Northstar

NEWS Industry Insights: Hotel developments in India Why is Carlson focusing more on India than on China? Both China and India are important growth markets for Carlson and we are equally focused on both markets. That said, we have a more established presence in India where we are the largest international hotel operator with 34 hotels in operation across four brands: Radisson Blu, Park Plaza, Park Inn by Radisson and Country Inns & Suites. We are opening a further 19 hotels in India in 2011, and have a fi rm pipeline towards our target of 100 open hotels in India by 2015. Carlson was the pioneer international hotel company to enter India and we have been present there for over 13 years. Although Carlson is a late entrant to China, we see tremendous potential for China to become a larger market than India. China's economic growth is at eight to 10 per cent annually versus India at six to eight per cent. China also has the world's largest population of over 1.3 billion people versus India's 1.18 billion people. China is a focus market for us where we have opportunities to establish our Radisson Blu, fi rst class brand and Park Inn, mid market brand. What are the lessons you've learnt dealing with the market in India? I have worked in Asia Pacific for more than twenty years and it is true what they say about relationships being king, especially so in India. Carlson Hotels has been fortunate to have a strong management team in India over the past 13 years who have forged great relationships with owners, developers and our joint venture partners. How are your current hotels faring in India? Our hotels are performing well in both the metro Simon C. Barlow, President, Carlson Hotels, Asia Pacifi c " SINGAPORE – Starwood Asia Pacific Hotels & Resorts recently concluded their Expo in Singapore last week. This year Starwood Expo was one of the largest yet, with 68 hotels represented by over 100 sales associates from 12 countries in Asia Pacifi c, the event was attended by over 400 travel trade professionals. Starwood Expo was highlighted with the participation of the hotels from exciting destinations such as Bali, Nha Trang, Phuket, Beijing, Angkor We are proud of our many achievements in India. What makes the hospitality industry in India unique? India has an established domestic hotel industry which makes it more attractive in terms of greater availability of skilled hospitality talent and labor. Indians expect and are accustomed to high service standards. This often translates to India having some of the highest service standards in the hospitality industry. India is an expensive travel destination and therefore tends to attract travellers with a higher disposable income. Conversely, this means higher room rates, which means potentially higher returns for our India hotel owners. cities and resort destinations. Our first class Radisson Blu brand has been tracking at 75 per cent to 80 per cent occupancy year-to-date. In the midscale segment, year-to- date occupancy at our Country Inns & Suites hotels is at 65 per cent to 75 per cent. Our food and beverage outlets at all locations are also performing well, driven by strong local demand. What do you like about Carlson hotels in India? We are proud of our many achievements in India. Carlson has a long history as one of the pioneer international companies to establish its presence in India. We have been very fortunate to have a strong, stable management team that has been instrumental in our success as the country's largest international hotel operator. India is one market where all four brands are present – Radisson Blu, Park Plaza, Park Inn by Radisson and Country Inns & Suites. Hotels across the four brands are spread across primary, secondary city and resort locations. With 34 hotels in operation and 54 hotels under development, we have ambitious targets to exceed 100 hotels by 2015. With all of these success factors, we have a great reputation in India which means we are regularly offered development and growth opportunities before our competitors. Starwood conducts Expo in Singapore and Osaka just to name a few, representing different Starwood brands. The event was held at St Regis Singapore on 6th April 2011. "Starwood Expos provides us a huge platform to interact with our customers and provide them updates on the growth of our footprint, introduce new hotels and Brand innovations not just in the Asia Pacif ic region but also on Starwood globally. The Expos have proved to be effective with our meet ings, corpor ate and travel trade partners. In turn our customers appreciate the fact that it's a one stop shop. We hold similar events in India, Australia, China, Japan and Korea," said Andrew Kuek, regional director Global Sales, Starwood Hotels & Resorts Asia Pacific. A key aspect of this years Expo was our focus on inviting new customers to the event" added Kuek. Starwood Expo is an annual s a l es mi s s ion or g a n i s ed by Starwood Hotels & Resorts to bring together primary contacts across all market segments, with Starwood associates, to update them on Starwood's developments, strengthen existing relationships, develop new business, enrol l customers into the rich loyalty programs and discuss performance for the past and opportunities for the future. It is indeed a showcase of the brands of Starwood, and also allows the hotel giant the opportunity to thank its business partners. 8 | ■ TRAVELWEEKLY ASIA | 12 APRIL 2011 www.travelweeklyweb.com "

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