Bastions of comfort
Francis Wacziarg and Aman Nath's love for Indian culture and heritage
architecture has fused into an admirable and profitable business model.
Five years ago, former cricketer Mansur Ali Khan, the ninth and last Nawab of Pataudi, was mulling cost effective options to maintain his palace, which was built in the 1930s and is a few kilometres off Delhi. The former India captain, who was nicknamed Tiger, had been running it like a resort on his own, with limited success. "It was making money, but I am not an hotelier and I was not comfortable," he said. His basic concern was the maintenance of the 70-year-old property over the longer term.
Enter Francis Wacziarg, 68, and Aman Nath, 59, the owners of Neemrana Hotels, who had earned fame way back in the 1980s by buying and restoring the 15th century Neemrana Fort Palace in the Alwar district of Rajasthan, roughly 120 km from Delhi. Having renovated a number of heritage properties after the Neemrana Fort, like the Piramal Haveli (100 km from Neemrana) and Fort Kesroli in Rajasthan, to name just two, the duo worked out a 17-year lease with Pataudi in 2005. Since then, Pataudi Palace is being run as a part of the Neemrana Hotels network of "non-hotel hotels"- which, simply put, are hotels that don't look and feel like hotels.
Pataudi has no complaints. Apart from the maintenance, he is getting regular income and does not have the headache of running the palace. And he is not the only owner of such a property who is willing to hand it over to the founders of Neemrana Hotels. Today, Wacziarg and Nath manage 23 properties that have a total of 251 rooms across 17 destinations in India. And they are sitting on hundreds of proposals. "We get several offers every week, but every such offer cannot be taken up," says Wacziarg, who hails from France and met Nath in 1975.
"Such possessions can become a liability for the owners at some stage," say Nath. "We are able to take on that liability and turn it into an asset, thereby ensuring that the property becomes an institution as well as continuity."
As a result, Wacziarg and Nath now have a chain that comprises properties ranging from the 14th century to the 21st. Whilst some properties, like the Neemrana Fort Palace, the Verandah in the Forest in Matheran, which is close to Mumbai, and Hotel de l'Orient in Pondicherry, are owned, others like the Pataudi Palace and Glasshouse on the Ganges near Rishikesh are on lease. Each is customised to the requirements of the period, with great attention to detail. For instance, the 18th century French mansion Hotel de l'Orient has savonnerie rugs, which were prevalent at that time in France. "Every hotel that we do is a love affair," says Wacziarg.
The property the duo picks is often not the most obvious and can be away from any well-known tourist destination. The Gatehouse at Tranquebar, a Danish settlement deep south in Tamil Nadu, and the Baradari Palace in Patiala are two resorts that are off the tourist circuit.
The founders of Neemrana Hotels are like none other in that they do not follow any set rules of management - they make their own. They don't reach out to potential customers via highdecibel advertising - yet their rooms are always full (with a long waiting period) and the cash registers ringing (with net profit margins of roughly 25 per cent). They avoid common practices, like room service or television in individual rooms, and shun stereotypical receptions of guests - you will never be greeted with a tilak and a garland on arrival.
"We do not look at business management models because they make the product clinical and standardised, which are bad words at Neemrana," says Nath. They have spawned many imitators but none who comes close. Wacziarg explains what sets Neemrana apart, even as he lets on to one of the cardinal rules of restoration. "A lot of people do not know where to stop. Restoration does not mean reconstruction. You have to keep the old looking old," he points out.
Whilst there is little to compare Neemrana with in India, its model pretty much resembles that of the Singapore-headquartered Aman Resorts, where the focus is not on size but on an intimate and involved experience. Although each property may be different in terms of look and mood, the impression one is left with is common at all of them. And that consistency of experience explains why guests keep coming back.
"Although each hotel needs to have its own individuality, there is a common element that makes people understand that they are in a Neemrana hotel. It is not luxury, it is not service but it is more in the atmosphere," Wacziarg explains.
Author Siddharth Dhanvant Shanghvi, who first visited the 19th century mansion the Verandah in the Forest in 2006, keeps going back. He spends several weeks each year at the Matheran property writing. "Aman and Francis's conservation brings these stunning structures back to themselves. When you meet these nonhotels, you also feel returned to yourself," he says.
Also full of praise are those in the hospitality business. Patu Keswani, owner of the Lemon Tree chain of hotels, and Rakesh Mathur, President of WelcomHeritage, applaud the efforts of these mavericks, though they are quick to point out that Neemrana operates in a niche of its own. Keswani, who has visited the Glasshouse on the Ganges (built in the orchards of the maharajas of Tehri Garwhal), says: "The love and affection that they put into these forts and villas is evident. It is a great play going forward as Indians travel more for the experience."
Yet, the challenge for the founders is: How far can they take the Neemrana experience without diluting it? New projects are under way as they attempt to build circuits with properties close to each other. For instance, a fort in Tijara in Alwar district will soon be launched. Five other properties are also in the works. And they are working on restoring a handful of others from Hyderabad to Dehradun. Meantime, Neemrana has begun blending its own tea, making its own jams, and soon there will be a Neemrana coffee. Most of these products are consumed in-house or sold at Neemrana shops that are present in many properties.
The strategy for Neemrana - and its success - is dictated by the founders, although there is a semblance of a corporate structure with a Chief Financial Officer and a Marketing Head, amongst others, in place. Yet, the worry for Wacziarg and Nath could be two-fold. One, as the network expands, will the duo be able to micromanage every property? And, two, how do they ensure continuity of the enterprise over the long term?
Attempts to delegate and train are being made. "Even if both of us do not visit a location, it is not that it will start looking like another hotel. At the same time, our involvement is very important and very high," says Wacziarg.
