May 17, 2001

U.S. Consul Announces HVS-Concept Hospitality Partnership

Mumbai, May 17, 2001 In a press conference held at the Orchid ECOTEL®, Asia’s first ECOTEL®-Certified hotel, U.S. Consul General David Good announced the partnership between HVS International, the premier global hospitality consulting organization, and Concept Hospitality, India’s premier hotel consulting and management group. The alliance is expected to enhance the spread of the ecological movement in India.

“Today, environmental issues are gaining more and more importance,” said Param Kannampilly, Director of Concept Hospitality Ltd. “The environment is not an issue that belongs to one particular country, but rather, to the whole world.”

As part of the announcement, both Kannampilly and HVS Eco Services Divisional President Christopher Balfe formally signed a Memorandum of Understanding. Under the terms of the agreement, and based on the experience the firm has gained opening and operating the Orchid ECOTEL® in Bombay, Concept will act as the local operations team charged with helping Indian hotels implement the program necessary to qualify for ECOTEL® Certification. In turn, HVS International will expand its ECOTEL® marketing efforts in Asia in order to increase both participation in the program among hoteliers and awareness of the program among travelers to the region.

According to Kannampilly, increasing the number of ECOTEL®-Certified hotels in India will greatly benefit the hotel industry by allowing hotels to increase their profitability and earn goodwill in their surrounding communities.

“The challenge is finding new ways of creating wealth with fewer resources, less raw materials, less energy, less waste, and less pollution,” said Kannampilly. He noted that in fiscal year 2000, 10% of gross operating profit at the ECOTEL Certified Orchid  resulted from savings measures adopted for resource conservation.

According to Suneel Parasnis, Western Region Director of the United States-Asia Environmental Partnership (US-AEP), creating a format for environmentally responsible projects for the hospitality industry in India will prove to be one of the biggest milestones for US-AEP, a multi-agency organization launched by former President George Bush in 1992 to facilitate the Green Revolution in Asia. Parasnis believes that bringing the ECOTEL® Certification to Asia will go a long way in promoting environmentalism in the region.

“In the past, the problem has been that many hoteliers could not afford to bring experts from the U.S. or pay fees in American dollars,” said Parasnis. “By having the certification next door, many in the industry will now be able to apply for it.”

“Hotels are generally known to be conspicuous consumers,” said Vithal Kamat, Managing Director of  The Orchid. “However, the growth of ECOTEL® hotels will reduce the burden on the environment by decreasing energy and resource consumption, which, in turn, will lead to a boost in eco-tourism in India.”

The ECOTEL® Certification, managed by HVS Eco Services, is widely regarded as one of the hospitality industry’s most challenging tests of environmental responsibility. The criteria and the inspection system were designed by a team which included experts from the world-renowned environmental think-tank, the Rocky Mountain Institute, as well as the U.S. Environmental Protection Agency. The ECOTEL® criteria are updated every two years to keep current with evolving environmental trends in hospitality; thus, hotels must be re-inspected once every two years to retain their certified status. Furthermore, members must agree to unannounced inspections anytime during their two-year membership period.

HVS International was created in 1980 to satisfy the growing demand for reliable and well-documented hotel market studies and feasibility reports. With 12 offices worldwide, HVS offers a vast range of services including valuations, strategic analyses, development planning, litigation support, executive search, waste management, gaming and restaurant consulting, asset management, operational and management strategy development, and timeshare consulting services.

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