hvs - indian hotel industry survey 2010-11

7/28/2019 HVS - Indian Hotel Industry Survey 2010-11

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IndustrIndian Hotely Survey 2010-2011


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more information,For or additional copies of this document, pleasecontact:

Secretary General

of Hotel & Restaurant Associations of India (FHRAI)Federation, Himalaya House, 23 Kasturba Gandhi Marg,B-82, 8th FloorNew Delhi- 110 001India

Tel:+91 (11) 4078 0780Fax:+91 (11) 4078 0777Email: [email protected]: www.fhrai.com

Price: FHRAI Members:`500 (per additional copy)FHRAI Non-Members:`700

International:US$50

of Hotel & Restaurant Associations of India, 2011 FederationReproduction of data from within this publication is permitted provided thatacknowledgementis accredited to the FHRAI and HVS Hospitality Services.


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of ContentsTable

FHRAI............................................................................................................ 1 thePresident,from Foreword

Services................................................................................................................................ 2 HVS Hospitality

theSurvey..................................................................................................... 4 Highlights of Key Synopsis &

Trends...................................................................................................

................................Country 6

Focus......................................................................................................................................... In The 8

CityTrends........................................................................................................................................... 11

1. IndianStar

Category...............................................................................................18 by Hotel Industry

2. IndianAffiliation................................................................... andChain Inventory Hotel Industry 27

3. IndianMajorCities.......................................................................................... 35 Seven Hotel Industry

4. IndianOtherCities......................................................................................... 46 Twelve Hotel Industry


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Foreword

edition fourteenth annual present the pleased to India is Associations of & Restaurant of Hotel The

Federationincludes in- This survey Hospitality Services. with HVS in cooperationSurvey,Industry Indian Hotel of theprovides several positioning and cities and across various of hotelsperformanceabout the depth informationall hotels for the participating to thank would like We in India.performancecomparing hotel benchmarks forthis research. quality of improve the helping to provided, therefore theyhaveinformation the detailed

The Indian Hotel Industry Survey analyses the performance of the Indian

hospitality industry acrossis information trends. The and marketingoperational performance manpower, asfacilities, parameters sucha in providing helps us this data authenticity of and the hotel members fromFHRAI data received based onour member hotels, from our Data collected hospitality sector. of India'soperating statistics of the clear picturetool a preferred this report make have helped our research credibility of and thehistoric database extensivefor hotel professionals, consultants, investors, bankers, researchers,government officials in the tourism

industry. Indian hotel studying the interested in all those persons and department,media

The current edition includes an analysis of seven major cities for which wehave received detailedin though not some hotels, us for available with where information was othercities informationand twelveearnestly request all our members to be more forthcoming sufficient numbers forall the star categories. Wewith sharing the required information as this helps us all. Therefore, while we havebasic data for 1,318

of for all not available data is the financial last year), responses received the1,200 increase from members (aninformation the required not sharing members for of those each oneapprehension of the major them. Thoughis complete that there rest assured members should their data, confidentiality ofbe the report might for thisHVS. data by security of

We each year. improve it us to to enable this report content of presentation and


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on the encourage feedback We

ECOTEL well as project as (part for this continued support for their Hospitality Services to HVS arethankful

edition.current sponsored the for having Sustainability Services) of HVS

Kamlesh Barot

FHRAI President,www.fhrai.com

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About HVS

HVS Hospitality Services is the world's leading consulting and services organization focused on thehotel,

restaurant, shared ownership, gaming, and leisure industries. Founded in

1980 in the United States byStephen Rushmore, the company has 31 offices across the globe and more than18,000 assignments to itsrespected as the to HVSturn companies all and management lenders, banks,owners, operators, credit. Hotelhospitality. authority on

in firm dedicated hospitality-consulting the only to be has risen 1997 andestablished in Delhi was HVS NewSouth Asian in the with interests to clientsservices Valuation Consulting andoffers its It currently this region.

Region covering India, Sri Lanka, Bangladesh, Pakistan, Nepal, Bhutan andthe Maldives. The differentbelow: are mentioned Delhi Office the New offered byservices on the verticalsbased

ALUATION AND VCONSULTING

The team comprises experienced and qualified hotel professionalsundertaking feasibility studies,entryservices, strategies, investmentand market area analyses, valuations,market development strategies,

combined with operator search & management contract negotiations. HVS'sdatabase of hotel information,broad insight and extensive experience,enables us to produce well-documentedstudies that contain fullysupported value conclusions. Each report is customized to meet clientrequirements based on mutuallyagreed upon parameters. The HVS approach on hotel and real estateappraisal is widely used by hotelmanagement companies, financial institutions, equity investors anddevelopers of hotels in makinghospitality industry. South Asian in the investment decisions

through Services, Audit providing Operations also includesservices of consultingour portfolio Additionally,expert, independent assessments and unbiased reviews of various processesaffecting the operationalhotel assets. efficiency of

EXECUTIVE SEARCH


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2001 and subcontinent in the Indian offered, entered of services the base verticalto Search, another Executivecurrently manages diverse portfolios across varied sectors. HVS Executive Searchhas offices in New Delhiservices advisory It provides Search practice. retained Executive Asia's firstamong South and is and Mumbai

to leaders of the hotel, restaurant, real-estate, manufacturing, retail,telecom, energy and educationindustries. Practice areas include senior-level executive search, mid-management recruitment andcompensation consulting.

MARKETING AND COMMUNICATIONS

only is the and Communications HVS Marketing HVS India, division of andcreative marketing The strategicmarketing combined hospitality years of over 40 With country. in the hospitality

marketing shop for one stopand creative experience, HVS MC excels in offering viable and strongresearch based marketing andcommunication solutions to its clients. Services include pre-opening, opening andpromotional marketingof Our list branding strategies. support and planning, creative advertising, mediaROI based campaigns withclients include leading hospitality brands in the country such as Pullman,Accor, Novotel, Mercure, Ibis,Hotels. and Peppermint Inn, Sheraton Plaza, Premier Park Radisson Blu, CrownePlaza, Fortune,

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VICES SERSUSTAINABILITY

HVS Sustainability Services provides a range of business-driven consultingservices that enable hospitalityfirms to identify cost saving opportunities, enhance operational efficiency,and demonstrate a positive

Sustainability Services commitment to the environment, guests, investors, andother relevant stakeholders.in and reduction water, energy and like of resources efficient consumptionreductions through quantifies costusing key environmental solutions through these the reductions it describesFurthermore, waste generation.financial metrics.capital case for the business to evaluate and operators with owners worksdirectlyServices HVS Sustainabilityinvestment into environmental technologies; we further promote accessibility

to conventional andnonconventional financing mechanisms for technology-drivenretrofit projects. Ourindustry intelligencethat improve critical decisions to make and toolsinformation the best you withpresence provide and globalowners. value for higher asset translating into operating income

ONFERENCE - SOUTH ASIA CTEL INVESTMENTth8 HOA confluence of hotel industry stakeholders, visionsand

ideas, industry news and networking, HICSA hassuccessfully created an interactive platform in the South

2012Asian region. For enquiries regarding the eighth annual HICSA2012APRILAI MUMBATT 3-4, GRAND HYc o n f e r e n c e , H I C S A 2 0 1 2 p l e a s e v i s i twww.hicsaconference.com

[email protected] us at or email

easy servesas an statistics and industry'skey together the SurveyHotelIndustry2010/11 brings The Indianlook forwardto same and towards the have contributed those who to all aregrateful We reference volume.come. years to in the increased participation

Kaushik VardharajanAnirudh KatreTulika Das

Managing DirectorSenior AssociateResearch Associate


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HighlightsSynopsis and Key

Introduction

services of the the growth industries driving key of the as one hasemergedhospitality industry The IndianThe FHRAI economy. the Indian thereby, sector and, the most to provide 2010/11aimsSurvey Indian HotelResults of the survey will empower comprehensive guide to all-India performancetrends for this industry.industry stakeholders such as owners, investors, operators, business analystsand researchers withthe performance owners benchmark also help It will industry. of the operationalaspects on theinformationoperations. of their

Data Collection

The data for the FHRAI Indian Hotel Survey 2010/11 Report has been contributedby the member hotels of1

FHRAI. The FHRAI sends out a questionnaire to each of its members (currently numbering 2,396member

culled edition is the current presented in The data this report. presented inanalyzed and is then hotels) whichresponses. from 1,318

Methodology

of the objectives according to and filtered is sortedsurvey in the hotelsparticipating received from The datathe survey. The data is then processed and analysed to extract importantinformation pertaining to theperformance of the Indian hospitality sector across crucial parameters.These parameters, such as guestsegmentation, hotel finances, marketing, sources of reservations, andseasonality,among others, are thencategories: the following presented under

Star: are hotels (which with Other hotels along and One-Star Three, Two Four, Five, Deluxe, Five-Star

star rating). under any not classified

Inventory: and More 50-150 Rooms, 50 Rooms, Less than categorized as hotels are rooms inNumber of

Rooms. Than 150

Affiliation:The two types of affiliations used to categorize hotels are Affiliated to chain,


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and

Independent.

Primary Markets: : The seven major cities described in this report are Bengaluru,Chennai, Goa,

and Pune. Mumbai, Delhi-NCR, Kolkata,

Secondary secondary cities described Markets: Twelvein this report are Ahmedabad,Bhubaneswar,

Hyderabad, Indore, Jaipur, Kochi, Kottayam, Mysore, Shimla,Thiruvananthapuram, Udaipur, andVadodara.

1

2011As of September,

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ConditionsQualifying

While from the data received by the are limited India, we cities in all the to represent ourendeavour it is

for those categories for only present data relevant, we the study to make In orderparticipating hotels.hotels. four participating minimum of have a which we

Hotels the same combined under have been similar characteristics categories showing acrossdifferent

category.

Topresented statements are the financial comparable groups, data across evaluation of facilitatebetter

hotel/owner specific. which are and interest, of depreciation any deductionIncome, before through Net

Limiting Condition

In to the be attributed data may in the this noise data and in the large fluctuations there aresome cases,

performance. market representation of an accurate not be and maysurvey in thechanging participation

Data Financial Presentation of

Percentage of Revenue are Departmental expenses of revenue. a percentage costs asassessment of is an

portions of individual revenue heads while Operating and FixedExpenses arededucted from Gross

accounting guidelines.international following the Hotel Revenue

Amount is the financial performance of a single room and is(PAR) Roombased on the perAvailable

total inventory.

