Business is expected to be back on track in 6-12 months: V Kamat, CMD, Kamat Hotels

Dr Vithal V. Kamat, Chairman and Managing Director, Kamat Hotels (India) Ltd, talks about Maharashtra government’s decisions to reopen hotels & restaurants with 33% capacity and demand revival among others during a candid chat with Swati Khandelwal, Zee Business. Edited Excerpts:

Q: Your hotels will reopen tomorrow with 33% staff strength. How big is this move for you? More importantly, hotels will be opened but do you think that such a demand will come from people?

A: It is a good move by the government. Starting the hotels will propel the automatic movement of people. Opening of the hotels and restaurants will help in normalizing the atmosphere at the earliest. Difficulties prop up in starting anything again and it is nothing big about it. The situation here is the same as we develop new hotels. In this case, the hotels have to be started once again, this is not a problem. They are our children and there is no problem in raising your children. But, we are supposed to follow the recommendations of the government and make sure that our guests, as well as staffs, follow the restrictions for the next six months because the business will take at least another six months or a year to be normal. 

Q: It means the business will take six months to one year to be normal and demand will be back slowly. 

A: No. Demand will not return and there are few reasons for it. (i) No one will come to the rooms that are developed for a meeting, conferences, and marriages & other functions for the next six months. No one will come to these rooms unless you have the vaccine. (ii) Nowadays, meetings and conferences are held through a webinar. (iii) We had meeting rooms where directors used to meet will no longer come here and will remain at their places. However, the works related to television and films will go on. 

Q: Hotels are opening, which is a good move, but the demand will not come. But you will have a fixed cost as you can use 33% staffs. What will it mean for the hotel industry, particularly yours?

A: It is such that if you start a new hotel also than initially, the occupancy level stands between 20% and 40%. This period of 2-3 months is termed, as mobilization cost, so there will be a startling impact. Even if you start a new hotel, then you will not have a customer on the very first day. It is a welcome move because the hotels, which were closed for almost four months (120 days), while the central government stopped granting visas 15 days in advance. So, the entire industry was stalled for almost 135 days. 

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This is a good step by the Maharashtra government because the restaurants will also be opened after the hotels have opened. So, there will be a public awareness, which will bring normalization of things. But, we’ll have to follow the guidelines of wearing the masks, sanitizing, and system and once it is learnt then there will be no fear of the pandemic.