HVS Anarock India Hospitality Review 2018 noted that Cygnett Hotels and Resorts recorded the highest number of hotel signings in India that year. It was an achievement for a relatively new hospitality chain. Following the pandemic disruption, where are you now with your expansion plans?
We have been moving from strength to strength since our inception. Today we operate properties across different segments, from upscale to economy. We have even made our presence felt in areas that are underserved by many other leading brands.
We have an ambitious target of adding more than 5,000 keys and establishing the company as a 100-plus strong hotel group in the next five years. Besides four to five projects in India’s North-east, we are looking to open new properties in markets like West Bengal, Uttar Pradesh, Goa, Rajasthan, Odisha, Uttarakhand and Himachal Pradesh – just to name a few.
Apart from tier-one cities, our focus is on smaller cities that are missing the presence of a branded hotel chain. The government’s emphasis on infrastructure development is opening new doors for the hospitality sector and that’s the reason we are witnessing strong tourism demand in regions like North-east India.
The growth strategy of Cygnett mainly consists of attaining pre-owned possessions from the unorganised sector at key, strategic locations in both non-metro and metro cities. We then upgrade and align these hotels to Cygnett standards through renovation and technology assimilation to get them operational and available globally.
Although the domestic market has always been important to hotels in India, the pandemic deepened its significance. How do you expect domestic demand for hotels in India to look in the coming months?
The domestic tourism market… is going to be crucial for hotels in the near future too. Inbound travel has been picking up slowly since the government allowed operations of scheduled international flights. However, the road to recovery for the inbound tourism segment is going to be a long one. I hope to reach pre-pandemic inbound numbers by the end of 2023.
So, going ahead, the focus will still be on domestic markets. Domestic tourists pay well, they stay on longer, and spend on F&B offerings in the properties.
The economy is steadily coming back on track and therefore the demand is accelerating, especially in non-metro cities. The average occupancy rates in Cygnett hotels have been going above 85 per cent for the past few months. The recovery in the hospitality sector has been faster than expected after the mayhem caused by the pandemic.
Earlier, your thrust was on the management model. Are you going to stick to a similar strategy for your future expansion plans?
We have a Franchise Plus’ programme, and the majority of the hotels under our portfolio are managed. However, now we are keen to have 60 per cent of our properties under the franchise model and the rest either managed or owned.
One of the brands that we view is well-positioned to grow as a franchise-based model is Cygnett Inn. If our brand standards are met, we are open to tie-ups with hotel owners who may be facing business difficulty in the wake of the pandemic.
There are many people who want to run a hotel on their own but also want to associate with a reputed brand. After the onset of the pandemic, owners understand that brand value is very important for travellers when they make an accommodation choice. So, apart from the brand association, we offer such owners technology, sales and marketing, financial, call centre and training support through our franchise model.
Cygnett also offers training to staff of its partner hotels under the franchise model. We have an e-learning module, which helps staff to learn from their premises. At present we have only two hotels operating under the franchise model in a portfolio of 20 operational hotels and 15 hotels that are in various stages of pre-opening.
You now have brands like Cygnett Park, Cygnett Inn and Cygnett Lite. Are there plans for more new brands?
We have always tried to introduce brands that cater to the ever-evolving demands of the market. We are excited to soon launch Cygnett Retreat, which is going to offer a boutique resort experience in a budget-friendly manner. These resorts will have an inventory of 40 or fewer rooms. We are considering markets like Himachal Pradesh, Uttarakhand and Goa for opening properties under the brand.
We are also excited about the launch of our new wellness brand, Ayurvyaas. The brand aims to offer a holistic wellness experience to its guests for physical, cognitive and spiritual healing using ancient Vedic sciences and contemporary practices. The properties under the brand will have an inventory of 200 or more rooms with 25 to 30 rooms dedicated to therapies. Ayurvyaas will be an integrated lifestyle and wellness solution that offers its guests premium spaces with spectacular views combined with supreme luxury and exceptional hospitality.
Wellness has gained prominence, and we are looking to offer a one-of-a-kind wellness experience through Ayurvyaas. We are considering Rishikesh, a popular wellness destination, to open the first Ayurvyaas property in India.
You currently have one property in Nepal. You had also previously expressed interest to expand to destinations like Bangladesh, Sri Lanka, Indonesia and Vietnam. What’s brewing in this space now?