Amount(POR) is Room per Occupied room. single occupied of a the performance

All amounts presented in this report have been rounded to the nearest wholenumber and are in Indianprovided as amounts are statements, rupee the financial (April-March). In year2010/11 the fiscal (`) forrupees

size in the eliminate differences order to (POR) in occupied room and per (PAR)available room amounts persurveyed. of hotels


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Trends Key

first subsection, In the Trends. and City Focus, In the Trends, parts: Country into three is dividedThis section

an overview is provided of the broad trends that have been observed in thecountry in the The past year.

survey presents the generation, and and income to revenue trends relatedhighlights the second subsectionfindings related to Key Operating Statistics. This is followed by the CityTrends, which reflect HVS'sfuture performance. to its with regard expectations as our as well each city,perception for

TrendsCountry

The Performance:The Overall hotel industry. the Indian consolidation for period of was a year

2010/11preceding years witnessed the effects of the global financial crisis as well as theimpact of the terrorattacks in Mumbai that led to a dip in overall occupancies and averagerates. However, 2010/11occupancies with overall the industry levels for improved performance butmarginally witnessed slow10.0% approximately grew by rates also 62.1%. Average 59.9% to average of anationwide growing fromfrom `4,149 in 2009/10 to 4,567 in 2010/11. Strong domestic demand, coupledwith increased global `

average rates. occupancies and in improving India helped environment in thebusiness confidence in

The improved performance levels, however, did not translate into an overallimprovement inprofitability for hotels across the industry.Rising inflation levels meant increasedoverhead costs forhotels resulting in lower margins. An overall increase in departmental andfixed expenses as apercentage of revenue led to a decline in net income percentage ofapproximately4.0% in 2010/11 as

increase in property operations and maintenance costs, along with the comparedto 2009/10. The PARreduction for the are responsible expenses beverage (F&B) food and division andin rooms POR increaselines. in bottom

Increased visitation from Asian countries:The results of the survey reveal anincrease of

an approximate year and the last that in countries over from ASEAN hotel guests


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17% in approximatelyincrease of 5% in hotel guests from Japan. The increase in travel from Asia may beattributed to theincreasing presence of Asian companies in India, which has led to the creation of afairly developedin an increase also affirmed with have has interacted that HVS Most hoteliers

market. corporate travelthe number of bookings received from travellers from South Asian countries overthe last two years.Asian of Southeast the introduction attributed to also be tourists may in Asian theincrease Additionally,far from India to and made travel which has Air, and SilkAirways Tiger as AirAsia,airlines such low-costIII) in Tier II and cities (Tier of smaller the linking Going forward recent past. thanthe more economicalIndia like Calicut and (along withKochi Thiruvananthapuram) to Dubai by thehomegrown IndiGo,

xpected to is ewhich also commenced operations to Southeast Asian countries inSeptember this year,demand. in hotel augment growth

Telephone Department:The telephone department has, over the years, become more of a costcentre

percentage of departmental expense year's surveyreveals a hotel. This for arevenue generator than a104% which is indicative of this trend. With increased use of mobile telephonycoupled with muchincreasingly used to be (VoIP) Protocol over Internet Voice have enabled speedsthat improved Internetby business and leisure travellers, has meant lower revenues beinggenerated by this department.guests from discouraging hotel priced thereby exorbitantly hotels are at most callcharges Additionally,annual maintenance well as companies as to phone line rentals to pay Hotelscontinueservice. using thecharges for sophisticated Call Accounting Systems without realising sufficientrevenues from hoteloperations. cost of cover the guests to

Social Media Marketing and Technology:The overall improvements in technology over thelast five

years have been significant and have impacted the hotel industry as well. Internetaccess on perhapsin smart huge advancements with the 3G, coupled introduction of device, theeverypossible personal

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time. Social all theInternet to the are connected more people has meant tablettechnology, phones andincrease of users their database have seen these advancements benefittedthrough that have Media sitesFacebook, the world. most around life for way of becoming a sites almost in thesesignificantly resulting

in 2008 million users from 100 base grow its user has seen Media sites of Socialmost popular perhaps the2

bandwagon of joined the too, have the country,September 2011 . Hotels acrossas of millionusers to 800

Social Media Marketing and have benefitted immensely from its strongreach at almost no cost ofaccounts to reach out to a large number of page andhotels have TwitteraFacebookoperation. Today,their target audience and promote several events in their hotels resulting inincreased footfalls andand for smartphones (Apps) developed had applications have also companies

today patronage. Hotelwebsites like party travel while third the go bookings on enable hotel tablets thatExpedia andMakeMy-country. across the reviewing hotels recommending and itineraries by planningtravel help with Trip

The Domestic Traveller: impact of the global economic crisis in 2009/10 resulted in the price-sensitive

demand for increased domestic leading tocountry within the leisure trips settlingfor domestic travellerhotels. This trend of strong domestic demand has continued to grow in 2010/11 aswell. This year'sapproximate and an FIT segment the Domestic 8.1% in increase of anapproximate has witnessedsurveyincrease of 14.2% in the Domestic Groups segment over that of last year.Going further, theimprovement of overall connectivity facilitated by additional destinations in theportfolio of low-costairline carriers like GoAir, Spicejet and Indigo, is further expected toincrease domestic touristthe country. movement within

EmployeeRatio: Efficient Room to Hotel concernfor area of be an continues to manpowerutilization

1.6, much stands at room ratio to hotel total employee average of The all-IndiaHotel Industry. the Indianthe ratio is this high attributed to can be reason that A major the globe. hotelsacross that in higher thanperformance of four and three-star hotels as far as manpower utilization isconcerned. The all-Indiathe three- that for room while per hotel 1.8 employees stands atcategory thefour-star year for ratio this


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hotel to Indian maybe attributed being high these ratios reasons for 1.6. Primarystands at star categorymore expansive India offer hotels in and budget Midmarket their hotels. to'overspec' owners tendingnumber of a large therefore require hotel and in a F&B offerings to the withrespect facilities especially

globally. to hotels as compared manage operations personnel to

Energy: percentage as a energy costs 3.3% in of approximately overall drop reveals ansurveyThis year's

Several hotels previous year. in the hotels than levels among better efficiencyrevenue indicating of hotelacross the country have employed various Greeninitiatives translating to acontribution towards amore eco-friendly environment and improved marketability for the property bybeing certified as aGreen Hotel. Additionally, employing these initiatives have also resulted inmore efficiently runoperations, that have consequently resulted in better efficiency levels withrespect managing risingenergy costs. Going forward, companies likeHVS Sustainability Services willfurther enable hotels toperformance. and social financial, environmental improve their

2

Social Bakers

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Focus In the

HVS estimates approximately102,348 new hotel rooms are to enter the Indian hotel market by2015/16, of 3which approximately 60% are expectedto be actively under development. A significant number ofthese

hotels are to beexpected affiliated with global brands and be of internationalquality and service offerings.Hotel operators across the country would need to prepare themselves forthis expected competition byfollowing exhibits offerings. Theand service their product and also operationalefficiencies improving theiremerging trends. key highlight some

from the As evident five years. the last hotels over revenue for sources of trendsfor highlights the Exhibit 1Exhibit, F&B has been fairly steady with respect to its overall contribution to hotelrevenues. F&B revenuesthat of factors largely independent they are lines since support top continue to inIndia (including banquets)F&B revenue we expect going forward However, local market. by the more drivendemand and affect roomSeveral term. to long the medium pressure in come under hotel to of a revenuepie the overall contributions toto include are expected few years, next over the the market to enter areestimated hotels that branded budgetminimal F&B facilities and in some cases lease out the F&B outlet of thehotel to a third-party vendor.the increasing number of stand-alone dining options across several cities, whichinclude both Additionally,restaurants visiting hotel of locals the number to affect expected is also casual-dining options, fine-dining and

Exhibit 1: Sourceevenue 2006/07 to 2010/11 of R

6.23%5.32%5.05%5.82%6.23%100%90%

34.11% 33.48% 34.46% 37.52% 36.62%80%70%

60%

50%


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40%

59.66% 61.20% 60.49% 56.66% 57.16%30%

20%

10%

0%

2006-07 2007-08 2008-09 2009-10 2010-11

RoomsF&BtsOther and Banque

Exhibit 2 illustrates the PAR trends in revenue and net income over the past five years.While revenue

the revenue over percentage of as a of 4.0% a decline income showed 13.0%, netapproximately increased byover last expenses and operating in departmental POR increase to a be attributed

This could previous year.in POR 2010/11 resulted inflation in The growing 10.5% respectively. 2.8% andgrew by of which year; bothPOR expenses Additionally, respectively. and 1.0% by 4.0% to grow and F&Brooms division for the expenses16.0% saw a maintenance also operations and and property general (A&G)administrative and pertaining toyear. over last rise respectively and 15.0%

3

and Opportunities Report 2011 HVS Trends

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and Net Income 2006/07 to 2010/11Exhibit 2: Revenue

45.0%2,000

40.0%1,800

35.0%1,600

t Income (%)30.0%1,400Ne1,20025.0%1,00020.0%80015.0%60010.0%400

AR Revenue and Net Income, ` 000's5.0%200P

0.0%0

2006-07 2007-08 2008-09 2009-10 2010-11

AR) Net (PRevenueome (PAR) Net Income % Inc

Exhibit 3 illustrates the earlier mentioned trend of the year 2010/11 being one of consolidation

wherein all-India occupancies grew by approximately 4% over the previous year andaverage rates grew by10%. approximately

Rate 2006/07 to 2010/11Exhibit 3: Occupancy and Average

5,000 72.0%

4,500 70.0%

4,00068.0%verage Rate (`)3,500 A66.0%


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3,00064.0%2,500

2,000 62.0%

(%)1,500 60.0%Occupancy

1,000 58.0%

500 56.0%

-54.0%

2006-07 2007-08 2008-09 2009-10 2010-11

te Occupancy RaAverage

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COMPOSITION2006-07All India Average2007-08All India Average2008-09All IndiaAverage2009-10All India Average2010-11All India Average2006-07All IndiaAverage2007-08All India Average2008-09All India Average2009-10All IndiaAverage2010-11All India Average2006-07All India Average2007-08All IndiaAverage2008-09All India Average2009-10All India Average2010-11All IndiaAverageNumber of responses:488 453 474 526 544 488453 474526 544 488 453 474526 544Average Total Rooms Per Hotel:64686972 72 64686972 72 64 68 69 7272Average Occupied Rooms Per Hotel:15,459 16,732 15,143 15,174 15,768 15,459

