the government for the land, which unfortunately got into some litiga- tion issues that dragged on for al- most 14 years. However, this mis- fortune turned out to be a blessing in disguise; while the hotel project was delayed, that part of Bengaluru showed signs of development and urban settlement. Chander took loans from various sources, sold some properties and finally opened the Royal Orchid Ho- tel in 2001. This hotel was initially conceptualised as a 4-star property, a step up from Hotel Harsha, which was a mid-segment establishment. However, following some intelligent value-added engineering, Chander launched it as a 5-star hotel. “The first couple of years were very difficult as there was not business. However, from 2003 until 2008, Ben- galuru saw an IT business boom, and we flourished,” Chander said. During those heydays, the property com- Royal Orchid Central, Kireeti, Hampi with caption: Royal Orchid Central, Kireeti, Hampi. “When we did not get these projects, my host suggested I con- sider leasing ‘Hotel Stay Longer’. After some negotiation, we got the property and I have been in Bengaluru ever since,” Chander laughingly said. Incidentally, Hotel Stay Longer, rebranded later as Hotel Harsha, is still part of Royal Orchid Hotels (ROH) portfolio. Even more in- terestingly, Hotels Metropole and Vrindavan Garden are also part of the company’s network. “After a period of almost 30 years, the lease tenders for both ho- tels reopened. I was determined on getting it after missing the first time around. Both these properties have been part of our portfolio for the past 16 years,” Chander proudly stated, proving once again that destiny did play a key role in his life as an hotelier. BUILDING A BUSINESS, BRICK BY BRICK When he came to Bengaluru, Chander had just INR 5 lakh as capi- tal. Of this, he used INR 3 lakh as deposit for the Hotel Stay Longer, and spent another INR 1.30 lakh on refurbishing and upgrading the furnishing and cutlery. “I had around INR 65,000 to spare when I started the hotel and the monthly rent was INR 25,000. Letters of Credit (LC) from banks were non-existent, it was tough to get utilities like gas cyl- inders and business was not great either,” Chander recalled, while talking about the challenges he faced back then. However, he refused to throw in the towel, exit the hospitality business and move back to Shimla. It is his fervent conviction that tough situations toughen up tough people. Neither did he give up on his ambition to expand the business; despite lack of capital to build or buy another hotel being a constant constraint. Once again, fate dealt him a favourable hand. “The Karnataka Government issued a tender for a land parcel on Bengaluru’s old Airport Road next to the Golf Course. I bid the highest price and COVER STORY www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 15 Source: Royal Orchid Hotels’ Annual Report 2019-20. In 2006, ROH went public to fuel its growth plans. The IPO was over- subscribed and the company raised more than INR 100 crore. That is when the company went into an ex- pansion overdrive. “Some of it was reckless and we started several projects simultane- ously. Had the market not tanked in 2008, we would have probably been amongst the topmost front-running hotel chains,” Chander rued. During this time, ROH had various projects that were half way in the works, including a 5-star property in Hyderabad. While it managed to get it running, political issues cropped up in the state as with Telangana de- manding a separate state. This led to frequent strikes and lockdowns, af- fecting the business. “We had made this project with a lot of love and ef- fort. However, we had to take the dif- ficult decision to sell it and cut down our debt, else we would lose out,” Chander lamented. The hotel’s sale reduced the com- pany’s debt tremendously. This in- cident helped him recognise the merits of sticking to an asset-light strategy. “That is how the idea of a management company came up,” he claimed. He also realised that most man- agement companies struggle initially because their incomes rarely match their expense, leading to loss. Fortu- nately, ROH had a couple of its own hotels with sales offices across the country. This gave it the edge of hav- ing a full-fledged in-house training on HR, sales and marketing, unlike other hotel management companies. “The business did incur standalone losses. However, once you reach a certain critical mass, you start mak- ing profit. We put all our hotels un- der a subsidiary called Royal Orchid Associated Hotels. As a profitable company, ROH provides the best technology any hotel company can offer, whether it is digital marketing, social media or HR training,” Chander stated, proudly adding that it has de- ployed Salesforce for all its partners. OPPORTUNITY IN ADVERSITY While many have rued the pandemic MILESTONES manded INR 9500 average room revenue (ARR) with 80% to 85% occupancy, garnering the company a neat INR 35 crore profit. GOING PUBLIC Over time, ROH went for a brand refresh and decided to segment all its properties under the ‘Regenta’ title. Proper segmentation and distinction of its offering was necessary to ensure its partners and customers knew the nature of the property. While Regenta is a full service upscale hotel, Regenta Central stands for a full service midscale hotel, Regenta Place for a limited service midscale hotel and Regenta Inn for a limited service value hotel. Regenta Resort is a full service midscale resort, while Re- genta Suites is for