HOSP IT AL ITY

IN DU STRY
H
O • STAR RATED
S HOTELS
P • HERITAGE HOTELS
HOTELS
I • BUDGET HOTELS
T HOTEL • FASCILITY HOTELS
A INDUSTRY • RESORTS
L
• UNCLASSIFIED
I
RESTAURANTS
T
Y
TRAVEL & CONTRACT
TOURISM CATERERS
I TOURISM
INDUSTRY
N
D
• FAST FOOD CHAINS
U
S • CASUAL DINING
TRAVEL
T • FINE DINING
R • COFFEE BARS
Y
CURRENT MARKET
SITUATION
• INDIAN HOSPITALITY INDUSTRY IS
FACING A MISMATCH BETWEEN THE
DEMAND AND SUPPLY OF ROOMS.

• THE DEMAND IS HIGH AND IS ONLY

EXPECTED TO RISE IN FUTURE

• INDIAN HOTEL BRANDS ARE MAKING

THEIR PRESENCE FELT GLOBALLY. THE
TAJ HOTELS, RESORTS & PALACES AND
OBEROI HOTELS & RESORTS ARE LEADING
EXAMPLES.
• IN INDIA, PEOPLE ARE BREAKING AWAY
FROM TRADITIONAL METHODS AND
LIFESTYLES. (THANKS TO HIGH INCOME).
THIS CHANGED MINDSET IS CREATING A
HUGE DEMAND FOR HOTELS THAT
PROVIDE QUALITY AT AFFORDABLE RATES.

EXAMPLE:
FORTUNE PARK HOTELS LTD, A
SUBSIDIARY OF ITC LTD AT 46 PROPERTIES
(OUT OF WHICH 25 ARE UP AND RUNNING)
ACROSS 38 CITIES.
• THE CONCEPT OF HOTELS IN MALLS IS
ALSO FLOURISHING. BUDGET HOTELS IN
MALLS WHICH OFFER SHOPPING
EXPERIENCE WITH ENTERTAINMENT
FACILITIES UNDER ONE ROOF ARE
ELICITING ATTENTION FROM VARIOUS
HOSPITALITY PLAYERS. AN UPCOMING
FIVE-STAR HOTEL IN EAST END MALL IN
GHAZIABAD IS ONE SUCH EXAMPLE.
REASONS FOR
MORE DEMAND
• HOTEL INDUSTRY DEPENDS LARGELY UPON THE FOREIGN
TOURISTS ARRIVALS FURTHER CLASSIFIED INTO BUSINESS
TRAVELERS AND LEISURE TRAVELERS (BOTH DOMESTIC AND
INTERNATIONAL)

• THE BUOYANT DOMESTIC GROWTH HAS RESULTED IN THE

GROWTH OF BUSINESS TRAVEL TO INDIA. (HIGH INCOME
CHANGED MINDSETS)

• INDIA HAS NOW DISCOVERED THE POWER OF MARKETING

AND WITH CAMPAIGNS LIKE ‘INCREDIBLE INDIA’ AND
VARIOUS LARGE SCALE REGIONAL AND GLOBAL EVENTS
LIKE THE UPCOMING COMMONWEALTH GAMES, ASIAN
GAMES AND THE RECENT INDIAN PREMIERE LEAGUE BUILDS
INTEREST ABOUT THE NATION AND IS ATTRACTING MORE
DOMESTIC AS WELL AS INTERNATIONAL LEISURE
TRAVELERS.
• THE POLICIES AND INCENTIVES PROVIDED
TO THE HOTEL INDUSTRY IS ACTING AS A
CATALYST FOR ITS GROWTH.

• AN AMOUNT OF RS 624 CRORE TO BE

ALLOCATED FOR THE COMMONWEALTH
GAMES!

• FIVE YEAR HOLIDAY FROM INCOME TAX

IS GRANTED TO TWO, THREE OR FOUR
STAR HOTELS ESTABLISHED IN SPECIFIED
DISTRICTS HAVING UNESCO-DECLARED
'WORLD HERITAGE.
• THE CENTRE AND STATES ARE ALSO WORKING OUT
A MODEL TO INCREASE HOTEL CAPACITY.

