This Q&A first appeared in DNA Money edition on Tuesday, September 6, 2011.
Known for creating landmark properties globally, Trump Organisation is now looking to tap the Indian hospitality market which is witnessing a tremendous demand for ultra-luxury real estate.
In an interview with DNA, Trump Organisation’s executive vice president Donald Trump Jr and executive vice president - development and acquisitions Ivanka M Trump elaborate on their plans while Trump International Development’s independent development consultant-India, Pranav R Bhakta, gives an overview of the company’s groundwork so far. Edited excerpts:
Why is Trump Hotel Collection eyeing the Indian hospitality market?
I have been to majority of the emerging markets and I am bullish on India. After visiting the country at least six times in the past five years, I have realised that our brand can add significant value to India. The increased global interest for India as a destination and growing number of high-networth individuals in the country translate into increased demand for ultra-luxury real estate.
The country is also experiencing increased development of iconic hotels and marquee mixed-use projects that are redefining cityscapes. With an increased appreciation for luxury lifestyle, the next natural step is to bring Trump Hotel Collection to India.
How is growth of Trump Hotel positioned in India and globally?
Last month we opened Trump Ocean Club International Hotel & Tower Panama, a 2.7 million-square-foot hotel and residential complex towering 70 stories, the tallest building in Latin America. Within two weeks it was completely sold out, breaking occupancy records.
By year-end, we will open Trump International Hotel & Tower Toronto, our second hotel outside the US. We are proactively seeking management contracts that are aligned with the company’s long-term strategic vision of operating a collection of iconic properties in key cities and resort destinations globally.
For India, this means a handful of hotels, likely ranging from approximately 150 to 500 rooms, depending on the market. With a level of customised service unrivaled in the market today and the ability to attract those seeking the modern day sensibilities of the next generation of luxury travel, we are positioned for continued growth at a consistent pace around the globe.
I understand that you have three verticals— Trump Hotels, Trump Branded Residences, Trump Golf. Also, as a part of Trump Organisation, you own Miss Universe, Apprentice (TV show). So will there be any cross-marketing forproperties in India?
We certainly cross-market across multiple platforms and create a buzz. We had the opportunity to showcase Trump Hotel Collection and two Trump Golf Clubs in the past season of The Celebrity Apprentice, which was aired in over 100 countries.
Trump golf course members and owners of Trump real estate are offered special promotions at Trump hotels. Over the next few years, Miss Universe will likely be hosted in international markets where we have Trump branded properties. We continue to identify unique opportunities to cross-market and will certainly do the same in India.
By when can we expect first property of Trumpin India? Will the India developments be primarily with asset owners with experience in developing hospitality assets or will you go with pure-play realtors with hotels/resorts as one of the assets in their overall real estate portfolio?
We have been looking at the market actively for the past five years. We continue to strategically review opportunities in major cities and resort destinations including Mumbai, New Delhi (Central), Bangalore, and Goa, and are working with local developers who carry strong track records to bring Trump Hotel Collection to the market. Selectivity is fundamental as we only want to be part of the best developments. Identifying hotel developers and pure-play real estate developers who share our values is a key component to bring the first Trump hotel to India.
We believe the successful execution of our marquee real estate projects and operation of our luxury hotels is rooted in relationships that are based on collaboration and flexibility.
How do you plan to place Trump Hotel Collection against the existing and upcoming luxury global brands in the country?
With decades of experience in developing luxury real estate across all asset types, Trump offers something other hotel management companies cannot. Most hotel management companies have pre-established development standards and are not comfortable moving away from a cookie-cutter approach to design.
We focus on ensuring that Trump Hotels are contextual to the city and neighborhood in which they are built. From inception, I work on selecting the best talent, and directly engage with the designers, architects and local consultants to create something unique.
Once open and operating we deliver innovative experiences and signature services and amenities, from exclusive restaurants housing celebrity chefs to our Trump Kids and Trump Pets programmes. There is also a certain cache associated with the Trump brand globally. People recognise the lifestyle we stand for and aspire to be part of it.
