- Can you give us a brief about your journey at Espire Hospitality Group?
My journey with Espire hospitality started in July 2021 with a vision to have 20 hotels under our portfolio by 2023. So far, the journey has been exciting as well as rewarding, we have successfully signed and structured new business partnerships in strong leisure destinations like Goa, Udaipur, Jim Corbett, Dehradun, Ranthambore, Mussoorie and Amritsar in line with our expansion plans.
With a relentless surge in the demand for luxury hotels and experiential getaways in past few years, we have taken a pertinent step to add a luxury boutique resort brand ‘ZANA – Luxury Escapes’. We have already signed two resorts for this brand and are opening our first resort ‘ZANA Lake Resort, Udaipur’ under this brand, in September this year.
- What are your thoughts on growth and future prospects of the luxury segment in our country?
Domestic travel has seen a significant increase in last few years. The infrastructure development that has happened in the recent past, especially in the hill stations, has motivated the Indian travellers to explore the domestic destinations more than ever. And therefore the demand of luxury segment in these newer locations is definitely growing.
At the same time, the meaning of luxury has redefined and the people are now seeking exclusivity and authenticity in their holiday experiences, be it domestic or international and therefore the experiential luxury getaways have a great potential. Our new brand’s maiden resort ‘ZANA Lakeside Resort, Udaipur’ will be a unique destination with inspiring experiences and nourishing cuisine, complementing its stunning natural setting.
- What are the major factors, contributing for the growth of the Espire Hospitality Group?
The major factor contributing to the growth of the group is a clear vision and strategic roadmap. The group is heading towards a new journey, with big expansion plans, revamping of existing resorts, and with a business strategy of having an asset-light model. We also have a new leadership team at our resorts and corporate office from amongst the finest hotels in India, that is committed to establishing the company as a leading hotel chain, known for its quality and service.
Our diverse portfolio makes us a stronger brand with the ability and strength to enter multiple markets. It also gives us an opportunity to expand faster as we can target multiple asset owners, depending on the resonance with our brands.
We are presently focusing on an asset-light model with management contracts and on lease, with a revenue share model.
- What is ZANA – Luxury Escapes, your upcoming brand all about? What are some key characteristics that distinguish ZANA from others in the segment?
ZANA – Luxury Escapes is a distinctive luxury experience that will set it apart from the other brands that have developed in this space, in the last few years. At ZANA, every detail will be so characterful that it will transform an otherwise simple leisurely stay into a lifestyle experience. We are creating distinctive destinations where every visual will be SERENE and each experience CLASSIC.
Blooming across some of the most exquisite locations across the country, ZANA – Luxury Escapes will offer a whole new world – a world that traces a confluence of unique experiences, modern hospitality, and a service philosophy that can only be defined as the ultimate ‘ZANA Way’.
- How do you see the growth of hospitality segment in India?
The Indian hospitality industry is set to expand and it is projected that the Indian travel market will be worth $125 million by 2027, as per a recent report. India’s rich culture and diversity have been attracting a large number of tourists from across the globe and it will continue to do so. Post the pandemic, the growth of the Indian hospitality segment is propelled by the increase in domestic tourism. Unique and unexplored experiences have been popular for a few years, and this trend is continuing even now.
At the same time, the infrastructure development is at its peak in our country, with the launch of new airports, upliftment of railway facilities, and the development of inter-city roads. This is another factor that will continue to increase the demand of domestic travel and growth of hospitality segment.
- How did the group manage its revenue during the COVID times?
The pandemic created social and economic disruptions that certainly led to the most challenging times for the hospitality industry but the industry showed resilience.
In terms of the survival strategy during the pandemic, amongst the other measures, we adapted an operations model where 78% of the expenses at our resorts were made variable in nature as against 55% before the pandemic. We were able to convert our fixed expenses into variable ones over a period of time and this process is ever evolving.
The group has its majority of the resorts in the leisure destinations and these destinations fortunately picked up much faster than the business destinations, thereby making up for the lost revenue during the lockdown period. The business now is better than ever and our Q1 performance has been really good. In fact, we have witnessed an increase of 10% in demand for hotels and a 50% increase in our ARR even compared to the pre-Covid level.
- Which locations are on your radar for expansion?​
Since our prime focus is on creating experiential stays, our key target will always be leisure destinations such as Kerala, Coorg, Mahabaleshwar, Jammu, Shimla, Darjeeling, Mount Abu, Gangtok, Manali, Rishikesh and Mussoorie
We are in active discussions with few like-minded hotel owners in Mathura, Dharamshala, Varanasi, Sariska, Pushkar and Mussoorie.
- Will you continue to focus on your mid-segment brand Country Inn Hotels & Resorts as well?
All our brands are unique in nature, offering a distinctive experience to travellers. We have a clear focus and expansion plans for our mid-segment brand ‘Country Inn Hotels and Resorts’. In alignment with our plans, we recently re-introduced the brand with a refreshed look and feel while retaining our core philosophy of offering the most memorable and warm experience to our guests.
- What does Espire Hospitality Group’s Pipeline look like in the next 5 years?
We are a growing and evolving hospitality group that aspires to have a strong presence across India. With a robust pipeline currently in place, we envision having 100 hotels across brands by 2027.