• EFFORTS TO DIVERSIFY TOURIST ATTRACTIONS BY

OFFERING NEW PRODUCTS SUCH AS ADVENTURE
TOURISM, WELLNESS TOURISM, MEDICAL TOURISM
AND GOLF TOURISM ARE EXPECTED TO HAVE A
POSITIVE EFFECT ON BOTH FOREIGN TOURIST
ARRIVALS AND DOMESTIC TOURISM.
INVESTMENTS
 NEED FOR INVESTMENT
• DUE TO THE STRONG GROWTH IN
INFORMATION TECHNOLOGY AND BPO
SEGMENT.

• INCREASE IN NO. OF FOREIGN TRAVELLERS.

• EMPHASISED FOCUS ON TOURISM BY

GOVERNMENT.

• COMMONWEALTH GAMES IN DELHI.

 INTERNAL INVESTMENTS
 TO OVERCOME THE SHORTAGE INDIAN HOTEL
INDUSTRY IS ADDING ABOUT 60,000 QUALITY
ROOMS, CURRENTLY IN DIFFERENT STAGES OF
PLANNING AND DEVELOPMENT, WHICH SHOULD BE
READY BY 2012.

 GOVERNMENT HAS APPROVED 300 HOTEL PROJECTS

WHICH INDEED SHOWS WHAT THE INDUSTRY IS UP
TO.

 A LOT OF REAL ESTATE DEVELOPERS ARE ALSO

INVESTING INTO THE BUSINESS TO BRIDGE THE
DEMAND-SUPPLY GAP.
 EXTERNAL INVESTMENTS
• BERGGRUEN HOLDINGS INDIA, A SUBSIDIARY OF
NEW YORK-BASED INVESTMENT COMPANY
BERGGRUEN HOLDINGS, HAS ANNOUNCED THAT
IT IS SEED-FUNDING A NON-LUXURY HOTEL
CHAIN IN INDIA.

• PRIVATE EQUITY FIRM WARBURG PINCUS HAS

PICKED UP AROUND 27 % STAKE IN DELHI-BASED
MID-PRICE HOTEL CHAIN,LEMON TREE, FOR $
60.2 MILLION

• STARWOODS, HILTON, INTERCONTINENTAL HAVE

SIGNIFICANT GROWTH PLANS FOR INDIA.
 PROJECTS IN INDIA’S PIPELINE
• THERE ARE 161 PROJECTS IN PROGRESS OUT OF WHICH,
100 WILL HAVE FOUR AND FIVE STAR DESIGNATIONS.

• THE OTHER 61 ARE ONE, TWO AND THREE STAR

DEVELOPMENTS. A NUMBER OF THEM ARE NEW
ECONOMY BRANDS RECENTLY DESIGNED FOR THE INDIAN
MARKET PLACE.

• TAJ’S IS ONE SUCH BRAND, LEMON TREE AND RED FOX

ARE OTHERS IN THIS CATEGORY.

• THE CENTRE AND STATES ARE ALSO WORKING OUT A PPP

(PUBLIC-PRIVATE PARTNERSHIP) TO INCREASE HOTEL
CAPACITY.
THE ENGINE OF GROWTH:
TOURISM
 EXPECTED GROWTH
• ACCORDING TO TOURISM MINISTRY, TOURIST INFLOW WILL SOAR TO
10 MILLION BY 2010, THUS LEADING TO A DEMAND FOR 100,000 MORE
ROOMS.
• ACCORDING TO A RESEARCH RELEASED BY WORLD TRAVEL & TOURISM
COUNCIL, INDIA’S TRAVEL & TOURISM IS EXPECTED TO GENERATE
US$ 100 BILLION IN 2008 US$ 275.5 BILLION BY 2018.
• AS REPORTED BY MA FOI MANAGEMENT CONSULTANTS AROUND 40
INTERNATIONAL HOTEL CHAINS ARE EXPECTED TO INVEST IN THE INDIAN
HOTEL MARKET BY 2011. THIS INCLUDES HILTON, ACCOR, MARIOTT
INTERNATIONAL.
TOURIST INFLOW HOTEL DEMAND
ACCORDING TO U.N. WORLD TOURISM ORGANISATION ( UNWTO)
• Foreign Tourist Inflow INCREASED FROM :
3.9 MILLION (2005) 4.4 MILLION (2006) 4.95 MIILION (2007)
• Domestic Tourist Inflow INCREASED FROM:
366.23 MILLION (2004) 462 MILLION ( 2006)

