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Carlson Hotels shifts focus to leisure travellers
/ Business Standard November 16,2001

Carlson Hotels Shifts Focus To Leisure Travellers
/ BUSINESS STANDARD Nov 16, 2001, 00:00 IST

Carlson Hotels India, franchisee for the Regent and Radisson brands of hotels, is taking a re-look at its business strategy in the wake of the difficult conditions being faced by the tourism and hospitality industry.

 
The hotel chain will now increase its focus on leisure travellers and will tap the domestic market aggressively. It will open at least three new hotels at Goa, Simla and some parts of Kerala (Ernakulam or Kumarakaon) at around Rs 100-120 crore. The proposed investment in each of the properties will be to the tune of Rs 35-40 crore.

"The increase in emphasis for the leisure traveller from the corporate segment has come because there is a lull in the business in cities dependent on corporate business. Our decision is market driven and is expected to give a definite boost to our occupancy levels," said Carlson Hotels India senior vice-president K B Kachru.

The chain will, however, not directly invest in the new ventures. "The proposed hotels will be build through investment companies, strategic alliances with other groups or joint ventures," he said. He added that the modalities are being worked out at present and the final decision on the will be taken in a month's time.

Kachru said that leisure destinations, however, hold a lot of potential because it is easy to move domestic leisure travellers to various affordable destinations. "We have realised that the domestic leisure segment is a huge market if the pricing is right," he said.

Kachru said that though none of the plans to build new hotels in nine other cities has been put on hold, the projects at Mumbai and Bangalore have been delayed because of problems in construction activity. "Other hotels are on schedule," he added.

The group, at present, has one Regent, four Radisson hotels and one Country Inn and Suite in India. It, however, plans to have two Regents, 15 Radisson and 8 Country Inns and Suites in the country within the next few years.

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