Gender bias, discrimination still prevalent in hospitality industry: MBD Group Jt MD

Sonica Malhotra Kandhari, Joint Managing Director of MBD Group, in an interview with Bizz Buzz, unveils how the company got into a joint- venture with the Steigenberger Hotel Group, the largest German chain of hotels and resorts to manage and franchise hotels under the brand ‘MBD Steigenberger’ and how the company will manage other assets under MBD Steigenberger Hotel venture and then aim to go global and venture into international markets.

When was the hotel started and is this a hotel management arrangement?

Radisson Blu MBD Hotel Noida opened its door to guests on November 21, 2003. The past 19 years have been extremely successful for us while operating this property as a franchised operation with many accolades within the RHG group and external aficionados.

How has the MBD Group evolved?

The MBD Group is a leading Indian conglomerate with over 6 decades of experience spread across various fields like e-learning, m-learning, skill development, eco-friendly notebooks, paper manufacturing, ICT infrastructure, hospitality, real estate, mall development, and management. The group was founded in 1956 by our founder and my father Shri Ashok Kumar Malhotra, who started a small printing press in Jalandhar, Punjab. Today, MBD Group has a presence in three continents, 30 countries, and 5,000 cities, and publishes 50 million books a year and around 30 million notebooks. MBD is the only publishing house in India with complete backward and forward integration, right from self-owned paper manufacturing units to in-house pre-press facilities, in-house printing, and binding units, and also its distribution network with 22 branch offices PAN India.

In the 1990s, the MBD Group diversified into hospitality and real estate. The MBD Group successfully established itself in the hospitality industry with its maiden venture, The Radisson Blu MBD Hotel, Noida (Delhi NCR). This hotel is fully owned and managed by the MBD Group and is the first five-star luxury hotel in Noida. It has won numerous awards in various categories, be it for the best hotel or the best-rated restaurant. The second venture of the group is the Radisson Blu Hotel in Ludhiana which is also the first 5-star luxury hotel in that region. The MBD Group has also ventured into premium and luxury mixed-use developments like luxury residences and commercial office spaces such as MBD Steigenberger, JV, and MBD Express. Apart from that, we have also won an array of awards for our F&B concepts such as Made in India (MII), Rare Eastern Dining (RED); The Chocolate Box (TCB). The premium mixed-use developments, encompassing a 5-star hotel, premium retail, and entertainment under the brand name ‘MBD Neopolis’ are being operated successfully in Ludhiana and Jalandhar.

What are the challenges of running a five-star property?

Running a five-star hotel in India can pose some challenges, however, most are addressable. A few of those challenges are

1. Talent acquisition and retention: One of the biggest challenges faced by five-star hotels in India is acquiring and retaining top talent. Skilled and experienced staff members are crucial to ensuring a high-quality guest experience, but attracting and retaining such employees can be difficult due to competition from other industries and the availability of better-paying jobs.

2. Macro-economical dynamics inclusive of the Ukraine-Russia war have impacted the world at large and travels there on. It has become imperative for hotels to choose their market segments of focus.

3. Post Covid guests’ expectations have increased towards experiential travel. Hotels have to align and curate individual experiences. As they say, one size does not fit all

4. Regulatory compliance and license requirements are constantly evolving making it difficult to operate. 5. High investment rates of debt & high cost of land reducing IRR from this asset class.

What are your challenges as a woman entrepreneur in the hospitality industry?

Based on my experiences as a woman entrepreneur in the hospitality industry, I’ve concluded that gender bias and discrimination are still prevalent. Secondly, balancing work and family life can be a significant challenge, as the hospitality industry often requires long hours, including weekends and holidays. There is a lack of representation and support for women in leadership positions within the industry.

What trends do you see in the hospitality industry in 2023-2024?

Below are some potential developments that could impact the hospitality industry in FY24:

1. Increased demand for sustainable and eco-friendly practices: More and more travellers are becoming conscious of their impact on the environment and are seeking out hotels and resorts that prioritize sustainability. In response, hotels may implement energy-efficient technologies, reduce single-use plastics, and adopt other eco-friendly initiatives to meet this demand.

2. Shift towards local and authentic experiences: Travellers are increasingly looking for authentic experiences that immerse them in the local culture, rather than generic tourist attractions. Hotels may respond by offering more local tours and activities, partnering with local businesses, and promoting the unique aspects of their location.

