Page 94 - Feb-Mar 2024

HOTELS

His philosophy centers on design excellence, prioritising
meticulous service design and sustainable construction
practices to ensure projects endure the test of time. This
dedication has earned Panchshil projects prestigious Gold
and Platinum LEED certifications, underscoring their
commitment to sustainability and quality.
Beyond construction prowess, Chordia understands the
luxury mindset, crafting experiences that resonate with
discerning clientele, setting Panchshil apart from
competitors solely focused on design or construction. With
a keen eye for detail, Panchshil projects excel in
construction speed, on-time delivery, and superior quality,
a testament to Chordia’s unwavering dedication to
excellence. Furthermore, his passion for incorporating
exquisite artworks and sculptures from around the globe
adds a distinctive touch to his hospitality projects, elevating
them to unparalleled heights of luxury and refinement.

When it comes to choosing the class of hotels, what are
the factors influencing the decision between luxury,
upscale, or other segments?
At Panchshil Realty, our key considerations in the
investment decision include understanding market
demand and location. More importantly, the target
demographic is crucial. Assessing the needs of potential
guests in a particular location helps determine the THE RITZ-CARLTON, PUNE
appropriate class of hotel. The geographical area and its
economic status play a significant role. Assessing the competition helps determine where there is
High-income areas or popular tourist destinations may a gap in the market. Choosing a segment where there is less
support luxury or upscale hotels, while business-centric competition can be advantageous.
areas might require mid-scale or business-oriented From an operating cost point of view, luxury hotels
accommodations. Considering the long-term prospects and typically have higher operating costs due to the
potential evolution of the market segment is important. maintenance of exacting standards, staff training, and
The chosen class should align with future market luxury amenities. The level of service and staff training
expectations and trends. required varies across different hotel classes. Selecting
Ultimately, the decision on the class of hotels depends on luxury, upscale, or other hospitality segments hinges on
a thorough analysis of market demand, investment understanding market demographics, location,
capacity, brand strategy, guest expectations, and long-term competition, brand strategy, costs, industry trends, and
business objectives. Each segment offers its own set of ROI. Thorough analysis of these elements is crucial for
opportunities and challenges, and choosing the right class informed hotel development and investment decisions.
involves aligning these factors with the overall business
strategy.
Investment capacity and ROI expectations play a strong With regard to brand partnerships, what are the
role in determining the feasibility of developing a luxury, benefits and considerations of collaborating with a
upscale, or mid-scale property. Luxury hotels typically single operating company or diversifying across
require higher initial investments. Balancing investment multiple brands?
costs against the expected revenue and profitability is Again, both offer distinct benefits and considerations.
crucial. Luxury hotels may yield higher profits but often Choosing between a single operating company or
involve higher operational and maintenance expenses. diversification across multiple brands depends on a
I do believe very strongly that a hotel’s brand strategy company’s strategic goals, risk tolerance, market
impacts the chosen class. Luxury and upscale segments positioning, and operational capabilities. Some businesses
emphasize high-end experiences, service offerings and prefer the stability and alignment offered by a single
amenities. Luxury hotels often offer extensive amenities operating company, while others seek the benefits of
like spas, fine dining, and concierge services, while mid- diversification, innovation, and wider market reach by
scale hotels focus on essential services and comfort. collaborating with multiple brands. A balanced approach

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