CALCUTTA, March 1: Great Eastern Hotel will break even by the end of financial year 1998-99, according to the chairman Subir Kumar Ghose. For the first time in many years, the hotel has started direct marketing of its rooms and restaurants from February and also plans to start an advertisement campaign soon.Ghose told The Financial Express, "We will have to increase our monthly turnover by 30 to 40 per cent. At present we are notching up a turnover of Rs 70 lakhs per month."
The hotel management wants to achieve an occupancy rate of 70 per cent. The occupancy rate of rooms and the restaurant business are two areas where much effort is being put in. The hotel is doing much better in the banquet business, Ghose said.
The rooms are being done up and the building is getting a fresh coat of paint. The portico and the surrounding pavements are being repaired too."I cannot attain the standards of the Taj or the Grand overnight, but I am trying to make things presentable to facilitate a proper marketingdrive," Ghose said. "Representatives of a few companies have visited us and assured to use our services. The room rents have also been rationalised. Earlier we had separate rates for separate companies. However, we now have uniform rates for the suites at Rs 2,200 a night. My plan is to keep the charges low and increase the volumes," Ghose said.
After taking over around 11 months ago, Ghose has been instrumental in realising dues worth more than Rs 2 crore from the various state government departments. Another Rs 2 crore is still to be collected. "However no new backlogs are being created and the finance minister has been cooperative in this matter," Ghose said.
The hotel's central air-conditioning system is being revamped too and four new machines will be installed within 1998. Voltas, Blue Star and Kirloskar have submitted their bids. The laundry and the cold storage have already been revamped.
"The biggest worry for me at the moment is the pipelines and the drainage and sewerage mechanism that is onthe verge of collapsing. We have started phased repairs and are trying to replace the whole system," Ghose said.Ghose had started off with a total debt of around Rs 2.2 crore including suppliers' bills and tax arrears. In the past few months debts amounting to Rs 1.5 crore have been paid off.
"We are not keeping our suppliers waiting anymore and are very particular about clearing their bills promptly-within two days," Ghose said.His long-term plans includes a decision regarding the Great Eastern bakery which is still ammong the most reputed ones in the city."However it is running with old and dilapidated machines and a decision to close it down can be taken at the political levels only. I would like to replace the machinery and restart it with new ones on a much smaller scale," Ghose said.In February Great Eastern confirmed the employment of 46 trainees who have been with the hotel for almost 9 years. Another 30 such cases will be confirmed soon, he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
