Taj to hire expatriates in key positions

MUMBAI, JAN 20: Indian Hotels -- operators of Taj chain of hotels -- too has joined the band-wagon of hotel chains which are hiring expat...

MUMBAI, JAN 20: Indian Hotels — operators of Taj chain of hotels — too has joined the band-wagon of hotel chains which are hiring expatriate managers to inculcate international quality into the management. Following a major exodus of its top managers, Indian Hotels has decided to hire expatriates in various senior positions.

This would be for the first time since the departure of former chairman and managing director Ajit Kerkar — who preferred insiders to rise from the ranks — that expatriates are being hired in key positions to oversee day-to-day management. Insiders say the company is planning to hire expatriates at the director and general manager level in a bid to boost its bottom line and image.

Officials from the Hong Kong-based Jardine Matheson are expected to join the company (which runs hotels in India and abroad) as general managers though the company did not make any official comment.

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Its competitors East India Hotels — which runs the Oberoi chain — Leela and Hyatt already haveexpatriates in various senior positions. Reason: not only a number of businessmen and tourists from abroad are staying in these hotels, they have also set up a chain of hotels abroad.

Sources say Indian Hotels is also gearing up for the competition from its nearest rival — the Oberoi — which has recently hired McKinsey and Co to restructure the entire organisation. Due to a sharp drop in tourist arrivals and the ongoing recession, Indian Hotels performance, as like other hotel chains, has taken a beating in the last two years and the new management under managing director R K Krishna Kumar is keen to increase the occupancy levels.

Insiders say that the move to bring outsiders into the company was necessitated as many top managers owing allegiance to former CMD Kerkar have left the company for greener pastures. As there was a visible vacuum in the company’s ranks, a decision was taken to hire foreigners in key positions, sources add.

Meanwhile, in order to give additional services to its guests, IndianHotels has bought Megapode Airlines (formerly owned by Bombay Dyeing) at a cost of Rs 10 crore. The single aircraft airline, company officials say, would be used to ferry its guests to other hotel sites. “This would help the company to provide extra services to its guests,” says a official communication from the hotel.

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The company has, however, not replied to the question whether the company has taken permission from the financial institutions for buying an old aircraft or whether it had floated any tenders in order to attract better offers.