16,732 15,143 15,174 15,768 15,459 16,732 15,143 15,174 15,768Average OccupancyPer Hotel:66.9% 69.4% 63.1% 59.9% 62.1% 66.9% 69.4% 63.1% 59.9% 62.1% 66.9%69.4% 63.1% 59.9% 62.1%Average Rate Per Hotel (`):3,742 4,605 4,487 4,149 4,5783,742 4,605 4,487 4,149 4,578 3,742 4,605 4,487 4,149 4,578REVENUERooms59.7%61.2% 60.5% 56.7% 57.2% 903,228 1,140,130 985,310 876,919 997,815 3,7424,605 4,487 4,149 4,578Food & Beverage25.6 25.4 25.9 28.7 27.0 387,728 472,834417,248 443,367 471,013 1,606 1,910 1,900 2,098 2,161Banquets &Conferences8.58.18.68.9 9.6 128,696 150,827 144,054 137,353 168,253 533 609656 650 772Telephone & Other0.80.60.60.6 0.5 12,192 10,919 9,154 8,6188,600 51 44 42 41 39Minor Operated*2.92.62.22.8 2.6 43,077 48,325 36,36043,594 45,825 178 195 166 206 210Rental & Other Income2.62.12.32.5 3.1 39,09239,921 36,743 37,885 54,294 162 161 167 179 249 Total100.0 100.0 100.0 100.0100.0 1,514,010 1,862,950 1,628,870 1,547,737 1,745,800 6,272 7,525 7,418 7,322

8,009DEPARTMENTAL EXPENSESRooms14.7 16.1 14.8 17.1 16.1 132,661 183,116146,192 149,683 160,980 550 740 666 708 739Food & Beverage57.7 51.7 55.3 56.1 52.9297,860 322,623 310,165 325,793 337,840 1,234 1,303 1,412 1,5411,550Telephone & Other90.7 109.1 79.7 90.2 104.0 11,058 11,907 7,291 7,7768,945 46 48 33 37 41Minor Operated*56.6 60.5 70.3 65.5 70.4 24,390 29,233 25,55428,555 32,254 101 118 116 135 148Rental & Other Income15.6 15.09.78.7 11.3 6,1136,002 3,553 3,285 6,124 25 24 16 16 28 Total31.2 29.7 30.3 33.3 31.3472,082 552,881 492,755 515,092 546,142 1,956 2,233 2,244 2,4372,506DEPARTMENTAL INCOME68.8 70.3 69.8 66.7 68.7 1,041,930 1,310,070 1,136,1101,032,645 1,199,660 4,316 5,292 5,174 4,885 5,504OPERATING EXPENSESAdministrative &General7.07.48.79.1 9.6 105,894 138,316 141,121 140,057 167,965 439 559 643663 771Management Fee2.12.52.72.6 2.8 31,288 45,572 44,133 40,243 49,008130 184 201 190 225Marketing3.02.92.72.6 3.7 45,620 54,727 44,439 39,920

65,375 189 221 202 189 300Franchise Fees0.40.40.50.5 0.3 6,588 8,074 8,4967,795 5,317 27 33 39 37 24Property Operations & Maintenance5.44.95.45.7 6.0 81,77890,665 87,780 88,550 105,099 339 366 400 419 482Energy7.87.38.58.9 8.5118,763 135,077 138,749 138,097 147,899 492 546 632 653 679 Total25.8 25.428.5 29.4 31.0 389,932 472,431 464,717 454,661 540,662 1,615 1,908 2,1162,151 2,480HOUSE PROFIT43.1 45.0 41.2 37.4 37.8 651,998 837,642 671,396 577,985658,996 2,701 3,384 3,058 2,734 3,023FIXED EXPENSESProperty Taxes0.70.60.60.8 0.910,520 11,217 10,031 11,819 15,310 44 45 46 56 70Insurance0.60.30.30.4 0.38,256 5,933 4,522 5,355 5,727 34 24 21 25 26Other FixedExpenses1.40.91.11.4 2.8 21,831 17,027 18,365 21,935 48,282 90 69 84 104222Rent1.41.21.31.0 1.4 20,670 22,464 21,784 15,392 24,044 86 91 99 73110 Total4.13.03.43.5 5.4 61,277 56,640 54,702 54,500 93,363 254 229 249258 428NET INCOME**39.0% 41.9% 37.9% 33.8% 32.4% 590,721 781,001 616,694

523,484 565,633 2,447 3,155 2,808 2,477 2,595* Minor operated departments include:laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth**Net Income is before depreciation, interest payments and taxesPercentage of RevenueAmountPer Available Room (`)Amount Per Occupied Room (`)

TABLE 1:Trends in Key Operating Statistics


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City Trends

which over 2009/10industry Indian hotel for the levels improvesaw performance 2010/11steadily The year

saw improvedcountry across the hotel markets crisis. Most global economic of

the the effects had witnessedoccupancy levels and average rates with an increase in international leisuredemand (up 11.7% from theprevious year), strong growth in domestic leisure demand (up 9.7% from theprevious year) and a double17.3% up approximately Events (MICE) Conventions and Meetings, Incentives,emanating from digit growthprevious year. from the

It should be noted that the country average is not representative of the trendsseen in certain keyhotel

markets in India as it includes the results of lower star category hotelsacross several cities which,and rate average occupancy 2 illustrates Table operating environment. morerestrained have a comparatively,the viewpoint on by HVS's is followed years, which last five over the the countrycities/regions across for 32in-house research. based on hotel markets 19 identified of the and performancedemand-supply scenario

2: TABLE Room Rate: 32 Cities/Regions in Indiaverage Occupancy and AverageA

OccupancyAverage Room Rate(`)

City2006/07 2007/08 2008/09 2009/10 2010/11 2006/07 2007/08 2008/092009/10 2010/11

All India 66.8% 69.3% 63.1% 61.3% 62.1%4,5564,4874,8424,5783,741Agra58.9% 62.8% 54.8% 57.0% 63.2%2,3613,3074,2112,4823,968Ahmedabad 69.6% 74.9% 63.7% 65.7% 67.6%2,1084,1384,0393,3673,234Aurangabad 52.9% ID 56.5% 57.9% 59.5%2,160ID 2,2892,8502,612

Bengaluru 67.9% 73.1% 56.5% 52.6% 53.8%8,5199,6799,7576,7665,838Bhopal74.7% 70.3% 72.2% 66.1% ID2,0282,6472,6393,110IDChandigarh 88.7% 79.6% 79.6% 69.1% 70.4%1,1034,0573,7164,7804,544Chennai 78.7% 77.4% 64.6% 65.6% 64.8%3,3403,0764,6784,0835,508Coimbatore 72.9% 77.8% 72.1% 75.5% 72.8%2,3222,6343,2553,2363,989Darjeeling 56.3% 57.8% ID 47.2% ID2,0901,719ID 3,193ID

Goa71.3% 70.1% 61.7% 63.1% 64.4%4,5154,3685,3784,7577,807


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Hyderabad 71.6% 63.7% 56.3% 58.8% 53.3%4,6605,6434,7305,1374,152Indore69.8% 72.9% 68.7% 65.2% 65.4%9921,4861,9331,8141,869Jaipur69.2% 63.0% 61.4% 57.7% 64.0%2,7435,4604,4724,0593,071Jodhpur 50.7% 53.6% 51.0% 43.2% 49.2%4,0665,4683,9644,5525,519Kochi75.4% 75.2% 67.4% 64.4% 74.2%1,2371,4862,0622,8061,528Kolkata75.6% 72.5% 69.6% 64.5% 65.4%3,5675,1385,3424,8804,788Kullu-Manali 46.9% 48.1% 50.9% ID ID2,3341,6883,716ID IDLucknow 70.8% 71.6% 63.0% 58.7% 59.8%1,9882,2082,4915,1092,393Mount Abu 56.6% 57.0% 69.4% 67.5% 63.0%1,5581,8251,8232,1592,821Mumbai 79.2% 80.1% 71.2% 67.2% 69.0%4,9966,6656,8225,8335,087Mussoorie 50.9% ID 48.0% 45.9% 52.5%1,454ID 4,0996,0785,817Mysore 46.4% 66.3% 67.7% 67.7% 71.4%3,3001,2542,3402,6374,634Nagpur69.4% ID ID 61.5% 76.6%1,144ID ID 3,1322,314New Delhi - NCR 82.2% 78.0% 64.8% 64.6% 59.0%7,4599,7286,0876,9856,763Pune80.7% 76.5% 65.5% 53.2% 53.3%3,2324,9274,9513,9213,140Raipur74.1% 52.7% 64.3% 39.0% ID2,5501,0551,0871,521IDShimla52.2% 64.6% 52.7% 48.0% 42.7%1,5541,0331,7661,7902,267

Thiruvananthapuram62.4% 65.1% 57.9% 55.3%61.8%3,9592,2211,5701,4221,380Ootacamund 48.5% 58.3% 58.1% ID ID1,5271,2581,956ID IDUdaipur 57.8% 58.2% 51.6% 47.0% 55.2%3,7006,3207,3193,5437,406Vadodara 71.9% ID 77.9% 65.6% 77.8%1,730 ID 2,779 4,360 3,703Visakhapatnam 71.4% 75.9% 69.0% 62.1% 76.3%2,495 3,169 3,687 2,809 5,431ID: Insufficient Data

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Cities Seven Major

Bengaluru

Bengaluru witnessed a steady increase in both occupancy and average rate in 2010/11.

