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      ‘Prime AAA locations will remain central to our strategy’: JB Singh, President and CEO, InterGlobe Hotels

      April 3, 2025

      Breaking Barriers and Leading with Excellence: Women in Hospitality

      March 7, 2025

      Indian Hospitality Industry Poised for Continued Growth in 2025

      January 15, 2025

      ‘India’s non-metro cities are at the heart of the country’s hospitality growth, offering immense potential and untapped opportunities’

      October 8, 2024

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘Hotels blending local charm with sustainability to lead next phase’ : Jitendra Taak

      April 4, 2025

      Timbertales Coorg Aims to Become South India’s Top Luxury Resort

      March 6, 2025

      ‘We aim to expand our portfolio to 3,500 keys by 2035’

      March 4, 2025

      Luxury Whisky brand The Dalmore targets India’s growing market for single malts

      May 6, 2025

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘India plans to double foreign tourist arrivals to 25 million in the next five years’

      April 14, 2025

      ‘Prime AAA locations will remain central to our strategy’: JB Singh, President and CEO, InterGlobe Hotels

      April 3, 2025

      Culinary Art India 2025: A Celebration of India’s Evolving Hospitality Landscape

      March 7, 2025

      ProWine Mumbai 2024: A Toast to Excellence in Wine and Spirits

      December 4, 2024

      7th AHP Hospitality Excellence Awards Celebrating Innovation, Diversity, and the Future of Hospitality

      July 26, 2024

      IHC-IIHM International Hospitality Day Awards celebrates the Glamorous Hospitality Industry of Mumbai

      July 5, 2024

      ‘Guests today seek an overall experience rather than just good food or stay‘: Chef Satyakumar GV, Executive Chef, Sheraton Hyderabad Hotel

      January 28, 2025

      Young Chefs from 50 Nations to Compete at 11th International Chef Olympiad, Feb 2-8, 2025

      January 28, 2025

      IIHM and IHC Celebrates International Hospitality Day 2024

      April 29, 2024

      Food Trends Predictions for 2024

      November 24, 2023

      ‘We’re not just hosting events but also shaping Hyderabad’s reputation as India’s top MICE destination’ : Rubin Cherian

      April 21, 2025

      ‘Hotels blending local charm with sustainability to lead next phase’ : Jitendra Taak

      April 4, 2025

      ‘We plan to drive higher RevPAR and occupancy through dynamic pricing, targeted marketing campaigns, and expanding corporate tie-ups’: Manoj Jangid

      March 29, 2025

      ‘Weddings and Room Bookings Drive Significant Revenue Growth’: Anirban Sarkar, General Manager, Radisson Blu Greater Noida

      January 15, 2025

      ‘Weddings and Room Bookings Drive Significant Revenue Growth’: Anirban Sarkar, General Manager, Radisson Blu Greater Noida

      January 15, 2025

      Luxury Hospitality in India: A Market on the Rise

      December 3, 2024

      Redefining Indian hospitality, the TECH way

      June 6, 2024

      Lone Wolf beer announces major growth strategy, bolsters production capacity to enter new markets

      April 23, 2024
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      The Cart or the Horse?

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      Culinary Tourism in India: A Global Perspective

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      M+A+S=H

      April 6, 2024

      What is the most important part of developing a risk management plan for a hotel?

      December 14, 2023

      HOTELS, HOSPITALS AND OPPORTUNITIES

      August 24, 2022

      Role of Facility Management in Experiential Tourism: Shaping Unforgettable Journeys in India

      September 27, 2023

      Occupancy Upsurge: Reinvigorating Business

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      Lessons from 20:20 for 2020

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      Legal Obligations of Lost Properties – Infra Hospitium

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      SulaFest 2025 Kicks Off Its 14th Edition

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      August 1, 2024

      Mehra Wines sets sights on leading India’s premium alcoholic beverage market

      April 24, 2024

      WIPS-Nashik revived by Govt of Mah, HRAWI applauds the move

      January 23, 2024

      Cellar 33 & Sonarys Celebrate Grower Champagne’s India Debut

      May 9, 2025

      India-UK FTA Spurs Premium Spirits Boom in Hospitality Sector

      May 9, 2025

      Luxury Whisky brand The Dalmore targets India’s growing market for single malts

      May 6, 2025

      Liquor Price Disparities Highlight Flaws in ‘One Nation, One Tax’ Vision

      May 6, 2025

      F&B major FSIPL announces 8 New Products

      October 19, 2022

      The Health Factory startup raised INR 2 crore expanded seed funding

      August 22, 2022

      Sattvik Certifies Indian Beverages Company VARAHI Pvt Ltd

      August 22, 2022

      Cold Chain Storage & Supply to Boost the Consumption of Frozen Poultry

      May 5, 2020

      ‘Our HoReCa clients have saved between INR 2 Lac and INR 15 Lac per year by using our products’ : Jesal Sampat, Executive Director, Pune Gas

