Accor plans to bring premium brands like Raffles and Banyan Tree to India. The company is working on leads in India. “When Marriott was doing the acquisition of Starwood and going for volume we were acquiring Fairmont and Raffles and Swissotel and were seen by the market as going for quality and not volume. It has given us more credibility. The leads are materialising. We would love to have a Fairmont in Delhi, Mumbai and Bangalore and we are working on these. We will bring Raffles to India and are in advanced discussion for the first one,” said Cassé.
The first Raffles is expected to come up in Udaipur but it is not going to be a conversion of any historical property. He said it will be a greenfield asset. The company is keen to have a Raffles in Delhi and Mumbai too. There are only eleven Raffles property in the world. “The Raffles in Singapore has 120 rooms and its average room rate is $1,000 per night before it closed for renovation. The average room rate needed here will be $1,000 per night with the kind of investment that will go into it. In Udaipur, some hotels are not far from $1,000 anyway,” he said.
The Indian hotel industry had a ten-year high occupancy of 65 per cent and it is a good sign that demand is getting higher than supply. “It has enabled us to do a rate correction and this year we should be able to correct further. The only way you can grow is to grow average room rate. We will focus on rate improvement,” he added.
Stressing on a need for further appreciation in rates, Cassé said the average price of branded hotels in India is below Rs 6,000 a night which is not even $100. “Go out of India and see how much you will pay at quality hotels in markets like Indonesia and Thailand. Here we have a much better level of hospitality and are giving a wonderful experience to customer at less than $100 and it is shameful. There is margin for many more corrections,” he said.