Top-brass churn shows improving climes for hospitality sector

In a confirmation of sorts of the improvement in business sentiments, the hospitality industry has started seeing churn at the top management level.

The most notable movement is that of Duet India Hotels CEO Dilip Puri, who has taken up a much larger responsibility with leading global hospitality company Starwood.

Navneet Bali, chief investment office, Duet India Hotels, confirmed Puri’s exit, but gave no detail of his new assignment or the person replacing him at Duet.
Vasant Prabhu, vice chairman and chief financial officer, Starwood Hotels & Resorts, too did not give away specifics.

“Dilip will be joining us to take charge of the India operations with additional responsibilities in the region. We at Starwood believe in having local talent to spearhead operations in the country/ region and Dilip’s appointment is very much part of this strategy,” he said.

Industry sources said Puri has joined Starwood Hotels & Resorts as managing director - India and regional vice-president - South Asia on January 24 and is currently undergoing orientation at Starwood’s Singapore office.
Replacing him at Duet is a person from a non-hospitality background who has extensive work experience in the fast moving consumer goods space and has worked as a turnaround specialist for a leading global private equity fund, industry sources said.

“Vikram Seth, erstwhile CEO of the supermarket chain Nilgiris, will be replacing Puri as the new CEO. Pegged as the global private equity major Actis’ turnaround man at Nilgiris, Seth was also associated with FMCG major Hindustan Unilever’s Russia operations and was with Unilever RUB for four years,” a source said.

Calls made to Duet’s Navneet Bali and chief operating officer Naveen Jain for a confirmation of Seth’s appointment did not elicit any response. An email sent to both also remained unanswered.

Among other notable exits, Ashish Jakhanwala, regional director of development - India, Accor Hospitality/ InterGlobe Hotels, has decided to move on.

Jakhanwala, currently serving notice period with the hotel company, is tightlipped on his future plans.

But industry sources said he is planning an entrepreneurial venture with some leading names in global hospitality. The new venture is very likely to be a fund focussed on owning hospitality assets in the country.

An yet-to-be announced movement is that of Harsh Verma, regional vice president - India, Dusit Bird Hotels, who is understood to have taken up a new assignment with Graviss Hospitality Ltd. A BSE-listed entity promoted by Ravi Ghai, Graviss owns The InterContinental Hotel at Marine Drive in South Mumbai, besides a chain of banqueting facilities operating under the brand Mayfair Banquets, a chain of ice cream parlours under the Baskin Robbins brand, and is into high-profile indoor and outdoor catering business.

Verma will be replacing Raman Mehra as the new head of hospitality, foods business and chief executive - Graviss Hospitality Ltd.

Raman Mehra, on the other hand is set to join JHM Interstate Hotels Indian Pvt Ltd, a leading third-party hotel management company promoted jointly by Interstate Hotels & Resorts and US-based JHM Hotels Inc. JHM’s current portfolio includes Four Points by Sheraton properties in Jaipur (already operational), Pune (launching sometime in 2011) and Visakhapatnam (launching sometime in 2011). The properties are owned by hotels focussed private equity fund Duet India Hotels.

Another portfolio change is with InterContinental Hotels Group’s (IHG) Indian operations, which has brought in Chris Moloney, a specialist in running joint venture operations, who was earlier the chief operating officer handling Japan & Korea markets. Moloney takes over IHG’s India operations from Jolyon Bulley, vice president - operations, Southeast & Southwest Asia and was handling India sitting out of Singapore.

IHG confirmed the development saying Moloney, designated chief operating officer - Southwest Asia, has assumed India office starting January.
Moloney’s appointment seems connected with IHG’s plans to ink in a joint venture with Duet India Hotels to roll out a chain of Holiday Inn Express hotels in the coming years.

A senior industry expert said the people movements show that with business improving, hotel companies are beginning to hire senior management personnel to implement expansion plans that had taken a back seat following the economic downturn. “In fact, investments that were held back have also started flowing into the Indian hospitality sector, which is evident from the increased level of activity in the last few quarters.”