The average ratelower average presents a and, therefore, unbranded hotels percentage of a large2 includes Table reflected ina considerable city saw that the hotels reveals on branded HVS's research year.the previous that in rate thanslowdown of the economic travel post increased corporate result of as a hotelrooms demand for increase inCentral i.e. the three micromarkets divided into is broadly in Bengaluru hotelmarket years. The the previousBusiness District (CBD), the Whitefield area and the Electronic City area.The city is expected to further

segregate into two additional micromarkets i.e. the Northern (Devanhalli)and Western (Yashwantpur)While the CBD comprises mostly first class/luxurmarkets.y hotels that cater tomid-management or highercorporate clients, Electronic City and Whitefield largely consist ofmidmarkrankedet to budget hotels withof a few firstthe exception class hotels. The city relies heavily on Commercialdemand emanating from thevarious micromarkets highlighted above. The year 2010/11 witnessed growth inExtended Stay demand inareas like The city'sWhitefield and MICE demandORR-Sarjapur. continues

topotential, however, remainuntapped owing to a lack of significant meeting spaces. The delay in thedevelopment of a proposed3

12,500 approximately rooms we expect forward, back. Going further set is a in Devanhalliconvention centre

to enter the Bengaluru marketwith a 67-percent probability factor of these roomsactually commissioning.This addition of inventory is expected to result in occupancy and average ratepressures especially in theareas. Electronic City Whitefield and

Chennai

a marginal 2010/11 and occupancy in increase in a steady also witnessed cities, Chennai mostmajor Similar to

growth in average rate as well. The city saw a resurgence of demand fromthe IT Sector as well as the4

-on-year volume growth of 26.0% which witnessed a record yearautomobile sector, in total unitsproduced


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demand cater to continue to however, City hotels, of financing. easy availabilitydemand and revival in due tofinance. banking and like traditional sectors emanating from

Going forward,significant investments into hotelsas the primarily in cityexpandsfurther,the budget and

converting to these areas result in estimated to areas is and OMR theSriperumbudur segments in midmarketalong with Sriperumbudur, city and of thecorridor the IT OMR is within Chennai.individual micromarketsrole. key playing a automotive sectors manufacturing and hub with an industrialfast becoming Oragadam, isAs these areas continue to witness additions of major companies, HVSexpects hotels to benefit fromincreased demand from the Commercial and Extended Stay segments.Additionally, new hotels that are2,500 rooms total of well. A MICE as demand for to increase expected facilities

are large meeting planned withare expected in the next three years in the upscale and luxury segments,adding to an existing base ofto is bound the market supply entering amount of The large same segments. inthe 2,000 rooms approximatelyto is expected average rate city-wide term,but the to medium the short levels inon occupancy put pressurethe market. products entering and upscale the luxury due to witness growth

Goa

Goa, which is among the most popular leisure destinations of the country, saw a marginalincrease in

occupancy inmarketwide 2010/11. The survey results reveal a significant jump inaverage rates, which canlargely be attributed to the recovery of average rate among upscale hotels acrossGoa post the effects of thedownward pressure faced in 2009/10 as a result of the global economic crisis. Thecity continues to witnessairport current at the the facilities would require this growth However, demandgrowth. steady year-on-year

to be further developed to handle passenger movement round-the-clock. Theproposed development of anew airport in North Goa has also shown no signs of progress. other issues suchas lack ofAdditionally, a4

ManufacturersSociety of Indian Automobile

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the clarity regarding lack of and clearances, obtaining approvals obstacles in policy,comprehensive tourism

latest CRZ norms and frequent disputes over land use and ownership haveresulted in a relatively slowincrease in supply within the Goa hotel market.In the short to medium term, MICEdemand for the city isremains the city outlook for Overall, the Grand Hyatt. of the recent opening withthe a fillip to get expectedthat the opinion are of Weterm. to long the medium gradually in to growexpected average rates positive with-on-year that will witness yearGoa will continue to remain a lucrative marketgrowth in tourist arrivals. Weexpect the proposed supply of new hotel rooms to therefore be successfullyabsorbed by the market inlevels. overall occupancy increase in an in addition to

Kolkata

2009/10. rates from in averagecorrection a slight occupancy but improvements in witnessedmarginal Kolkata,

last two in the segment, although and MICE the Commercial mainly from todemand hotels cater The city'slimited has seen the city growth. Although seen significant has also Leisuresegment from the years demandan Rajarhat promise like developing areas areas, new old CBD of theinfrastructurethe civic improvements in3

the market, developed in to be3,600 expectedApproximately Kolkata.rooms are outlook foroverall positive

of which we estimate 58% room inventory to be developed over the next five

years. A large percentage ofthe will strengthen segments which and midmarket the upscale positioned in tobe are expected these hotelsthis short termIndia. In thelocations in other metro to the it comparable makeoffering and overall productwill result in overall average rates to remain at their current levels, however withthe entry of new supply,occupancy levels are expected to correct in the short term and retain theircurrent levels once the newlevels. stabilized performance properties achieve

Mumbai

Mumbai has maintained its 2009/10 occupancy levels with a slight decline in average rates. Stillrecovering

from the significant drop in marketwide performance following the economicdownturn in 2008 and 2009coupled with the addition of new growth forsupply, the overall marketremainsslow paced. The future


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outlook for remains positive;Mumbai, however, being the financial hub of the itwillcountry, continue toand consulting, insuranceservices, comprising financial sector, the servicesdemand from attract commercialof lower on account commercial hub a major develop into continues to NorthMumbai banking companies.

office rentals and the majority of the city's working population residinghere. From an infrastructureis Rail Project Mumbai Metro and the expansion continuing its Airport isChhatrapati Shivaji standpoint, theexpectedto start partial operations of Phase intra-city roadsI in and the2012.However, burgeoning trafficin airport developmentinternational A new the city. commuters in point for a soreto be conditions continuein the development sometime to commence is expected 2010 and clearance infinally received Navi Mumbaimonths. twenty four next

(NCR) Region Delhi-National Capital

Supply pressures Faridabad. Ghaziabad and Noida, Gurgaon, in Delhi, hotels located comprises ofThe NCR

in the NCR saw the city occupancy and average rates drop from those inthe previous year. TheCommonwealth Games which was hosted in Delhi during October 2010, didnot result in the expectedlead up in the up business anticipated fill provide the did it Delhi, neither demandfor room night increase inalthough, micromarkets strong individual themselves as have established andNoida event. Gurgaon to theonly Gurgaon, continues to add new hotel roomsThe abundance year-on-year.ofGrade A office space atthese Delhi to and South from Central shifting base several companies resulted inrentals have relatively lowAdditionally, micromarkets. the various demand across affecting Commercialthereby significantly areas andinfrastructure developments such as improved Metro connectivity to Gurgaonand Noida have further

improved overall development of the area. poor publicHowever, road transport,civic infrastructure andOn the looking regions.forward otherwise dampen the continue to managementsolutions inadequate traffic

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other hand, the main areas of Central Delhi have seen much improvedinfrastructure on account ofof construction Delhi Metro, of the expansion include the Games. These theCommonwealth preparations forhave helped others that (T3) among TerminalInternational the new developmentof and the intra-city roads

travellers. investors and for both more attractive the city in making

has of Noida-Greater Noida many areas implementation in and project landacquisition supply side, On theFormula concluded Indian the recently like class events hosting world this areaspite of slowdown in seen aOne Grand Prixin October 2011. Other identified growth areas in Delhi like theDIAL Aerocity(about 15hotels under planning and development), Gurgaon, Dwarka, Westand East Delhicontinue to see activehospitality focused developments. Gurgaon, alone is to doubleexpected its supply

over the five yearsnextand has had the highest completion ratio of announced projects in the NCR. In theshort term, the NCRwith 2012 coupled from late DIAL hotels of the phased introduction and thestrong market be a continues tothe addition of proposed commercial developments in Gurgaon, Noida andFaridabadand a conventionshort term, In the years ahead. in the night demand augment room estimated toarea is the Aerocity centre inin thecorrection see a Delhi will and East Noida, Faridabad Ghaziabad, Greaterlike markets individual micro

in the However, these markets. supply into of new of entry the rate reflective ofwill be occupancy; this marketallow occupancy and will in demand significant growth will see these marketseach of long term medium toa will see of NCR most locations rates in wide average the market two years, thenext strengthen. In levels tohotels. DIAL Aerocity of the the opening especially withcorrection

Pune

increase of a supply With in 2010/11. under pressure rates come and average occupancy levelssaw both, Pune3

market Commercial-demand driven largely a which was the city in 2010/11,2,000approximatelyhotel rooms

meeting total indoor support a hotels today The city west India. destination in aMICE developing as is alsospace area of approximately 8,500 square metres. Micromarkets likeHinjewadi,Chakan, Ranjangaon, andtraditional of a the lack created by the void hotels, filling the city generators for


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main demand are the Talegaonnew of this each micromarket; supply in influx of a large to see expected is stillthe cityforward, CBD. Goinggrowth in hotel market for the bodes well share that a largeform hotels now andbudget midmarket supply,the identified industrial areas. In the short term, we believe that market

occupancies will improve fromcurrent levels while average rates will continue to see correction. In themedium to long-term, as MICEof performance. stable levels to reach the market we estimate to grow demandcontinues

Other Cities Twelve

Ahmedabad

The Ahmedabad hotel market saw a steady increase in occupancy in 2010/11 with a very marginaldip in

average rates. Under the current government's investor-friendlyregime, anincreasingly large number ofcompanies are moving to Ahmedabad and are looking to make major investmentsinto the state. ThoughAhmedabad is considered a business friendly destination with transparentgovernment policies, someprojects such as the Gujarat International Financial Tec-City (GIFT) and theSabarmati Riverfront3

2,300 rooms, of approximately supply pipeline hotel room delays. A have encountered

Development Projectin the hotel investors nature of the bullish testament to developed, is beingactively 73% is we believe of whicharea. The strong demand growth in the marketis expected to support theproposed and wenew supply,of the sensitive nature the price owing to However, long term. medium to in theto continue this trend expectnear future. in the rate increases only moderate expect pressures, we and supplyAhmedabad market

Bhubaneswar

Bhubaneswar is the capital city of Orissa and is also City ofpopularly known India'. Itas the isan'Temple

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also It is the city. landscape of dot the temples that hundreds of and haspilgrimage centre important Hinduan important centre for handicrafts that include stone and wood carvings,Patta paintings, tie and dyetextiles, brass and bell metal work among many others. The city primarilyhas hotels in the unbranded

in nature primarily Leisure city is for the brands. Demand class hotel and firstmidmarket a few segment withRourkela. Cuttack and Puri, like in Odisha other cities gateway to as a city actswherein the

