BY BABITA KRISHNAN
These discussions must begin with “I have a dream”, one would think — but when the dream means investing crores, as is in the case of developing a hotel property, then one needs to be more practical and astute. To come up with a winning investment, one needs to find the right combination of decision makers in areas that hold the key to a good design. The five heads who are finally responsible for the way a hotel design would turn out are — the owner (who invests in the property), the brand (who gives an identity to it), the architect (who gives concrete form to the dream), the interior designer (who creates the experience for guests), and the consultant (who ensures that the experience is delivered without a hitch).
We get them together to unravel the design process as it happens and air some of the issues affecting it on the way. Hosted by JW Marriott hotel in Mumbai and the able team of its general manager Pavithran Nambiar, Satyen Jain, CMD Pride Hotels, Rajiv Puri, vice-president project development Marriott International, Prem Nath, principal architect Prem Nath Associates, Khozema Chitalwala, principal architect Designers Group and Rajat Railch, director HPG Consultants, get together to live through the process and its lacunae.
: When you start planning for a property, what are the main steps starting from idea germination?
Satyen Jain: Once I identify the property, the most important criteria is to check the investment. One has to evaluate the revenue that can be generated from particular location versus investment required. The land cost, cost of construction, type of hotel as the occupancy will vary, also, what kind of product is fit for the bracket, these are the key things which I look for.
: Once the location is finalized, where does the brand step in?
Rajiv Puri: We would first understand what level of hotel we would like to make and what is the market requirement. When the right segment is decided, then the next important criteria is to identify the target guest (more local or international). That is when the brand plays a part.
Jain: We also need to see which brand can deliver for that kind of location in terms of brand recognition as well as distribution.
: It is the owner’s thought process, but the brand has a certain image to follow. Do clashes happen at this stage?
Puri: I always suggest that the owner should have a hospitality consultant to guide against the pitfalls, if they are not comfortable signing on a brand. No brand tries to enforce anything, they bring with them experience and the best practices. We are available throughout the process with professional expertise, to interpret your vision with a local flavour. It is all about feeling comfortable that the operator is going to do the right thing for us. That understanding is coming, because many owners are repeat builders. However, the thought process of building it as cheaply as possible also remains.
: So when does the architect step in?
Prem Nath: The owner normally has the idea, so he involves the consultants and gets the business plans. Then comes the architect. Hotels are complex properties, so I decided to know every aspect of the industry. Architects are responsible for getting in an identity. Hotel properties are places people come to see and be seen. We have to create a space that is welcoming, and I feel hotel industry reflects lifestyle of the people.
: How much of freedom you have as an architect to design?
Nath: The job of an architect is to translate everybody’s need into the design — of the hotelier, brand requirement, interior designer. Not only does he have to make designs and drawings according to rules and various codes, but also keep in mind the taste and comfort of the guests. So as an architect, I get my freedom depending on how well we understand each other. Sometimes we have problems when the owner is not able to understand budget and costing. He knows budget and location, and sees only profit. In a limited budget, he wants something beautiful! My skill along with my other consultants lies in creating the space efficiently within the given budget. An interior designer can use non expensive materials and still make a design look good, but an architect cannot compromise. The owner wants minimum cost and maximum profit.
: When do the interior designer and consultant come into the picture then?
Rajat Railch: Developers can be divided into two broad categories. First is the mature developer who knows the process and would like to bring in the brand as soon as possible and things are much more smooth. The brand controls everyone and there is a financial discipline in the project. Unfortunately in India, hotel development is still midway between infancy and mature developer and there are a lot of projects in that space. Usually we are one of the first people to get on board. Majority of times, there is no clarity on what category the developer wants to build; and if he does know, he starts getting influenced by a bunch of people and the image of the hotel keeps on changing. All this leads to there being no financial discipline plus the ego issue, without any clarity — a concoction for disaster. And there are a lot of projects like this.
However, there is also an ego clash between the developer and the brand development team — they know works well in the market, but the owner thinks only of showcasing the project for ego satisfaction. In owner-driven hotels, specs keep changing, mid-scale becomes luxury, projects get stuck and maybe never get built. With a brand tie-up, right in the initial design process, they ask the owner to appoint various consultants and this always results in a better product.
Khozema Chitalwala: I would agree with Rajat, but the unfortunate scenario in the industry is that there are hardly any seasoned developers. The first timers come to us and want to build a three-star property with five-star luxury at three-star cost. It makes life difficult for everyone.
Puri: They are very successful in what they have done so far (laughs), so erasing so many years of experience of running a successful business in your own style takes some time. I think this is where we have to find the merger — the most common point is cost and what the owner wants.
: Why this whole mindset of foreign architects coming and building in India? Do we have a dearth of architects here?
Puri: I have been fortunate enough to have been a part of the industry for seven years before leaving India and working in about 12 countries. The first boom happened in 1982 when we built few hotels — Hyatt, Meridian, Sheraton, etc. and I was associated with that boom. Then nothing happened from 1982 to 2000, and a whole generation of architects did not get international exposure.