Neemrana Hotels owes its success largely to the relentless focus and effort of its promoters on providing a certain kind of experience, look and mood across all its properties. That is something that no management school can teach, and cannot be injected into professionals overnight. Neemrana is successful today because of its size, which makes replication of the experience relatively easy. That exercise can only get more challenging as the network gets more widespread.
Enter Francis Wacziarg, 68, and Aman Nath, 59, the owners of Neemrana Hotels, who had earned fame way back in the 1980s by buying and restoring the 15th century Neemrana Fort Palace in the Alwar district of Rajasthan, roughly 120 km from Delhi. Having renovated a number of heritage properties after the Neemrana Fort, like the Piramal Haveli (100 km from Neemrana) and Fort Kesroli in Rajasthan, to name just two, the duo worked out a 17-year lease with Pataudi in 2005. Since then, Pataudi Palace is being run as a part of the Neemrana Hotels network of "non-hotel hotels"- which, simply put, are hotels that don't look and feel like hotels.
| Vital Stats Total number of properties: 23 Total number of rooms: 251 Total number of employees: 550 Estimated revenues last year: Rs 25-30 crore Net profit: Rs 7 crore Average room rates: Rs 6,000 Range: Rs 2,500-22,000) Employee to room ratio: 2-3 |
"Such possessions can become a liability for the owners at some stage," say Nath. "We are able to take on that liability and turn it into an asset, thereby ensuring that the property becomes an institution as well as continuity."
As a result, Wacziarg and Nath now have a chain that comprises properties ranging from the 14th century to the 21st. Whilst some properties, like the Neemrana Fort Palace, the Verandah in the Forest in Matheran, which is close to Mumbai, and Hotel de l'Orient in Pondicherry, are owned, others like the Pataudi Palace and Glasshouse on the Ganges near Rishikesh are on lease. Each is customised to the requirements of the period, with great attention to detail. For instance, the 18th century French mansion Hotel de l'Orient has savonnerie rugs, which were prevalent at that time in France. "Every hotel that we do is a love affair," says Wacziarg.
The property the duo picks is often not the most obvious and can be away from any well-known tourist destination. The Gatehouse at Tranquebar, a Danish settlement deep south in Tamil Nadu, and the Baradari Palace in Patiala are two resorts that are off the tourist circuit.
The founders of Neemrana Hotels are like none other in that they do not follow any set rules of management - they make their own. They don't reach out to potential customers via highdecibel advertising - yet their rooms are always full (with a long waiting period) and the cash registers ringing (with net profit margins of roughly 25 per cent). They avoid common practices, like room service or television in individual rooms, and shun stereotypical receptions of guests - you will never be greeted with a tilak and a garland on arrival.
"We do not look at business management models because they make the product clinical and standardised, which are bad words at Neemrana," says Nath. They have spawned many imitators but none who comes close. Wacziarg explains what sets Neemrana apart, even as he lets on to one of the cardinal rules of restoration. "A lot of people do not know where to stop. Restoration does not mean reconstruction. You have to keep the old looking old," he points out.
Whilst there is little to compare Neemrana with in India, its model pretty much resembles that of the Singapore-headquartered Aman Resorts, where the focus is not on size but on an intimate and involved experience. Although each property may be different in terms of look and mood, the impression one is left with is common at all of them. And that consistency of experience explains why guests keep coming back.
"Although each hotel needs to have its own individuality, there is a common element that makes people understand that they are in a Neemrana hotel. It is not luxury, it is not service but it is more in the atmosphere," Wacziarg explains.
Author Siddharth Dhanvant Shanghvi, who first visited the 19th century mansion the Verandah in the Forest in 2006, keeps going back. He spends several weeks each year at the Matheran property writing. "Aman and Francis's conservation brings these stunning structures back to themselves. When you meet these nonhotels, you also feel returned to yourself," he says.
Also full of praise are those in the hospitality business. Patu Keswani, owner of the Lemon Tree chain of hotels, and Rakesh Mathur, President of WelcomHeritage, applaud the efforts of these mavericks, though they are quick to point out that Neemrana operates in a niche of its own. Keswani, who has visited the Glasshouse on the Ganges (built in the orchards of the maharajas of Tehri Garwhal), says: "The love and affection that they put into these forts and villas is evident. It is a great play going forward as Indians travel more for the experience."
Yet, the challenge for the founders is: How far can they take the Neemrana experience without diluting it? New projects are under way as they attempt to build circuits with properties close to each other. For instance, a fort in Tijara in Alwar district will soon be launched. Five other properties are also in the works. And they are working on restoring a handful of others from Hyderabad to Dehradun. Meantime, Neemrana has begun blending its own tea, making its own jams, and soon there will be a Neemrana coffee. Most of these products are consumed in-house or sold at Neemrana shops that are present in many properties.
The strategy for Neemrana - and its success - is dictated by the founders, although there is a semblance of a corporate structure with a Chief Financial Officer and a Marketing Head, amongst others, in place. Yet, the worry for Wacziarg and Nath could be two-fold. One, as the network expands, will the duo be able to micromanage every property? And, two, how do they ensure continuity of the enterprise over the long term?
Attempts to delegate and train are being made. "Even if both of us do not visit a location, it is not that it will start looking like another hotel. At the same time, our involvement is very important and very high," says Wacziarg.
Neemrana Hotels owes its success largely to the relentless focus and effort of its promoters on providing a certain kind of experience, look and mood across all its properties. That is something that no management school can teach, and cannot be injected into professionals overnight. Neemrana is successful today because of its size, which makes replication of the experience relatively easy. That exercise can only get more challenging as the network gets more widespread.
