The Hindu Business Line : To gain in a postive environment — Hoteliers believe in having good contacts with counterparts

THE metros have seen a number of five-star hotel properties open their doors over the past couple of years, and the season commencing from last October has been one of the best in the recent years for many of the new entities.

And, while all theplayers are keen to make the most of the positive business sentiment, they have not resorted to the cutthroat business tactics that is a feature of other industry sectors.

There is no undercutting of room tariffs here and far from adopting a hush-hush business policy, there seems to be an open exchange of ideas among the hotel fraternity.

Mumbai, which has seen the entry of all the important global hotel brands over the past two years, provides a good example. Hoteliers in the city say they have cordial relationships with their counterparts. Such understanding is important when it comes to negotiating with the Government on policy issues and for "industry-friendly" sops.

The increased competition in the segment is "welcomed" by industry players who say that while the supply of rooms has grown, so has demand. They also draw comfort from the fact that most of the hotel projects are now complete and the inventory of five-star hotel rooms in the city should stabilise over the next two to three years.

According to Mr Rattan Keswani, Senior Vice-President, Oberoi Hotels and Resorts, the hotel chains interact fairly frequently as they operate in the same business environment. Such networking helps when the industry as a whole makes a representation before the Government. However, they were fiercely competitive on business strategy.

He adds that the new hotels have spread themselves out well. The city has expanded in zones, with two of the oldest properties, the Taj Mahal Hotel and the Oberoi, in the Southern business district. The Central part of town boasted of the Taj Land's End and the most recent addition to the city's hotel sector, the Grand Hyatt.

The northern district of Andheri has seen the growth of a clutch of airport hotels in the past two to three years including The ITC Grand Maratha Sheraton, the Le Meridien, the Hyatt Regency, and the Leela, which is the oldest hotel in the airport's vicinity.

Concurring with the general view on frequent, rather cordial interchanges, Mr Josef Kufer, General Manager, Grand Hyatt, says that there is a good deal of understanding between the hotels. "There is enough business for all of us to thrive," he says.

Mr Kufer adds that with the city now boasting of two Hyatt International properties, there is greater scope for cooperation between the two; so, should either have an excess of clients, the overflow would be directed to the sister property.

Mr Sanjoy Pasricha, Corporate Head of Sales & Marketing at The Leela, says that hoteliers everywhere are aware of the huge investment that goes into setting up a five-star property. There is no place for a price war in such a high-investment sector.

In a demonstration of unity, many of the hotels in the city have joined hands with the Airports Authority of India to set up a convention centre in the city; no doubt with the ultimate aim of seeing a steady stream of corporate clients check into their rooms.

However, the proposal for the Rs 1,500-crore centre is yet to get off the ground, with several clearances still to be received.