CEO INTERVIEW: AMARI HOTELS Affordable Luxury: Coming Soon To India Thailand’s largest domestic hotel management company, Amari Hotels and Resorts, is foraying into India by 2010, and the Group is paying heed to substantial branding and visibility in the country. Peter Henley (President and CEO) reveals the strategy to Angshuman Paul |
 He is a veteran of the hospitality industry, and during the long journey through his professional career, he has played an array of roles in diverse organisations. From Morgan Stanley to some of the world’s leading chains, he has taken up the role of protagonist across various groups. We recently came upon this multifaceted presence of a clean-shaven figure, clothed in a crisp black suit. Peter Henley is his name and the manner in which he greets us is a testament to the fact that he is more than suitable for spearheading one of the world’s leading hospitality brands. Moreover, his experience of more than two decades in the hospitality industry propelled him to take up the pilot’s seat at Amari Hotels and Resorts. While his hitherto hidden penchant is for management and people, at the onset of his educational career, Henley had preferred law. Obtaining his Law degree from University College London and following it up with an MBA degree, Henley’s knowledge is as wide as possible and probably due to that advantage, he understands the kind of momentum that an efficient team can create. But the question over here is, how does one create an efficient team in the first place? Henley reveals all his tricks to us and shares with us his future plans for Amari in India, in this exclusive conversation with The Human Factor. Over to him: Q. What changes do you see taking place in Indian tourism? A. The Indian tourism industry is definitely seeing its best time. The profile of the Indian traveller has changed, from big groups to frequent and independent travellers. Then there is the emergence of professional couples, with one or two children. They book through the Internet and will travel thrice a year. A sort of transition from large packed-itinerary groups to smaller and younger groups of travellers has now emerged in India. Q. How was the journey for you from being a lawyer to becoming a hotelier? A. It was an accident more than anything else. I joined Holiday Inn as the in-house lawyer. Later, a lot of management people left, and I moved from law to management and that was my first step in managing a hotel. It happened accidentally but then I started enjoying it. It was challenging but at the same time interesting. Q. What are Amari’s plans for the Indian market? A. We will be rolling out a comprehensive programme to enhance our systems and restructure the corporate office to roll out our first property. We will be opening 51 properties by 2018, thus positioning Amari as a leading Asian hospitality chain. And these properties would be situated in both metros and tier-II cities. However, in the initial stage, we would test the water only in three places – Goa, Delhi and Mumbai. Q. Has the economic downturn, in any way, affected Amari’s expansion plans? A. The cycle in the hospitality industry normally goes up for seven years, comes down for seven and then goes up for seven years again. This time, during the recession, it has been longer, the period being nine years. But we have done pretty well compared to our competitors. In fact, in 2009, occupancy has increased, although rates have been a concern. |
 Q. Why did you choose 2010 to enter India? Is it because of the Commonwealth Games?A. We are keen on tapping the burgeoning Indian hospitality segment and positioning Amari as an affordable luxury brand that embodies Asian flair with a modern perspective. The Commonwealth Games is not the only reason; we are looking forward to a much longer-term initiative. We are presently in discussions with potential developers and owners in India. The Indian travel market today is placed amongst Amari’s top ten business-generating markets, presenting a positive increase of around 10 per cent in terms of the overall sales growth. Q. What potential do you see among Indian tourists for your Amari properties in Thailand? A. In 2009, the Indian market contributed over 90,000 room nights for Amari, with guests visiting due to both business and leisure. Amari has a strong ongoing relationship with the travel trade fraternity in India. We expect that there would be double-digit growth in terms of Indian tourists visiting Thailand. Q. What are your investment plans in this regard? A. We would be investing USD 44 million by this year but I cannot comment on how much of this investment would be in India. Maybe about 5 to 10 per cent of the total investment would be in India. It depends upon the situation. However, in the initial year, this investment would be limited to Delhi, Mumbai and Goa only. We will be also be investing in advertising so that significant awareness about the brand is established in India. We plan to open four-star hotels associated close to airports and will target corporate clients. Q. Are there any real estate players that you are planning to tie up with? A. We are in talks with major real estate developers in India to jointly bid for airport hotels across different parts of the country but it is difficult to name any such real estate players as we are testing various options. However, the names of these players will be announced by the beginning of the next fiscal year. Q. What are your overall plans for the year 2010? A. We will be introducing Amari Residences Bangkok, an exciting concept that will become the first Amari-branded serviced apartments for the group. We will be focusing on luxury condominiums. We will emerge as a brand that embodies Asian flair, modern perspectives, desire and a down-to-earth vibe. We will try to focus more on leisure travellers. Q. In your industry, innovation is key. How do you motivate people for this? A. In the service industry, people matter a lot and that is where innovation is important. Specifically in the business of hotel management, cultural values and government policies matter a lot. So if you are a multinational hotel brand, your people play a very important role in taking your brand ahead. If you understand this, you will automatically motivate people. Q. What type of leadership model do you follow and who is your ideal leader? A. I follow a collective decision-making model and believe in group leadership, where I try to create a group of leaders. That is where your recruitment method has to be right so that you select the right people. Remember, every new employee has the potential to become a leader. Select the right people, create more leaders out of them and your organisation will always have an edge. My ideal leader is Nelson Mandela because of his friendly attitude in leadership. |
Angshuman Paul
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