Hyderabad

result, occupancy As a in 2009/10. the city travel to for reduced was responsible inHyderabadturmoil Political

resolve, situation to the political waiting for tired of However, city suffered. forthe average rates levels andin Commercial the increase led to This has sector. Hyderabad's corporate again incommenced once travel has2010/11. hotels in levels of overall performance marginally improving companiesand existing demand fromconcern for cause of is a Hyderabad, which moving to investments are companiesare/or no new However,the hotels in between more getting divided will keep hotel rooms demand forexisting as the hotel operatorsyears to come. The Hyderabad International Convention Centre (HICC),which should have reached ato sustain social functions weddings and heavily upon to rely has had by now, ofperformance stabilized levelinternational domestic and only high-profile of hosting initial strategy from themajor deviation operations, a7.0% increase in supply conventions and groups. The muted demand growthcoupled with approximatelyGoing forward, occupancy levels. to raising giving precedence hotel operatorsrates with to eroding has ledfew years. next over the to continue this trend we expect

Indore

had been business activity Historically, Madhya Pradesh. capital of and commercial the economicIndore is

limited to textile production and domestic trade. These production houses,factories and mills arein infrastructure the IT to improvetrying is nowgovernment The state city. of thethe heart concentrated infrom received approval airport hasinternational the proposed SEZ near an IT setup plan to and the the citythe state government. The city is also now becoming a keymanufacturing centre


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for automobile units likeand Eicher Motors. The Motors, Bajajhotel market Force consists ofTempo budgetand midmarkethotels,Hotel saw Radisson Blu of the recent opening years. The past five performanceinthe shown stable and hassized of medium the addition we expect Going forward, the city. added to hotel

being five-star deluxe the firstand the expansion segments. With independent hotel branded and in the hotelsboth midmarket budget anddevelopment of automobile units and the development of multi-use SEZs in thewe expectcity, a stablefew years. next in the for Indoreperformance

Jaipur

and cultural heritage its rich owing tocountry of the leisure destinations the top one of to beJaipur continues

presence in the Golden-Triangle itinerary together with Delhi and Agra.Commercial demand, which isgems and of garments, large base from its historically emanated area, has citycentre to the restricted mainlyjewelry traders. In the recent past, Commercial demand has beensupplemented by the addition of thebusiness process outsourcing (BPO) sector, specifically, Infosys and Genpactand telecommunicationboth technical set up companies have Telecommunication Reliance etc. Vodafone,as Airtel, companies suchleisure to other state. Similar in theservices out 3G of rolling the purpose Jaipurwith offices in as sales as wellbeginning to is also The city in 2010/11. improved performances Jaipur witnessedthe country, destinations inopen soon to and the the Marriott like hotel openings back of on the MICEdemand amounts of generate largeby centre planned a convention Additionally, on offer. meeting spaces withsubstantial which come Fairmont,the state government in Sanganer is further expected to boost MICEdemand in the city. The year alsowitnessed much improved domestic leisure travel movement and this trend is

expectedto continue in theagainst segment as Jaipur's Leisure 40% of contributes to traveller now Thedomestic medium term. short to3

the earlier 30%. A supply pipeline of approximately 4,800 rooms, of which 45% areexpected to see

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completion, is expected to result in occupancy and rate pressures acrossthe city. Additionally, a largefor thedeterrent as a may act segment, which first class in the expected supplyis the proposed percentage ofsegment. the leisure portion of a significant now comprises traveller who price-conscious domestic

Kochi

its portfolio tourism to now added and has for Kerala financial hub trade and been the hashistorically Kochi

by becoming the gateway to some of the country's most popular touristdestinations and likeKumarakomthe comprises of hotel accommodation demand for portion of the major others.Although Thekkady amongstThe International as well. Leisure demand and Individual large MICE caters toKochi Commercial segment,the city to see is expected in India,terminal first transshipment (ICCT), the

Terminal Container Transshipmentgrow into an international sea port. Forthe hotel industry,this will augment thegrowth of CommercialAlso the year. vessels each large container 5.5 million to handle port positionedwith the the city demand forroom fillip to a major to provide is expected the city, team of cricket the IPLTuskers, the Kochi introduction ofbe continues to from Kochi to and air travel However, the city. held in matchesare when IPL night demandexpensiveand overall connectivity will also need to improve to enable the city tofurther capitalize on itsLeisure demand. MICE and

Kottayam

Kottayam,which is located in Kerala,is famous for its panoramic backwater stretches, lush paddyfields,

trading spices centre for an important city is rubberplantations. The extensivehillocks and highlands, hills,in 1989. literacy back achieve 100% India to town of the first It was rubber. crops,especially and commercial

The city is primarily a leisure destination and forms a parttourism itineraries ofseveralthat include Keralathe hotels in Madurai. Most city, the temple Ernakulam and Thekkady, Munnar,Peermade, like other placesnature of the steady resorts. Given Class branded First few select with aunbranded segment in the area areLeisure demand that the city receives, we expect the Kottayam hotel market to berelatively stable in thelong term. medium to


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Mysore

tourist destination, a popular to be allows it climatic conditions and excellent to BengaluruMysore's proximity

receiving over two million visitors annually.The city's growth and expansionismanaged by the MysoreUrban Development Authority(MUDA).Mysore is well connected to Bengaluru,Coorg, KozhikodeOoty,industries in Mysore compriseand Coimbatore. of weaving,Traditional sandalwoodcarving, bronze worktourism, engineering, comprise of Mysore also industries in salt. Additionally, limeand production of and thefacilities that and research several education also houses The city ITeS. IT and silkproduction, auto ancillaries,comprises ofcurrently market The hotel science colleges. engineering and dental,pharmacy, include medical,small unbranded hotels in the budget and midmarket segments. Future supplyindicates the addition ofbranded medium-sized midmarket hotels to this current supply. TheBengaluru-Mysore Infrastructureare the airport operations of and improved in tourism developments, growthplanned commercial corridor,airport at of the The commencement in Mysore. market the hotel growth of thefurther to facilitate expectedMandakalli is expectedto stimulate the development of a peripheral area and weexpectit to emerge as arun. the long generator in major demand

Shimla

Shimla, the capital city of Himachal Pradesh, has historically been the summer getawayfor domestic

see tends to the city market As a and Haryana. Uttar Pradesh Punjab, from Delhi-NCR, travellers emanatingpeak occupancies in the summer months (April to September) and loweroccupancies in the winter onesNalderah Kasauli, Chail, like include locations Shimla, which surroundingareas ofMarch). The (October to

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and Kufri have witnessed increased visitation with the opening of severalsmall unbranded midmarketresorts resulting in occupancy pressures in the city.rapidcommercializationAdditionally, of the city hasAs the city. demand to eroding Leisure resulting in the area fauna of flora and ofthedestruction affected the

smaller independent resorts continue to open in the area, we expecthoteloccupancies and rates to comefew years. the next pressure in under some

Thiruvananthapuram

erala, is fairly dissimilar to other cities in the state in that Leisure Thiruvananthapuram, the capitalcity of K

travel is not the main demand segment for hotels in the area. Room night demandin the city primarilyemanates from the Commercial and Government segments. Kovalam, which islocated approximately 16with quality hotels of its by way Leisure demand that generates only area is thecity, of the kilometers southprivate beach access. A lack of any significant new commercialdevelopment has resulted in decliningoccupancy and average rates for Thiruvananthapuram. Although the governmentis trying to encourage

growth ofsector withcampus, these the ITthe expansion developments have ofthe and ITeS Technoparkbeen slow in taking shape and are not helping generate new demand for the cityhotels. As this trend isthe hotel future supply, addition to a limited coupled with medium term short toin the to continue expectedfew years. next for the limited growth to see expected city is in the market

Udaipur

Udaipur, in the state of Rajasthan, is a popular tourist destination famous for its forts,palaces, havelis,

Jaipur Delhi via city to connects the NH-8, which location along The city's andculture. architecture, heritagea benefits from The city an advantage. acts as the west, Ahmedabad in Mumbaivia India and north of in the

luxury properties number of of the by virtue and internationaltourists and ofdomestic significant numberthroughout moderate climate Udaipur has rates. Though high average hotelsattract here, Udaipur that existthe peak to be is considered to March from September the period the state, restof to the as compared the yearbeen fairly city has overall performanceof the verypleasant. The temperaturesare as the the city season inof the a result tourists as in foreign a decline owing to in 2009/10 slight dip with a


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five years the past stable forglobal economic crisis. The year 2010/11 saw a revival of sorts, albeit at aslow rate. Considering therelatively performanceto be the city's we expect for tourists, popular destinationas a the city importance ofterm. to long the medium stable in

Vadodara

the industrial Most of industrial hub. an important emerged as Gujarat, has city in the third-largestVadodara,

activity is based out of industrial estates established by the Gujarat Industrialdevelopment Corporation(L&T) set Tourbo Larsen & In 2009, and Makarpura. Waghodia Savli, Halol, areasof the peripheral (GIDC) inwe expect Going forward, its companies. three of headquarters of as theWaghodia City near up Knowledgelocal pressures of due to corporation limits the municipal place outside takedevelopments to the new most ofand has highly congested city is of the business district the central Moreover,land availability. taxation andpotential. limited growth

Unbranded hotels positioned predominantly in the budget and midmarketsegments constitute a largeof the city, operational in branded hotels only five there are Presently, hotelmarket. the Vadodara portion ofet, the has been a stable markwhich, two have commenced operations in 2011.While historically Vadodaraand across branded 825 rooms approximately addition of with the to changeexpected dynamics are marketare expected average rates occupancy and The marketwide few years. next overthe independent segmentsof the proposed expansion considering the however, three years; two to next forthe under pressure to comeanticipated. city is for the steady growth an overall industrial estates,surrounding

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1. Indian Hotel Industry by StarCategory

Introduction

classification the star according to hotels analyzed of the the performance resultsof presents the This sectionfor 2010/11. the survey participated in 1,318 hotels total of An overall survey. inthe hotels participating of thethe results 1-10 present 1-1 to Table in India. categories applicable the eightclassified into have been The hotelsyear 2010/11. for the star classification to their hotels according ofIndianperformance of the

Each star categories. across all India Totals for All a column have includedcomparisons, we provide further Tosection includes the total number of respondents forallowing the eachcomponentreader to of the survey,received. the data validity of judge the

document. All the entire consistency throughout to enable each sectionstandardized in has been The layout(`). rupees in Indian figures aremonetary (April-March), and to 2010/11 figurespertain

