A hotel so grand that It was rated best among the New Hotel in the world by Condé Nast, Hotel magazine ran a cover story on this Hotel, people in Mumbai called it “Sat Sitara” (seven star) and this is the only Hotel, who gave nightmares to Oberois and Taj group and was approved by Richy International with flying colours in firsts inspection. The tragedy is that same Hotel failed on same inspection and lost the world’s best Brand due to bad management in next two years. Reason, one bad decision of hiring wrong Gen.Manager. I am talking about Regent Mumbai, owned and managed by Late Shiraj Lokhandwala.
Meeting Shiraj Lokhandwala
was accidental and thanks to my dear friend, Mandeep Kakar in his Bristol Hotel
in Gurugram. He was somewhat impressed and offered me CEO’s Job with straight
instruction to sort out his problems and open the Hotel as soon as possible. I
joined Regent Mumbai in July 1999 as the CEO. Team had already over dozen expat
including GM trying to open the Hotel and creating mess. All day Dining was already
functioning and they have goofed up in opening of Indian Restaurant and just
created disastrous reputation. House Keeper was missing, Australian GM and
French Executive Manager along with bunch of lost expats were busy making
“Birbal ki Kheer”. All these guys were paid more salary then over 200 hundred
Indian employees we had. Realizing I had good local team of Indian managers, it
took me two months to get rid of all expat but for American Italian Bakery
Chef. For opening successfully, I had to review and upgrade the Regent
operating standards to Indian standard, training requirement and expectations
of the Industry in India. Unfortunately, our ownership at that stage was not in
touch with local team from of Carlson Hotels, and all issues we had to get clearance
directly from Regent team. Fortunately, my local team of managers were very competent
and in next six months, with the hard work, we became a force to recon with. We
re-wrote the quality of service and standards, our guests were so awe stuck
with our hospitality that, one could see their gratitude and appreciation in
one go. In next six months our marketing was so effective, we were nearly sold
out for next three years.
Regent Mumbai had best
convention facilities and was nearly booked for years in advance, Indian
restaurant relaunched with new food menu was great hit and our Chinese
Restaurant Ming Yang, is even today is the best Chinese in town. Oberoi and Taj
group were not only shell shocked, but made it a point to regularly
congratulate us on our achievements. Within one year, we became best Hotel in
Mumbai.
As for company’s
financial position, this hotel was built with a substantial financial help in
terms of loan from private banks including TATA Finance. Our quarterly
liability was approximately Rs.30 Crores, which we were honoring regularly with
ease. Although even then I use to hear rumors that Taj has shown great interest
in buying our Hotel, but Mr. Lokhandwala was not interested and he told me so.
I guess future and fate
is decided by our own karma, with all going well, still I was under great
pressure from Mr. Lokhandwala to hire GM, so I could devote time on other
projects. Due to this pressure, we recruited a guy named Yogesh Dhawan as GM
and that was the undoing of Lokhandwala’s future in Hospitality.
New GM, within days
showed his true colors, whatsoever we had created, I saw going down the drain
and management politics was ruling the roost. Mr. Lokhandwala was not well and
his daughter Yasmeen, who I quite close to me, unfortunately became part of his
politics. All efforts to make Yasmine understand what he was doing fell on the
dead wall, so I decided to part ways with Regent Mumbai. Although within hours
of leaving my job, I got call from Boss, wanting me to review my exit. I politely
decline, because I didn’t want to come between father and daughter.
It was only matter of
few months, Hotel from being sold out for next three years was down to 20%
occupancy. Guests were not treated well, residing guest were forced to vacate
Hotel, as they didn’t fit the class. Most of the departmental team leaders
resigned because of his arrogance and petty politics. Sales crashed; future was
looking gloomy. Last nail was, failing in the mystery audit, resulting in losing
Regent brand.
Being away from Mumbai
for nearly ten months, back to my consulting, it was at about 11.30 am I got a call
from ‘Kesti Bhai’ Director Finance, Lokhandwala Builders, right hand advisor to
Mr. Lokhandwala and he said” Virat Ji Seth(SL) wants to talk to you, will you
talk to him? He feels you might be angry with him because his daughter did not agree
with you and today we are unfortunately suffering, as you had predicted”. I assured
him I am extremely found of SL and would love talk to him. SL spoke for long
time, informing me of the disastrous situation they are in and that whatever I
had predicted has come true. Now that his son was back from abroad and was supervising,
they have decided to terminate the GM and they wanted my help, I agreed but limiting
my involvement, only to assist as a consultant- he thanked me. Then I got over
fifteen calls, all celebrating the ouster GM’s.
I don’t want to go
into the details of how that evil human (GM), was terminated and thrown out,
even though he did try political intervention. Irony was that SL made sure that
Yasmin was called and instructed to throw him out. But this came very late,
damage was already done, default on loan payment had put the company in massive
set back. With Tata finance using their political muscle, it was evident that
hotel was going out of his grip.
It was some time in
late summer of 2002, he was forced sell the Hotel at very heavy loss, property
which had market value of few thousand crore was sold out Taj at throw away
price. Siraj Lokhandwala visited his favourite Hotel for the last time and he
was handed over the letter to sign. He sat quietly till late hours of night,
then talked to the reception and handed over signed letter of sale and walked
out and never went back. Within next few months he quietly passed away - The Roaring
Tiger of Real Estate in India was gone forever; RIP Oh Great one.
Purpose of writing
this small story of how Hotel like Regent failed was to let people know that
Siraj Lokhandwala, the biggest real estate Manager with no experience in Hotel
construction built one of the finest hotel in Asia but was not there to enjoy
the success of the Hotel. On other hand, today Taj makes more money from this one
hotel then they’re from both the Taj Mahal Hotel, properties put together.
Written By Anil Chak & Virat Varma
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