ISSUE 51

Dr. Sanjay SethiManaging Director and CEO

Sanjay is the Managing Director and CEO of Chalet Hotels Ltd. which owns several marque hotel and resort assets in Mumbai, Pune, Hyderabad, Bengaluru, National Capital Region Khandala and the Himalayan foothills, near Rishikesh. The hospitality portfolio has over 3,314 hotel keys, over 2.4 million square feet of office space, a luxury residential project and is rapidly expanding with new projects in hospitality and real estate.

Prior to joining Chalet in 2018, Sanjay founded Keys Hotels & Resorts in 2006. He had a fourteen-year stint with the Taj Group of Hotels and worked briefly with ITC Limited as Chief Operating Officer for their Hotels Division. In 2018, he returned to Chalet Hotels and took the company public in February of 2019.

Recognized as a thought leader in the hospitality industry, Sanjay is an active member and speaker at key industry bodies and events. He is the Honorary Treasurer of Hotel Association of India (HAI) and the Chair of CII Regional Tourism Council (Western Region).

DOMAIN / SECTOR (TO CAPTURE CURRENT SECTORAL TRENDS / DEVELOPMENTS / CHALLENGES)

1. What are the key challenges your organization is facing? Both immediate and long term. And what steps are you taking to overcome?

Immediate challenges include navigating post-pandemic shifts, supply chain disruptions, and rising operational costs. In the long term, the biggest hurdle is adapting to changing consumer preferences and the increasing demand for sustainability. To overcome these, we’re investing in technology, focusing on diversifying revenue streams, and enhancing operational efficiencies through digital tools. Additionally, we have also set ourselves stretch target on the ESG front and have built a robust plan to meet the goals.

2. How has technology/globalization/economy affected your sector?

Technology and globalization have accelerated the pace of change in the hospitality sector. With increased digital connectivity, customers expect more personalized and seamless experiences. The economy, on the other hand, creates volatility. We’ve adapted by incorporating technology into customer service and operations, streamlining processes, and focusing on emerging markets for growth opportunities.

PEOPLE ASPECT

3. What is your talent strategy? How do you draw a balance between home grown vs lateral hiring at the leadership level?

Our talent strategy focuses on identifying high-potential leaders from within and investing in their growth. We maintain a strong preference for homegrown talent, as they understand our culture and vision. However, we also recognize the value of lateral hiring to bring in fresh perspectives and specific expertise needed for scaling operations or entering new markets.

4. How are global shifts in technology/digitisation and customer preferences impacting your business and industry?

Global shifts in technology and digitization are reshaping how we deliver services. Customers expect faster, more personalized experiences, and technology is at the core of this. For us, it’s about leveraging AI, data analytics, and mobile platforms to provide better service and improve efficiency. Additionally, customer preferences are shifting towards sustainability, and we’re responding by integrating eco-friendly practices into our operations.

5. Have there been any recent initiatives to upskill talent at the leadership level?

Yes, we’ve recently introduced a leadership development program focusing on future-ready skills like digital literacy, sustainability practices, and agility in decision-making. This is complemented by mentorship programs and external leadership workshops to ensure our leaders remain ahead of industry trends.

LEADERSHIP

6. Is the pursuit of innovation a constant or a situational strategy? Please elaborate with examples.

Innovation is a constant for us, but its application is situational. For example, during the pandemic, we pivoted quickly to digital platforms for bookings and contactless services, which was crucial for our survival. However, in our long-term strategy, innovation revolves around sustainable growth, like integrating green technologies and offering unique customer experiences that differentiate us in the market.

7. As an organization’s leader, how do you prepare your teams to navigate nonlinear situations / decisions.

It’s about creating a culture of adaptability. We equip our teams with decision-making frameworks that allow them to stay agile in uncertain situations. This involves encouraging a mindset of resilience, empowering teams to make decisions at all levels, and continuously testing new ideas to foster innovation while mitigating risk.

8. Are there newer financial and/or operational metrics that your business is governed by today?

Yes, we’ve shifted towards more nuanced metrics. In addition to traditional ones like occupancy and ADR (Average Daily Rate), we now focus heavily on customer satisfaction scores, sustainability performance, and digital engagement rates. These give us a more holistic view of our business performance, beyond just the financials.

PERSONAL

9. What are the 3 most pivotal moments in your career that you learned from and/or that got you where you are today?

There have been a few pivotal moments in my career that have shaped my journey and taught me valuable lessons:

Starting from scratch with Keys Hotels: Building the brand from nothing taught me resilience and the importance of a strong, adaptable team.
The 2009 financial crisis: It was a tough time, but our ability to stay focused and keep morale high made a huge difference in how we weathered the storm.
Rejoining Raheja: The opportunity to scale and go public was a game-changer. The IPO allowed us to lever the expanded balance sheet for rapid growth, both through green field initiatives and through acquisition of ready hotels.

10. What message would you like to share with young professionals?

Never stop learning, stay curious, and embrace challenges. Early in your career, take risks, and don’t shy away from diverse experiences. These will shape your strengths and prepare you better on your journey of leadership.

11. The cost of stability is often diminished opportunities for growth. Seeking out diverse experiences is useful preparation for leadership. True or false, and why?

True. Stability can feel safe, but it limits growth. Seeking diverse experiences whether in different roles, industries, or geographies builds the flexibility and creativity needed for leadership. Leaders need a broad understanding of challenges and opportunities to make informed, forward-thinking decisions.