High designs in hospitality

Dilip Kapur, promoter of Hidesign, has diversified his business and entered the hospitality sector. Last month he soft-launched Le Dupleix, a 14-suite luxury property in Pondicherry.

Discounting any business reason for this shift, Kapur says, "I wanted to get into something new and interesting where aesthetics and personal relations are important. I believe we understand the upmarket customer in India." Hidesign is famous for manufacturing premium leather products. It's range includes garments, cases, bags and wallets.

Kapur has teamed up with Frenchman Dimitri Klein to float Auberge Hotels Pvt Ltd. Kapur holds 85 per cent stake in the venture. The company plans to open a business hotel, Park Plaza Pondicherry, sometime in December 2004.

Park Plaza, a 4-star property, will be operated by the Park Sarovar Group. It will have 40 rooms and will be targeted at the business traveller. The room rates at La Dupleix range from Rs 2,500 to Rs 4,500. Park Plaza is likely to have a similar tariff chart.

Le Dupleix is situated in the heart of the French quarter. It used to be the residence of the mayor of Pondicherry. Kapur says it took them nearly four years to renovate the property.

He prefers to call Le Dupleix a "designer" hotel as every room is designed differently. The business hotel is a new property and its interiors are being done.

Kapur says that he is looking at around 60 per cent occupancy in the first year. Hotel industry sources say that Le Dupleix shouldn't have a problem in attaining its occupancy target since it is situated on prime location. And people visiting the Aurobindo ashram wouldn't mind spending the night there.

Cautions Sanjeev Pahwa, general manager (operations), Country Inns and Suites: "The luxury hotel will do good business, chiefly because of its great location near the beach. It's filling the rooms in Park Plaza that might be a problem. Pondicherry isn't really a destination for business travellers. The key is to price it right. Around Rs 1,000 a night should see the hotel doing good business. Anything more, you're asking for trouble."

Auberge Hotels has invested Rs 14 crore in both its venture. Kapur is confident that both the properties will break even in their second year of operation.