• BOOM IN TOURISM TOURIST INFLOW INCREASED

HOTEL OCCUPANCY RATIO ( CURRENTLY 75 – 80%) AVERAGE
INCREASE IN ROOM RATE ( CURRENTLY 22 – 25% )
 HOTEL
SEGMENTATION
 STAR 5 DELUXE
RATED
HOTELS 5

4
HERITAGE HERITAGE CLASSIC
HOTELS 3
HERITAGE
GRAND 2
BUDGET HERITAGE 1
HOTELS
HOTELS
BUSINESS HOTELS
FACILITY
HOTELS AIRPORT HOTELS LUXURY

HONEYMOON BUSINESS
HOTELS
RESORTS LEISURE

MOTELS

UNCLASSI- GUEST HOUSES

FIED
LODGE
 FORMS 30% OF
INDUSTRY

Eg :
ITC,
BUILT OVER TAJ GROUP,
18000 sq.m AREA OBEROI GROUP,
ITDC

STAR RATED
HOTELS
5 DELUXE & 5 4 & 3 :
: LUXURY AT HIGH FOR MIDDLE LEVEL
PRICE , 27 % GOVT. BUSINESS
APPROVED ROOMS EXECUTIVES/LEISURE
2 &1 : TRAVELLERS
AROUND TOURIST
SPOT, PREFERRED
BY DOMESTIC
TOURIST
 HERITAGE
HOTELS

HERITAGE HERITAGE HERITAGE:

CLASSIC: GRAND:

HOTELS HOTELS HOTELS

CONSTRUCTED CONSTRUCTED CONSTRUCTED
BETWEEN PRIOR TO AROUND
1920 - 1935 1920 1935 – 1950

 CHARACTERISED BY LESSER CAPITAL EXPENDITURE AND

AFFORDABILITY .

 OPERATE FROM FORTS, PALACES, CASTLES, RIVER

LODGES, HERITAGE BUILDINGS ETC.
 FACILITY HOTELS
• SPECIALLY EQUIPED WITH CONFERENCE
ROOMS, SEMINAR HALLS, INTERNET
BUSINESS
FACILITIES ETC. TO SUIT THE CORPORATE
HOTELS GUESTS.
• Eg: INTER-CONTINENTAL, CROWNE PLAZA

• LOCATED NEAR AIRPORTS AND SUITABLE

AIRPORT FOR SHORT STAY TRAVELLERS.
HOTELS • ARE FOUND NEAR ALL MAJOR CITY
AIRPORTS.

• MOSTLY LOCATED AT HILL STATIONS AND

SPECIALLY FASCILITATED TO SUIT THE
HONEYMOON
COMFORTS OF HONEYMOON COUPLES.
HOTELS
• Eg. HOTEL WOODVILLE PALACE, CARLTON
HOTEL, HOTEL HONEYMOON INN ETC.
MAJOR MARKET
PLAYERS
THE MAJOR PLAYERS IN THE HOTEL INDUSTRY
CAN BE BROADLY CLASSIFIED INTO Public Players
AND Private Players.

PUBLIC SECTOR PLAYERS:

 ITDC HOTELS
 Hotel Corporation Of India

PRIVATE SECTOR PLAYERS:

 ITC HOTELS
 INDIAN HOTELS COMPANY LTD.(THE TAJ HOTELS
RESORTS & PALACES)
 OBEROI HOTELS (EAST INDIA HOTELS)
 Hotel Leela Venture
 Asian Hotels Ltd.
 Radisson Hotels & Resorts
PRIVATE SECTOR
PLAYERS
 ITC HOTEL GROUP SEGMENTATION
SUPER LUXURY 5 S TAR BUDGE T HERITA G
DE LUXE HOTE L HOTE L HOTE L E HO TEL

ITC ITC WELCOM FORTUNE WELCOM

HOTELS -SHERATO HOTELS: HOTELS: HERITAGE:
-LUXURY N HOTELS:
COLLECTI
-ON:
 FULL  CHAIN OF
 SUPER  OFFER
SERVICE PALACES,
DELUXE COMFORT
 5 STAR PROPERTIE FORTS,
SERVICE TO
S ALL OVER HAVELIS &
 LOCATED GLOBAL
 SPECIALLY INDIA RESORTS
AT TRAVELLER
STRATEGIC AND A FOR THE
BUSINESS &  IDEAL
BUSINESS & CHANCE TO
LEISURE FOR
LEISURE CONNECT
TRAVELLER BUDGET
LOCATIONS TRAVELLER
 ITC: DEVELOPMENTS
 ITC-WELCOMGROUP HAS PIONEERED THE CONCEPT OF
"BRANDED ACCOMMODATION" IN THE HOSPITALITY
INDUSTRY. BRANDING LED TO THE SEGMENTATION OF
ROOMS WHICH WERE TERMED AS BRANDED EXECUTIVE
CLUB, THE TOWERS AND ITC ONE.

