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NYU notebook: Hampton, IHCL, Accor

In meetings June 2-4 with developers and brand leaders during the 41st Annual NYU International Hospitality Investment Conference, HOTELS learned about their current challenges and opportunities moving forward. (Read the first part of this notebook,which appeared Tuesday.)

Hampton by Hilton: Senior Vice President & Global Head Shruti Gandhi Buckley

  • The 35-year-old brand has a 700-hotel pipeline, with half in the U.S.; strong in Asia Pacific and China (reaching 100 this year); the Middle East will grow in importance with news to come. And it is adding four South American countries, including Brazil, with its first hotel.
  • Hampton has 120% RevPAR index globally; almost 120% in US; 130% in Europe
  • It has a 22% RevPAR premium in the U.S. within its comp set
  • The brand is rolling out a new breakfast menu highlighted by sirloin hash and elevated scrambled eggs. It is also adding seasonal waffles (summer is strawberry) and improving visuals and service with a breakfast host.
 Ginger Dwarka recently opened as the 46th Ginger property in India and the seventh in the Gujarat state.
Ginger Dwarka recently opened as the 46th Ginger property in India and the seventh in the Gujarat state.

India Hotel Co. Ltd. (Taj), CEO Puneet Chhatwal 

  • Chhatwal said the company has experience a great turnaround year, returning to profitability.
  • He said his previous experiences at Rezidor and Deutsche Hospitality helped a lot to understand the value of a brand, as well as German efficiency.
  • Profitability returned within the first four months of his tenure, from negative US$10 million to US$15 million in the black. The group now stands at US$40 million-plus in profit with 10% revenue growth; 25% EBITDA growth; and 229 bps EBITDA margin growth.
  • IHCL signed 22 hotels in the last financial year and added an inventory of over 3,200 rooms to its pipeline via 18 management contracts and four operating leases. IHCL plans on opening one hotel a month this year.
  • Chhatwal suggested the company will return to the international arena within five years. Maybe, he said, it will grow internationally by acquiring a small group.
  • The group is reimagining its Vivanta and Ginger brands, as well as adding a collection umbrella, SeleQtions, for distinctive properties. SeleQtions was launched with 12 hotels across the country.
  • IHCL’s membership Chamber Clubs stands at seven across India with the addition of a new one at Taj West End in Bangalore. It is adding London on its way to nine clubs.
  • Overall, Chhatwal said IHCL wants 8% margin growth over five years. It is changing models with more emphasis on management contracts and a continued focus on operational excellence.

Accor: New CEO for North & Central America Heather McCrory 

  • McCrory came up with Canadian Pacific in Toronto. Most recently she was EVP of operations for the region. 
  • Her mandate is simply to grow. She believe Accor can own lifestyle. Her strength is in knowing the ownership community, even though she does not have much of a development background.
  • MGallery growth is a strategic initiative for North America. It will become attached to 21c properties.
  • A new-build Raffles is about to break ground in Boston, the first in North America.
  • The first Sofitel is coming to Mexico in the Reforma district of Mexico City. McCrorry said Accor wants to revitalize Sofitel.
  • Mexico is an opportunity for the Ibis Styles brand; a Canada franchise agreement is possible.
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