      March 29, 2024

      UNESCO New Delhi seeks for expression of interest for catering services

      March 19, 2024

      ‘HoReCa Channel Contributes 80-85% of Real Good Chicken’s Revenue’ : Abhay Parnerkar, CEO, Godrej Tyson Foods

      August 30, 2023

      X Events Hospitality launches #chefstogether campaign to celebrate International Chefs Day

      August 25, 2022

      ‘We are planning to raise around INR 25 cr within 8-10 months’ : Krunal Oza, Founder & CEO of Hustlers Hospitality

      September 2, 2022

      A Feast for the Senses; Sheraton Hyderabad’s Culinary Gem

      February 2, 2025

      Roastery Coffee House : More than just a place to dine

      June 14, 2024

      Glocal Junction: Lifting modern Indian cuisine to new heights

      January 10, 2023

      Little Italy Hyderabad: An Italian gastronomic paradise nestled amidst Jubilee Hills

      December 7, 2022

      ‘Shoyu’ Brings Modern Asian Flavors to Hyderabad

      March 7, 2025

      A Feast for the Senses; Sheraton Hyderabad’s Culinary Gem

      February 2, 2025

      Firewater Neo Bar and Kitchen Sparks Culinary Magic in the Financial District

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      Roastery Coffee House : More than just a place to dine

      June 14, 2024

      Kolkata Orders Rooftop Restaurants Closed After Hotel Fire

      May 8, 2025

      Yi Jing at ITC Kohenur Offers a Culinary Escape with New Summer Menu

      May 7, 2025

      18% GST on Meals in Specified Hotels Elevates Dining and Event Costs

      April 14, 2025

      Clara Beach Haven Opens in Goa, Blending Art, Elegance, and Culinary Excellence

      April 7, 2025
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      Association of Hospitality Professionals Announces the Seventh Edition of Hospitality Challenge 2024

      June 28, 2024

      IIHM and Mayfair Hotels & Resorts Forge Strategic Partnership with MoU Signing

      May 9, 2024

      ‘We focus on equipping students with essential skills‘

      May 6, 2024

      IIHM and IHC Celebrates International Hospitality Day 2024

      April 29, 2024

      Hyatt India collaborates with CII & EHL to launch Vocational Training across its properties in Delhi, NCR and Lucknow

      July 25, 2024

      Association of Hospitality Professionals Announces the Seventh Edition of Hospitality Challenge 2024

      June 28, 2024

      ‘We focus on equipping students with essential skills‘

      May 6, 2024

      Apeejay Institute of Hospitality celebrates the graduation of the class of 2024

      April 4, 2024

      Le Cordon Bleu Gurugram Unveils Advanced Hospitality Training Facilities

      March 20, 2025

      IIHM and Mayfair Hotels & Resorts Forge Strategic Partnership with MoU Signing

      May 9, 2024

      ‘We focus on equipping students with essential skills‘

      May 6, 2024

      Apeejay Institute of Hospitality celebrates the graduation of the class of 2024

      April 4, 2024

      IHM Ranchi and Art of Living Partner for Youth Empowerment

      April 16, 2025

      ISH Hosts Distin-GU-ISH-ED 2025, Celebrates Culinary Excellence

      March 26, 2025

      Le Cordon Bleu Gurugram Unveils Advanced Hospitality Training Facilities

      March 20, 2025

      IIHM Initiative to Revolutionise Hospitality Education with AI Integration

      February 19, 2025
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      HPMF Inaugurates 14th Annual Convention with Grand Ceremony in Lucknow

      September 27, 2024

      HPMF Joins Governing Body of Tourism and Hospitality Skill Council

      June 24, 2024

      HPMF to celebrate 14th Anniversary with Awards in Lucknow and Ayodhya Dham

      June 7, 2024

      ‘Addressing the gap between industry demand and workforce skills is a critical challenge’

      May 14, 2024

      ‘Our HoReCa clients have saved between INR 2 Lac and INR 15 Lac per year by using our products’ : Jesal Sampat, Executive Director, Pune Gas

      March 29, 2024

      Hafele Introduces India’s First One Touch Cabinet Mechanism

      January 30, 2024

      X Events Hospitality launches #chefstogether campaign to celebrate International Chefs Day

      August 25, 2022

      Celebrated Chef Anton Mosimann Awarded with Swiss Culinary Merit of Honor

      July 25, 2021

      HRAWI organises FSSAI’s latest FoSTaC Programme in Mumbai

      December 20, 2023

      HRAWI organises Fire Marshals Training Programme

      April 17, 2019

      HRAWI organises fire safety training for hotels & restaurants in Mumbai

      March 20, 2019

      Hyatt and Quimera Energy Efficiency wins the AEE’s Western Europe Region Energy Project Award 2018

