ET – Hospitality World

1. Reflecting on the 34th Founders Day, what pivotal moments or achievements stand out, and how do they reflect the group's values and journey?

The journey began in 1989 with a vision—to revolutionise travel into an 'immersive experience' in Uttarakhand. This vision aimed not only to offer top-notch accommodation, delightful cuisine, and premium hospitality but also to elevate lesser-known destinations in Uttarakhand into sought-after tourist circuits for the discerning traveller.

We have now been in the hospitality business for more than three decades. Initially, the model was to build & operate for ourselves. A crucial turning point occurred when the Group decided to change its approach towards business development. We now have a three-pronged approach to growth and development. One is through building our own hotels to operate under our own brand and another is through management contracts of third-party properties in strategic locations. We currently have one property with Club Mahindra and three with Taj Hotels in addition two more are currently being built.

The group also has other interests in sugar manufacturing, real estate, agriculture and opur latest venture Craft Spirit with a launch of our Gin.

Various initiatives of the Group in the fields of Eco Tourism & in Sustainable Tourism Management have been very well appreciated. Our experiences in creating, restoring and managing world-class properties in Eco - Sensitive zones are especially commendable.

2. Suvaasa in Ramgarh is a new addition. Can you share insights into the concept and design of this boutique resort, and how it complements the existing portfolio?

Situated in the picturesque town of Ramgarh, Uttarakhand, Suvaasa is a boutique resort with a colonial-style ambience. Perched atop the Malla hills, the boutique hotel has nine well-appointed and spacious rooms with private balconies that offer mesmerizing valley views.

The interior design seamlessly blends classic English elements, featuring antique furniture, luxurious fabrics, and inviting fireplaces that infuse the space with warmth and charm.

The group had an existing property in Ramgarh but chose to un-lock value during the pandemic period by selling the asset to a high-networth family. We were always keen to have a presence in the ‘fruit bowl of Kumaon’, hence when the opportunity presented itself to have a presence in the Kumaon circuit, we were only too willing.

3. Looking back, what milestones do you consider the most significant in the Leisure Hotels Group's journey, and how have they contributed to the group's success?

Leisure Hotels Group has successfully established itself as a prominent player in the hospitality sector across North India. Our diverse portfolio includes smart hotels, boutique resorts and bespoke villas encompassing exquisite properties situated in tourist and scenic destinations. These offerings provide a range of experiences, from leisure and adventure to wellness, wilderness, and spiritual retreats.

We continue to strive towards putting Uttarakhand on the local/ global tourist map for the discerning traveller looking for immersive destination experiences. This involved establishing properties in lesser-known destinations, playing a key role in transforming them into popular tourist spots while preserving the authenticity and rich heritage of each location. Simultaneously, this effort contributed to the economic well-being of the local communities by generating livelihood opportunities.

With a current workforce comprising more than 1,000 associates, we are resolute in our commitment to foster gender diversity through our hiring practices. By 2024, we anticipate a remarkable 30% increase in hirings due to a robust product pipeline, and we remain dedicated to building a diverse and talented pool of professionals.

Our focus lies in providing extensive learning, training, and development opportunities for our employees to excel. We have always led with a people-first strategy and believe our human force will be instrumental in fostering a team that truly reflects the vision and values of Leisure Hotels Group.

Since its foundation in 1989, the group has had the chance to serve amongst the largest number of travellers in Uttarakhand and our Group’s mission is to ignite the spirit of exploration in discerning travelers by curating immersive experiences that showcase exhilarating adventures, spiritual sanctuaries, and breathtaking natural landscapes.

The group commits to deliver old-fashioned, pre-emptive & full-hearted services ensuring guests feel cared for, leaving them rejuvenated.

4. Exploring future plans, could you outline any upcoming projects, expansions, or initiatives that the group is excited about?

The Group continues to expand through Owned Hotels and by taking the Management route by taking third-party properties on management contracts. This hybrid strategy is currently helping the company with its expansion plans.

A new start-up within our fold, Bedzzz is an asset-light model where we work with developers. The group has introduced Bedzzz, a vertical that centres around a distinctive lifestyle concept and immersive guest experiences.

