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Interview with Puneet Chhatwal, Senior Vice President and Chief Development Officer, Rezidor Hotel Group : "The key word is differentiation"

5 min reading time

Published on 05/07/10 - Updated on 17/03/22

Puneet Chhatwal joined Rezidor in 2002 as Director of Business Development and was subsequently promoted to Vice President Business Development in 2004 and to Senior Vice President and Chief Development Officer in August 2007. Puneet studied at IMHI (Essec), Paris on a French Government scholarship. Upon completing his advanced studies, Puneet worked in hotel consulting and acquisitions in Germany. From 1998-2002, he served as the Director of Development for the EMEA region for Carlson Hotels Worldwide, where he pioneered the growth of Carlson’s brands in the region.

{{HTR Magazine : What are the reasons behind the choice of an exceptional architectural design for a hotel?P. C. :}} The hotel of the future will be a smart hotel individually designed for its market niche. It has to be a hotel which will balance three major issues: return on investment, sustainable development, and the needs of tomorrow’s consumer. I mention sustainable development because I feel that more and more of the younger generation are concerned with the environment and responsible business. I also think tomorrow’s consumer will expect more than a hotel being blue, white or green—they expect some kind of style.Puneet Chhatwal : }} The Radisson brand is a leader in its market segment when it comes to design. The key word is differentiation. We have developed a collection of hotels which we call “The New Breed”. Our intention in terms of design is to lead the way and not to follow. And frankly I don’t think anybody in our segment has been able to consistently build hotels with the kind of iconic architecture like the Radissons in Frankfurt, Zurich Airport, Stansted Airport, Dubrovnik or Berlin, which features the world’s largest cylindrical aquarium. We emphasize architectural design to create the brand awareness that results from an iconic property. This translates into new business, strong rates and higher market penetration. As Radisson Blu is becoming synonymous with exciting architectural design, Carlson recently announced their first Radisson Blu hotel in the United States –within a landmark 81-story skyscraper in Chicago.{{HTR : Do you intend to emphasize that exceptional architectural approach for all your new properties?P. C. :}} The key ingredients of the brand can be found across the portfolio: our room styles, food and beverage concepts, and Yes I Can!” service. In certain locations, in certain markets, we add the architectural design emphasis because that location carries the image of the brand. If we were to choose to make only hotels like Radisson Blu Berlin, we could only open one or two hotels a year. That is not possible given our aggressive growth strategy. But these few hotels I mentioned earlier have created the fantastic image of the Radisson Blu brand in Europe and this is one of the reasons why we became the largest upscale brand in Europe. While we always keep our global design strategy in mind, we have to be aware of our owners’ investment levels and the market performance. An architecturally-distinct hotel must also be justified financially. {{HTR : Where would you choose to have a strategic architectural approach?P. C. :}} In key gateway locations, like Paris, Berlin, and London… you have to differentiate because all the brands are present. In secondary cities, that kind of approach is only required if you want to be the best hotel in the city. This is going to be the case in the city of Nantes, in western France. We have just announced an exciting Radisson Blu property through the conversion of the former Palais de Justice. This will be a local landmark and future guests will definitely remember the city and its Radisson Blu. Creating, positive long-lasting memories for guests is the goal of any hotel company.{{HTR : How do you work together with the owner of the property when the architectural aspect is key to the project?P. C. : }} We have dedicated and experienced business development and technical departments and they work closely with the architects and the owner. We influence as much as possible the choice of the interior designer and architect. However, we are also pragmatic and, as an international company, we have the ability to work with all professionals in our industry.{{HTR : Would you consider that sustainable development is definitely an issue that you cannot avoid when building a new property?P. C. : }} Absolutely! As a company originating in Scandinavia, with strong Scandinavian roots, we have been pioneers in responsible business and sustainable development. It has been in our genes for the last twenty to twenty-five years. Rezidor has created Responsible Construction and Renovation Guidelines, which supplement our Technical Standards. Last year, around half of our hotels reported undertaking a significant environmental investment, such as improved installation, grey water recycling and waste compactors. On a personal level, I find it deeply rewarding to work for a company that is recognized as an ethical company to work for, invest in and do business with.{{HTR : Would you say that you have a competitive advantage on the subject of sustainable development?P. C. : }} We certainly were among the first companies to emphasize responsible business and embrace the concept of sustainable development. As far back as 2004, we won an award from MKG for the Best Initiative in Sustainable Development. Most recently, we were named as one of the World’s Most Ethical Companies by the independent think-tank, Ethisphere. We are glad to see that other companies are developing their own programs. It’s good for the industry and the planet. As far as a competitive advantage, our reputation as an ethical company has a very positive effect on owner relations as owners are happier to sign a management contract with a responsible company they can trust.{{HTR : How far do you think modern technology will transform the experience of a client within a hotel?P. C. : }}: I don’t think technology is the answer to everything. Our basic quest is for better service; if technology and new buttons can provide that in the hotel room, OK, but then it’s a tool, not an objective. I can’t imagine that technology will replace the need for personal service. Actually, I think we will see continued technical innovations in 1 and 2-star hotels where technology can be used to reduce costs. Guests in Rezidor’s brandscape require personal service, which technology can only enhance, not replace.{{HTR : As the man in charge of development for the Redizor Hotel Group, what do you think will be the hotel of the future?

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