NEW DEVELOPMENTS
Relief at last for Aerocity Hotels
JW Marriott opens its doors with 300 rooms
The first of the dozen hotels planned for Aerocity in New Delhi opened its doors, some what quietly and unobtrusively. But with confidence in the product, the latest luxury offering in the hospitality sector in the capital, has a bright future in the medium and long term.
T
he much-awaited Aerocity hotels got a leg-up when the first among them opened its doors last month. JW Marriott was among the hotels that had got completed some months ago, and was awaiting clearance. There were issues of security that came to the fore, and confusion prevailed with numerous voices expressing diverse opinions at the same time. The hotels were asked to tweak their product to suit the security issues of the authorities concer ne d. J W receive d it s approvals and was allowed to open with 300 rooms, along with the spa, wellness centre, swimming pool and its party lawns, all day dining restaurant with its 225 covers, patisserie and its banquet hall (13,500 sq ft without a pillar). Another 220 rooms will follow the same drill of observing the specifications, for which the systems are in place already, and will open a month afterwards. JW is the brainchild of Sushil and Sandeep Gupta, father and son promoters of Asian Hotels West, which formed an SUV with Delhi Airport. The duo is well versed with the hospitality industry, having started as one of the three owning families of Hyatt Regency in New Delhi – after the Asian Hotels demerged into three entities, the Guptas began nursing Hyatt Regency Mumbai Airport and also acquired the Qutab Hotel
Sushil and Sandeep Gupta, father and son, worked fast and furiously to ensure the hotel opened as quickly as it could.
and Apartments after the sale of ITDC properties. Now, they have a third property as they begin their innings with the third chain in their system – after Hyatt and Clarion, it is now also Marriott, three formidable brands under their belt. It must have been a huge sigh of relief, when they became the first hotel to get its clearance? It has been six months since they were ready. They could have opened on 1st April, said Sushil Gupta, when HotelScapes met the two in a recent interview in the newly opened hotel. So, the last six months must have been a big pain with no gain? “Looking back, possibly, it was nobody’s fault. No one knew the drill that was expected to be followed. No one told us, and
8 HOTELSCAPES • November 2013
possibly no one knew what to tell us. It is a complex issue and we are glad it is finally behind us.” B u t s u r e l y, t h e y a r e professional hoteliers with a big learning curve behind them of almost three decades. How come they did not know what to do? “We know what is expected of us as hoteliers. But we did not know these requirements. Frankly, we were not given any such brief of requirements. The problem is uniform for all the hotels in Aerocity, and we are glad these are now being ironed out, at last.” In today’s scenario, when business is facing serious challenges, such inordinate delays can cost both opportunity and money. What has it been like for the promoters? It has been a huge
financial outflow, say both in unison. Hotels work on very strict budgets and they had embarked upon a very controlled regimen to be responsible hoteliers, and not to waste money anywhere while maintaining an eye on top end luxury. Therefore, this six months lapse has cost them dearly. It is unfortunate, as it would cost them some additional 15 to 20% on their project cost. What has been the project cost like, is our next question? On a base of 525 rooms, their cost was `1.5 crores per room. With the six months delay in opening, with everything ready including the staff, the cost has gone up to `1.75 crores per room. How did they keep their costs down, was there any magic formula? They travelled, they