Bloody Finale
In life, Phoolan Devi combined the brutal underbelly of India with political fame and glamour. Gunned down in Delhi, her death could become the occasion for a new round of caste conflict in Uttar Pradesh. Phoolan
is being reinvented posthumously.
A report.

Rule Of Outlaw
Dons and politicians enjoy a symbiotic relationship in Uttar Pradesh.

Back To The Trenches
Determined not to let up on its Kashmir-centric agenda, Pakistan has stepped up violence in the Valley. Indian security forces gear up to deal with the situation.

Revenge Of Badla People who lent money to stockbrokers for financing speculators through the badla system find themselves at the receiving end of yet another scam. And with little evidence to nail the accused, chances of recovery are dim.

The Peacenik
S.B. Deuba's rapport with the Maoists helped him become prime minister. Now he has to deal with their radical demands about the monarchy and secularism.

LIFESTYLE: SERVICE APARTMENTS

The Home Option

Personalised, comfortable and relatively cheap, these are a hot alternative for long-staying international visitors in big cities

By Natasha Israni

Home away from home. The tagline promoting an eclectic staying option had always appeared catchy. In 2001, it's proving good for the cash counter too. The tentativeness of a sunrise industry's logo has given way to confidence, and the verdict is lucid. The niche option of checking into serviced three- or five-star apartment "homes" instead of hotels has enough takers to make service apartments one of the fastest growing segments of the Indian hospitality business.

Says Yeshwant Nadkarni, associate, Jones Lang LaSalle Hotels, a specialist hotel investment banking service group: "The fact that this industry is growing exponentially is not a debate any more. Determining the exact growth rate is." That's an exercise LaSalle took up late last year while researching apartments that garnish the basic salad of home comforts-separate bedrooms, drawing rooms and individual air conditioning-with hotel pluses such as 24-hour concierge and laundry services. Their conclusion? With the rising demand for global-standard residential options, this is a "promising investment market".

Take the case of the C.L. Raheja Group's Lakeside Chalet Marriott Executive Apartments overlooking the Powai Lake in Mumbai. It's managed by the Mariott Group and offers 179 apartments with the choice of one or two bedrooms. The investment may be approximately Rs 64 crore (minus the land cost) but at US $89-169 a day for a one-bedroom apartment and $149-249 a day for a two-bedroom one, the venture is already making around Rs 2 lakh every month from each occupied apartment. Rajeev Chopra, managing director, Chalet Hotels Ltd, points out that at the current 55 per cent occupancy level, that's enough revenue to recover investment interest costs in the first year itself. "Service apartments are the ideal option for visitors who look for security in an alien city where they stay for long," he explains.

In fact, "long stay" is a phrase crucial to this industry, for it's really on extended visits that even three-star hotel rooms prove expensive and impersonal. This is where service apartments step in, with larger living space at cheaper costs and with unputdownable offers like progressive discounts up to 50 per cent as the stay duration increases. But what makes the guests happiest is the fully equipped kitchen. Says Lakeside Chalet resident and Miel e-Security Pvt Ltd vice-chairman Kutty Nair: "When one has been away from home for seven months, the last thing one wants to do is to eat out." At Lakeside, Nair can cook what he wants with groceries delivered to his doorstep, while housekeeping cleans up. And there's always room service for days when he isn't up to churning out meals.

It's the increase in such long-staying business visitors that has got the service-apartment industry booming. Says Naresh Khattar, chief managing director of the three-year-old Avalon Service Apartments in Gurgaon, Delhi: "Thanks to liberalisation, there is a huge influx of foreign corporate travellers, expatriates overseeing project set-ups, MNC visitors, NRIs on reconnaissance business visits, and tourists." And they're all looking for high-quality medium to long-term accommodation. In 1999, 2.43 million international tourists came into India, while domestic tourists amounted to 172.2 million. In 2001, this figure is expected to grow by about 3 per cent. Even if a fraction of them are long-staying business visitors, it's good news for service apartment providers. In fact, for the first two years, Avalon's occupancy levels were as low as 30 per cent. Now two-thirds are booked most of the time and there are plans to add more service apartments in 2002. Booking facilities on avalonresorts.com and onlineservice-apartments.com have pushed business further. Bhavin Toprani of the travel website indiatravelite.com says up to 40 per cent of online registrations on his website is for service apartments like Sand Pebble at Goa, Riviera Heights in Kochi or Tara Niwas in Jaipur.

In cities like Mumbai and Delhi, service apartments help avoid the tiresome transactions required to lease flats. Says Sunil Mantri, joint secretary, Maharashtra Chamber of Housing Industry (MCHI): "The municipal taxes in Mumbai are probably the highest in the world and the new lease and licence agreement rules have made it almost impossible to lease out flats here for less than 11 months."

Many spurned tenants are biting the service-apartment bait of flexible leasing instead. And their choice is increasing by the day. In Mumbai, Royal Palm will be opening four service-apartment buildings by the end of this year. The more economical The Residence apartments in Powai are already operational, while the C.L. Raheja Group is keen on opening more apartments in Goregaon. The industry buzz is that hoteliers from the Taj, Asian Hotels, Le Meridien and the Grand Hyatt groups are also exploring the option.

Delhi has small players like Silver Oaks and Vasant Apartments, apart from the bigger Avalon. Of course, larger hotels plan to get into the act here too. In Bangalore, the Brigade group's Home Stead Service Apartments offer 16 flats in the hub of the city on Lavelle Road, with the option of fashioning a "home" or an "office". The city's Emerald Group has similar plans.

So, is all hunky-dory? Looks like it. Says Sunil Bajaj, convener, Estate Agents' Association of India: "I don't see any obvious negatives facing this industry, except if government policies were to alter." Companies like Pepsi, Bayer and Colgate Palmolive are finding it cheaper to put up employees at service apartments than at hotels.

India isn't yet level with Australia, where every sixth or seventh hotel is a service apartment, but as the economy grows and the influence of global trends increases, it may well be on its way.

MetroScape

Looking Glass

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Starved of resources and bogged down
by mismanagement, pilferage and irregularities, Punjab's civil aviation is in an utter mess. INDIA TODAY's Special Correspondent Ramesh Vinayak reports in
Airsick