Trends

Employeeoom Ratio:The to R survey results reveal the difference between five-star deluxeand four-

star hotels as far as the employee to room ratio is concerned as not thatsignificant. While the formerthe period. Globally, the same 1.8 for was at the latter in 2010/11, hotel roomemployees per averaged 2.0if one In fact to 1.0. or equal lower than to be below tend hotels and for four-staremployee ratios room to

in hotel room employee per below 1.0 none were as well, of hotels lowerpositioning analyze the were tocategories. their respective

Market While domestic in 2010/11. distinct changes saw some segments, overall,Segmentation: Market

previous in the from that traveller dropped domestic business of the thecontribution travel dominated,and 13.0%, by 8.0% movement grew foreign FIT domestic and hand, both theother 16.0%. On year by


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respectively in line with the overall economic growth MICE asin India. asegment,Additionally, hasgrown steadily over the last two years to form 11.5% of approximatelythe overallsegmentation. Thisand room meeting spaces with large the market added to of properties a numberattributed to may be

five-star five-star deluxe, to by largely catered to be segment, continues as ainventories. Airline Crew,hotels. and four-star

Country of Origin: that ofmirror continues to of guests of origin the country composition ofThe overall

the previous years' i.e. the UK, USA, followed by other European countriesdominate the overallvisitations. The warmer climate in India as compared to the sub-freezingtemperatures in Europe is aprimary driver of the European-led tourism. This year also witnessed increasedvisitation from thethe led to India, has companies in of Asian increasing presence Japan. The Chinaand ASEAN countries,market corporate travel fairly developed of a .creation

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1-1: Indian Hotel Industracilities Analysis and Staffingy by Star Category: FTABLE

Room Profile of an Average HotelTypical

Five-Star 2010-2011 All

COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-Star

Heritage OthersIndia AverageNumber of Responses4766 103473 295 9745 1931,318

Air-Conditioned Single 43.4 24.0 12.74.6 3.0 1.5 1.4 1.56.4Double 136.0 99.2 65.5 41.7 23.6 14.9 21.4 19.339.8Suites 20.6 10.2 9.45.4 3.3 1.6 6.2 2.45.3

Non-Air-Conditioned Single 0.0 0.0 0.30.7 1.3 1.6 0.3 0.60.8Double 0.0 1.9 3.74.3 6.9 7.2 5.5 7.85.3Suites 0.0 0.1 1.20.5 0.7 0.3 1.2 0.60.6average roomsTotal199.9 135.5 92.7 57.2 38.9 27.0 36.0 32.358.2

par rooms in lower star categortly because many are located * The number of non-air-conditionedy hotels appears to behigher,

-conditioning is not provided in hotels in hill stations where air

er Hotel & Beverage Outlets PAverage Number of Food


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersIndia AverageNumber of Responses4761 96426 239 7040 1391,121

Restaurant3.3 2.9 2.11.6 1.3 1.2 1.5 1.41.7

Bars1.5 0.9 1.10.9 0.6 0.5 0.7 0.60.8Others0.8 1.1 1.51.0 0.5 0.3 0.4 0.30.8Total5.6 5.0 4.73.4 2.5 2.1 2.6 2.23.2

Time)ull Time / Part / Contract / Fer Hotel (Permanent Employees PAverage Number of Total


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersIndia AverageNumber of Responses4657 91419 266 8839 1351,144

ManagersMale 50.9 26.9 15.36.7 2.8 1.9 4.9 2.48.3Female 13.9 5.8 2.70.9 0.5 0.3 0.5 0.21.5SupervisorsMale 53.2 30.8 19.19.5 4.0 2.7 7.4 3.210.4Female 9.5 5.0 3.11.4 0.7 0.4 0.6 0.41.7StaffMale 250.2 151.5 114.0 62.6 32.0 19.7 47.1 25.363.2Female 33.1 17.6 10.97.0 3.2 3.0 3.6 1.97.0Total410.8 237.5 165.1 88.0 43.1 27.9 63.9 33.492.0


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oom2.1 1.7 1.81.5 1.1 1.1 1.8 1.11.6 Employees / RAvg.

Hotelrained Employees Per of TAverage Percentage


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-Star

Heritage OthersIndia AverageNumber of Responses3852 80293 151 5229 53751

Managers91.7 85.8 91.0 86.0 87.2 93.9 90.2 86.187.8

Supervisors85.1 78.5 86.0 81.4 75.0 83.3 84.7 82.681.0

Staff74.1 67.2 86.0 64.0 58.7 68.8 67.0 64.666.5

rained Employees* 83.6 77.2 87.7 77.1 73.6 82.0 80.6 77.878.4 Avg.TTotal

EmployeesTrained Avg. Un-Total 16.4 22.9 12.3 22.9 26.4 18.0 19.422.221.6Employees includes those with a minimum one-year cer* Trainedtificate coursefrom a hotel management or equivalent

institution;

, some hotels may have included those with short ter howeverm (in-house)training

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COMPOSITIONFive-Star Deluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage Others2010-2011 All India AverageNumber of Responses39476520011154199544Average Total Rooms Per Hotel:19214193613928342672Average OccupiedRooms Per Hotel: 43,853 30,665 20,125 13,633 8,782 6,103 6,735 4,68115,768AverageOccupancy Per Hotel:66.2% 61.4% 60.3% 61.8% 64.6% 68.0% 50.5%48.7%62.1%Average Rate Per Hotel (`):8,045 6,516 4,311 2,7752,188 866 3,257 1,772 4,578REVENUERooms56.9% 58.7%61.5% 55.8% 50.7% 47.7% 48.4% 56.1%57.2%Food & Beverage23.324.8 25.331.6 42.3 34.4 36.3

34.327.0Banquets & Conferences12.19.89.77.93.22.01.8 8.69.6Telephone &Other0.60.40.40.50.70.30.1 0.00.5Minor Operated*3.03.81.71.71.40.22.4 0.62.6Rental & OtherIncome4.12.51.52.61.7 15.4 11.0 0.43.1Total100.0100.0 100.0 100.0 100.0 100.0 100.0100.0100.0DEPARTMENTAL EXPENSESRooms18.312.7 16.016.5 18.0 38.6 19.3 20.016.1Food &Beverage54.237.8 56.461.6 69.0 72.7 53.6 73.852.9Telephone & Other48.5134.8 32.0 253.3 83.0270.0 120.0 110.0104.0Minor Operated*51.640.6 135.9 155.4 95.7 160.0 117.8 167.970.4Rental& Other Income1.62.69.839.7 71.59.17.5 75.011.3Total31.522.732.138.3 43.6 50.8 33.645.931.3DEPARTMENTAL INCOME49.228.7 61.767.9 56.4 68.5 66.3 54.168.7OPERATINGEXPENSESAdministrative & General9.610.8 10.99.46.17.88.8 5.89.6ManagementFee3.72.92.11.83.11.70.4 0.72.8Marketing4.85.12.62.21.74.30.9 1.83.7FranchiseFees0.10.50.40.50.00.10.30.1 0.3Property Operations & Maintenance5.25.77.95.87.27.8 10.56.76.0Energy7.87.39.311.29.89.88.0 9.98.5Total31.232.2 33.330.9 27.9 31.5 28.924.931.0HOUSE PROFIT37.345.1 34.630.8 28.5 17.7 37.5 29.237.8FIXED EXPENSESProperty

Taxes1.10.60.60.81.52.00.2 0.60.9Insurance0.30.30.30.40.50.30.2 0.90.3Other FixedCharges6.51.00.50.70.51.10.2 0.72.8Rent 1.51.50.81.31.40.84.6 0.31.4Total9.43.32.23.33.94.25.22.55.4NET INCOME**27.7% 41.8% 32.3% 27.6% 24.6% 13.5% 32.3% 26.7%32.4%* Minoroperated departments include: laundry, gift shop, business centre, news stand, sports, health club,garage, parking and so forth** Net Income is before depreciation, interest payments and taxesID:Insufficient Data

TABLE 1-2:Indian Hotel Industry by Star Category: Financial Report Percentageof Revenue (2010-11)

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8,9454,5788,6005,3175,7276,124

45,82565,37549,00815,31048,28293,36354,29432,25424,044105,099147,899997,815167,965160,980337,840658,996546,142540,662

471,013168,253565,6331,745,8001,199,660

654325,2313,8653,1822,3139,4421,5132,7445,3443,3773,947

1,77249,61110,11938,40957,15014,06864,53433,026196,935167,715322,642143,002264,030574,747310,717153,647181,966

8762,2234,6693,4142,0873,1544,2863,25712,111


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24,76369,95211,18462,48732,20637,926453,381388,501275,035141,525107,235504,815148,313125,823434,863

652,208488,330893,316118,6761,346,700

7454288666,7717,9521,3621,309

8,1383,1983,5345,6264,45617,03153,97531,00270,94316,96961,60014,68831,33839,32873,527400,221196,841190,730137,698203,380125,898

106,004

2614,3115,0315,6186,7662,18811,37169,47113,92559,01392,492

31,03988,03930,13912,73014,41013,30415,99437,67715,906408,625420,975490,003965,643544,668267,370277,298239,620303,217


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4,9739,3337,4295,2074,746

2,77528,83164,77111,27919,74914,58987,54018,54828,42012,59424,64436,097685,785308,275620,473104,692341,413344,372102,479425,639122,349351,470270,4561,111,420

4,3111,7425,8836,8839,6392,1784,7775,44639,98122,125

25,64234,84233,73332,49012,434146,651501,951137,462120,669149,760299,818488,340384,717165,467495,864935,306529,5961,519,8901,031,550

6,5121,5879,9266,51623,45179,77113,37511,29335,772


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COMPOSITIONFive-Star Deluxe Five-Star Four-Star Three-Star Two-StarOne-Star Heritage Others2010-2011 All India AverageNumber ofResponses39476520011154199544Average Total Rooms PerHotel:19214193613928342672Average Occupied Rooms Per Hotel:43,853 30,665 20,125 13,633 8,782 6,103 6,735 4,68115,768AverageOccupancy Per Hotel:66.2%61.4% 60.3% 61.8% 64.6% 68.0% 50.5%