In my past visits to destinations like Sri Lanka, I have seen many hotels filled up with Indian guests. So, there is a huge opportunity for Indian brands in such destinations.
Also, with India being a major outbound market, hotel chains like ours have a good opportunity to connect with Indian travellers.
We would definitely like to expand internationally but for the time being our focus is going to remain on the domestic front.
With family groups making up a sizeable portion of guests leading the travel recovery, top-end hotels are directing their creative juices towards programmes that all ages can enjoy together.
Ramesh Daryanani, vice president, global sales, Asia Pacific, Marriott International, told TTG Asia at ILTM Asia Pacific on Wednesday that families reuniting on a post-lockdown holiday are “looking for programmes to keep everyone entertained and engaged”.
“Crafting programmes for families is a priority now for our hotels and Marriott as a company. Everyone is looking for the next new experience on their trip, and wanting to share their stories when they go back. It is our job to give them the experience that they can talk about,” remarked Daryanani.
He pointed to various programmes offered in the Good Travel with Marriott Bonvoy collection that welcome all ages, such as activities at JW Marriott Phuket Resort & Spa’s Turtle Shelter; nature trail and sapling plantation initiatives at Le Méridien Mahabaleshwar Resort & Spa; Blue Swimming Crab rehabilitation at Sheraton Samui Resort; and volunteerism with the St. John’s Gold Coast Crisis Centre, coordinated by JW Marriott Gold Coast Resort & Spa.
JW Gardens installed in JW Marriott properties around the world offer families a chance to see how herbs and vegetables are grown and used by the hotel.
The Ritz-Carlton collection of properties across Asia-Pacific will roll out Ritz Kids 3.0 later this year, a new programme built around Leo the Lion who will take young guests on a journey to spark their curiosity, instill a sense of responsibility and bring them closer to nature and the local culture in whatever destination they visit.
These programmes are not only fun, but they also expose children to sustainable and regenerative tourism concepts, opined Daryanani.
Minor Hotels, which has also witnessed an energetic pickup in family travel demand, has properties all ready to engage the young and the old.
Anantara Kihavah Maldives Villas offers a kids club that comes with a trampoline park, a splash park and slides as well as a full line-up of activities from 10.00 to 18.00 daily, giving children little reason to stay indoors.
Paul Counihan, director of sales and marketing for the property, said there are a number of “very creative” activities that are a big hit with the little ones. One of which is a marine biology class conducted within the SEA underwater restaurant, while another whisks little pirates off on a sailboat to ‘conquer’ a sandbar.
Guests looking to bond can sign up for a story-telling date with grandpa and enjoy free cookies and milk. Families can also stargaze at the resort’s over-water observatory and interact with a Maldivian astrologist.
Andy Nightingale, cluster director of sales and marketing for Anantara Dhigu, Veli & Naladhu Private Island, Maldives, said properties offer a mix of programmes unique to children and for everyone in the family because “while families are eager to go on a holiday together post-lockdown, parents are also going crazy after 24 hours with their kids”.
“They need a break, and we are happy to help,” he said.
Properties under his care offer complimentary kids programmes, like movie nights, so that the grown-ups can enjoy a tranquil drink or meal for a couple of hours.
Illustrating the hearty appetite of travelling families, Marion Walsh-Hédouin, vice president public relations & communications, Minor Hotels, said the 15 residences within Anantara Layan Phuket Resort in Thailand are sold out even during the low season. These units offer five to eight bedrooms each.
Anantara Kihavah Maldives Villas’ five residences with between two and four villas are also popular with family groups.
“We are creating more facilities that cater to multi-generational groups,” shared Walsh-Hédouin, adding that “there is a greater focus on tailoring experiences that are good for both kids only and for the whole family”.
“Pre-Covid, couples often travelled without the kids. But when the pandemic kept families apart, they missed each other and learnt to appreciate time together,” she said.
Walsh-Hédouin also found that families are now travelling for a longer duration – up to seven nights per destination – and staying in fewer places at one go. Instead of packing Bangkok, Siem Reap, Luang Prabang and Phuket into a single trip to Asia, for instance, they are choosing to do just two.
“They are also preferring to stay with the same hotel company in the various destinations they visit for seamless travel. For example, families would stay at Anantara Hoi An for a couple of days, then get on The Vietage (train) to Anantara Quy Nhon for another few days. The train is a seamless travel option, and guests can enjoy the views along the way,” she said.