INDIA; REGION KEY IN FORTE EXPANSION

Plan to double global spread in three years

Le Meridien Hotels and Resort, the upscale brand of Forte Hotels Group, is aggressively strengthening its presence in India. The 187-room Le Meridien Mumbai opened in August following the June opening of the 243-room Le Royal Meridien Chennai. While Le Meridien Cochin will have a staggered opening beginning December 2000.

The group, which also operates hotels in Delhi, Pune and Bangalore, has plans to double its presence on the Indian sub-continent within two years, according to president and managing director, Le Meridien Hotels and Resorts, Bernard Lambert, who recently visited India on a three-city hop.

The group is the largest international operator in India, with plans to have a portfolio of ten properties representing some 4,000 rooms by 2004.

Lambert said that the brand’s first quarter 2000 results for the Indian hotels showed a 14 per cent increase over the previous year indicating the potential for both tourism and corporate business in the country.

"Our expansion strategy calls for a presence in all the major commercial and tourist centres, such as Cochin and Goa."

"India and the Middle East are instrumental in helping our brand target of more than doubling the Meridien global portfolio in three years – we would like 250 hotels worldwide by 2003," stated Lambert.

Lambert said that Le Méridien is well on the way to this target with 150 hotels and resorts expected to be operating in 55 countries by the end of 2000. He said the brand recorded outstanding half-year growth (October to March) with global room sales up by 11 per cent and overall sales up nine. The global network was expanded rapidly during this period with a further 13 new management contracts.

Recently, Le Meridien established another first for an international hotel group in India with the opening of a local market reservations centre for domestic and worldwide reservations. (Toll-free domestic bookings – 1600 11 6006; international bookings – 1600 111 290).

Regional overview

Looking at the region, in the Middle East and West Asia, Le Meridien currently operates 22 properties (6,500 rooms). In addition, the brand has 23 hotels in this region under development. Together this represents 30 per cent of the Meridien worldwide network.

In the United Arab Emirates, a 219-room resort property in Fujairah due to open late 2001 will bring the brand’s presence to five (one in Abu Dhabi, three in Dubai). The brand’s Jumeirah beach property is nearing the launch of a 154-room tower extension, in October, which will also see the hotel rebranded as Le Royal Meridien Beach Resort and Marina. All three Dubai properties are also preparing to launch new restaurants in the fall.

While in Egypt, in this year alone, eight properties are scheduled to open including Le Meridien Al Achir near Ramadan City in Cairo, Le Meridien Sharm El Sheikh and the 900-room extension to Le Meridien Cairo. Elsewhere in the region, Le Meridien operates two properties in Saudi Arabia and one in Jordan, Lebanon and Syria respectively,

Regional visitor potential

Looking at the region’s potential for in- and out-bound travel, Michel Noblet, regional managing director, said that the notion of ‘long-distance’ no longer holds true : Air travel, global communications and the Internet have all shortened the actuality of distance to the degree that ‘miles travelled’ is often no longer a contributing factor when doing business or deciding where to spend one’s vacation days.

"Hence, the Middle East and Asia is no longer viewed as ‘long haul’ by hardened travellers and many not so hardened travellers.

"Business people from all sectors see the region’s potential and e.commerce will continue to break down distance barriers. Consequently, we expect a growing interest into all key gateways from the global business arena."

Noblet also indicated that India and the broader region is a key feeder market for Le Meridien and other Forte brands worldwide : "With more than 1 billion people in India alone, we recognise the tremendous opportunity that your market, and neigbouring countries bring and we intend to ensure that we service from the ground level – the reservations centre, being an example."

Growth by merger and alliance

Continuing the focus on expansion, Lambert confirmed the brand’s growth strategy includes ‘expansion by merger and alliance’. Recently, the boards of Granada, the owning company of Forte Hotel Group, and Compass Hospitality announced the merger of the two groups to form Granada Compass.

The hospitality arm of the merger will see operations in more than 75 countries, employing more than 250,000 people worldwide. The new group also comprises an independent media division and a de-merger resulting in two independently quoted companies is expected within twelve months.

Lambert also cited the recent ‘Le Meridien / Nikko’ announcement of a sales, marketing and reservations alliance.

He stressed the significance of the alliance for the regional outbound traveller : "The alliance leverages the two companies recognised and complementary geographic strengths. This gives the regional market an excellent choice of properties when travelling to key Asia-Pacific destinations such as China and Hong Kong – as well as some destinations in the Americas where Le Méridien has no presence, such as Mexico City and San Francisco markets."

Lambert concluded that key to expansion plans are the hotel owners and he confirmed that the brand has developed strong relationships with experienced, proven professionals in India and elsewhere in the region : "The driving strength behind the success of Le Meridien are the owners themselves and we recognise and acknowledge their important role in the brand’s development."