In conversation with Hospitality Biz, Karuna Nasta, Vice President – Asset Management and Assurances, Chalet Hotels Ltd., reflects on her journey of 25 years with the company from the time she joined as the first woman employee and her changing role.
How would you describe your journey of 25 years with Chalet Hotels Limited?
Reflecting on my 25-year journey with Chalet Hotels Limited, it has been an extraordinary blend of professional growth, innovation, and shared success. I joined the company as the first woman employee, designated as Assistant Manager in the Accounts & Finance department, overseeing audits and accounts before transitioning to the business side of hotel operations in asset management. This journey has been incredibly exciting and filled with wonderful memories and countless learnings. From the early days focused on establishing a strong foundation to our expansive growth phases launching world-class properties, every step has been marked by a commitment to excellence.
I’ve witnessed our portfolio evolve from initial projects to becoming a leading player known for luxurious, high-end hotels and mixed-use developments. The journey has also been filled with challenges that demanded resilience and innovation, including navigating economic fluctuations, adapting to changing market demands, and embracing technological advancements. Each challenge has been an opportunity to learn and emerge stronger, emphasising the importance of strategic planning and agile execution. Throughout it all, I have been passionate about working at Chalet and have had fun at work, making this 25-year journey truly rewarding.
You sure have seen the hospitality industry change considerably over the years in India. Your thoughts on the growth and future?
Indeed, the hospitality industry in India has undergone significant transformation over the past few decades. From my vantage point, having spent 25 years with Chalet Hotels, this evolution has been marked by diversification and expansion. Initially dominated by luxury and upscale segments, the industry now features a vibrant mix of budget hotels, boutique properties, and alternative accommodations like serviced apartments and homestays, catering to a broader spectrum of travellers. Technological advancements have also been a game-changer, revolutionizing operations through digital solutions in booking systems, customer relationship management, and personalized guest experiences via AI and IoT, significantly enhancing efficiency and guest satisfaction.
Moreover, domestic tourism has seen a considerable boost, driven by rising disposable incomes, improved infrastructure, and a growing middle class, with initiatives like the Incredible India campaign fuelling interest in exploring diverse domestic destinations. There’s also been a strong shift towards sustainable practices, with eco-friendly hotels, waste management initiatives, and energy-efficient operations becoming more prevalent, aligning with global trends and resonating well with environmentally conscious travellers. Modern travellers now prioritize unique and immersive experiences over mere luxury, leading to a rise in experiential travel offerings, including cultural, adventure, and wellness tourism. The industry has adapted by creating customized experiences that cater to these evolving preferences.
Looking to the future, the hospitality industry in India is poised for continued growth, driven by these trends. The ongoing adoption of technology, emphasis on sustainability, and focus on creating unique travel experiences will likely define the next phase of its evolution, positioning India as a dynamic and diverse destination for travellers worldwide.
In light of the growth in domestic and international travellers, what according to you is going to be the future of the Indian hospitality industry?
The future of the Indian hospitality industry looks promising, driven by the growth in both domestic and international travellers. Key trends likely to shape its future include enhanced technological integration, where AI-driven personalized services, virtual reality tours, and smart room controls will revolutionize guest experiences and operational efficiency. Sustainability and green initiatives will become core aspects of hotel operations, with eco-friendly designs, renewable energy usage, water conservation measures, and sustainable sourcing practices becoming prevalent to meet the growing demand for responsible tourism.
The rise of health and wellness tourism is another significant trend, with hotels increasingly offering wellness packages that incorporate fitness, spa treatments, mental well-being programs, and healthy dining options. Wellness resorts and retreats are expected to see substantial growth. Additionally, the focus on experiential travel will cater to the demand for unique and immersive experiences, offering curated experiences that highlight local culture, adventure, cuisine, and nature, such as culinary tours, cultural festivals, adventure sports, and eco-tourism.
The hospitality industry will also expand into Tier II and Tier III cities, driven by improved infrastructure, increasing economic activities in these regions, and the desire of travellers to explore lesser-known destinations.
