Luxury hospitality chain Fairmont Hotel and Resorts entered the Indian market with a 255-room hotel in Jaipur last year. The Canada-based hotel chain is now exploring options to expand its footprint to other Indian cities. Jennifer Fox, President, Fairmont Hotel and Resorts, told Business Line about the group’s future plans.

What are your plans for expansion in India?

Fairmont entered the Indian market in early 2012 with its first property in Jaipur. We’ll look to develop city centre hotels in urban areas such as Bangalore, Delhi and Mumbai, while destinations such as Goa will serve as an attractive location to grow our resorts portfolio.

We are working with partners and developers to look for opportunities in the country.

What are the occupancy levels of the hotel in Jaipur? Why did you select Jaipur and not a metro?

We have received a positive response since our launch in August last year. As far as the market is concerned, we have had a good response from both wedding and MICE (meetings, incentives, conferencing, exhibitions) segments. Overall, it has been a positive opening.

Jaipur is part of the famous golden triangle (Delhi-Agra-Jaipur) which serves huge benefit for us. Most of the international tourists usually visit the golden triangle. Moreover, it offers great connectivity. With the conversion of 90 per cent of the NH-8 into an eight-lane highway, the travel time from Gurgaon to Jaipur is now down to three hours. Also, NH 11 is yet another important tourism highway for Jaipur that connects Agra.

The city appeals to a mix of rich cultural, historical and business interests and is definitely a huge market for us.

From a global perspective, how important is the Indian market?

We see significant opportunity for outbound travel to key Fairmont markets including Dubai, Abu Dhabi, Singapore, Shanghai, Beijing, in addition to locations in Canada, US, Europe and Africa. With the launch of Fairmont Jaipur, it will definitely assist us in introducing Indian travellers to our brand.

With Subroto Roy’s Sahara India Pariwar group now being the owner of the Plaza Hotel New York, what difference does it make to you as the management company of the hotel property?

The hotel is currently owned by Sahara India Pariwar and Kingdom Holding Company, chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and a shareholder of our parent company Fairmont Raffles Hotels International. The Plaza will continue to be an iconic property in New York and a distinctive member of the Fairmont Hotels and Resorts portfolio, with all the services, amenities and programmes that this entails. We look forward to working with our new owners and will of course remain open to exploring additional opportunities with Sahara.

What is your outlook for the Indian hospitality sector?

The hotel industry is going through an interesting phase in India. International hotel chains are influenced by the growing economic setting and demand for more hotel rooms across categories. In 2013, the market will definitely be in a stronger position than 2012. The first quarter results will set out the trend for the rest of the year. It will have a positive impact, especially with incentive travel becoming big within the region.

The Indian Government is proposing several measures that will increase investment in the hospitality sector and accelerate the process of growth. With the opening of FDI in hospitality, the market is attracting more foreign investment onto Indian shores. This in turn has the investment atmosphere buoyant for Indian investors and promoters of hotels as well. The year 2013 is likely to increase and shape investment in the hospitality sector, across a broad price band.

What are the challenges in the India market?

Being a new international brand poses more opportunities than challenges. India’s luxury hospitality sector is growing and interestingly at a rapid pace. The Indian luxury hospitality industry has recorded healthy growth fuelled by hearty inflow of overseas tourists as well as increased tourist movement within the country.

We remain optimistic on the long term growth story for the Indian hospitality industry. This is further reinforced by the India-centric growth strategy of several global hotel players.

What is the impact of the slowdown in the global economy and Indian market on Fairmont Hotels and Resorts?

Last year was admittedly challenging, though we weren’t impacted as heavily as some of our competitors due to our property mix and current distribution. However, along with savvy travellers wanting a luxury product and unique experiences, guest expectations are also increasing on the service side, so we are equally focused on this front.

nivedita.ganguly@thehindu.co.in

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