select service serviced apartments. COVER STORY 16 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com Regenta Resort Pushkar Fort. for disrupting their established busi- ness models, it came as a blessing of sorts for ROH. For starters, the company used the time to change its way of doing business completely, beginning with pruning of overheads. Chander is quick to point out that this did not involve laying off the service staff, since this can ultimately impact service quality, compelling the com- pany to rehire more manpower. “We decided to reduce costs by 30%. Also, we took a conscious deci- sion that once normalcy returns, our overheads should be 30% to 40% lesser than the earlier numbers,” he added. “We managed to do this when business restarted in October 2020. While our ARR was lower than before our outgoing was also lesser; so we did not suffer as much.” Another major initiative that the hotel chain undertook was multi- skilling of its workforce, which again lowered its costs. It also recruited trainees through the Presidency Col- lege of Hotel Management – a hos- pitality institution established by ROH in 1994 –offering them lots of online training. During the pandemic, the institute released a free 3-month training programme for FOH, house- keeping and F&B departments, which anyone across the country can register for. The hotel chain also continued with its expansion plans during the We took a conscious decision that once normalcy returns, our overheads should be 30% to 40% lesser than the earlier numbers. While our ARR was lower than before (after reopening in October 2020) our outgoing was also lesser; so we did not suffer as much.” - Chander Baljee, CMD, Royal Orchid Hotels. COVER STORY www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 17 the 100-hotel milestone by next year. This confidence is merited since many hotel owners are under duress and keen to partner with brands that offer better terms and conditions along with realistic and regular re- turn on investment. ROH fits this bill, especially since it chose to work on management contracts. “This will ease cash flow issues, because there is no per property cash outflow, while there is a fair bit of income. We avoid spending on hotel upgradation unless it is neces- sary, which ensures that the returns on investment are quicker,” Chander added. If ever one needed reasons to stay upbeat in these challenging times, and even otherwise, a quick read of Chander’s life is strongly recom- mended. His innovative approach to problems and unstoppable determi- nation continues to inspire hope, as he scales hurdle after hurdle with a never-say-die attitude. HI Regenta Resort and Spa, Shimla Mashobra. ONE BRAND TO SUITE THEM ALL Royal Orchid Hotels' portfolio is a mix of owned, managed and fran- chised properties under the blowing brands: • Regenta – a full service upscale hotel • Regenta Central – a full service midscale hotel • Regenta Place – a limited service midscale hotel • Regenta Inn – a limited service value hotel • Regenta Resort – a full service midscale resort • Regenta Suites – select service serviced apartments pandemic. With 60 hotels in its portfolio, it wants to establish 100 hotels by 2022. Chander knows that these hotels will need sound leaders spear- heading the operations. Hence, the company initiated a training programme for managers of various departments at its existing properties. They learn a range of topics, including engineering, ac- counts, social media marketing, guest relations and revenue man- agement. “We already have a sturdy pipeline of general managers. Four HODs were recently recruited as general managers in our newly opened hotels,” Chander stated. This benefit is advantageous to the company is various ways. To begin with, the individual knows ROH’s policies, protocols and pro- cesses, and can easily replicate it in the hotel they join in a senior position. Secondly, promoting personnel within the organisation at an enhanced salary is still more viable than hiring a general man- ager from external resources. This works as a win-win for the hotel and its employees, who get the assurance of a career roadmap. In fact, this prudent approach towards cost management has ROH in good stead as compared to several international chains. “In- ternational brands have high costs since they employ general man- agers at several times the salary that we pay. Even otherwise, they charge high fees, which owners find difficult to manage in contem- porary times,” Chander pointed out. “If these brands are unable to deliver business, they claim it is not easy for a hotel with a foreign flag. If the business is doing well, they credit their brand. And when the market is down, they invoke the force majeure clause.” He stated this from personal experience, because he too had decided to go for a master franchise for Ramada in India long ago. “I quickly converted my first hotel into Ramada to see how they deliver. I realised that the fees I paid them was more than the busi- ness accrued from them. Since the contract was for 10 years under the US jurisdiction, I decided to continue till the end of the con- tract period,” Chander recalled. This experience prompted him to set up his own brand, ‘Re- genta’; a decision that has boded well for the company. During the pandemic, it opened eight hotels and has another 20 in the pipeline. Some projects were delayed since 2020 following the in- frequent lockdowns. Chander is, however, confident of reaching BIG INTERVIEW 18 | MAY 2021 | HOTELIER