Is an IPO still on the cards?
It's too early for me to deliberate on the issue. I asked Jyotsna Suri (wife of Lalit Suri and the chairman and managing director of Bharat Hotels) about it just yesterday. As of now, it is not on our priority list.
What is your priority then?
We have to become market leader in all the cities that we operate in, and I want to achieve that in the next 12-18 months. There are some HR challenges and carious systems and processes need to be put in place. Once we upgrade and improve our standards, I see no reason for not improving our average room rates.
These are currently in the Rs 11,000-12,000 range and can slowly be increased. I am going to be introducing very strong revenue management levers. I already meet my revenue manager twice everyday to oversee the occupancy rates of each category. Then the sales and marketing people step in to ensure that the vacant rooms are sold.
What all are you doing to become the market leader?
I will initially focus on brand building and setting uniform standards. I have to create a sense in my colleagues' minds that we are in the business of luxury. Everything has to be the best. I want all my staff to feel empowered to making a customer happy, even the housekeeping boy.
If he finds a customer unhappy, he should be able to address the problem without having to run to the duty manager. If a guest disputes the mini-bar bill, the person at the check-out counter must waive that charge immediately. You can never doubt the guest. These small things create an impact. I have to have the best of talent in each of my hotels. It is they who will make the properties a success.
How will you entice the best to work for you?
Attractive packages with a strong and transparent reward for performance. That is very important to me. I am also introducing extensive training programmes based on employees' needs.
If one wants to learn about wines and another about finance, they should not be denied that. I want my employees to grow with the company. The training needs could be reviewed as quickly as every year.
After the Dubai project, what else is Bharat Hotels looking at overseas?
That will happen eventually. First, I will concentrate on consolidating our position in the domestic market. South and West Asia will obviously be the natural extension of the company.
So are you more serious about consolidation or expansion?
Both. While we consolidate, we will look at new opportunities. We are keen to enter Pune, Hyderabad, Chennai and Amritsar. The challenge is in finding viable real estate.
How will you make your brand unique from other hotels?
The uniqueness will come from the extra comfort we will provide in our rooms, or free internet services in the hotels. Our two hotels in Goa and Srinagar have golf courses and have not been marketed right. I will also look to tie up with other golf courses and promote a golfing holiday. We have a private jet which can be used to fly our biggest clients from Goa to Srinagar.
Innovation is another important area. At my staff meeting, I have told each employee to come up with one creative idea everyday.