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Indian Hotel Industry Survey 2010-2011
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Secretary GeneralFederation of Hotel & Restaurant Associations of India (FHRAI)B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg,New 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: `700International: US$50
Federation of Hotel & Restaurant Associations of India, 2011Reproduction of data from within this publication is permitted provided that acknowledgementis accredited to the FHRAI and HVS Hospitality Services.
For more information, or additional copies of this document, please contact:
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The Federation of Hotel & Restaurant Associations of India is pleased to present the fourteenth annual editionof the Indian Hotel Industry Survey, in cooperation with HVS Hospitality Services. This survey includes in-depth information about the performance of hotels across various cities and positioning and provides several
benchmarks for comparing hotel performance in India. We would like to thank the participating hotels for allthe detailed information they have provided, therefore helping to improve the quality of this research.
The Indian Hotel Industry Survey analyses the performance of the Indian hospitality industry acrossparameters such as facilities, manpower, operational performance and marketing trends. The information is
based on data received from FHRAI hotel members and the authenticity of this data helps us in providing aclear picture of the operating statistics of India's hospitality sector. Data collected from our member hotels, ourextensive historic database and the credibility of our research have helped make this report a preferred toolfor hotel professionals, consultants, investors, bankers, researchers, government officials in the tourismdepartment, media persons and all those interested in studying the Indian hotel industry.
The current edition includes an analysis of seven major cities for which we have received detailedinformation and twelve other cities where information was available with us for some hotels, though not insufficient numbers for all the star categories. We earnestly request all our members to be more forthcoming
with sharing the required information as this helps us all. Therefore, while we have basic data for 1,318members (an increase from the 1,200 responses received last year), the financial data is not available for all ofthem. Though the major apprehension of each one of those members for not sharing the required informationfor this report might be the confidentiality of their data, members should rest assured that there is completesecurity of data by HVS.
We encourage feedback on the presentation and content of this report to enable us to improve it each year. Weare thankful to HVS Hospitality Services for their continued support for this project as well as ECOTEL (part
of HVS Sustainability Services) for having sponsored the current edition.
Kamlesh BarotPresident, FHRAIwww.fhrai.com
Foreword
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HVS Hospitality Services is the world's leading consulting and services organization focused on the hotel,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 than 18,000 assignments to itscredit. Hotel owners, operators, lenders, banks, and management companies all turn to HVS as the respectedauthority on hospitality.
HVS New Delhi was established in 1997 and has risen to be the only dedicated hospitality-consulting firm in
this region. It currently offers its Consulting and Valuation services to clients with interests in the South AsianRegion covering India, Sri Lanka, Bangladesh, Pakistan, Nepal, Bhutan and the Maldives. The differentverticals based on the services offered by the New Delhi Office are mentioned below:
The team comprises experienced and qualified hotel professionals undertaking feasibility studies,development strategies, valuations, market area analyses, market entry strategies, investment services, andoperator search & management contract negotiations. HVS's database of hotel information, combined with
broad insight and extensive experience, enables us to produce well-documented studies that contain fullysupported value conclusions. Each report is customized to meet client requirements based on mutuallyagreed upon parameters. The HVS approach on hotel and real estate appraisal is widely used by hotel
management companies, financial institutions, equity investors and developers of hotels in makinginvestment decisions in the South Asian hospitality industry.
Additionally, our portfolio of consulting services also includes providing Operations Audit Services, throughexpert, independent assessments and unbiased reviews of various processes affecting the operationalefficiency of hotel assets.
Executive Search, another vertical to the base of services offered, entered the Indian subcontinent in 2001 andcurrently manages diverse portfolios across varied sectors. HVS Executive Search has offices in New Delhiand Mumbai and is among South Asia's first retained Executive Search practice. It provides advisory servicesto leaders of the hotel, restaurant, real-estate, manufacturing, retail, telecom, energy and education
industries. Practice areas include senior-level executive search, mid-management recruitment andcompensation consulting.
