'Bikki Oberoi slowed growth of The Ritz Carlton in India'

P R S Oberoi, Chairman & CEO, EIH Ltd

Global hospitality majors would hate to come to terms with reality but the fact remains that Indian chains operating luxury hotels have thus far successfully managed to give the international counterparts a run for their money (read luxury brands). Take Marriott International for instance, one of the leading global hospitality chains has had it tough so far especially with expanding its luxury hotel brand The Ritz Carlton in India.

In fact, Simon F Cooper, president and managing director – Asia Pacific, Marriott International, often gets asked 'why Marriott has 9 The Ritz Carlton hotels in China and just one which is yet to open in India'. “I would answer in just two words – Bikki Oberoi,” Cooper said. With 266-rooms, The Ritz Carlton Bangalore is currently being developed by the recently listed realtor Nitesh Estates Ltd and is scheduled for 2011 debut.

P R S Oberoi or Bikki Oberoi as he is popularly known in the global hospitality industry is chairman and chief executive officer of EIH Ltd, the flagship company of The Oberoi Group. Just recently, Oberoi was presented with the ‘2010 Corporate Hotelier of the World’ award by HOTELS magazine. In its 29th year, the annual ‘Hotelier of the World’ award is determined by votes cast by readers of the magazine in more than 150 countries.

Oberoi is credited with placing Oberoi hotels on the international luxury travellers’ map with the opening of several new luxury hotels in Mauritius, Indonesia, Egypt and hotels in India at crucial tourist destinations such as Jaipur, Agra, Udaipur, Ranthambhore and Mashobra in the Himalayas. He has directed the development of these hotels breaking ground in new destinations and redefining architectural and design standards in luxury hospitality.

Recently, The Oberoi Vanyavilas, Ranthambhore was ranked the best hotel in the world in Travel + Leisure magazine’s 2010 World's Best Awards readers’ poll. In the same readers’ poll, The Oberoi Vanyavilas, Ranthambhore; The Oberoi Amarvilas, Agra; The Oberoi Rajvilas, Jaipur and The Oberoi Udaivilas, Udaipur were ranked 1st, 2nd, 3rd and 4th respectively in Asia and 1st, 5th, 13th and 15th respectively in the world.

As for global luxury hoteliers' sentiments about delay in getting their luxury brands in India are concerned, they get clearly substantiated from Cooper's statements. It certainly is a fact that some of the prominent global luxury hotel brands have taken ages to set foot on the Indian soil while there are others who are still awaiting their turn. Brands like The Peninsula Hotels, The Regent, Mandarin Oriental, St Regis, Edition Hotels, Waldorf Astoria, Banyan Tree Hotels and Resorts etc are yet to establish their presence in India.

On the dominance of India hotel companies in the luxury segment perse, Marriott's Cooper feels, India has historically grown up with great luxury hotels that have for years catered to global leisure travellers. “That's one key reason why growth has been a bit slower from The Ritz Carlton point of view. Having said that, going forward, I feel there is enough room for delivering luxury hotel experiences in the Indian market,” he said.

As for luxury hotel development pipeline from Marriott is concerned, Arne M Sorenson, president and chief operating officer, Marriott International Inc, said, “Of the overall signed (management contract) pipeline in India, approximately 8 hotels are under the J W Marriott brand.”

Strictly following the management contract route, Marriott currently operates 11 properties in India with a development pipeline of 30-odd hotels under various stages of construction. Keeping the overall demand scenario in mind, Sorenson is looking to take the Marriott hotels count in the country to 41 hotels by 2013 and approximately 100 hotels by 2015. The company sees its Courtyard and Fairfield brands contributing significantly to the entire development pipeline in the coming years.