Some of the properties under development this year;

Management

• Bedzzz in Goa
• Boutique business hotel in Dehradun
• Boutique resort in Mcleodganj
• Luxury Boutique Resort, Mussoorie

Owned

• Upper Upscale Resort, The Earl’s Court in Nainital
• Luxury Lakefront Resort, Naukuchiatal into IHCl SeleQtions
• The transition of The Naini Retreat (Nainital) into IHCL SeleQtions
• Brand transition luxury resort in Corbett Park

​​“The essence of Hospitality'', we believe lies in the true Indian tradition of Atithi Devo Bhavo – “Guest is God”. It is such philosophy and thought that has inspired us to consider guest satisfaction as supreme and has gone a long way in shaping our motto.

5. Regarding managerial deals, what types of collaborations or partnerships has the group undertaken to strengthen its position in the market and enhance guest experiences?

Our approach to the Management vertical has been to focus on the boutique leisure market play and some niche markets where the Bedzzz vertical can perform well compared to its peers. Our arrangements are typically 15 years in tenure where we welcome Owner involvement and engagement in making the asset outperform its comp set.

In some markets where-in, we find suitable Owners/ Partners, we do collaborate on a Franchise basis where we step-in to provide the overall vision, marketing, sales, revenue and distribution support. We do ensure that our Brand SOPs are followed by such Owner-Operators and when necessary we offer Learning & development for the teams.

6. Considering the financial aspect, how has the group performed in terms of revenue generation throughout this year? Any notable trends or strategies behind this performance?

Three years ago, with the onset of the global pandemic in end March 2020, the central government enforced a lockdown till early June which meant that the Hospitality industry was completely shut for 3 months.

While we were allowed to open the properties in Himachal, Uttarakhand and Uttar Pradesh from June 2020 onwards, there were restrictions to enter the state whereby tourists needed RT-PCR test to cross the border. Due to these onerous conditions, there was virtually no travel till September 2020.

Hence, H1 2020 was an absolute washout. The business started to revive in October 2020 and there was a surge in “Leisure Travel” and we had robust bookings & firming up of rates across almost all our leisure destinations. We ended the financial year with only a 40% erosion in top lines in spite of being shut for 6 months.

We were seeing similar trends before we were caught unawares by the second wave. We lost crucial two months (April - May 2021) of the first quarter of summer travel, due to COVID. After the decline of the second wave, we restarted business from a low base all over again. Alas, we saw the third wave devastate the hospitality business once again for a couple of months.

Seeing the current trends, it seems that travellers are once again putting “Leisure Travel” on their priority list. We have seen the latest business trends to be 1.5x of pre-covid business trends. With the holiday season approaching and the vaccination campaign in full gear, we anticipate that demand will be robust in the following months as well.

For us in leisure destinations like Nainital, Corbett, Dharamshala & Rishikesh, domestic tourism has recorded a substantial recovery in the year 2022-23. And we expect this surge to continue through H2 (until March 2023). However, we expect business to return to normal business trends, allowing for pricing correction.
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While the travel surge and allowing for pricing correction have subsided, we continue to achieve similar revenues to those of last year. The H1 of this year saw a modest start with fewer properties, but the H2 received an overwhelmingly positive response across all resorts.

We've observed a growing preference among travelers who are increasingly choosing destinations that provide closeness, tranquility, and picturesque landscapes. This shift reflects a heightened awareness of environmental impact and a desire to align travel choices with sustainable practices.

7. With a focus on accommodations, could you highlight any recent innovations or additions to the rooms and offerings that set Leisure Hotels Group apart in the hospitality industry?

The group has introduced Bedzzz, a vertical that centres around a distinctive lifestyle concept and immersive guest experiences. It caters to budget travellers seeking premium stays and provides modern travellers with ample opportunities for social interactions. Both categories of guests enjoy the quintessential personalized service, hospitality, and carefully curated hyperlocal activities offered by Leisure Hotels Group, whether through do-it-yourself options or those led by the hotel.

Bedzzz creates a lively and visually appealing atmosphere, serving as a communal space for like-minded travellers. We understand that today's globetrotter desires more than just accommodation, and Bedzzz is aligned with the evolving preferences in the Indian travel market. The Travel Diaries Café, our signature resto-cafe, features a fusion menu comprising authentic local delicacies and international flavors. The spaces have been designed with the young-at-heart, evolved audience in mind—individuals who enjoy connecting with like-minded travelers.

The group currently operates two properties, one in Rishikesh and the other in Varanasi, with a new location in Goa set to open shortly.

8. Sustainability is gaining importance. How does the group integrate eco-friendly practices into its operations and contribute to responsible tourism?

