We're excited about the new govt and are expanding in India: Duncan O'Rourke

Q&A with Chief Operating Officer, Kempinski Hotels

Don't want to miss the best from Business Standard?

Germany-based hospitality chain Kempinski Hoteliers, which operates 73 hotels across the globe, is planning to ramp up its presence in India with three more properties through management contract. The company's Chief Operating Officer, Duncan O'Rourke, in an e-mail interview to Ruchika Chitravanshi said that he is excited about the initiatives that the new government will take for the hospitality industry and that in spite of challenges, India is poised to do well in the coming years. Excerpts:

With India getting a stable government, how do you see Kempinski plans taking off in the country?
We look forward to seeing the initiatives the new government has planned for the hospitality industry. We are very excited about
our future plans for India and have planned upcoming properties in the cities of Mumbai, Kolkata and a resort in Kerala.

The hospitality industry is expecting a difficult year ahead. What are your expectations?
Kempinski only manages and operates luxury five-star hotels and we cater to a market which appreciates high quality services and facilities and has the resources to indulge in the same. This market already exists in East Delhi and is continuously growing here. We have also thoroughly studied the Indian industry and perceived the need for a high-end international luxury brand in Mumbai, Kerala and Kolkata, which is where we are planning to expand. The Indian high-end segment is very established in the country and comprises well-read well-heeled travelers who are willing to spend on quality services. This is the segment that we cater to; hence, we feel that we will do quite well in the coming years in India.

Are you taking any unique India initiatives?
There are no initiatives particular to India. All initiatives by Kempinski apply across the board.

What are your hiring plans here?
In all our hotels, the majority of staff will come from the local community/market and the same applies to India. At Kempinski Ambience Hotel Delhi, over 95 per cent of our staff are local hires.

What has been the response to your flagship property in New Delhi?
The response to Kempinski Ambience Hotel Delhi at Shahdara has been very good overall. The property is gaining repute for its F&B outlets as much as for its rooms and services. We are very bullish on new markets and always try and establish a first mover advantage, which we have accomplished with our property at Shahdara. We are confident as the market leaders that the demand will grow in this direction and have already received positive feedback from our customers.

Going forward where all are you planning to expand?
Kempinski plans to follow a strategic expansion strategy in India. We plan to have three new properties in Mumbai, Kolkata and Kerala by 2020.

Is there a plan to invest money in the Indian market - how much and in what areas?
As a hotel management company, we are not looking at owning properties in the Indian market. As the management brand, our investment is very high on the logistics side and we aim to establish each property we manage as the topmost in the market with our human resources, innovative initiatives, training and services.

What is the biggest challenge you face here?
Each opening or development presents its own challenges regardless of the country, which is why we always partner with experienced developers to minimize the challenges.