What is the nature of these developments - hotels, destination/resorts, serviced apartments, lifestyle properties including destination spa, golf course, mixed-use developments?
As an organisation, we continually focus on luxury condominiums, resorts, golf courses and hotels. However, the success of Trump Hotel Collection is extremely exciting and the preeminence of the Trump name in real estate markets around the world has provided us the opportunity to penetrate into the international luxury hotel and resort market.
A number of our hotels feature luxury branded residences; the golf course we are developing in Scotland will feature a Trump hotel on site; and most Trump hotels feature The Spa at Trump, which is distinguished by world-class facilities and an unprecedented level of luxury and personalisation.
What are your core strengths as a hotel management company?
Trump Hotel Collection ensures the highest quality product while maintaining the essence of ultimate uniqueness. We have raised the bar on the top-end travel experience with a style of customised service. Our personalised concierge, Trump Attache, is an example of our commitment to service. Trump Attache is a programme that dedicates an entire department to delivering uncompromising and individualised service to each hotel guest.
The programme is designed to create a sense that every hotel guest is a VIP and focuses on ensuring that no hotel stay feels like a first. Creating a sense of home is something that we are proud to offer to all our guests.
Which are the key brands you compete with in the current markets?
While Trump Hotel Collection offers a product re-imagined for the modern traveller, our competitive set includes luxury international legacy brands as well as independent luxury hotels. On a combined basis, Trump Hotel Collection properties are significantly outpacing the luxury segment’s global RevPar Index, which includes other international luxury brands that are presently enjoying success in India.
What is your mandate as an independent consultant for Trump’s developments in India?
I serve as a liaison between India and Trump. I am focusing on sourcing opportunities in India for all three of the organisation’s real estate verticals—-Trump Hotel Collection, Trump Branded Residences and Trump Golf. The primary goal at the moment is identifying hotel management opportunities for Trump Hotel Collection.
I am doing business development in India, which includes educating local developers about Trump’s brand equity as a core competency, development capabilities and competitive advantages. I believe all three brands are well-positioned to enter the luxury real estate segment of India.
What kind of ground work have you done since assuming the role here?
Prior to starting my groundwork in India, I spent time in New York City with the Trump family and key members of the organisation to better understand their growth objectives for India. Over the past few months, I have been on the road throughout the country, spending most of my time in Mumbai, New Delhi, Bangalore and Goa meeting with legacy, institutional, and regional developers.
Till date, I have met over 55 developers, PERE groups and hospitality consultants, conducted many site visits, and I’m in various stages of negotiations.
What is the profile of hoteliers and real estate developers that you are in talks with?
Trump branded properties around the globe are known for their premier locations, landmark architecture and endless captivating views. Trump is seeking local developers that want to create the same standard in India that it has executed for the past 35 years.
Trump seeks developers that have the passion to redefine luxury, develop iconic buildings and, most importantly, have the desire to benefit from Trump’s experience in developing, selling and marketing luxury real estate. Trump brings unparallel experience to the table and is excited about developers that are keen on breaking away from traditional “India” construction methods to a more dynamic, institutional caliber — pushing the boundaries to deliver exceptional developments with unsurpassed levels of finishing and service.
What are the challenges and opportunities for Trump developments in India?
Opportunities are endless here. By blending core strengths in hotel, residential and golf, Trump has the ability to manage mixed-use hotel/residential developments and provide substantial reversionary value in the process.
Unlike other luxury hotel brands that require a hotel component, Trump can brand a luxury residential tower as standalone, manage a pure-play hotel, or it can blend all three verticals to create a true destination integrated resort with golf, hotel, and branded residential villas.
Trump Ocean Club International Hotel & Tower Panama is a fabulous example of a marquee mixed-use residential/hotel project that is operated by Trump. With 369 rooms, 645 branded residences, and over $400 million dollars invested, the project is the largest residential mixed-use property in all of Latin America.
