Business India Sunday, 15 Nov 2009 Page# :70 Size : 1014.26 sq.cm. Corporate Reports BUSINESS INDIA • November 15, 2009 BUSINESS INDIA • November 15,2009 Corporate Reports

men, these seem achievable goals. Not IHIIR (India Hospitality and Health second nature to us and while older only to the Indians blessed with a spiri­ Resorts) flag. In India, where the hospi­ companies are trying to break the tual bent, but also to overseas visitors tality pyramid is inverted - maximum mould, the mould exists". Are you being served? who arrive in truckloads. rooms in the star segment tapering It helped that during his Cornell "My husband is a dreamer and a down to limited rooms and blurred days Khanna had Bill Marriott, chair­ With India's first destination spa and a growing chain Oberoi started asserting himself in the thinker," reflects Neelam Khanna. "He segmentation. Ista knew just where man and CEO of Marriott Interna­ group that led to Gautam Khanna's believed in wellness well before it on the pyramid it would perch - a tional, as a roommate, and had in of business hotels, third generation hotelier Ashok well-publicised exit. Ashok, however, turned the trend it is today." She business hotel in the upper upscale cat­ those formative years visited business Khanna is living up to his grandfather's name downplays the family feud, "1 was admits that his decision to leave a job egory with a price range of Rs7,000- hotels all over the world. "Hardware always looking to have something of and start a business did seem daunting, Rs 10,000. With its cutting edge design, anyone can do, what sets a hotel apart my own but was waiting for the right but then she'd been privy to his yearn­ clean lines, intuitive service and is what you do with it operationally." opportunity." There was an inherent ing for creating something new all inspired F&B options, it ushered in a Their signature is simplicity, the need to stand out and not toe the line. along. Indeed, it would have been eas­ hitherto unfamiliar vibrancy together nuances of basic hoteliiering: hygiene, In the IT boom of the late 1990s that ier to set up a hotel, which is in his with a youthful appeal. Tailored to the good service and good food. And help­ brought in burgeoning salaries and bloodline, rather than start a first with biz traveller, Ista displaces the pro­ ing the Khannas in this objective is a escalated stress levels, Khanna finally no parallels to follow. But, she reasons, fessed bedrock of business hotels: young energetic team - the average age found his niche. "Realising that IT he is a man of few needs and desires, affordable functionality, and ensures at IHHR is 23 - that feels a strong sense professionals need a break ever) three "and that gives you the strength to creature comfort while facilitating of ownership, which translates into months, we saw an opportunity in start on a new path and not worry starting a health and wellness destina­ about failure". The guiding spirit tion spa." Having zeroed in on this, behind the spas and the Ananda Spa Khanna travelled across the world Institute, Neelam candidly acknowl­ studying about spas and then spent edges that when Ashok started Ananda months on searching for the right loca­ she was unfamiliar with the very con­ tion - going from Kanyakumari to cept of a spa. "Being much ahead of Ooty to Assam and then all the way up time, the first two years were tough, and down the Ganga. Accessibility, cli­ but at the end of it we'd built a brand." mate, ambience and manpower, all determinants to the right spot, but Siblings for Ananda somehow the mix just did not seem to In infancy they battled 9/11 and while come together. Until Khanna Senior, they managed to scramble through, with a lifetime dedicated to the indus­ Khanna decided not to remain con­ try - he started Oberoi's first overseas fined to the leisure space. "We decided property, Mena House in Egypt and to venture into business hotels that are was instrumental in its global march - largely insulated from the vagaries of recalled meeting the Maharaja of leisure travel." This would also be the Garhwal who'd spoken about his castle growth engine for the company as Ista Hotel Amritsar. opened in April 2009 up in the Himalayas. Ananda, though a raging success and a "As 1 drove up from Rishikesh to big brand, its replication depends on business processes both in terms of humility of service and going that Narendranagar, 1 could see the turrets external factors. "We've been slow to work and afterhours. extra mile to ensure jguest comfort - of the palace from between floating grow Ananda as location is fundamen­ "We identified the new age business both IHHR benchmarks. Also by now, clouds, and I knew this was the spot." tal to our ethos," Neelam explains, traveller who was being ignored by Neelam has carved a place for herself. And so was born Ananda in the adding that while they've been search­ luxury hotels," says Andrew Saldanha, With Ashok caught up with growth, Himalayas - South Asia and the Middle ing for another magical destination, vi>, operations. "Ours are cocoons of the spa aspect was 'offloaded' onto her East's first destination spa, which has they haven't stumbled on it so far. rejuvenation created to fill the gaps left - something she's mastered over time. His father's son: Ashok and Gautam Khanna been voted the 'world's best' thrice in a Opposed to a watered down version, by established hotel chains." Waiters While she keeps the wow factor ongo­ row by the vied for Reader's Awards by they're also not in favour of a spa fran­ don't tower over guests but go down ing at Ananda, with visiting masters, t 48, when ordinary folks slow would inherit - Gautam Khanna Conde Nast Traveller. Attracting a global chise. Khanna attributes this to his on one knee to take orders, laundry is enhancements like the recently intro­ down and start planning thteir married Swaraj, daughter of M.S. clientele, Ananda has featured in learnings at The Oberoi, a period offered at no charge and in no time, duced 'pregnant ladies programme' A retirement, Ashok Klianrna Oberoi in 1950, and Ashok was the first almost every major publication, and where he learnt everything about the guest preferences are noted - right and Tibetan treatments; she is instru­ turned up his sleeves and turned entre­ among the third generation to join the boasts a 35 per cent repeat clientele. business. "The Senior Oberoi would down to the fruit they prefer in their mental in extending Ananda to Ista: a preneur. The third generation hotelier, business, and dedicated his youth to Some guests come back two or three often say that if he had a way he would room, restaurant menus are changed best of Ananda spa facility for guests son of hospitality heavyweight Gaiu- growing the company. "I always times a year and then some turn create a law against management daily to avoid fatigue and all the rooms and is also concentrating on making a tam Khanna and grandson of tine thought of myself as a part of the Ananda Yogis, who stay-connected contracts. I agree, as finally it is your have the thoughtful touches that make success of their all-new spa training father of Indian hospitality M.:S. organisation and not an inheritor." year round, 'i he spa philosophy is reputation which is at stake." the harried business person feel at facility. Realising the potential of Oberoi, after having served The Obercoi However, the spirit of enterprise had deep: spiritualism, yoga, ayurveda And so Ista was identified as the cat­ home. Predictably, established chains the wellness industry and that their for 28 years, decided that it was time tto passed down and, though dormant and wellness. And in the pristine alyst. The first property came up in have been on their tail but Saldanha is therapists were constantly poached, branch out. It helped that he never through his youth, spurred him to Himalayas, replete with good energies 2006 at Bangalore and managed very not unduly concerned, "being a young the Ananda Spa Institute (asi) was looked at the Oberoi as a legacy he go solo in 1997; this was when Biki born of penance by saints and holy quickly to carve a niche and plant the company, youthfulness of product is launched in Hyderabad last year. The

