labels: hotels
The Viceroy becomes Marriott Hyderabadnews
Mohini Bhatnagar
13 February 2004

Marriott is one the world's biggest hotels brand. Mohini Bhatnagar talks to Ravi Krishnan, General Manager, Hotel Viceroy about Marriott's plans and prospects

Ravi KrishnanHotel Viceroy and Convention Hall, located on the east bank of Hyderabad's picturesque Hussain Sagar Lake, will become the Marriott Hyderabad by mid-2005 metamorphosing into one of the most prestigious global hotel brands. With this, the venerable Viceroy joins the ranks of the other Marriott properties in India - JW Marriott in Mumbai, Hotel Marriott Welcom in Delhi and the Marriott Goa Resort.

Last October, Viceroy Hotels had entered into a tie-up with Marriot to become a franchisee of . In return, Marriott would bring in its expertise, global standards of hospitality and help upgrade the Viceroy to Marriott standards.

The other major 5-star hotels in are the Taj Banjara Hotel, the Taj Krishna Hotel, the Taj Residency Business Hotel and the ITC- managed Kakatiya Sheraton Hotel. This makes Marriott International the first foreign brand to enter Hyderabad.

Marriott International, the US-based hospitality chain operates over 2,600 lodging properties in the US and 68 other countries. The chain is known for its excellence in hospitality standards the world over, and its entry into Hyderabad is widely perceived as one that will put this high-profile IT destination firmly on the global traveller's map.

Ravi Krishnan, who took charge as general manager of Hotel Viceroy after the tie-up with Marriott, speaks to domain-b about the future prospects of the Marriott Hyderabad.

Krishnan, an alumni of the Welcom Group Management Institute, has spent 16 years at various ITC Group hotels. Prior to his appointment at the Viceroy, he was with ITC's latest property, the Sonar Bangla in Kolkata. Krishnan's substantial experience in the hospitality industry is expected to stand him in good stead as the Viceroy morphs into Marriott Hyderabad.

The appointment at the Viceroy is a homecoming of sorts, says Krishnan - he left Hyderabad two years ago after having served as resident manager of the ITC Kakatiya Sheraton between 1998 and 2002.

Ravi KrishnanKrishnan says Hotel Viceroy has invested Rs 70 crore in upgrading the hotel and the tie-up with Marriott International, is essentially a marketing arrangement. "Viceroy Hotels is the franchisee of Marriott International, which will bring in its global standards of hospitality and service." Since the brand equity of the Marriott International is incomparable, he says, the Viceroy will gain tremendously from the arrangement.

"More rooms are being added, since the Viceroy at present has only 168 rooms. As Marriott Hyderabad, it will have 308 rooms along with the recently completed 25,000 sq. ft convention centre with a seating capacity of 1,500 people," says Krishnan, and adds, "This will put it among the biggest convention halls in the country. In fact, after the expansion, we'll emerge as South India's largest hotel. We will also renovate the existing rooms once the new rooms are ready for occupancy. The refurbishment was taken up prior to the rebranding of the hotel and the new look Hyderabad Marriott will be ready by mid-2005.

He adds, "The tie-up will elevate the Viceroy Hotel, earlier a low-key player among Hyderabad's hotels into the top slot with the Marriott brand behind it." Accordingly, the renovated property will include a variety of speciality restaurants, bars, coffee shop as well as a lobby bar. Other facilities will include an executive floor with an exclusive lounge, a business centre equipped and staffed as per Marriott's global standards, and shopping facilities. Recreational amenities will include a health club and an outdoor swimming pool.

Once the hotel is ready, it will have over 3,000 sq. metres of venue space for conferences and social events including a 1,000 sq. metre ballroom. "Hyderabad has become the venue of a number of international conferences in the past few years and we are witnessing the highest-ever room occupancy levels at present," says Krishnan.

According to him , Viceroy Hotels enjoys 78 to 80 per cent occupancy levels - among the highest in the city. "It has been enjoying steady growth in revenues of 18-20 per cent for a number of years. The banqueting and conferencing business of the hotel has seen a 45 per cent increase, which could go up further once the Marriott tie-up is through."

According to him the deal will be mutually beneficial. Sources in the industry say that according to the deal, Marriott will take away about 30 per cent of the proceeds. "After the rebranding, we will get it upgraded to a 5-star deluxe property from just a 5-star hotel," Krishnan says. Marriott is currently refurbishing the Viceroy's services and retraining its manpower to upgrade systems in line with Marriott's international standards

The Viceroy, which opened in 1993 as a 3-star hotel, has come a long way since then. In 2000, it became a 4-star hotel and two years later, with the addition of a corporate club, 32 new guest rooms, an executive lounge for upmarket business-class customers and a cyber café, it joined the ranks of a 5-star property in February 2002. Today, it competes with the ITC-managed Kakatitya Sheraton and the Taj group properties in the city

The Viceroy's turnover has risen from Rs.2.63 crore in 1994 to Rs.23.93 in 2002-03. Sources say the group anticipates the tie-up to lead to a better utilisation of its huge convention facilities while drastically overhauling its image. The tie-up will also put the hotel on the Marriott's Marsha reservation system for its members across the world.

In addition to the Marriott tie-up, the Viceroy will also benefit from the government of Andhra Pradesh's plans to develop the massive 1,600-acre Hussain Sagar Lake into a major tourist complex under the Buddha Poornima Project. With another Rs.500 crore-worth of private sector investments in an India international centre, an office complex, a family entertainment centre, a theatre promenade, avenue for music and laser shows, museum, and cultural complex in close proximity to the property, the Viceroy's future has never looked better .


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The Viceroy becomes Marriott Hyderabad