 IN 2007, ITC-WELCOMGROUP TIED UP WITH STARWOOD TO

LAUNCH ITS PREMIUM BRAND, THE ‘LUXURY
COLLECTION’.

 THE COMPANY HAS MORE THAN 75 HOTELS IN INDIA WITH

ABOUT 5,500 ROOMS AND IS DEVELOPING 27 MORE
PROPERTIES THAT WILL ADD ABOUT 3,000 ROOMS.
 THE TAJ GROUP OF HOTELS
SEGMENTATION

TAJ LUXURY TAJ BUSINESS TAJ LEISURE

HOTELS – HOTELS: HOTELS:

TAJ PALACE, TAJ PRESIDENT, TAJ BEACH

TAJ MAHAL, TAJ RESIDENCY, RESORT,
TAJ BENGAL, TAJ CONNEMARA, TAJ CULTURAL
TAJ WEST END TAJ BLUE CENTRE,
DIAMOND TAJ GARDEN
 OFFER FINEST RETREATS
STANDARD OF  OFFER
HOSPITALITY & MULTI – CUISINE  LOCATED AT
SERVICE RESTAURANTS & BEACH RESORTS,
BEST BUSINESS PALACES, PILGRIM
FASCILITIES CENTRES ETC.
 TAJ : DEVELOPMENTS
 TAJ HOTELS, RESORTS AND PALACES
COMPRISES 57 HOTELS IN 40 LOCATIONS ACROSS
INDIA WITH AN ADDITIONAL 18 INTERNATIONAL
HOTELS.

 TAJ WAS THE FIRST TO INTRODUCE SICHUAN,

THAI, ITALIAN, MEXICAN, AND CALIFORNIAN
CUISINE INTO THE COUNTRY.

 THE TRAVEL DAILY NEWS REPORTED THAT THE

TAJ GROUP OF HOTELS HAD A TURN OVER OF
RS. 1823.18 CRORES WITH THE YEAR ENDING ON
MARCH 31, 2008.
THE OBEROI GROUP
OF HOTELS
THE OBEROI HILTON

THE OBEROI GRAND

HOTEL

THE TRIDENT HOTEL

THE WILDFLOWER
HALL
THE HOTEL AMAR
VILAS
 OBEROI SHAREHOLDING
PATTERN
Particulars Mar – 08
• Indian promoters 46.34
• Foreign promoters -
• Acting persons -
• Other promoters -
• MFs/UTI 2.10
• Banks/FIs 13.29
• FIIs 3.54
• Public corporate bodies 20.35
• Indian public 14.02
• Others 0.23
• No. of shares 392953972
PU BL IC SECT OR
PL AYE R
ITDC ASHOK
GROUP
OF HOTELSHotel Ashok, New
Delhi, Kovalam
ELITE Ashok Beach
Resort, Kovalam,
HOTELS Lalitha Mahal
Aurangabad
Palace Hotel
Ashok,
COMFORT Aurangabad, Lake
View Ashok,
HOTELS Bhopal,
Brahmaputra
Ashok, Guahati
Agra Ashok,

CLASSIC Bharatpur Forest

Lodge, Kalinga

HOTELS Ashok
Bhubaneswar,
Jaipur Ashok
 ITDC : PORTFOLIO
• NETWORK OF 8 ASHOK GROUP OF HOTELS
• 6 JOINT VENTURE HOTELS
• 2 RESTAURANTS
• TARGETS TOPLINE OF RS.900 CRORE BY
2010
• HOTEL LAKE VIEW ASHOK HAS EARNED A
PROFIT OF RS. 23.87 LAKH IN 2006-2007
• HOTEL RANCHI ASHOK’S PROFIT
INCREASED BY 1472 PER CENT
CHALLENGES TO FACE
 Shortage
of skilled
Intense employees Retaining
competition
quality
and image of
workforce
India

CHALLENGES
FOR HOTEL
Manual INDUSTRY
Shortage of
back-end rooms

Lack of
Human
adequate
resource
infrastructure
development
development
THE EN D