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The newly opened Westin Hyderabad Mindspace.

2009 was a bumpy, roller coaster ride for the industry as a collective whole. Projects were scaled back, occupancies and ARR’s took a beating. However, paradoxically, the year also saw quite a few international players show confidence in the Indian hospitality sector, by announcing their forthcoming investments.

2010 promises to be a year of optimism and realism and, with the Commonwealth Games looming on the horizon, some new hotel openings says Punam Mohandas.

Although the recession isn’t over yet, its impact in this year will be considerably minimised, thanks to the foresight and business acumen industry leaders will show. Punam Mohandas speaks to a few leading players, for their views on what lies ahead.

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Staying on top of trends
In spite of the economic slowdown, Starwood undoubtedly made great strides in 2009 in making its presence felt across India; as of now there are 23 properties spread across five brands in the country. According to Nikhil Manchharam, vice president, acquisitions and development, Starwood Asia Pacific Hotels and Resorts: “The partnerships we select is one of the most important parts of the intelligence that we do, because when partners respect the brand, the growth potential is relatively high.”

A gung-ho Manchharam said his vision for the group in 2010 is to focus on customers and associates, and continue to grow the brands.

“The Indian hotel industry has some unique attributes that will allow it to make the most of the new year such as a growing demand base and affluence in the marketplace, and an under-supplied hotel market. Challenges will include finding and growing talent, and dealing with the competition,” added Manchharam.

He further said that the Indian hotel industry will keep pace with its Asian counterparts, and find that occupancy is likely to improve, with pressure on rates continuing.

“In my opinion, hospitality trends for 2010 will include continuous innovation in a highly competitive environment, branded opportunities being offered for urban and leisure living, and staying on top of trends by focussing on guest experiences and offering memorable experiences,” concluded Manchharam.

An optimistic outlook
Carlson Hotels Worldwide swept a hat trick at the Hospitality India Awards, being recognised as the ‘Fastest Growing Chain in South Asia’, while its Country Inns & Suites By Carlson brand was awarded ‘Best Mid-market Hotel Brand in India’ and Radisson Hotel Noida earned the ‘Best Business Hotel in the National Capital Region’ title.

The group has four out of its five brands present in India; Gaurav Kant , director of Sales, India, Carlson Hotels Worldwide, said: “We have the vision of being the most admired hotel company in the region.”

Kant sees the outlook for 2010 as optimistic. “A lot of domestic and international players have announced a number of hotel projects scheduled for opening in both Tier I and Tier II cities.

Travel in the corporate market has started to open up as has the inbound leisure business; the nature of the latter however still remains uncertain with the booking windows shortening.
 

Overall, presuming and hoping that there are no major incidents deterring travel and the forthcoming Commonwealth Games in the latter part of the year, 2010 augurs a recovery period for the Indian tourism industry as a whole,” he said.

Kant said that while India beats all the other countries in terms of the richness of its diversity, infrastructure has been a bane for the Indian tourism industry for a long time.
 

“While other Asian economies such as Singapore, Malaysia, and Thailand, boast of top class infrastructure suitable for high-end tourism experiences, we in India still lag behind in the same. Also, the recent bout of recession has been a blessing in disguise for the country in terms of forcing a rationalisation of rates, which was another reason for potential tourists fleeing to neighbouring countries including China,” he said.

Kant further said that 2010 will bring forth challenges such as lack of skilled manpower, and shortage of rooms. However, resilience, consistent efforts, and the Indian economy registering a positive growth while all the other countries were either stagnant or entering into a negative growth phase, will allow the industry to make the most of the new year, he added.