48.7%62.1%Average Rate Per Hotel (`):8,045 6,516 4,3112,775 2,188 866 3,257 1,7724,578REVENUE (`)Rooms8,045 6,516 4,311 2,7752,188 866 3,257 1,772 4,578Food &Beverage3,287 2,751 1,773 1,572 1,825 6252,439 1,081 2,161Banquets & Conferences1,714 1,085676 392 139 37 124 272772Telephone & Other86 46 25 22 306 4 0 39Minor Operated*427 424118 83 59 3 161 17210Rental & Other Income581 282 102 127

71 280 741 13 249Total14,140 11,1047,006 4,971 4,313 1,816 6,726 3,1568,009DEPARTMENTAL EXPENSES (`)Rooms1,469 827 690458 393 334 628 354 739Food &Beverage2,712 1,449 1,382 1,210 1,354 4811,374 999 1,550Telephone & Other42 61 856 25 16 17 15 41MinorOperated*220 172 161 129 57 67189 29 148Rental & Other Income9 710 50 51 26 56 5228Total4,452 2,517 2,251 1,904 1,880 923

2,264 1,450 2,506DEPARTMENTAL INCOME (`)9,688 8,5874,755 3,067 2,433 893 4,462 1,7065,504OPERATING EXPENSES (`)Administrative & General1,360 1,199763 468 264 142 593 181771Management Fee518 319 150 88 13531 23 21 225Marketing674 565184 110 71 77 60 56300Franchise Fees20 52 27 23 12 21 2 24Property Operations & Maintenance735634 556 290 310 141 707211 482Energy1,106 806 634 547 413

178 536 314 679Total4,412 3,575 2,3141,527 1,194 571 1,940 785 2,480HOUSEPROFIT (`)5,276 5,013 2,441 1,540 1,238322 2,521 921 3,023FIXED EXPENSES(`)PropertyTaxes152 64 44 42 64 3610 19 70Insurance42 30 2221196112926Other Fixed Charges923108323322201622222Rent204164576562153128110Total1,321366155161 1687734977428NETINCOME(`)**3,9554,646 2,2861,379 1,070245 2,172 8442,595* Minor operated


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departments include: laundry, gift shop, business centre, news stand, sports,health club, garage, parking and so forth** Net Income is before depreciation,interest payments and taxesID: Insufficient DataTABLE 1-4:Indian Hotel Industry by Star Category: Financial Report Amount PerOccupied Room (2010-11)

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1-5: Indian Hotel Industry by Star Category:et Data MarkTABLE

Market Segmentation2010-2011

Five-Star All IndiaCOMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersAverage

Number of Responses38 52 77 338 208 65 30 53 861

Airline Crew5.2 3.2 1.6 1.0 0.7 0.7 0.0 0.21.2raveller - Domestic18.3 18.6 32.4 32.8 35.2 38.1 6.8 36.231.5 Business Traveller - Foreign23.8 21.0 13.5 10.5 6.2 6.8 9.6 8.710.5 Business TComplimentary Rooms2.5 1.7 2.1 1.9 1.6 2.1 2.5 1.21.8ourists/Leisure FIT13.2 13.5 14.7 18.0 24.2 21.8 26.7 26.319.8 Domestic - TFIToreign - Tourists/Leisure F10.0 9.2 8.3 8.1 7.5 6.6 27.4 6.38.6articipants Meeting P (Less than 100 Attendees) 3.1 4.0 4.3 4.3 4.3 3.4 3.6 3.44.1articipants Meeting P (Over 100 Attendees) 8.1 10.3 8.2 8.3 6.2 5.1 3.5 6.57.4our Groups - Domestic4.1 4.2 5.4 7.6 8.6 9.2 4.2 6.77.2 T

our Groups - Foreign3.5 9.0 5.7 4.7 2.8 2.8 14.7 3.44.7 TOther8.1 5.4 3.8 2.9 2.6 3.7 1.1 1.13.2Total100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Guest Analysis2010-2011

Five-Star All IndiaCOMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersAverageNumber of Responses44 57 91 373 233 67 35 62 962

Domestic Guests47.1 54.5 70.1 76.8 82.2 79.1 40.7 85.374.0GuestsForeign52.9 45.5 29.9 23.2 17.8 19.3 59.3 14.726.0Total100.0 100.0 100.0 100.0 100.0 98.4 100.0 100.0 100.0

Business GuestsTotal67.5 55.5 66.2 60.6 59.5 63.1 24.4 58.060.0Leisure GuestsTotal32.5 44.5 33.8 38.3 40.5 36.9 75.6 42.040.0Total100.0 100.0 100.0 98.9 100.0 100.0 100.0 100.0 100.0

oreign Guests (Days)3.2 4.3 3.1 3.7 2.9 2.1 3.1 3.03.4 Stay of FAvg.Stay of Domestic Guests (Days)Avg.2.1 2.3 2.6 3.1 2.7 2.1 2.4 2.82.8Stay of Business Guests (Days)Avg.2.1 2.3 2.1 3.9 2.6 2.0 1.7 2.83.0

Stay of Leisure Guests (Days)Avg.2.4 2.3 1.9 2.5 2.3 2.3 2.2 2.12.3epeat Guests40.0 32.7 41.3 47.4 46.8 47.4 24.9 52.945.1 of RPercentage

Country of Origin of Guests2010-2011



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ASEAN*4.6 3.9 4.0 6.1 5.1 16.7 0.4 3.05.5Australia3.1 2.9 4.3 3.4 3.4 4.1 4.4 1.13.5Canada2.9 1.7 4.2 4.1 5.2 3.9 3.4 6.64.1Caribbean1.3 0.5 2.9 1.3 0.5 1.9 0.2 0.91.2China2.7 3.4 5.0 6.0 4.5 4.6 1.5 0.84.7

France3.2 4.2 4.8 5.1 4.8 4.3 15.1 5.85.3Germany6.0 6.6 7.3 7.4 5.4 5.5 13.2 6.77.0Japan4.3 6.1 5.9 5.6 3.2 2.5 1.7 6.94.8Middle East2.6 2.7 5.2 4.6 5.5 8.1 1.1 2.24.5Other European8.6 14.2 9.8 9.1 11.4 5.0 13.2 4.910.0Russia6.3 7.6 4.2 4.3 3.4 3.5 1.6 6.04.4**SAARC3.1 3.4 5.3 5.1 9.0 8.9 1.4 11.75.8South Africa1.9 1.6 2.8 2.8 1.4 5.1 0.6 3.02.3UK16.0 14.3 10.6 12.5 16.8 9.4 21.3 21.714.1USA18.2 10.8 11.0 12.0 11.4 8.7 9.1 12.611.7Other15.3 16.3 12.9 10.7 9.1 7.8 11.8 6.111.2

Total100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0* ASEAN: Association of South East Asian NationsBangladesh, Sri Lanka, Nepal, Bhutan, Maldivesegional Co-operation - India,Pakistan, South Asian Association for R** SAARC:

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1-6: Indian Hotel Industry by Star Category: Monthly and Daily OccupancyTABLE

Average Monthly Occupancy


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersIndia Average

Number of Responses43 56 87 344 231 65 35 49910

January69.0 68.5 66.6 63.3 64.0 68.3 56.8 65.064.6February77.5 74.4 71.4 66.3 63.4 66.5 62.1 80.967.7March67.8 67.8 62.9 59.6 60.2 61.8 56.7 61.561.1April65.0 62.1 57.8 59.8 61.0 62.5 47.3 63.960.2May60.0 57.5 56.3 74.8 63.2 64.7 40.7 74.866.3June59.2 57.4 54.9 57.8 60.8 65.2 41.2 64.858.6July59.7 54.3 55.4 54.8 55.7 63.4 38.1 58.055.4August74.5 67.0 55.9 69.2 55.9 61.6 46.8 57.862.7September65.7 56.2 56.5 57.4 57.6 61.6 43.7 60.157.6October65.0 65.0 61.6 61.6 64.4 68.1 58.2 66.063.2November68.0 70.8 68.5 65.5 65.9 71.0 66.4 70.367.0December66.7 68.3 68.9 68.8 69.4 74.6 63.1 75.169.4

Average Daily Occupancy


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersIndia AverageNumber of Responses40 49 81 325 201 60 23 49828

Monday68.3 63.8 60.4 57.2 55.1 60.4 37.8 58.757.7Tuesday69.8 65.9 71.5 57.6 56.6 61.9 37.4 59.859.7Wednesday69.5 67.4 64.2 59.6 58.4 64.7 37.8 60.760.6Thursday67.5 65.9 61.3 60.2 58.6 63.6 38.5 62.760.4Friday62.2 60.8 60.0 60.3 61.8 68.3 47.6 65.561.3Saturday59.2 57.7 55.5 55.6 58.8 64.6 54.6 59.457.5Sunday60.9 54.7 52.4 49.1 50.6 53.3 43.3 49.850.9

1-7: Indian Hotel Industry by Star Category: Sources of ReservationsTABLE

Source of Advance Reservations


COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersIndia AverageNumber of Responses39 54 86 344 203 61 29 53869


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Chain CRS (Central Reservation System) 11.5 6.7 6.0 3.9 2.9 1.3 6.7 0.84.1Direct Enquiryepresentation 45.7 42.0 46.1 50.6 53.4 61.4 25.8 51.350.0 / Hotel RGlobal Distribution System (GDS) 11.0 7.0 3.9 1.9 0.7 0.5 0.7 0.72.4Hotel / Chain Website6.3 4.8 6.4 7.6 8.8 4.5 10.7 10.67.6our Operator 13.5 22.1 18.6 20.4 19.6 17.5 44.6 19.920.4 Agent and TTravelOther Online Reservation Systems 5.8 5.6 6.8 3.4 2.3 0.8 4.3 3.43.6

Other Website2.7 3.7 5.7 6.0 5.5 3.7 4.6 4.85.3Other3.5 8.0 6.6 6.3 6.8 10.3 2.6 8.66.7Total100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

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1-8: Indian Hotel Industry by Star Category:eting Media MarkTABLE

of Hotels Using Each MediaMarketing Media - Percentage

2010-2011

Five-Star All India

COMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersAverageNumber of Responses45 56 87 357 209 61 34 55904