About HVS
The strategic marketing and creative division of HVS India, HVS Marketing and Communications is the onlyone stop shop for hospitality marketing in the country. With over 40 years of combined hospitality marketingand creative experience, HVS MC excels in offering viable and strong research based marketing andcommunication solutions to its clients. Services include pre-opening, opening and promotional marketingcampaigns with ROI based advertising, media planning, creative support and branding strategies. Our list ofclients include leading hospitality brands in the country such as Accor, Pullman, Novotel, Mercure, Ibis,Fortune, Crowne Plaza, Radisson Blu, Park Plaza, Premier Inn, Sheraton and Peppermint Hotels.
CONSULTING AND VALUATION
EXECUTIVE SEARCH
MARKETING AND COMMUNICATIONS
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HVS Sustainability Services provides a range of business-driven consulting services that enable hospitalityfirms to identify cost saving opportunities, enhance operational efficiency, and demonstrate a positivecommitment to the environment, guests, investors, and other relevant stakeholders. Sustainability Servicesquantifies cost reductions through efficient consumption of resources like energy and water, and reduction in
waste generation. Furthermore, it describes the reductions through these environmental solutions using keyfinancial metrics.HVS Sustainability Services works directly with owners and operators to evaluate the business case for capitalinvestment into environmental technologies; we further promote accessibility to conventional andnonconventional financing mechanisms for technology-driven retrofit projects. Our industry intelligenceand global presence provide you with the best information and tools to make critical decisions that improveoperating income translating into higher asset value for owners.
SUSTAINABILITY SERVICES
A confluence of hotel industry stakeholders, visions and
ideas, industry news and networking, HICSA hassuccessfully created an interactive platform in the SouthAsian region. For enquiries regarding the eighth annualc 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 t
or email us atwww.hicsaconference.com [email protected]
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2012
th8 HOTEL INVESTMENT CONFERENCE - SOUTH ASIA
HICSA 2012APRIL 3-4, GRAND HYATT MUMBAI
www.hicsaconference.com
The Indian Hotel Industry Survey 2010/11 brings together the industry's key statistics and serves as an easyreference volume. We are grateful to all those who have contributed towards the same and look forward toincreased participation in the years to come.
Kaushik VardharajanManaging Director
Anirudh KatreSenior Associate
Tulika DasResearch Associate
mailto:[email protected]://www.hicsaconference.com/mailto:[email protected]:[email protected]://www.hicsaconference.com/ -
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Synopsis and Key Highlights
Introduction
The Indian hospitality industry has emerged as one of the key industries driving the growth of the servicessector and, thereby, the Indian economy. The FHRAI Indian Hotel Survey 2010/11 aims to provide the mostcomprehensive guide to all-India performance trends for this industry. Results of the survey will empowerindustry stakeholders such as owners, investors, operators, business analysts and researchers withinformation on the operational aspects of the industry. It will also help owners benchmark the performanceof their operations.
Data Collection
The data for the FHRAI Indian Hotel Survey 2010/11 Report has been contributed by the member hotels of1FHRAI. The FHRAI sends out a questionnaire to each of its members (currently numbering 2,396 member
hotels) which is then analyzed and presented in this report. The data presented in the current edition is culledfrom 1,318 responses.
Methodology
The data received from hotels participating in the survey is sorted and filtered according to the objectives ofthe survey. The data is then processed and analysed to extract important information pertaining to theperformance of the Indian hospitality sector across crucial parameters. These parameters, such as guestsegmentation, hotel finances, marketing, sources of reservations, and seasonality, among others, are thenpresented under the following categories:
q Star: Five-Star Deluxe, Five, Four, Three, Two and One-Star hotels along with Other hotels (which arenot classified under any star rating).
q Inventory: Number of rooms in hotels are categorized as Less than 50 Rooms, 50-150 Rooms, and MoreThan 150 Rooms.
q Affiliation: The two types of affiliations used to categorize hotels are Affiliated to chain, andIndependent.
q Primary Markets: : The seven major cities described in this report are Bengaluru, Chennai, Goa,Kolkata, Mumbai, Delhi-NCR, and Pune.
q Secondary Markets: Twelve secondary cities described in this report are Ahmedabad, Bhubaneswar,Hyderabad, Indore, Jaipur, Kochi, Kottayam, Mysore, Shimla, Thiruvananthapuram, Udaipur, andVadodara.