I have been working for 27 years and have built 70 hotels and visited 5,000. So, nothing happened for 18 years and when we came in and started building hotels, we got stuck half way and solutions were not coming. International architects provided solutions faster from their perspective and gave value addition, so I started working with them. In 2005 when we started working in India, we had only two projects now we have 20 operational hotels. Pace of architecture has changed completely and on 85-90 per cent of my projects I do not have international but Indian architects. Interior design, on the other hand, took a little longer, and still is growing. We have to understand that the value and perception of a hotel comes from interior design; unless it’s an architecturally iconic building downtown which adds to the asset value, nobody would want to spend money.
: What has been your experience?
Chitalwala: I am absolutely in agreement with Rajiv that there was a big lull in the 80s and 90s. Fortunately for us, when the momentum started we were a part of it with a lot of international consultancy firms. The biggest problem is not the designing. To design hospitality spaces there is a need to understand all functional aspects of the business – housekeeping, engineering, and maintenance, since it is a public space; and that can come only if you have worked on a current project. Then, ideas are easy but documenting them is very important, where I feel, the industry is very weak. The complete design process is not documented and delivered; this allows the project management consultancy to execute the project very smoothly. Having done so, where we have been failing to deliver in the past is in completing and giving the promised shape to it — the correct final touches like whether the artwork is placed in the right place, carpet coordinates have come correctly or not, etc. Now there is a team of designers who are doing it absolutely at par with international standards. And having seen the understanding and evolution of designers, brands have gradually started realising their potential and are experimenting with their smaller (two and three star) brands.
Puri: It is safeguarding the investment. A hotel takes an investment of 200-400 crore and we can’t give him a choice of a designer from Mumbai with this much experience or an international designer who is safer — you don’t want to get on to a race course with a new jockey. So, we show the Indian designers a prototype and ask them to show us their execution. Same with kitchen designers; earlier we were using international names, but now we have five Indian kitchen designers who are doing almost all the jobs. So things are changing very fast. We are saying let’s go local but the owner is still in favour of international designers, that is another difficult situation.
Jain: There are some pros also. The Indian architects and designers have a better understanding of the local requirements. They might miss out on some of the international outlook, but definitely have a better local understanding, which works in favour of the local owner.
Railch: I will differ here slightly. In the luxury and upscale segment, we have a long way to go. And I am generalising here, when it comes to concepts, majority of the designers are quite bad. Second, we tend to change designs according to the whims and fancies of the owner. Internationally, if the design is good, they will not touch it. Standing by your design (if you are convinced about it) is something we lack, though we are good at detailing; and when it comes to internal coordination, our architects and designers are far better. But with concepts, we are still weak.
Nath: I want to share my experience of some time ago with a client in Delhi who wanted to build an IT Park, which I designed. Now this complex was to also include a hotel which he wanted a foreign architect to design. He wasted nearly a year in getting designs from various foreign architects but finally asked me to design it, which I did We are able to combine expertise with the understanding of Indian working conditions and mindset to deliver what the owner wants. What I have learnt from the foreign architects is the extent of documentation.
Railch: Indian designers will give you a group of construction drawing much before the whole concept is presented, whereas a foreign architect will go step by step. I think we are reaching there but still the last mile has to be covered. They give clarity from day one along with the right process from macro to micro, we, on the other hand, tend to go from micro to macro.
: If there is a change in design due to the owner’s interference, even though it might not affect the brand, does it delay the deliverables?
Chitalwala: Of course there can be a delay. ID plays a very important role, that of coordination with architects, structure, MEP, facility, owner and brand. Being professional and mature, the brand-directed changes come at a very preliminary stage where they do not affect the progress. But the owners can walk in anytime and demand a change. For ID, it is a big process to make those changes which, obviously causes delays.
Puri: I don’t think we have mustered up the courage to stand up to what we think is right and professionally correct. We always ask the designers about the changes, since we are not designers. I am here to assist all teams to make sure I get what I want in terms of brand, operational efficiencies, etc. and what I can discuss with the designer. Our designers have to stand up for themselves and convince the owner that they are spending his money correctly. Though you cannot push beyond a point, but as an operator, we have the right to say that Mr. Owner you, aren’t right!
Chitalwala: To add to that, after 15 years of hospitality practice, it is only now that we have got the courage to stand up to the owners. We meet owners who have a very fickle mind and we do not touch their project till they sign up with a brand.
Railch: Yes, it is much easier when there is a brand on board. Otherwise it is a fantasy-come-true for the family of the owner.
Jain: It is not only the owners are trying to get a better product, even brands are trying to over position themselves. All brands who are midmarket abroad, come to India and suddenly position themselves as five-star or luxury. So that should also be reflected upon.
Nath: Talking about owner’s interference, I might not agree with my client completely and usually will ask him to allow me unquestionable 20 per cent changes to be done in the project, subject to no change in his cost…I am willing to modify anything anywhere.
Railch: Also, if someone is planning to build a budget hotel in the absence of a brand, I think that would be a real disaster. The reason is simple, the investor has never stayed in a budget hotel and has no clue about — he is investing 150 crore, and has been staying in the most luxurious places on earth. So, there is no financial control and the budget hotel tends to become luxurious as he, his family and the decision influencers start thinking from the perspective of what they have been seeing over the years. Thus, especially for a budget hotel, the brand needs to be present from day one to ensure clarity.