Direct Mail80.0 87.5 86.2 83.8 77.0 78.7 76.5 60.080.4Hotel Website100.0 100.0 96.6 88.2 79.4 70.5 91.2 67.386.0Loyalty Card program88.9 73.2 60.9 31.9 22.0 14.8 29.4 14.635.5Merchandising33.3 26.8 39.1 21.6 17.2 18.0 17.7 9.122.0Other Internet Site71.1 76.8 73.6 63.6 57.4 54.1 70.6 32.762.1Outdoor Advertising53.3 76.8 71.3 59.1 49.3 49.2 52.9 32.756.3AdverPrinttising95.6 96.4 90.8 86.6 80.4 73.8 88.2 74.685.1

Promotions93.3 87.5 88.5 65.8 49.8 49.2 79.4 40.064.8AdverRadiotising37.8 39.3 39.1 19.9 9.6 4.9 5.9 9.119.3

Telemarketing57.8 69.6 59.8 56.9 38.8 27.9 35.3 36.449.8TV Advertising20.0 28.6 29.9 26.1 19.1 18.0 17.7 16.423.2

ayment Methods 1-9: Indian Hotel Industry by Star Category: PTABLE

Methods UsedPayment

2010-2011

Five-Star All IndiaCOMPOSITIONDeluxe Five-Star Four-Star Three-Star Two-Star One-StarHeritage OthersAverageNumber of Responses34 49 73 314 201 64 29 42806

Cash Sales15.6% 19.4% 25.9% 39.1% 51.2% 63.8% 30.5% 53.3%41.1%Credit Card Sales51.5 42.2 39.9 35.3 30.0 23.8 29.1 27.633.9Credit Sales (other than cards) 28.5 32.9 28.9 19.1 14.0 8.8 33.1 11.619.3ransfer4.4 5.5 5.3 6.6 4.8 3.6 7.3 7.65.7 TElectronic FundTotal100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Credit Cards Used

2010-2011


American Express35.0% 20.5% 14.2% 9.2% 4.6% 1.9% 5.7% 5.4%9.8%


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Diners Club2.7 2.2 2.8 2.7 1.9 2.3 0.7 1.52.3Mastercard / Eurocard26.8 36.0 36.6 37.4 41.2 43.6 34.7 44.238.2Visa32.6 37.4 44.2 45.9 49.1 48.5 55.3 37.245.5

Other2.9 4.0 2.3 4.8 3.2 3.6 3.7 11.74.2Total100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Average Credit Card Commission

2010-2011


American Express3.1% 3.8% 3.2% 2.5% 1.9% 1.1% 2.9% 1.6%2.5%Diners Club1.9 1.1 0.7 0.6 0.5 0.3 0.5 0.50.7Mastercard / Eurocard1.1 1.2 1.5 1.6 1.7 3.1 3.8 1.91.8Visa1.1 3.0 1.5 1.6 1.8 3.7 3.1 2.01.9

Other0.1 0.2 0.2 0.3 0.3 0.4 0.1 0.20.3

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echnology Management Practices 1-10: Indian Hotel Industry by Star Category:TTABLE

ercentage of Hotels Using Each Technology in Hotels - PTechnology

2010-2011


Accounting System94.6% 93.6% 90.9% 90.9% 84.9% 89.7% 86.7% 86.5%89.3%Call Accounting System78.4 91.5 76.6 58.5 44.2 41.4 40.0 48.757.2Central Reservation System (CRS)70.3 55.3 57.1 31.7 22.1 8.6 33.3 10.832.4Electronic Keycard83.8 74.5 75.3 42.4 18.6 19.0 10.0 13.539.2Energy Management System46.0 40.4 36.4 26.8 14.6 8.6 13.3 10.823.9Internet / E-Mail97.3 91.5 98.7 95.4 92.5 82.8 100.0 94.694.1

ebsite94.6 95.7 97.4 89.0 78.4 67.2 93.3 86.586.4Internet / WIntranet System81.1 57.5 66.2 48.5 32.2 22.4 53.3 35.145.9Local Area Network (LAN)94.6 95.7 94.8 84.2 62.8 53.5 73.3 56.877.2Management Information System75.7 78.7 81.8 61.0 40.7 24.1 70.0 43.256.6ood and Beverage 100.0 93.6 90.9 79.3 56.8 39.7 73.3 56.872.6 of Sale Systemfor FPointProperty Management System94.6 89.4 84.4 52.7 28.1 12.1 40.0 24.349.1Yield Management System59.5 27.7 45.5 24.7 13.1 0.0 10.0 5.422.4Other18.9 17.0 20.8 10.7 4.5 0.0 6.7 0.09.5


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2. Indian Hotel Industry Inventory and

ffiliation Chain A

Introduction

to the participants according the survey data for and other operating statisticspresent key section, we In this'50 50 rooms', 'less than three categories: classified into have been participatinghotels rooms. The number ofto 150have also rooms', anddrawn a 'more thancomparison between 150rooms'.Chain Affiliatedand We

Independent hotels.

Trends

Marketing for hotels were maximum marketing and outdoor that TVsurvey results revealMedia:The

site, other Internet program, merchandising, loyalty card web site, mail, hotelrooms. Direct with 50-150print advertising, promotions and radio advertising all increase with the size of theinventory, beingand Chain Affiliated trends that analyzed key The survey 150 rooms. more thanhotels with maximum inproperties. The their respective tools for for marketing the mediumterms use in

of Independent hotelsare Advertising and TV Advertising Mailing, Outdoor of Direct the use show thatthe analysis results ofhotels are able to , Chain Affiliated and Independent hotels. Howevercommon toboth Chain AffiliatedHotel Website, tools like usage of enabling greater further reach, names and theirbrand better leveragethe increased note is aspect to An important Telemarketing. Merchandising andPrograms, Loyalty Carduse of Radio Advertising,which is far more economical than TV advertising andalso captive to a local

market.

Technology: today's accounting hotel. Given for a in operations vital role play a continues toTechnology

have Accounting or Independent Affiliated whether Chain most hotels mostlyonline, procedures beingSoftware Systems in place. Property Management Systems, Call AccountingSystems, Energylarger hotels with number for greater in to be Systems continue of Sale and Point


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Management SystemsAffiliation. and Chaininventory

Market Segmentation: An analysis of the market segmentation of hotels based on thestipulated

domestic more from to benefit rooms tend below 50 with inventories thatproperties parameters reveals(including business demand, beand FIT) it for business or leisure. Airline CrewandTravellers Foreignthat and those 150 rooms) (greater than larger inventories hotels with demandfor generate more tend toAffiliated. are Chain

Overall Performance: inventories properties with hotels and Chain Affiliated percentages ofNet income

greater than 150 rooms tend to be higher than their counterparts as they are ableto leverage betteroperating efficiency through trained staff, the availability of standard

operating procedures andoperations. scale in economies of

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Analysis 2-1: Indian Hotel Industry Inventoryffiliation: Facilities and ChainATABLE

and Staffing

Room Profile of an Average HotelTypical

Than 50 Less 50 to 150 More Than Chain

COMPOSITIONRoomsRooms150 RoomsAffiliated IndependentNumber of Responses805 44370 248 1070

Air-ConditionedSingle2.1 8.3 44.3 19.13.5Double20.2 57.1 155.5 69.1 33.0Suites2.97.3 20.69.84.3

Non-Air-ConditionedSingle0.61.20.20.20.9Double4.86.1 5.74.1 5.6Suites0.50.51.40.90.5Average Rooms31.180.6 227.8 103.1 47.7Total

er Hotel & Beverage Outlets PAverage Number of Food



Restaurant1.41.93.12.1 1.6Bars0.70.91.41.10.8Others0.51.01.21.00.7

Total2.73.95.74.33.0

Time)ull Time / Part / Contract / Fer Hotel (Permanent Employees PAverageNumber of Total



ManagersMale3.411.6 42.2 19.05.7Female0.51.7 12.04.10.9

SupervisorsMale4.514.6 49.8 21.37.7Female0.72.38.83.51.2StaffMale33.089.9 234.0 115.3 50.0Female3.110.2 29.6 13.55.3Total42.5130.0 376.5 176.7 70.8

oom1.41.61.71.71.4 Number of Employees per RAverage

Hotelrained Employees Per of TAverage Percentage


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Managers87.3% 87.9%89.8% 92.5% 86.1%

Supervisors80.1 81.981.4 88.7 78.2

Staff62.8 71.368.3 70.2 65.1

Employees*vg. Trained ATotal76.7 80.479.8 83.8 76.5Employeesvg. Un-Trained ATotal23.3 19.620.2 16.2 23.5

some hotels may Employees includes those with a minimum one-year cer* Trainedtificate course from a hotelmanagement or equivalent institution; however,

have included those with short term (in-house) training

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41

39287026247712497396792251484282103001107724822222,1618,0092,5954,578

1,5502,4802,5063,0235,504

72Average Occupied Rooms Per Hotel:26,1464,57815,769Average Occupancy Per Hotel:61.1%62.5%62.1%Average Rate PerHotel (`):6,267

3.1 54,2940.9 15,3100.5 8,6008.5 147,8992.8 49,0082.8 48,2823.7 65,3756.0 105,0999.6 168,2532.6 45,8259.6 167,9650.3 5,3170.3 5,7271.4 24,0445.4 93,36316.1 160,980

52.9 337,84037.8 658,99627.0 471,01368.7 1,199,66031.0 540,66211.3 6,12431.3 546,14270.4 32,25432% 565,633100.0 1,745,800104.0 8,94557.2% 997,815


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2545154389391870

571851994081185305771075041444063,6053,1721,8332,1521,7321,3801,6885,7571,917

553,17211,854

7.1 88,8032.1 25,6037.1 88,3853.5 43,3611.5 19,3182.5 31,219

0.3 3,1979.2 115,3130.3 3,9061.2 15,2573.2 40,1478.8 109,5781.0 12,4280.4 5,5430.7 8,55730% 376,71522.5 9,74018.2 125,50529.3 367,01033.3 416,86231.9 398,69791.0 23,29337.4 467,97561.6 300,17562.6 783,872167.1 9,262

100.0 1,251,85055.1% 689,841

83956368636


65/132

321932573309388488440158720197857

1,0913,4324,3533,6331,2092,9306,2672,5541,7547,78610,716

Total100.0 2,342,530Total27.4 640,567Total32.0 750,308Total6.7 157,398Number of Responses149395544Average Total Rooms PerHotel:120COMPOSITION Percentage of Revenue Amount per AvailableRoom(`) Amount per Occupied Room(`)

hvs - indian hotel industry survey 2010-11

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