Asmita Mukherjee 
CG Hospitality Holdings Member Concept Hospitality, a leading player in the Indian hospitality industry, recently celebrated a major milestone with the launch of its 100th hotel. The brand has been strategically investing to expand its presence and venture into new regions. With seven hotels already opened in the current fiscal year and plans to add 13 more, Concept Hospitality aims to offer a total of 1,000 keys to guests. The Eastern and North-eastern markets of India will be the primary focus for these new additions, leveraging their significant growth potential and providing geographical diversification. Looking ahead, Concept Hospitality envisions a steady growth trajectory, focusing on expanding their existing brands and delivering exceptional guest experiences. Additionally, Concept Hospitality is contemplating its international debut in the near future, reflecting their ambitions for global expansion. In a conversation with Asmita Mukherjee, Param Kannampilly, Chairman and Managing Director of Concept Hospitality, sheds light on the brand’s strategies for achieving sustained growth.
With the recent investment expansion, could you elaborate on the areas or regions where Concept Hospitality plans to focus its investments? Are there any new geographical areas or regions that Concept Hospitality is planning to prioritise for its future expansion efforts? What factors influenced these investment decisions?
We have been strategically expanding our investments to diversify our presence in different regions. In the current fiscal year, we have already opened seven hotels. Our focus for these new additions will primarily be in the Eastern and North-eastern markets of India. We believe these regions offer significant growth potential and present an opportunity for geographical diversification.
Could you provide some insights into the target customer segments, specific markets that Concept Hospitality aims to cater to with its expanding portfolio of hotels?
Concept Hospitality caters to a wide range of customer segments through our diverse portfolio of brands. The Fern Hotels & Resorts cater to the 5-star segment, Fern Residency offers a 4-star experience, Beacon serves the economy segment, and Zinc Journey by the Fern provides an upscale lifestyle experience. Additionally, we have Fern Habitat, which offers upscale service apartments. With this comprehensive brand portfolio, we aim to cater to various customer segments across different markets. While our recent expansion has focused on the Eastern and North-eastern markets, we strive to cater to customers in diverse locations across India.
As the industry trend leans towards being asset-light, Concept Hospitality has been following this approach from the beginning. Are there any other business models that the company is considering or planning to explore in the future? In terms of the business model, how does Concept Hospitality envision its future growth and expansion?
Concept Hospitality has been successfully implementing the asset-light model, which focuses on operations and maintenance. This approach has served us well, and we will continue to follow it. However, we are also exploring new management model strategies to gain more brand traction in the northern and eastern parts of India, where our presence is currently not as significant. We are considering the implementation of a variable lease and revenue share model, which will allow us to partner with discerning owners who seek brand tie-ups. This model presents a win-win situation for both the owner and the operator, providing higher upside rewards for the owner. We believe this strategy will support our future growth and expansion plans.
How many new properties has Concept Hospitality introduced this year, and what are the company’s future plans in terms of property growth in the long run?
This year, Concept Hospitality has successfully launched seven new hotels, with plans to unveil an additional 13 properties, resulting in a total of 1,000 keys being added to the portfolio. Looking ahead, we envision steady property growth in the long run. As for new brands, while we currently have a diverse portfolio of five brands, we are always open to exploring new opportunities. Our focus remains on expanding our existing brands and delivering exceptional experiences to our guests.
Have you observed an increasing demand from Tier-III cities recently? How does Concept Hospitality view the potential in these cities, and are there any specific strategies to tap into this market segment?
Tier-III cities have shown significant potential and emerging opportunities for the hospitality industry. We recognise the demand from these cities and believe in their growth prospects. Concept Hospitality views Tier-III cities as an important market segment to tap into. While our recent expansion has primarily focused on the Eastern and North-eastern markets, we are actively exploring opportunities in Tier-III cities across India. We aim to strategically position our brands in these cities, catering to the evolving demands and preferences of travellers in these regions.
What are Concept Hospitality’s long-term goals and visions for the future? Are there any upcoming projects or milestones that the company is particularly excited about?
Concept Hospitality’s long-term goals and vision revolve around sustainable growth, delivering exceptional guest experiences, and maintaining a strong brand presence. We aim to expand our portfolio of hotels across various regions in India while upholding our commitment to quality and service excellence. We have made a significant stride this year by successfully inaugurating seven new hotels. The brand has an ambitious plan to introduce an additional 13 properties, thereby expanding its portfolio by 1,000 keys. These additions, particularly in the Eastern and North-easternmarkets, will further strengthen our presence and contribute to our growth trajectory. Additionally, we are exploring opportunities to expand our brand internationally, with a focus on the MENA region and neighbouring countries such as Sri Lanka, Bangladesh, and Nepal.
As Concept Hospitality continues to expand its presence, how does the company ensure maintaining high-quality standards across its portfolio of hotels?
Maintaining high-quality standards is a top priority for Concept Hospitality. We have stringent quality control processes and standards in place that are followed across our portfolio of hotels. Our dedicated quality assurance teams regularly assess and monitor each property to ensure adherence to our established standards. We also provide comprehensive training programs to our staff to enhance their skills and ensure consistent service quality. By maintaining a strong focus on quality control, we can deliver a consistent and exceptional guest experience across all our hotels.