Puri: There are a few points that I want to touch upon. Indian consumer thinks of hotels differently than an American consumer. For 80 per cent of Indians, hotel is a thing of relief. Also, there is no definition of luxury in India. As the economy grows, people move up in lifestyles and the perception of luxury changes, which is very good for the industry. Irrespective of the brand, one needs to put have standards in a property, because what might be ok for Indian guests might not be so for the foreign guests — that is where the brands come in with safety and quality standards, even if they increase the cost marginally. Also, we understand that in India there is a difference from the design to deliverance, so we keep a buffer with that Indian negotiation in mind and do end up achieving 80 per cent of what was promised. With the inclusion of a brand your asset value increases many fold, so why not pay a premium for the brand standards? We are in a more matured state in terms of brand acceptance and owners understanding when we ask them to spend more for services, MEP, fire safety, energy efficiency, etc. and they are agreeing.
Railch: In spite of a matured market, why is it that the first few owners become guinea pigs for brand experiments? As you change the brand standards later, the initial owner would lose out since his investment is already done.
Puri: The reason is not very complicated. When a brand comes into India they, along with the owners, study the market and work accordingly. But it is a dynamic scenario and demands and requirements keep on changing, you learn as you go along. Next is the consultant. I think we have to get the maximum value from a consultant and expect them to stick to their core strengths. That is what happens in all developed countries. A consultant will not go beyond his area of expertise and opine about another to the owner.
: How do you tackle an egoistic owner?
Railch: It is very difficult to talk to people who start with the attitude that says it is my money and my hotel so I am right.
Puri: But the Indian owner is very smart and understands one thing — return on investment. That is the common ground where you can make him understand anything.
Chitalwala: In such a case, the designer is reduced to being a draftsman who will interpret the owner’s ideas into reality only.
: But has the fraternity matured to the point of refusing such clients?
Puri: Many designers have begun to do so and insist that the owner gets someone who understands operations to run it for them, because then at least he is doing something right. I am doing some 50 projects across India and we get these kind of owners. We respect their sentiment, but tell them that let us look at it very practically.
Nath: Yes, slowly the awareness is coming and we have begun talking a stand.
: So then what is the first step in the design process?
Puri: It is the owners’ idea in terms of perception and business that needs to be merged; and if there is somebody from an operations background, they will guide him through the process because nobody wants to fail. What a brand brings to the table is the experience of running some 4,000 hotels across the world on a daily basis and we can share with the owners what works and what doesn’t; what’s changing and what is not; what is bringing in the money and what is not; where you are saving on heat, light and power; saving on wages; etc. This experience that we draw from running 7,000 room nights a day is very important. And owners should be happy about not having to make a mistake. It is not about what you have done right but what you have done wrong because that will come and hurt you and you will learn from there.
: Once the process has started, do you feel that the owner might get sidelined by others on the core design team?
Jain: As people who have been building hotels for so many years, the owners do have ideas, which we share with the design team and inputs are important. But for those making a hotel for the first time, it is better to accept the opinions and suggestions of professionals. He needs to be clear about what he wants to make and the budgets, and ensure that it is being followed. Also, most importantly, no flip-flops! I think these changes are what cost more in terms of money and time.
: But how easy is it to marry brand identity with owner expectations?
Chitalwala: Sometimes we land into very difficult situations. If the brand agrees to a practical and favourable suggestion, the owner starts believing that the brand will follow what I say; and then they demand that we get the presentations approved before showing it to the brand. We have an independent relationship with both and have to mediate to ensure that a healthy environment is maintained for the correct product.
Railch: It is a difficult situation for us as well since we are recommended by the brand for a project. Many times the investor thinks that our suggestions will favour the brand. But one needs to work around it.
: Does back-of-the-house design get importance at all?
Railch: It is gaining in importance. The owner might try to push into making changes but the good thing is the process of ‘hand over’ where everything has to be up to a certain standard and it is not about making good drawings, a maturity has come regarding investing in core areas because the owners have also now understood that there are only two costs that you can control in a hotel — energy and staffing, and for both one has to focus on the backend. This is where the consultant plays a vey important role in justifying the budget and explaining the importance of not compromising in services.
Jain: I need to add here, that the land cost in India is very high, so when it comes to back-of-the-house operations, costs need to be treated like gold. Real estate costs should also be considered along with the brand and services requirements. Puri: With brands coming in, there has been a lot of standardization and proper documentation, feasibility and efficiency studies are done. Per key efficiency is calculated and that is the first benchmark of cost controls.
: Give me a wish list of the best combination of people and the mind sets to build a well-designed hotel.
Railch: The best combination would be the clarity in the mind of the investor, a financial discipline, professional approach with all consultants on board early and brand before that. I think then a project can turn out at a much faster pace and in a more controlled manner.This would result in a good hotel with in the stipulated cost and time frame is achievable. It is my wish list if we could have a common forum where all of us could share our good and bad experiences so that we could learn from each other and not repeat the mistakes.
