Right In The Middle
Seeing the potential of mid-segment hotels, Prestige Group might hive its hospitality vertical into a separate business entity
By Vinita Bhatia
There is growing disruption in the hospitality industry with increasing competition, entry of newer brands, as well the inundation of new techniques and technologies, along with increasing customer expectations. At the same time, according to Zaid Sadiq, executive director, liasoning and hospitality of Prestige Group, opportunities abound in micro-markets as opposed to an overall generic demand, depending on the products, services and brands on offer.
He believes that the industry is a dynamic one where clientele needs are constantly evolving and where developers have to deal with a wide spectrum of clients with varied needs. “My constant attempt is, therefore, to stay one step ahead of changing market dynamics in southern India by bringing in newer thinking and aiming to create hotels that have a modern look and feel, and match global standards of innovation, technology and service,â€ť Sadiq said.
SCOPE FOR GROWTH
At the moment, there is a significant growth momentum for mid-segment hotels in the three-star and four-star categories, which, however, is quite disorganised. This is the area Prestige would like to tap, seeing its huge untapped potential.
â€śWe are looking at how to separate the hospitality vertical into a separate business segment. Prestige aims to build an in-house hotel brand, apart from associating with international hotel chains. In the long-term, we also plan to start our own mid-segment hotel brand,â€ť Sadiq revealed.
BANKING ON TECH
The key trend that influences hospitality business in todayâ€™s time is seamless technology experience. Todayâ€™s customer prefers technology that helps them simplify their stay at the hotel,â€ť said Sadiq.
Prestige-owned Aloft Bengaluru Cessna Business Park, for instance, caters to tech-savvy millennials who expect a digitally advanced hotel in terms of high speed internet, smart room keys or digital conference facilities. It has a keyless feature that allows the guests to use their smartphone to check into their room using the Marriott preferred guest app.
The decision to develop and measure the scalability of a limited service or a full service project depends on the combination of the location of the project, demand for a brand, current market trend and analysis of the competition in the area. It also depends on the project cost we are looking at and the return on the investment.
Since hospitality is a competitive business segment, every hotel is looking to build on innovations to impact operational factors, depending on the scale of the project. For instance, for a luxury property, this could be increased focus on specialised F&B concepts and operations to boost revenue and profits.
To attract new, as well as retain its old client base, Prestigeâ€™s hotels are working towards daily innovations, special offers and deals for corporate houses. MICE is a promising segment for driving future growth and we are looking to cater to the cityâ€™s built demand,â€ť Sadiq added.
With a plan to establish the group as a dominant presence in hospitality development across southern India, the company is scaling up its operations slowly but surely. By relying on technology, Prestige is already taking all the right steps to become a lighter and leaner company.