To succeed in the future, hotels will need to focus on personalization and customization by leveraging data analytics and AI to offer highly personalized services tailored to individual preferences and behaviours, enhancing guest satisfaction and loyalty. A robust digital presence will be crucial, with investments in seamless online booking systems, mobile apps, and digital marketing strategies to attract and retain guests. Virtual concierge services and chatbots will improve customer service efficiency.
Collaboration and partnerships with local businesses, tourism boards, and travel platforms will help hotels create unique value propositions and enhance their offerings, driving sustainable tourism initiatives and community engagement. Maintaining high standards of safety and hygiene will remain a priority, with enhanced cleaning protocols, contactless services, and health certifications reassuring travellers and building trust.
Hotels will also diversify their offerings to include co-working spaces, long-stay packages, and multi-use facilities to cater to evolving traveller needs, such as remote working professionals and extended family vacations.
Challenges and opportunities include adapting to market dynamics by staying agile and responsive to changing market conditions, investing in continuous staff training and development to deliver high-quality service, leveraging government initiatives aimed at boosting tourism, and embracing diversity and inclusion in the workforce and marketing strategies to appeal to a broader demographic.
The future of the Indian hospitality industry is bright, driven by technological advancements, sustainable practices, and evolving traveller preferences. By embracing these trends and focusing on innovation, personalization, and quality service, the industry can look forward to robust growth and a vibrant future. The key will be to remain adaptable, continuously improving, and anticipating the needs of the modern traveller.
In your role as the Vice President – Asset Management & Assurances, what are the elements that hold the key to success?
QIn my role as the Vice President – Asset Management & Assurances in the hospitality industry, several critical elements ensure efficient management of assets, profitability, sustainability, and guest satisfaction. Strategic asset management is paramount, which includes the optimal utilization of assets by ensuring all real estate, facilities, and equipment are used to their maximum potential. This involves regular audits, maintenance, and upgrades to keep properties in prime condition. Developing and implementing strategic capital expenditure plans that align with the organization’s long-term goals is also essential. This includes budgeting for renovations, expansions, and technological upgrades to enhance property value and guest experience. Continuously monitoring the financial performance of properties through key metrics such as RevPAR (Revenue per Available Room), GOP (Gross Operating Profit), and NOI (Net Operating Income) allows for informed decision-making to improve profitability.
Operational excellence is another critical element, beginning with the establishment and maintenance of robust Standard Operating Procedures (SOPs) to ensure consistency and efficiency in operations.
Risk management and compliance are equally important, starting with identifying potential risks—financial, operational, and environmental—and developing strategies to mitigate them. This includes insurance, emergency preparedness plans, and cybersecurity measures. Ensuring compliance with local, national, and international regulations and standards is critical, covering health and safety regulations, environmental laws, and labour laws. Regular compliance audits and staff training programs are essential to maintain adherence to these standards. Success in this role requires a multifaceted approach to drive profitability, enhance guest satisfaction, and ensure long-term organizational success.
Operating licenses and approvals – responsible for the liasioning piece as well including renewal of operating license and approvals for all units and obtaining the same for new areas/outlets.
What is the kind of arrangement (management/self-operated) that Chalet Hotels Limited has chosen for spreading its presence in the industry?
Chalet Hotels Limited, part of the K Raheja Corp group, is an owner, developer, asset manager, and operator of high-end hotels and hotel-led mixed-use developments in key metro cities across India, including the Mumbai Metropolitan Region, National Capital Region, Hyderabad, Bengaluru, and Pune. Chalet Hotels’ portfolio includes a mix of properties managed under well-known international brands. The hospitality portfolio comprises:
– JW Marriott Mumbai Sahar
– The Westin Mumbai Powai Lake
– Lakeside Chalet Marriott Executive Apartments
– Four Points by Sheraton Navi Mumbai
– The Westin Hyderabad Mindspace
– The Westin Hyderabad HITEC City
– Bengaluru Marriott Hotel Whitefield
– Novotel Pune Nagar Road
– The Dukes Retreat, Lonavla
– Courtyard By Marriott Aravali Resort, National Capital Region
What steps would be needed to stay ahead of the competition?
