Building Marriott Hotels with Raj Chopra

With a successful foray with Marriott, first in Mussoorie, and then in Vagator Goa, and soon to open in Arpora Goa, and then another one to follow, Raj Chopra, who started his career as a fighter pilot, having flown sorties during the 1971 war, has come a long way. First and foremost, as a construction company, then as Maruti cars distributor with almost 80 outlets, he finally seems to have reserved his calling as a hotelier! Read more about him as a passionate hotel owner, always a Marriott man, like being the Maruti for his car business, in a candid interview.

So, what motivated you to get into hospitality?

It was not very serious. It was more by chance. I was in the car business, running the Maruti showrooms. I was even more in the construction business, with 140 projects overall that I built, which included three hotels as well.

How many construction projects did you say, overall?

Total construction, till now, would be 140 plus. This would include the first ever Maruti factory in Gurugram. This was more than 20 lakh sq ft. Quite big. Then we entered in the hotel industry, it just happened as a joke. I was in Manali for a holiday. I really liked the place and thought we must do some business here. We ended up taking over a hotel which was half built. I was the first man who brought Holiday Inn to India. It was my hotel. This was back in 1990-91.

How did you sign up with them?

They saw the property and they came. We did very well. The decor was fantastic, but the connection, the access was, and still is, mainly by road. I had then been promised by the local authorities that they would improve the airport facilities so that bigger aircraft can land. But they couldn’t do so, because of too many critical problems. I made good money because it was a very good hotel. My occupancy was more than 68% in the hills. But slowly over the past few years, it had fallen to 40%. The one big reason was bad roads and bad connectivity. An aircraft would take off and not land, would go back to Chandigarh. I realized before I lose further, I might as well sell it.

I had thought the roads were good now, overall, somewhat improved.

Yes, but I’m talking about 30 years back. Similarly went to Mussoorie and I found a very good piece of land, 25 acres. It was a total estate of 50 acre. 25 acres went to some school, a very famous school and the balance 25 acre, I bought. I didn’t know what to do with the land. I seldom visited it, it had then cost me only Rs 25-30 lakhs.

What other businesses?

Then I started a cinema hall, 3Cs. I have released about 140 films as a distributor and Mr. Bachchan was my partner in 30-40 films. We remain close friends even now. We made good money, and also lost money. I lost my younger brother around then, when I decided to quit this business altogether. Then, one fine day, I said to myself, why not a hotel?

But you already had the hotel in Manali?

Manali, by then, I had sold.

So, your journey began, again?

I travelled all over India with my CEO – Amit Gupta. He was the CEO of the cinema hall and food court. Highly qualified boy. But finally, we decided let us go to Mussoorie. We have the land. We did a survey for a five start deluxe hotel and that was very encouraging. People used to say we used to go every year for holidays but we are not going for the last so many years. We are keen to go but there’s no good hotel to stay. So, with that idea, I then went around looking for an architect, the best in resort development, one who had done more than 300 hotels worldwide; went around developing a team, a landscape consultant from Australia, another out of Singapore, it was a best-in-class team.  But before I started the project, I had made it very clear with them. When I we need you, you have to be here, at least twice a month. They agreed and stood by their promise; when the building was almost ready, when the structure was finishing, I signed an agreement with ITC for their Luxury Collection.

Oh really? That’s interesting.

They said they will take a 26% stake. They said this year will be 26%. They had to pay me Rs 40 crores. I was always concerned, worried by concerns that the hotel was away from the mall, and would it do well? They asked for time, as the project would move on, and within six months they’ll sign the agreement.  When I was almost completing the project, I tried to contact them, they did not respond. I moved on with my project, nevertheless.

And then, what came of it?

I was at the site. Supervising. One fine morning, a gentleman from Marriott came. He asked my engineer who owns this property. He said, the owner was Mr. Chopra, and he’s sitting there in the meeting. He met me and invited us to join hands and make this into a Marriott hotel. I told him I was open but he would have to wait another two months. It was then four months since we had signed with ITC, with a six months clause.

After six months were over, I got a call from ITC to say they were willing to invest and proceed. But by then the six months were already over. I explained to them that they had already breached the document, we could not connect in spite of my best efforts. Now I have given my word of honour to Marriott. ITC said they won’t invest, unlike them. I said I know, but I don’t need money. It was a difficult decision to lose Rs. 80 crores. I insisted on JW Marriott…

In the beginning they said it be just a Marriott, and not JW. I insisted, and finally they gave in to my demand.

When you signed with Marriot and they agreed for branding it with JW, did you have to do some additions and spend more?

Nothing. You will be surprised. The hotel, as it was, was already conforming to their JW standards.

And this was all executed by your own construction division?

My own, with no waste. So many hotels that I have built, with zero waste of resources. Construction has been our strength.

Now you have a very masterpiece of a property in Goa? So, what made you then move to Goa? Or was that land already with you?

No, it was not. My thought process was that let us go to the beaches because people would like to go there, because of pollution in our cities. And God was kind to me, we were able to identify this land. So much so, JW Marriott Goa is indeed a prime property today in the country.

You signed up with Marriott again, this time in Goa.

My principle of life is, and as I’m doing Maruti, even if the world’s best chain came to me. Any name, any of the best, I said nothing doing. I am with Maruti, I will stick with them. I will never leave Maruti because my identity is with Maruti. I will not leave it. This may be a mistake, money-wise, but for me, the principle is clear. Once a Maruti person, always with Maruti, unless they or I have a valid reason. Similarly, I used to tell him Marriott. I don’t believe in divorce. I’ve signed with you. Unless you say, you don’t need me, I will not leave.

So, Vagator Goa was signed and then

First, we bought the land, they approved the land, started building. The team was mine, my construction team again.

So, now you have Goa, another great hotel, what next?

We have another hotel coming up, almost completed, in Arpora in Goa.

Another hotel In Goa, and that too in the North?

It is a good investment. It is also with Marriott, like I said, I stick to my loyalties. This is a Renaissance that opens in June next year (2025). But now I am a little worried.

Why?

Because Goa is turning very fast from resort destination into another metro city.A lot of bridges, the people of all kinds of coming, doing what they want. I mean, so the charm of Goa could be disappearing. Local transport of a decent standard is missing, taxi charges are getting exorbitant.

But a new Goa is also emerging side by side, as a more happening destination?

That indeed is also true. Yeh bhi such hai. There is so much activity now, new events, new attractions, making it a year-round destination., The off-season has virtually disappeared.

So, what is your experience now between the two hotels? You were mentioning to me yesterday. These two hotels are making good money, they’re good profitable ventures.

They are surpassing my best expectations. Both the properties and expectations from the Arpora Renaissance are equally promising.

I cannot help asking, what next?

Another hotel, another Marriott. They can’t leave me, I cannot leave them.


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