INDIA www.hotelierindia.com Facilitated by the availability of digital tools and accelerated by the pandemic, hybrid events are here to stay BY VINITA BHATIA FUTURE OF MEETINGS: ALL ABOUT EXPERIENCES Following COVID-19’s outbreak, many companies and workers shifted to remote work to ensure a semblance of normalcy. This overnight adoption of digital meeting tools accelerated the longer-term transformations in how companies operated. However, there was one niggling hitch. Despite the access to su- perlative digital tools the importance of in-person meetings could not be replaced, especially for sales and business deals. While re- duction of travel for internal work meetings, especially internation- ally, is anticipated business travel will continue to remain important for cracking deals. Patrick Mendes, Group Chief Commercial Officer (Sales, Market- ing, Distribution and Loyalty), Accor tells Vinita Bhatia that hybrid meetings are here to stay – pandemic or not. As this trend shapes up to impact a large part of meetings, hotel brands will continue to rely on a dynamic domestic market by optimising the use of avail- able spaces and diversifying revenue for the longer term. Are hybrid meetings restricted to boardroom interactions or can it encompass business events allowing delegates to meet in-per- son and communicate with participants off-site? A hybrid meeting features at least one group of face-to-face at- tendees connecting virtually with other meeting participants who are unable to attend physically. It is so much more than just board- room interactions. It can be more interactive and engaging as physical and online attendees from different locations come together and participate in the same experience or content through technology at the same time. This is an ideal meeting solution during and following the pandemic and we are convinced it will become the norm in the future. According to our internal research, 70% of media and events (M&E) planners see hybrid meetings as an important service in BIG INTERVIEW www.hotelierindia.com HOTELIER INDIA | MAY 2021 | 19 Instead of hosting large groups at one location, meeting planners can host small groups in different locations without expensive travel costs.” – Patrick Mendes, Group Chief Commercial Officer (Sales, Marketing, Distribution and Loyalty), Accor. AIMING HIGH 55% of Accor hotels with meeting rooms are already providing hybrid meetings solutions to clients. Its target is to ensure 100% of its hotels with meeting rooms comply with the new hybrid meetings standard by 2022 worldwide across all brands, from economy to ultra-luxury. To date, half of Accor hotels in India have meeting rooms offering hybrid meeting solutions. the future. We expect the trend towards remote meetings and events to remain a lasting legacy even after COVID-19. How can hotel brands rethink and redefine their options for event del- egates and corporate clients in hybrid meetings? Hotel brands have a key role to play in re-attracting meeting planners. They will leverage two distinctive pillars. The first will be focusing on ex- clusive brand experience. Each brand has a distinctive brand positioning that reflects into its meet- ing experience. For example, Novotel Meeting experiences will promote col- lective classes to create bounding moments whereas Swissotel will focus on indoor and outdoor vitality activities. Secondly, hotels will adapt unique F&B experiences to ensure attrac- tive and safe meeting experiences. F&B has always played a fundamental role in facilitating human interactions. These experiences can be adapt- ed to fit safety measure, for e.g. focusing on live cooking and individual servings. How can virtual events solutions allow companies to connect with team members and collaborate seamlessly? Accor ALL Connect allows seamless digital and physical meeting experi- ences and team collaboration by enabling physical in-hotel meetings and virtual interactions across multiple locations simultaneously, powered by Microsoft Teams. The latter is a hub for teamwork collaboration in Mi- crosoft Office 365, which integrates people, content, and the tools that teams need to be more engaged and productive with Surface Hub 2S. This is a modern, all-in-one collaborative canvas and meetings platform, easy to integrate into any workspace. This collaboration helps us transcend the confines of the traditional conference room by bringing people together wherever they work. On Surface Hub 2S you can join a Teams meeting simply by touching the screen. The 4K camera and the sound are activated automatically and you can concentrate on your business. This system can accommodate up to 1000 participants with no time limit with the possibility to record meetings in a secured environment. It guarantees the privacy of content and personal data. Which new technologies will accelerate the adoption of hybrid events in contemporary times? Technologies currently exist for interactive screen, cameras that follow speakers during the meeting and 4K quality. What will be different is the democratisation of these solutions to make it the norm. We can compare this to WiFi adoption. At the beginning, it was an ad- ditional service in the hotel. Now, it is the norm for every hotel. Can hotels present hybrid events as a cost effective and inclusive expe- rience for event planners and corporate clients? Instead of hosting large groups at one location, meeting planners can host small groups in different locations without expensive travel costs. Our ca-Next >