How Four Seasons does hotel deals in India | CNNGo.com

How Four Seasons does hotel deals in India | CNNGo.com

So far Four Seasons Hotels & Resorts only have one high-end Mumbai business hotel operational in India (CNNGo listing). But not for long. A second property will be a 250 room Bangalore hotel, opening in 2013.

They've now also tied up with a New Delhi-based real estate firm, Three C Universal Developers Pvt Ltd to open a third city hotel in Noida by 2014, and have legally promised not to create any other Four Seasons brand in Delhi and Noida for the next 25 years.

Now that India's major metros are accounted for with hotels, Christopher Wong, VP development, Asia Pacific, Four Seasons Hotels & Resorts says his company intends to open at least three luxury resorts additionally, in the next three years.

“We are mainly looking at opening luxury resorts in key tourist destinations because the charges are pretty low in cities other than Mumbai, Delhi and Bangalore. So, it will not be viable for us to open hotels other than in these three metros. Since Goa, Kerala and Rajasthan are important tourist destinations, we are looking at setting up luxury resorts there. Rajasthan, in fact, can have more than one resort,” Wong told the Financial Chronicle.

The Canadian hospitality company's business strategy is an interesting one. They don't develop or own hotel properties, but rather manage, operate and lend the brand name to hotels owned by other developers.

"[One] key to success was Mr. Sharp's business model. Though there were rough patches -- at one point he had to pledge his entire stake as collateral for a loan -- he eventually found a way of "growing" the business while curbing the risk. He kept investments in hotels to a small percentage of equity, signing 50-year (or longer) management contracts with property developers who owned the hotels. Four Seasons was paid a percentage of gross revenue and participated in profits," writes the WSJ in its book review of the founder's business memoir.

In this way the Four Seasons Hotels & Resorts currently operates 85 hotels across the world.

And another thing -- they don't do budget.

From the book review, "The things we take for granted now during our hotel stays -- comfortable beds, fluffy towels, lighted make-up mirrors, fancy toiletries and hair dryers -- made their first appearances at the Four Seasons, Mr. Sharp says. Likewise for European-style concierge service and Japanese-style breakfast menus, in-hotel spas, and the possibility of residence and time-share units."