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The Kerala-based Muthoot Pappachan Group (MPG) is as known for its presence in the financial services sector as in hospitality.
It also has major interests in infrastructure, automotive and alternative energy.
Business Line caught up with Mr Thomas George Muthoot, Director, MPG.
The group vouches by the operator model of business in the hospitality sector and has tie-ups with the Taj Group and the Hilton Group for managing properties.
Could you give us an update on your investments in the sector in Kerala and elsewhere?
A 130-key (room) business hotel is under construction in Kochi. The Vivanta By Taj at Kovalam is a 58-key operating hotel which would later be expanded to 98 keys.
The Hilton Garden Inn in Thiruvananthapuram City is a 134-key property under construction.
The Hilton Garden Inn OMR Chennai is another hotel under construction and has 197 keys. We have proposed to develop resorts at Bekal and Marari in Kerala.
Have new tie-ups/properties been identified? What are the timelines for commissioning?
We have tied up with Hilton Garden Inn to manage and operate the ‘Trivandrum City Hotel' and OMR Chennai.
The Hilton Garden Inn Trivandrum is scheduled to be commissioned by end of this year while the one at OMR is proposed for opening by 2015.
The business hotel in Kochi is scheduled to be commissioned by end of 2014. The resort projects at Bekal and Marari are under the planning stage.
What is your outlook on the industry?
The February 2012 PwC-CII report on the study conducted has led us to believe that the hospitality industry in India is poised for an exponential growth.
This, we hope, should help the industry overcome the impact of the global economic slowdown.
We are happy to note that our existing business strategy is in sync with the key findings of this report.
Some of the key findings of this report are:
The next one or two years will be a phase of building before the high growth trajectory emerges.
Domestic travel will be the primary driver of the sector's growth.
Business travel and MICE (meetings, incentives, conferences, exhibitions) will be the growth segments.
Budget and mid-market segments will emerge as the most preferred investment categories.
The hospitality sector is poised to get an ‘infrastructure status.'
What has been the trend in occupancy levels at your properties within Kerala, and how do you see it going forward in 2012?
Our operating hotel – Vivanta By Taj, Kovalam has shown an upward growth in both occupancy levels and ARR (average room revenue).
Going forward, we expect this trend to continue.
Do you have a strategy to revive the inbound traffic from the larger EU and sustain the flows?
Since we are the owners and have operators to manage and operate our hotels, this question is not relevant to us.
Do you think promoting the MICE sector would be a much better proposition?
Yes, we believe so. However again being owners, we will leave it to our operators to take required initiatives.
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