In the fiercely competitive landscape of the hospitality industry, staying ahead necessitates a multifaceted and proactive approach that encompasses a blend of innovation, operational excellence, customer-centricity, and strategic foresight. To achieve this, a comprehensive strategy is required, integrating various elements to create a compelling value proposition and differentiate oneself from competitors.
Technological advancement–
Technological advancement stands as a cornerstone for success. Embracing the latest innovations such as data analytics, artificial intelligence (AI), and machine learning empowers hospitality businesses to harness vast amounts of data to gain deep insights into guest preferences, market trends, and operational efficiencies. Leveraging these insights allows for personalized guest experiences, dynamic pricing strategies, and predictive maintenance, thereby enhancing overall operational effectiveness and guest satisfaction.
Innovation-
Innovation and differentiation further propel businesses ahead of the competition. By offering unique and memorable experiences that go beyond traditional hospitality offerings, such as themed events, wellness programs, and eco-friendly initiatives, hotels can attract and retain guests seeking authentic and immersive experiences. Furthermore, strategic marketing efforts, including digital marketing channels, social media engagement, and loyalty programs, play a pivotal role in enhancing brand visibility, driving customer engagement, and fostering guest loyalty.
Improvement and Adaptability-
Continuous improvement and adaptability are also indispensable components of a successful strategy. Staying attuned to evolving market trends, consumer preferences, and industry dynamics allows businesses to proactively adjust their strategies and offerings to capitalize on emerging opportunities and mitigate potential threats. Investing in staff development ensures a skilled and motivated workforce capable of delivering exceptional service and adapting to changing guest expectations.
Operational Efficiency-
Operational excellence is paramount in maintaining a competitive edge. Establishing and adhering to robust Standard Operating Procedures (SOPs) ensures consistency and efficiency across all aspects of operations, including housekeeping, front desk operations, food and beverage services, and maintenance protocols. Additionally, implementing rigorous quality assurance programs and continuously soliciting guest feedback enables businesses to uphold high service standards, promptly address any issues, and continuously improve the guest experience.
Operational efficiency is optimized through the judicious allocation and utilisation of resources, including labour, inventory, and energy. Streamlining operational processes and embracing automation wherever possible not only improves efficiency but also reduces costs and enhances sustainability.
Building Partnerships and Networks-
Lastly, building strong partnerships and networks with local businesses, tourism boards, and industry associations fosters collaboration, enhances the guest experience, and opens up avenues for mutual growth and success. By forging meaningful partnerships, hospitality businesses can access new markets, offer comprehensive guest experiences, and contribute positively to the local community.
In essence, maintaining a competitive edge in the hospitality industry requires a holistic and dynamic approach that encompasses technological innovation, operational excellence, customer-centricity, strategic marketing, continuous improvement, and strategic partnerships. By diligently executing these strategies, hospitality businesses can not only stay ahead of the competition but also thrive in an ever-evolving market landscape.
As a finance professional, what areas of hospitality operation interests you the most?
