Concept Note

What do we Plan to do

- Primarily setting up a Hospitality Sales Management company

- Setting up a chain of hotels in India on a Management / Lease model

Who are We

- We are hospitality professionals, currently operating a Hotel Representation Company in NCR

and Bangalore
- We already have a company in place which handles the Sales Portfolio for various individual &
small chain hotels across India based in New Delhi & Bangalore

Where do we plan to Set up

- Mumbai, Pune, Ahmedabad

- Goa
- Hyderabad, Bangalore, Chennai
- Kolkata
- Gurgaon / New Delhi (NCR), Chandigarh
- Tier 2 Cities as demand arises

Where are we at present

- With a team of 14 people handling 37000+ room nights with an approximate revenue of INR 32
crore, which includes 4, 5 & 5 star Deluxe hotels with an average rate of INR 10000 per room night.

Why do the hotels need us

- Our model is sustainable & relationship based with Corporate tie-ups / RFP’s & Contracted
business which will keep business flowing through the year,
- Apart from leisure travel, conferences (MICE) & Social Events which are pretty unstructured but
a big revenue spinner.
- Hotels are moving away from OTA’s which carry deep discounting along with coupons. And as
the payout for the same is very high & also destabilizes the positioning of the hotel, with no
stickiness to any brand
- We will push our own BRAND WEBSITE. Let them come to us the way they work with brands like
the Marriott / Hilton / Taj etc.

How do we plan to do it

- Our target hotels would have an average room rate of INR 5000 per room night. This is the
upper mid-market which is not targeted by the current hotel consortia’s / networks, be it in
India or global.
- We will push our hotels to handle their entire Sales Portfolio including offline, online, for which
we will create our brand website to sell online, which we will market ourselves to gain the
maximum for our company & optimize revenues.
 - The aim is to have this Sale structure in place & eventually take hotels on management / lease
& generate our own revenue rather than be dependent on OTA’s / travel partners & other
outfits, which then will become incremental business / revenue.
- Consciously stay away from the low end of the business, being targeted by Oyo, Fab and Treebo
which are totally dependent on the online route and are unable to generate constant Revenues
and Occupancies.

What’s the plan

- Set up 10 offices in India and be the partner for hotels to look at us as a Sales & Management
company – as the biggest challenge a Hotelier faces today is distribution & generating business.
- Hotels are unable to justify the spends on Sales, Marketing and Distribution and Brand
commissions
- We already have an existing brand – Associate Hotels India which handles the Sales
Representation business and Associate Hotels primarily to be used as the BRAND to lease /
manage hotels
- With a lean & effective team we will be able to compete with large brands that have the
advantage of a Single brand & sales presence / efforts.
- Associate Hotels India has the aim to be the No. 1 company in this segment, also using
technology to grow the brand, business & revenue.

What do we want

- Equity based funding of 150 Cr over 3 years in tranches of 60+50+40

- It will take about 18-24 months to have our own sales set-up at the above mentioned locations
with a fully trained team and automated offices to handle about 600,000 room nights annually
with an approximate revenue of 300+ crore. Our target hotels will be limited to 100 PAN India in
Phase 1, with 25 in each location North, East, West & South India. We will tie-up with these
hotels within this period of 18-24 months, in order to achieve the targeted room nights /
revenue in the Third Year of operation.
- In Year 1 & Year 2 the revenue generated will be purely incremental & a bonus.
- Our revenues will come in two parts :
o Fixed retainer per hotel.
o 10% on the revenue generated for the hotels.

LOI’s from hotels can be furnished on request, to substantiate the scope and the interest in the
industry

Sunith Rai Rajan Dewan

rosstrav@gmail.com rajan@associatehotelsindia.com

+91 98451 11816 +91 98100 57345