• 70. BUSINESS INDIA * November IS, 2009 Corporate Reports

poaching, while flattering, created a sleeve. Saldanha, an Oberoi old hand has offered rights shares to the exist­ permanent void; also being pioneers who joined in 2004, says what makes ing investors. This issue is underway. in the industry they realised the dire IHHR score over established companies Today, Ista is present across Banga­ need for certified therapists, ASI can is the joy of being part of a growing lore, Hyderabad, Amritsar and com­ take up to 120 students and offers company, and growing along with it. ing soon to Pune. "Our growth training in ayurvedic therapies, inter­ "Here one can contribute to growth strategy for Ista is to target under-ser­ national therapies and a teachers train­ and also the character of the company. viced Tier II and III towns," explains ing programme in yoga. A course for In a large company one needs to fulfil a Mahesh Natrajan, VP, marketing. beginners in yoga is being framed. role that is spelt out and the freedom Having invested Rs700 crore across and creativity is relatively smaller." these properties the company has set Growing the dream Similarly Jaideep Anand, GM, Ista aside another Rs800 crore for expan­ The drive to grow and excel is not lim­ Hyderabad also quit Oberoi and sion across Amdavad, Belapur (New ited to the family, rather it is a shared shrugs, "Why would I leave a hospital­ Bombay), Nagpur, Coimbatore, Jaipur and Puri. Sites at each of these cities dream at IHHR, where the senior man­ ity major to join a small company but agement gathers every afternoon over for our focus on excellence and the have been bought and projects firmed a home-cooked lunch delivered from management team?" Tagged as a place up, but in light of the slowdown they've slowed down their pace too. the Khanna farmhouse. Here, over for constant learning and quick "One needs to keep reserves as with the downturn long-term planning is out," Khanna explains. However he's quick to add that Ista as a strategy is well-tuned to India's growth pattern. "We've identified cities with new age industries and a young workforce," clarifies Natrajan. Business hubs or industrial towns are targets as also under-serviced cities; like Amritsar, where the newest Ista is filling a much needed void. Tourism authorities claim that the Golden Temple has a higher footfall than the Taj Mahal, and yet the city has no star hotel. Ista, in its sixth month, is already a preferred stop for tourists, NRIS and even pilgrims. This, when reputations have been built largely by word-of-mouth publicity. With Ananda, the group never Three-legged stool: Saldhana, Khanna and Natrajan advertised - relying solely on recom­ mendations; however with Ista they've easy banter and diet reminders, top growth opportunities, word of mouth adopted both word-of-mouth and brass exchange ideas; like what aspect has helped the company continually the traditional route. Natrajan eluci­ to play-up at their upcoming Pune add to its talent pool. dates lsta's marketing strategy: lever­ property, while a certain congenial The challenge has not been so age current clients, organise corporate air looms. This ease of being and much to attract top professionals but fams, referrals, monitor social media warmth permeates across the floors to shortlist line staff. Khanna admits and feedback and also advertise lending that certain hominess without that they had to curb expansion plans through print, television and the digi­ taking away from the Delhi HQ. It's all for lack of superior professionals, tal medium. And it's working. All of guns blazing but not cut throat; "only 200 people from across India three hotels but the impact is such that homely without turning into a mom- met our requirements". The other big regulars are looking to the group as a and-pop shop. Yes, joining the big challenge, of course, was funding. But chain and the company is rolling out a guns on this lunch table is young given their credibility as hoteliers loyalty programme shortly. Aashica - Khanna's youngest daughter they managed an initial borrowing of For Ananda die-hards there's rea­ who, having returned from Cornell, is Rs36 crore, and Ananda was started son to cheer too. Jaipur and Puri will learning the ropes - but IHHR is not with a Rs65 crore investment. Growth each be bestowed with an Ananda. owner-driven and one of their key capital was subsequently provided by Here the luxe factor will remain at successes is the talent they've been able Morgan Stanley Private Equity, which par with the original; however, the to draw from the industry. invested Rsl75 crore. The current focus will be families, and not health Top management is small, eight paid up capital of the company is and wellness. people, but each has an ace up his Rsl75 crore. Currently, the company >NUPUIt MA1IAJAN-SINJI