3. Rise of bleisure travel: With more people working remotely, bleisure (business + leisure) travel is becoming more popular. Hotels may adapt to this trend by offering amenities such as co-working spaces, business centers, and extended-stay options.

4. Increased emphasis on wellness: The Covid-19 pandemic highlighted the importance of health and wellness, and this trend is expected to continue in the hospitality industry. Hotels may incorporate more wellness amenities, such as on-site fitness centers, yoga classes, and healthy dining options.

5. Continued growth of technology in hospitality: The Covid-19 pandemic accelerated the adoption of contactless technology in the hospitality industry, such as mobile check-in and keyless room entry. These trends are expected to continue in FY 2023-24, with more hotels investing in technologies that enhance the guest experience while improving efficiency.

Are you making any conscious efforts in line with sustainability?

Sustainability has become a very important part of all the verticals of MBD. We are working on a next five-year plan of how to make our organizations more sustainable. The environment is something that we all need to value. So, we’re working on smaller to bigger things and making a five-year plan of how we need to keep on reducing the carbon footprint across verticals.

What is the kind of growth plan you have for the MBD Group in the hospitality sector?

MBD Group partnered with Deutsche Hospitality in bringing the MBD Steigenberger Hotels and Resorts brand to India. Deutsche Hospitality stands for a top-class portfolio. The name ‘Steigenberger’ stands for precision, reliability, and quality which defines German work ethic and ethos all around the globe. We understand that hospitality is not only about serving but also treating our guests with elegance and excellence. We aim to be exceedingly innovative in the Indian luxury hospitality segment. We will persistently develop our service delivery along with the quality of our products and facilities, ensuring we appeal to a multi-generational segment. Targeting to open at least 20 hotels in India over the next 15 years, this joint venture presents German precision tailor-made for Indian guests while ensuring outstanding global standards and a luxurious environment.

Expanding our hospitality domain we have entered into the budget segment of hotels under the Brand of MBD Express. A value-oriented business model backed by the strength of a well-recognized and regarded brand. Friendly, efficient, crafted, and comfortable, the innovative MBD Express brand with its modern urban hotels meets all the expectations of price-conscious business travellers and city tourists alike.

What is the management structure in the MBD Group for the hospitality sector?

The legacy of Shri Ashok Kumar Malhotra has been continued by his wife MBD Group’s Chairperson Satish Bala Malhotra who has endowed her confidence in my elder sister Monica Malhotra Kandhari and myself. My sister and I complement each other in the group well-being and growth.

How did the MBD Group evolve to cater to the demand of Urban India?

Whilst our humble beginnings have been in the publications focusing on education with urban India moving towards digitalization our methods of imparting knowledge have evolved in the online vertical. We have aligned technology to the majority of our processes in publications and hospitality verticals. Aasoka, through the online mode, is offering, both traditional and augmented learning. It is an accessible and affordable integrated blended learning solution that aims to deliver a research-based customized curriculum for students of K-12. Aasoka is in line with NEP (National Education Policy) 2020 which makes learning an interactive, engaging, creative, and meaningful process for students.

How is MBD Group MBD Zephyr revolutionizing the luxury hotel segment?

MBD Zephyr is the design brainchild of my dear sister who is artistically endowed. We were keen to raise our bar in the hospitality sector and initiate an UBER Luxury offering in the name of ‘Zephyr.’ This development would revolutionize the hospitality sector with bespoke experiences and opulence. Wait & watch!

What kind of financial growth do you forecast for the company in the next three years?

In the hospitality sector considering the thrust of domestic tourism and price-sensitive demand, we as a Group will be doubling our efforts to expand our budget segment brand MBD Express as we see a pragmatic future and huge growth potential. We see this brand nurturing progressively in the years to come. Secondly, we would continue innovating our F&B services and deliver best-in-class hospitality services to our patrons. Also, with price rationalization, it is the right time to acquire hotels or pick some struggling projects available in distress.

With regards to our MBD Steigenberger brand as we envisage a great opportunity for expansion through the management route as well in the luxury segment. MBD group with the great response to online education through Aasoka –Blended learning solution, we believe would be the first choice of aspiring students.