Trump has added significant value to the development and marketing of the project, which is a world-class landmark and an architectural icon.
Known for creating landmark properties globally, Trump Organisation is now looking to tap the Indian hospitality market which is witnessing a tremendous demand for ultra-luxury real estate.
In an interview with DNA, Trump Organisation’s executive vice president Donald Trump Jr and executive vice president - development and acquisitions Ivanka M Trump elaborate on their plans while Trump International Development’s independent development consultant-India, Pranav R Bhakta, gives an overview of the company’s groundwork so far. Edited excerpts:
 |
| Donald Trump Jr |
I have been to majority of the emerging markets and I am bullish on India. After visiting the country at least six times in the past five years, I have realised that our brand can add significant value to India. The increased global interest for India as a destination and growing number of high-networth individuals in the country translate into increased demand for ultra-luxury real estate.
The country is also experiencing increased development of iconic hotels and marquee mixed-use projects that are redefining cityscapes. With an increased appreciation for luxury lifestyle, the next natural step is to bring Trump Hotel Collection to India.
How is growth of Trump Hotel positioned in India and globally?
Last month we opened Trump Ocean Club International Hotel & Tower Panama, a 2.7 million-square-foot hotel and residential complex towering 70 stories, the tallest building in Latin America. Within two weeks it was completely sold out, breaking occupancy records.
By year-end, we will open Trump International Hotel & Tower Toronto, our second hotel outside the US. We are proactively seeking management contracts that are aligned with the company’s long-term strategic vision of operating a collection of iconic properties in key cities and resort destinations globally.
For India, this means a handful of hotels, likely ranging from approximately 150 to 500 rooms, depending on the market. With a level of customised service unrivaled in the market today and the ability to attract those seeking the modern day sensibilities of the next generation of luxury travel, we are positioned for continued growth at a consistent pace around the globe.
I understand that you have three verticals— Trump Hotels, Trump Branded Residences, Trump Golf. Also, as a part of Trump Organisation, you own Miss Universe, Apprentice (TV show). So will there be any cross-marketing forproperties in India?
We certainly cross-market across multiple platforms and create a buzz. We had the opportunity to showcase Trump Hotel Collection and two Trump Golf Clubs in the past season of The Celebrity Apprentice, which was aired in over 100 countries.
Trump golf course members and owners of Trump real estate are offered special promotions at Trump hotels. Over the next few years, Miss Universe will likely be hosted in international markets where we have Trump branded properties. We continue to identify unique opportunities to cross-market and will certainly do the same in India.
By when can we expect first property of Trumpin India? Will the India developments be primarily with asset owners with experience in developing hospitality assets or will you go with pure-play realtors with hotels/resorts as one of the assets in their overall real estate portfolio?
We have been looking at the market actively for the past five years. We continue to strategically review opportunities in major cities and resort destinations including Mumbai, New Delhi (Central), Bangalore, and Goa, and are working with local developers who carry strong track records to bring Trump Hotel Collection to the market. Selectivity is fundamental as we only want to be part of the best developments. Identifying hotel developers and pure-play real estate developers who share our values is a key component to bring the first Trump hotel to India.
We believe the successful execution of our marquee real estate projects and operation of our luxury hotels is rooted in relationships that are based on collaboration and flexibility.
 |
| Ivanka M Trump |
How do you plan to place Trump Hotel Collection against the existing and upcoming luxury global brands in the country?
With decades of experience in developing luxury real estate across all asset types, Trump offers something other hotel management companies cannot. Most hotel management companies have pre-established development standards and are not comfortable moving away from a cookie-cutter approach to design.
We focus on ensuring that Trump Hotels are contextual to the city and neighborhood in which they are built. From inception, I work on selecting the best talent, and directly engage with the designers, architects and local consultants to create something unique.
Once open and operating we deliver innovative experiences and signature services and amenities, from exclusive restaurants housing celebrity chefs to our Trump Kids and Trump Pets programmes. There is also a certain cache associated with the Trump brand globally. People recognise the lifestyle we stand for and aspire to be part of it.
