India was offering new opportunities of growth and development to hotel companies in it’s burgeoning tourism and hospitality sector at the turn of the new millennium. The industry saw several new entrants, some home grown and other including international hotel companies making aggressive pitch for a bigger slice of the new opportunity. The financial crisis of 2007-2008 tested most of the resolves and many caved. There were, and are, yet others who gloriously weathered the challenges and have come on top. The making of Clarks Inn Group of Hotels sits right at the top of this illustrious league of extraordinary growth stories on India’s hospitality horizon.
Clarks Inn Group of Hotels ventured in the business of managing hotels in 2006 with the opening of Clarks Inn Suites Pacific Mall in Ghaziabad in Delhi NCR. The company had its share of challenges in the first few years with limited growth. But patience, perseverance and hard work began to pay in the latter half with Clarks Inn today managing a portfolio of 75 hotel properties, including 40 in operation, across 16 states in India and one hotel in the neighbouring Nepal.
What’s makes this debut singularly unique is the sheer size and scale and industry response that the company has been able to achieve in a short span of 10 years that few can boast of. This meteoric growth of Clarks Inn Group of Hotels is creating a buzz in the industry across the country. Whether it is the decades old company or a new kid on the block, the level of excitement among the hotel companies is equally high to learn and know more about the company and its approach to business.
The man on the mission who is scripting one of the most exciting hotel industry growth stories of the times is S N Srivastava, President & Co-founder along with his boss Anoop Kumar, Managing Director, Clarks Inn Group of Hotels and one of the promoters of Clarks Group of Hotels, one of the oldest hotel companies in India. The docile and soft-speaking and unlike most of his ilk, Srivastava, draws attention to the fact that his company was the fastest in reaching 50 hotel portfolio, and currently at over 75 properties he is eyeing to clock the 100 hotel milestone by the end of 2017!
In business for just over 10 years, but with a legacy that pre-dates India’s independence, the Clarks Inn Group of Hotels is probably emerging as the biggest success story on India’s hospitality landscape.
The Shrewd-vastava Factor
Srivastava had joined Clarks Awadh, Lucknow, way back in 1979-80 and worked his way up across departments. It was chance telephone call that he received in 2004 to manage one of the hotels being developed at Ghaziabad in Delhi NCR that changed the course of his career. A shrewd professional, man of clear understanding and sound judgment that he is, Srivastava was quick to spot an opportunity that can shape up into something big. He not only took this proposal to his boss and one of the promoters of Clarks Group of Hotel, Anoop Kumar, but also convinced him to take up the new challenge. That hotel opened door in 2006 and with that began the journey of Clarks Inn Group of Hotels.
So what brought such growth in just over ten years? Srivastava, says, “the consistent approach and out of the box thinking.” “When starting a venture you have to go through a plenty of obstructions. However, with measured and consistent approach you are bound to succeed. No obstruction can prevent you from reaching your goal,” he says in simple terms but resolutely nevertheless, a trait often masked behind his soft and docile demeanour.
Unlike others of his rank and file, Srivastava has largely kept himself away from any limelight and preferred to spend time with his team developing resources and back-room strategies that has brought his company thus far. But with the company now fast moving towards 100 hotel landmark, that is changing amidst increasing industry recognition, awards and accolades that have followed in the last few years.
The Clarks Inn Factor
It was virtually a one-man team to begin with in 2006. But that has changed. Today, in Srivastava’s own word, his most prized-possession is his “Great Team” that he has built and nurtured over the last 8-10 years. His team of aggressive go-getters, be it at corporate or unit level, work in tandem and smartly collaborate on aspects of operation, driving business to properties and new development and expansions.
Furthermore while elaborating on the remarkable achievement of the company he says: “Since we started from the scratch we are well-versed with the ground realities. We understand our investor and guest better than anyone else. We believe that while the brand delivers real value, it is not just only about the price; it is about Uncompromising Care. Care for every aspect of the guest experience. Care for comfort and convenience. Care, so that a guest is not just a room number, but someone we always enjoy having with us.”
According to him, meeting the expectations of an investor is not an easy task as he gets in touch with several management companies and connect the dots before signing a deal. “The investor comes with a certain frame of mind and believes that our expertise will help him in achieving his goals with better management and return on investment. For a successful and profitable venture we do concentrate on optimum investment and maximum ROI in shortest possible period. Therefore, rather than imposing the burden of unnecessary expenditure that would not impact the ARR in any way, we suggest our investor to be cost effective. We take care of all aspects of the project,” says Srivastava.
Besides, another Clarks Inn differentiator is a highly effective communication channel that it has put in place with the owners, reason why Srivastava boasts of better strike rate when it comes to converting an enquiry into profitable and long-term alliance. “In a very comfortable business environment Clarks Inn concentrates on two way communication; take care of investors and respects their suggestions which probably become the biggest advantage for the company. Not falling prey to the corporate red-tapism and unnecessary hierarchy disciplines, easy accessibility to the core team member of Clarks Inn further strengthens the relationship between the company and the investors.
Different Strokes
Today, while well established hotel companies are clearly hesitant in running hotel in smaller tier and lesser heard far-flung areas and towns, Clarks Inn has clearly shown courage in opening many new destinations like Gadag (Karnataka), Deogarh (Jharkhand), Ara, Buxor (Bihar) and many others such markets where other older and well-established companies have only followed it later. Clearly, it seems they have the best strategy to build a hotel and make it a profitable venture.
Srivastava voice brims with a vary palpable sense of pride and achievement for his team when he speaks of opening such new destinations to organized hospitality and world-class services and creating new employment opportunities for the local youths. “We are looking at a number of no less than 6000 jobs in our fold by the year end and I am more happy about the fact that a great number of these new opportunities will happen in small towns and far-flung areas,” he said.
I tried understanding what makes Clarks Inn hotels tick in even smaller towns whereas hotels in metros are often seen struggling recover their RoI. Srivastava’s take is, “In terms of RoI, the investment cost is key, the primary factor, while the location becomes secondary. The gestation period or RoI will only take longer if the investment is high, which creates a lot of financial stress for the developers. We make sure that our developers do not incur unnecessary cost. We make sure that investment is only proportionate to potential of return in the given market.”
Future Perfect
Clarks Inn opened its first property in 2006. And in a span of little over 10 years the company has emerged as one of the fastest growing hotel companies in the budget market space with a portfolio of 75 hotels spread across 16 states in India and one in Kathmandu, Nepal. The company, informs Srivastava, has set sight to reach 100 hotel milestone in 2017. And if achieving the three-digit figure looks ambitious than the last few years are a good testimony to what lies ahead for the company.
The company witnessed one of its biggest growth years in 2015 as it signed and opened a total of 21 new properties. Last year was equally good. And if projections and pipelines are anything to go by, the company is looking forward to a strong start to the year 2017. And as the company looks well set to reach its first three-digit figure in the months to come, Srivastava hardly looks like somebody who would waste himself on laurels and recognitions that’s raining to his company and let complacency set in
Fact File Clarks Inn Group of Hotels
1. Number of Years in Operation 10 Years
2. Total Number of Hotels 75 Hotels
3. Number of Hotel in Operation 40 Hotels
4. Average Room Size 40 * Rooms
5. Average Occupancy 70 %
6. Staff Per Ley 60 Staffs
7. Number of F&B outlets 1.5
