Arun Saraf
If somebody can do a better job of running my hotels with the right kind of branding and service, I will let them do it. I want to own profitable hotel assets, rather than having more dots on the map
In the 50 years that he has been part of the hospitality business, Arun Saraf, MD, Juniper Hotels has seen many calamities. While most were region-specific, the disruption wrecked by COVID-19 was universal. It compelled all industry stakeholders to adopt a collaborative approach to survive, while meting out some tough lessons.
“My biggest realisation was that we are inherently resilient and optimistic. The second learning was that we can do our business differently, if we so chose,” he stated. According to him, luxury hotels were trapped in a quagmire of wastefulness in their bid to offer alleviated guest experiences. However, the pandemic made most appreciate the merits of better cost management.
“Since luxury hotels were charging high room rates, they got into the habit of giving guests more to justify these prices, irrespective whether the customer wanted it. This started the culture of wastefulness in hospitality, something you do not see overseas,” Saraf explained.
He pointed out how lights and air conditioning would be left on in unoccupied rooms and meeting spaces, or gyms would be functional 24×7 in the off-chance that a guest might want to use it. This wastage was also reflected in the staff to room manning ratio, as hotels thought that having more people per room equated to better service. This resulted in under-deployed manpower and overly intrusive service.
COST CONSCIOUSNESS
Last year, Juniper Hotels, along with its hotel partners, drastically reduced operating costs. “There’s a difference between cost cutting and cost rationalisation; these measures should not impact the quality of service offered to customers,” Saraf explained.
This move resulted in all 12 Juniper Hotels closing their book of accounts without a gross operating loss. “Some even showed profit since they don’t have any borrowing,” Saraf added. “Hence, my biggest learning last year was that everything can be changed, if one has the courage to do it.”
According to him, the pandemic has also made people very tolerant and respectful – about their own needs and that of others – while seeking a better work-life balance. This explains why he has stuck to his decision of not running a vast chain of hotels.
“If somebody can do a better job of running my hotels with the right kind of branding and service, I will let them do it. I want to own profitable hotel assets, rather than having more dots on the map,” he claimed.
This is also why Saraf personally chooses the locations for each hotel and builds them for the long haul. For now, he is busy prepping for the opening of his Bodh Gaya resort and convention center, which is 85% complete and is slated to open next year.
