Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Retail/  Thai hospitality firm Dusit International announces re-entry into India
BackBack

Thai hospitality firm Dusit International announces re-entry into India

The hospitality firm is taking a long-term view of business as it expects that people will continue to travel and stay in hotels once the impact of the ongoing pandemic wanes

Lim Boon Kwee, chief operating officer, Dusit InternationalPremium
Lim Boon Kwee, chief operating officer, Dusit International

NEW DELHI : Thailand-based hospitality firm Dusit International has announced its return to India with a plan to open at least two Dusit-branded hotels per year 2021 onward in tier I and tier II cities. The firm will open Dusit Princess Serviced Suites Kolkata by 2023 under a franchise agreement with the Jain Group, a real estate, hospitality and finance organisation based in Kolkata.

Dusit said it is already in talks with other potential owners and is on course to conclude at least four more contracts within the next 12 months. The company will focus on markets such as Mumbai, Delhi and Bengaluru – as well as key leisure destinations such as Goa.

“Our Kolkata hotel will start operations in 2023 and in the meantime, we are negotiating projects some of which are rebranded properties which will start operating from next year. Our focus is going to be on key leisure destinations next year," said Lim Boon Kwee, chief operating officer, Dusit International.

Dustin International has been around since 1948 and currently operates six key brands including Dusit Thani, Devarana, dusitD2, Dusit Princess apart from two new additions - millennial brand Asai hotels and luxury villa rentals Elite Havens.

“We will enter India market by introducing upscale and mid-scale brands (Princess and dusitD2 respectively) in leisure destination such as Goa. I believe India has a huge domestic market and it can accommodate many more hospitality players," added Kwee.

The hospitality firm said that it is taking a long-term view of business as it expects that people will continue to travel and stay in hotels once the impact of the ongoing pandemic wanes.

“A hotel takes at least three years to be constructed and start operations and for that we have to invest now," said Kwee adding that owners have to rethink and restructure business models in a post covid world. “We have to reduce our public area facilities, re-skill staff and leverage technology to make our operations even more efficient."

Dusit’s previous stint in India was with through a joint venture management contract with Delhi-based Bird Group that ended in 2017. Bird Group decided to rebrand Dusit Devrana as Roseate Hotels and Resorts in Delhi.

“We have never exited India. Actually, we just opened 20 villas in Goa and Maharashtra under our villa rental brand Elite Havens," Kwee said.

With India’s fast-growing middle class expected to reach 583 million people – or 41% of India’s projected population – by 2025, Dusit also sees huge potential for its high-end offerings in this burgeoning market. The brand Dusit is already known to Indians as the country is one of the top source markets for Dusit Hotels & Resorts worldwide, with Indian travellers second only to Chinese in terms of room nights generated in 2019.

This is the right time to invest in India as pandemic has forced many hospitality industry stakeholders to offer better deals said Madan Sabnavis, chief economist, Care Ratings Ltd.

"A mid to long term strategy in the tourism and hospitality market is a thoughtful business decision given the working population, demographic and increasing disposable income. People tend to take more domestic holidays than international and that's why this market will continue to grow," he added.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 22 Aug 2020, 05:05 PM IST
Next Story footLogo
Recommended For You
Retail Stocks
₹4,4192.5%
₹2.040.49%
₹0.82-3.66%
₹3,873.42.28%
₹2,103.61.41%
Switch to the Mint app for fast and personalized news - Get App