What is the nature of these developments - hotels, destination/resorts, serviced apartments, lifestyle properties including destination spa, golf course, mixed-use developments?
As an organisation, we continually focus on luxury condominiums, resorts, golf courses and hotels. However, the success of Trump Hotel Collection is extremely exciting and the preeminence of the Trump name in real estate markets around the world has provided us the opportunity to penetrate into the international luxury hotel and resort market.
A number of our hotels feature luxury branded residences; the golf course we are developing in Scotland will feature a Trump hotel on site; and most Trump hotels feature The Spa at Trump, which is distinguished by world-class facilities and an unprecedented level of luxury and personalisation.
What are your core strengths as a hotel management company?
Trump Hotel Collection ensures the highest quality product while maintaining the essence of ultimate uniqueness. We have raised the bar on the top-end travel experience with a style of customised service. Our personalised concierge, Trump Attache, is an example of our commitment to service. Trump Attache is a programme that dedicates an entire department to delivering uncompromising and individualised service to each hotel guest.
The programme is designed to create a sense that every hotel guest is a VIP and focuses on ensuring that no hotel stay feels like a first. Creating a sense of home is something that we are proud to offer to all our guests.
Which are the key brands you compete with in the current markets?
While Trump Hotel Collection offers a product re-imagined for the modern traveller, our competitive set includes luxury international legacy brands as well as independent luxury hotels. On a combined basis, Trump Hotel Collection properties are significantly outpacing the luxury segment’s global RevPar Index, which includes other international luxury brands that are presently enjoying success in India.
 |
| Pranav R Bhakta |
I serve as a liaison between India and Trump. I am focusing on sourcing opportunities in India for all three of the organisation’s real estate verticals—-Trump Hotel Collection, Trump Branded Residences and Trump Golf. The primary goal at the moment is identifying hotel management opportunities for Trump Hotel Collection.
I am doing business development in India, which includes educating local developers about Trump’s brand equity as a core competency, development capabilities and competitive advantages. I believe all three brands are well-positioned to enter the luxury real estate segment of India.
What kind of ground work have you done since assuming the role here?
Prior to starting my groundwork in India, I spent time in New York City with the Trump family and key members of the organisation to better understand their growth objectives for India. Over the past few months, I have been on the road throughout the country, spending most of my time in Mumbai, New Delhi, Bangalore and Goa meeting with legacy, institutional, and regional developers.
Till date, I have met over 55 developers, PERE groups and hospitality consultants, conducted many site visits, and I’m in various stages of negotiations.
What is the profile of hoteliers and real estate developers that you are in talks with?
Trump branded properties around the globe are known for their premier locations, landmark architecture and endless captivating views. Trump is seeking local developers that want to create the same standard in India that it has executed for the past 35 years.
Trump seeks developers that have the passion to redefine luxury, develop iconic buildings and, most importantly, have the desire to benefit from Trump’s experience in developing, selling and marketing luxury real estate. Trump brings unparallel experience to the table and is excited about developers that are keen on breaking away from traditional “India” construction methods to a more dynamic, institutional caliber — pushing the boundaries to deliver exceptional developments with unsurpassed levels of finishing and service.
What are the challenges and opportunities for Trump developments in India?
Opportunities are endless here. By blending core strengths in hotel, residential and golf, Trump has the ability to manage mixed-use hotel/residential developments and provide substantial reversionary value in the process.
Unlike other luxury hotel brands that require a hotel component, Trump can brand a luxury residential tower as standalone, manage a pure-play hotel, or it can blend all three verticals to create a true destination integrated resort with golf, hotel, and branded residential villas.
Trump Ocean Club International Hotel & Tower Panama is a fabulous example of a marquee mixed-use residential/hotel project that is operated by Trump. With 369 rooms, 645 branded residences, and over $400 million dollars invested, the project is the largest residential mixed-use property in all of Latin America.
Trump has added significant value to the development and marketing of the project, which is a world-class landmark and an architectural icon.
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