      November 9, 2018

      ‘Our HoReCa clients have saved between INR 2 Lac and INR 15 Lac per year by using our products’ : Jesal Sampat, Executive Director, Pune Gas

      March 29, 2024

      GRAFF Unveils the Futurismo Collection for the Kitchen

      September 16, 2023

      EssEmm Corporation launches Cosmos Nut Butter Grinder

      August 4, 2022

      Keventer Agro to Launch Food Range in Partnership with Disney India

      March 11, 2022

      HPMF Signs Landmark MOU with WineGAI

      March 30, 2025

      HPMF and ICF Join Forces to Transform India’s Hospitality Sector

      March 7, 2025

      ‘Addressing the gap between industry demand and workforce skills is a critical challenge’

      May 14, 2024

      Global Revenue Forum 2023 to host Opportunity 2023

      January 12, 2023
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    Expert Speak

    M+A+S=H

    adminBy adminApril 6, 2024No Comments4 Mins Read
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    By Nathan Andrews, Author & Hospitality Consultant

    Years back, when I had the privilege of setting up the first Ecole Hotelier Lausanne EHL campus in India, I remember the then CEO Yateendra Sinh saying that what set EHL apart from other hospitality institutes in the world was that they gave equal emphasis to the ‘art’ and ‘science’ of hospitality. What he meant was that historically European and Indian educational institutions had focused on the ‘art’ aspect, training students to deliver a great customer experience, be it through the rooms or through food and beverage, both production and/or service; while ignoring the ‘science’ of hospitality, the equally important business elements of marketing, finance and human resources. The American colleges on the other were very strong on the ‘science’ part, but paid little attention to the ‘art’.

    While EHL was absolutely correct in the need to incorporate and balance both aspects, I believe there is a third element that has been completely missing from most training and development programs, which is the ‘math’ of hospitality. What do I mean by this?

    In a nutshell, I am talking about Return on Investment ROI, Return on Investment to the owner of the property. The hospitality industry is largely a micro-focused business, focusing on the finer details to ensure customer delight. Consequently, the first years of any aspiring manager are focused on ensuring this last-mile service delivery and if they do this well, they find themselves entrusted with a hotel to manage independently. Here is where the missing elements of science and math become critical.

    From a micro focus, the GM is now suddenly expected to make and deliver annual budgets, maintain a healthy GOP, capture market share and keep the owner of the asset happy. Most stumble at this stage, ending up sadly as ‘Maître d’s in the General Manager’s office and wondering why the ask from them has suddenly changed. Great at delivering customer satisfaction, they now have unhappy owners and management companies complaining about poor ROI breathing down their necks and are bewildered because no one told them about the math of hospitality.

    The math is much more than just a healthy GOP, the math goes below the line beyond the NOP, EBIDTA to the PAT, which is the final return to the owner who has invested in the development of the hotel. Quite often by this stage, there is nothing much left for the investor after accounting for management fees, depreciation and tax; the owner is disgruntled, starts looking at the business as an underperforming asset and takes out his or her frustration on the hapless General Manager.

    All this could be avoided if all parties involved understood the third element, i.e. the math. The ‘math’ is not just good financial structuring and tax planning, the math is the real estate element of our industry. My own learning in this regard came from one of my former bosses Mr. Unmesh Joshi CMD of the Kohinoor Group. At that time, I was heading his real estate business, but he mentioned once that at the end of the day, he looked at all his businesses which included hotels, education and the real estate business through a real estate lens. Were they delivering an equivalent or better return than the real estate opportunity cost?

    A hotel is at a fundamental level a piece of real estate, there is cost of land, cost of development and cost of finance. The returns by nature are slow in comparison to other real estate asset classes where the investment cycle can be much faster sometimes even under five years, however at some point definite point in the foreseeable future, in my opinion, a maximum of eight years the investor must be able to see a positive return on their investment which includes their holding cost for the interim period.

    Management companies and their General Managers need to understand this. Too often the investment required by the brand bears no relation to the actual ROI. The pitch to the investor is more emotional, or ego-driven backed up by unrealistic terminal values that make the projections look positive. The sad reality is that the real ‘math’ soon raises its head and the bragging rights of an inordinately expensive asset soon wear off, giving way to dissatisfaction at best and unserviceable debt at worst. Without the resources and the patience to wait for that elusive terminal value, the owner throws in the towel, is unable to reinvest in the maintenance of the property and a vicious downward spiral begins detrimental to all concerned.

    ‘Art’ and ‘science’ are indispensable to our industry but the ‘math’ is equally critical, if the business has to add up!

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