Sustainability in hospitality is a topic that has been debated for decades – as tourism grows in popularity worldwide, hoteliers are tasked with how to ensure their hospitality doesn’t have a negative impact on the environment. The industry has worked hard and made many positive strides over the last decade, especially as consumers become more aware of eco-friendly tourism.

Our commitment lies in providing travellers with personalized services at stunning locations, upholding the authenticity and rich heritage of the destination through sustainable practices. We aim to foster vibrant & inclusive communities, relentlessly pursuing excellence to build scalable purpose-led and future-fit models for our stakeholders.

The Group is committed to employing the best environmental and ecological practices in technology, equipment and operational processes. The Group supports philanthropic activities and is a keen contributor to the conservation of nature and of cultural heritage.

Eco-tourism has acquired great significance in recent times as it has the potential to bring about the economic development of the local communities and also protect our natural heritage. It has been designated as an industry and no industry can survive without protecting and improving upon its own product.

Naturally, we at Leisure Group understand our responsibility towards the rich natural heritage that we market. In the last couple of years, we have established infrastructure that enables us to understand the impact of our activities on the ecosystem around us. Today, we are geared up to tackle the problems and make our activities more eco-friendly. We have realized that unless the welfare of the local communities is taken care of, the ecosystem around us cannot be at peace and hence we have adopted a number of strategies.

To support the local communities so as to reduce their dependence on the forest:

• We are proud that our activities at The Riverview Retreat alone provide livelihood and support to more than 250 families directly or indirectly
• Training and capacity building programmes for the local unemployed youth viz. Nature Guide training. Providing an outlet for the marketing of locally made handicraft

To conserve Natural Resources:

• We are working on the utilization of non-conventional energy resources that have a direct bearing on the economy of the local community
• Controlling weed from invading the natural habitat i.e Lantana Bushes. This also helps conserve precious wood
• Recycling of bio-degradable waste and converting it for positive uses
• Recycling of liquid waste to stop contamination of natural freshwater bodies
• We are promoting Mahasheer conservation in its natural habitat and also trying to enhance avian density which would have a bearing on the overall bio-diversity of the region.

To promote Environmental awareness programmes:

• Thousands of visitors have benefited from our programmes and interaction with naturalists to make them environmentally conscious and motivated enough to participate in conservation programmes
• We support local school groups in environmental education activities.

To support Wildlife Management:
We welcome and provide infrastructural facilities for workshops, symposia and conferences related to wildlife conservation. We motivate forest personnel by way of rewards for meritorious services. Provide tactical support in patrolling as and when asked.

9. In the competitive hospitality sector, how does Leisure Hotels Group ensure a consistent and high-quality guest experience across its various properties?

Over the past three decades, As pioneers in the field of hospitality in Uttarakhand, The Group has been able to set standards & drive quality by offering good facilities & services to its guests. The individual resorts & camps typically offer between twenty to sixty rooms, ensuring that all guests get very warm & personalized services.

The Leisure Hotels Group has dedicated more than three decades to crafting unparalleled guest experiences in our resort destinations, catering specifically to our diverse customer base. Our focus remains on providing engaging activities, entertainment, an enchanting dining experience, and a rich infusion of local flavors, all seamlessly integrated with the distinctive ambience and locale.

10. Community engagement is crucial. Can you share any social initiatives or community projects that the group is involved in, contributing to the well-being of local communities surrounding its properties?

Certainly, community engagement is a priority for the Group. The group actively participates in various social initiatives and community projects to contribute to the well-being of the local communities surrounding its properties.

Some examples of these endeavours include:

• Skill Development Programs: The group may be involved in skill development initiatives aimed at empowering local residents. By providing training in hospitality-related skills, such as housekeeping, culinary arts, and guest services, Leisure Hotels Group contributes to the employability and economic upliftment of community members.
• Environmental Conservation: Participating in environmental conservation projects is often a focus for the group. This may involve initiatives such as tree planting, waste management programs, and promoting sustainable practices to minimize the environmental impact of their operations on local ecosystems.
• Cultural Preservation: Leisure Hotels Group may support projects that aim to preserve and promote the rich cultural heritage of the regions where their properties are located. This can include sponsorship of cultural events, heritage conservation efforts, or collaborations with local artists and craftsmen.
• Employment Opportunities: By prioritizing local hiring, Leisure Hotels Group ensures that employment opportunities are extended to the residents of the communities in which their properties are situated. This not only benefits the local workforce but also strengthens the bond between the group and the community.