Dusit to fly with the Birds in India
NEW DELHI: The Bird Group and Dusit Hotels and Resorts are planning to develop their partnership beyond the six hotels announced last week.
Bird Group has agreed a joint venture with Thailand’s Dusit Hotels in which Bird Hospitality Services will develop six, 4-5 star hotels, which will be managed exclusively by Dusit.
The first three properties, projected to open by 2010, are in Delhi, Goa and Rishikesh; and the next three, opening by 2013, will be in Pune, Amritsar and Jaipur.
The total investment in the hotels by Bird Hospitality Services is approximately US$200 million.
Bird Group and Dusit have formed a separate management company in which they have equal shares.
Under the joint venture, the company can open up new properties, buy land and construct a property or manage a third party franchise.
Ankur Bhatia, executive director, Bird Group, said, “The Bird Group has been a forerunner in the travel and tourism industry for almost four decades, with a touch point in every vertical of the industry.
“Seeing the rapid growth and a major demand supply imbalance in this sector in India it was only logical that we get into the business. The only thing today we do not do is to fly planes.
“In India the time is absolutely right for hospitality. Delhi is already in short supply of business and leisure hotels, which will be further heightened with the advent of the Commonwealth Games in 2010, while in Goa there is a growing demand in leisure (domestic and overseas) segment, and Rishikesh is also witnessing a sharp rise in demand of leisure and MICE segments.”
Bhatia added, “There is a dearth of budget and economy hotels as well as 4/5-star properties. India does manage to attract a high disposable income tourist and from the business point of view a 5-star property gets more lucrative returns.
“The cost of land is exorbitantly expensive in India, so to start a budget hotel in phase one is really not an intelligent way of starting.
“Successful 5-star chains, after a considerable successful stint have, in phase two, gone ahead with economy and budget hotels.”
Bird’s eye view of India tourism
– 25% year on year growth
– strong government support
– tourism as a national priority by the government
– sustained economic liberalisation
– major demand supply imbalance in hospitality. Shortage of almost 160,000 rooms today
Ian Jarrett
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