As a Chartered Accountant in the hospitality industry, several key areas of operation pique my interest due to their profound impact on financial performance, strategic decision-making, and overall business success. Here are the areas that stand out:
❖ Revenue Management:
Forecasting and Budgeting: Developing accurate revenue forecasts and budgets based on historical data, market conditions, and competitive benchmarks. These forecasts guide operational and strategic planning, ensuring optimal resource allocation and revenue generation. Identifying and managing operational costs to enhance profitability. This includes overseeing labour costs, utilities, food and beverage expenses, and maintenance costs to ensure efficiency and cost-effectiveness. Implementing efficient processes and technologies to reduce waste, improve operational efficiency, and minimize costs. This may involve the implementation of energy management systems, inventory control systems, and streamlined procurement processes. Strategically planning and managing capital expenditures for property upgrades, renovations, and expansions. This involves evaluating the return on investment (ROI) and aligning capital projects with long-term strategic goals to maximize value creation. Ensuring optimal utilization and maintenance of physical assets to prolong their life and maximize their value. This includes conducting regular audits, implementing preventive maintenance programs, and strategically allocating assets to drive financial performance. Monitoring key performance indicators (KPIs) such as Revenue per Available Room (RevPAR), Gross Operating Profit (GOP), Net Operating Income (NOI), and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). These metrics provide insights into operational efficiency and financial performance, guiding strategic decision-making. Analysing financial statements such as income statements, balance sheets, and cash flow statements to assess the financial health of the competition/organization. This analysis informs strategic decisions and helps identify areas for improvement. Identifying and mitigating financial risks, including market risks, credit risks, and operational risks. Developing robust risk management strategies to protect the organization’s financial stability and ensure resilience in the face of uncertainties. Ensuring compliance with financial regulations and standards, including accounting principles, tax laws, and industry-specific regulations. This involves conducting regular audits, adhering to best practices, and staying abreast of regulatory changes to mitigate compliance risks. Ensuring all assets of the company are adequately insured against all risks be it property, cyber, crime, liability and the like. In conclusion, these areas of operation offer exciting opportunities for finance professionals to leverage their expertise and contribute to the financial success and sustainability of hospitality organizations. By focusing on revenue management, cost control, investment management, financial analysis, and risk management, finance professionals play a critical role in driving strategic decision-making and fostering long-term growth and profitability.
Your role can be an inspiration for many who want to pursue their career in hospitality. What would be your advice to them?
Embarking on a career in hospitality, particularly in roles related to finance and asset management, offers a plethora of opportunities for growth and fulfilment. For those aspiring to pursue this path, I would recommend starting by building a strong educational foundation. Pursuing degrees in hospitality management, finance, or accounting provides essential theoretical knowledge that forms the basis of understanding the industry dynamics. Additionally, gaining practical experience through internships or entry-level positions is invaluable. These opportunities offer firsthand exposure to the intricacies of hospitality operations, allowing individuals to apply theoretical concepts to real-world scenarios and develop a comprehensive understanding of the industry.
Alongside academic qualifications, it is crucial to cultivate essential skills that are highly sought after in the field of finance and asset management. Analytical skills are paramount for interpreting financial data, identifying trends, and making informed decisions. Effective communication skills are equally important for conveying financial insights and strategies to non-financial stakeholders. Furthermore, attention to detail is indispensable, particularly when dealing with financial reports, budgets, and regulatory compliance. By honing these skills, aspiring professionals can position themselves as competent and effective contributors in the hospitality industry.
Staying informed about industry trends and remaining adaptable to changing market dynamics is essential for long-term success. Hospitality is an ever-evolving industry, influenced by factors such as technological advancements, shifting consumer preferences, and global events. Investing in continuous learning and professional development through workshops, seminars, and industry conferences is crucial for staying ahead of the curve and adapting to emerging trends. Moreover, building a robust professional network and seeking mentorship from experienced professionals can provide invaluable guidance and support throughout one’s career journey.
Embracing challenges as opportunities for growth is a mindset that can set aspiring professionals apart in the competitive landscape of hospitality. The industry is known for its dynamic nature, presenting individuals with various challenges ranging from economic fluctuations to changing guest expectations. Developing resilience and a proactive approach to problem-solving are essential qualities for navigating these challenges effectively. Additionally, prioritizing the guest experience and maintaining a customer-centric approach is fundamental. Hospitality is ultimately a service-oriented industry, and ensuring exceptional guest satisfaction is paramount for long-term success.
Cultivating a global perspective is also essential in today’s interconnected world. Hospitality professionals often interact with guests and colleagues from diverse cultural backgrounds. Developing cultural awareness and language skills can facilitate effective communication and foster meaningful connections with international guests and colleagues. Lastly, embracing technological advancements is crucial for staying competitive in the rapidly evolving landscape of hospitality finance and asset management. Proficiency in financial software, data analytics tools, and property management systems can streamline operations and enhance efficiency.
Hence, pursuing a career in hospitality finance and asset management requires a multifaceted approach that encompasses education, skill development, continuous learning, adaptability, and a customer-centric mindset. By following these recommendations and remaining committed to personal and professional growth, aspiring professionals can carve out fulfilling and successful careers in the vibrant and dynamic hospitality industry.
