KOLKATA, India—The Apeejay Surrendra Group is over a century old, with interests in shipping, real estate, tea, financial services and retail among others. However, perhaps the most visible face to the world of the Kolkata, India-based company is The Park Hotels.
With 11 properties, it has carved a niche for itself in terms of innovative designs, lifestyle concept, stylish restaurants, night bars and as a boutique chain.
“Our first foot into hotels was in 1967, when we opened The Park on Park Street,” said Priya Paul, chairperson of Apeejay Surrendra Park Hotels. By 1987, the company had three hotels.
“My father had planned to renovate all the properties, but things changed with his sudden demise. So, I set about changing things. The biggest question in my mind was, ‘How could we make these hotels stand out?’” she said.
Paul in the early ‘90s decided to use design as a differentiator of the company’s products, services, restaurants and people. That inspired a collection of luxury boutique hotels.
“That has been key to our success,” she said.
Growing roots
It has been a long journey for the hotel group from its initial three hotels to the now 11—from having to explain what boutique hotel meant in the 1990s, to becoming a pioneer in contemporary luxe hotels.
Paul said the company’s vision is to have 20 hotels by 2020, “whereby we will be able to offer our guests a slice of The Park in every city they travel to.”
The company’s focus is on India, according to Paul. A 350-room hotel in Kolkata is in the works, as well as a property each in Pune, Cochin and Jaipur. The group is headed for an aggressive push in second- and third-tier locations where there is substantial demand and tourist potential.
“There is a rise in the number of industries being set up in smaller towns and tier-two cities, increasing the growth prospects of hotels in this sector,” Paul said. “People in smaller towns have higher aspirations now and want to experience upscale offerings. Dispensable income of these people has increased with the growth in this region. They often travel to metro cities and have become accustomed to international cuisine, pulsating nightlife and luxury.
“And there is a huge gap of good branded hotels in this region. This shows that this growing market holds a potential for corporate and leisure segments and also hotels that have a focus on food and nightlife.”
A new brand and optimistic outlook
“Now that we have grown, we have realized the need to communicate our brand strength more boldly and in a more coherent manner,” Paul said. “Thus, the vision which we uphold today is that of leadership through differentiation.”
Therefore, she said, the focus now is to have a brand differentiator and promote the group’s new brand, Zone by The Park. The commonality in the venture remains the accent on design, and a great emphasis on food and nightlife.
Given the immense tourism potential in the luxury segment, Paul said, “The hotel has embraced each opportunity which seemed conducive to the attainment of our vision. The modern-day traveler looks for a holiday experience and not just a place to rest, and it is this unique experience that sets boutique hotels apart.
“They look for surprises, and when planning trips, they seek hotels that are noticeably different in look and feel. I see a lot of luxury travelers coming to India. There has been a greater understanding of India as a luxury destination in international market and a growth of luxury travelers within India as well. We see a remarkable number of tourists not only to experience the rich heritage but also to witness modern and contemporary India.”
Paul is optimistic of the potential in the hotel industry. The current sluggishness she attributes to the ups and downs that all industries go through.
“By liberalizing the economy, India is attracting tourists and foreign workers, which is positively impacting the hospitality sector. Thus, one needs to consider the bigger picture of the hotel industry,” she said.