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1As of September, 2011
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2 Social Bakers
phones and tablet technology, has meant more people are connected to the Internet all the time. SocialMedia sites that have benefitted through these advancements have seen their database of users increasesignificantly resulting in these sites almost becoming a way of life for most around the world. Facebook,perhaps the most popular of Social Media sites has seen its user base grow from 100 million users in 2008
2to 800 million users as of September 2011 . Hotels across the country, too, have joined the bandwagon ofSocial Media Marketing and have benefitted immensely from its strong reach at almost no cost of
operation. Today, a large number of hotels have a Facebook page and Twitter accounts to reach out totheir target audience and promote several events in their hotels resulting in increased footfalls andpatronage. Hotel companies today have also had applications (Apps) developed for smartphones andtablets that enable hotel bookings on the go while third party travel websites likeExpedia andMakeMy-Triphelp with planning travel itineraries by recommending and reviewing hotels across the country.
q The impact of the global economic crisis in 2009/10 resulted in the price-sensitivedomestic traveller settling for leisure trips within the country leading to increased domestic demand forhotels. This trend of strong domestic demand has continued to grow in 2010/11 as well. This year'ssurvey has witnessed an approximate increase of 8.1% in the Domestic FIT segment and an approximateincrease of 14.2% in the Domestic Groups segment over that of last year. Going further, theimprovement of overall connectivity facilitated by additional destinations in the portfolio of low-cost
airline carriers like GoAir, Spicejet and Indigo, is further expected to increase domestic touristmovement within the country.
q Employee to Hotel Room Ratio: Efficient manpower utilization continues to be an area of concern forthe Indian Hotel Industry. The all-India average of total employee to hotel room ratio stands at 1.6, muchhigher than that in hotels across the globe. A major reason that can be attributed to this high ratio is theperformance of four and three-star hotels as far as manpower utilization is concerned. The all-Indiaratio this year for the four-star category stands at 1.8 employees per hotel room while that for the three-star category stands at 1.6. Primary reasons for these ratios being high maybe attributed to Indian hotelowners tending to 'overspec' their hotels. Midmarket and budget hotels in India offer more expansivefacilities especially with respect to the F&B offerings in a hotel and therefore require a large number ofpersonnel to manage operations as compared to hotels globally.
q Energy: This year's survey reveals an overall drop of approximately 3.3% in energy costs as a percentageof hotel revenue indicating better efficiency levels among hotels than in the previous year. Several hotelsacross the country have employed various Green initiatives translating to a contribution towards amore eco-friendly environment and improved marketability for the property by being certified as aGreen Hotel. Additionally, employing these initiatives have also resulted in more efficiently runoperations, that have consequently resulted in better efficiency levels with respect managing risingenergy costs. Going forward, companies like HVS Sustainability Services will further enable hotels toimprove their financial, environmental and social performance.
Domestic Traveller:
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3 HVS Trends and Opportunities Report 2011
In the Focus
HVS estimates approximately 102,348 new hotel rooms are to enter the Indian hotel market by 2015/16, ofwhich approximately 60% are expected to be actively under development. A significant number of thesehotels are expected to be affiliated with global brands and be of international quality and service offerings.
Hotel operators across the country would need to prepare themselves for this expected competition byimproving their operational efficiencies and also their product and service offerings. The following exhibitshighlight some key emerging trends.
Exhibit 1 highlights the trends for sources of revenue for hotels over the last five years. As evident from theExhibit, F&B has been fairly steady with respect to its overall contribution to hotel revenues. F&B revenues(including banquets) in India continue to support top lines since they are largely independent of factors thataffect room demand and more driven by the local market. However, going forward we expect F&B revenuecontributions to the overall revenue pie of a hotel to come under pressure in the medium to long term. Several
branded budget hotels that are estimated to enter the market over the next few years, are expected to includeminimal F&B facilities and in some cases lease out the F&B outlet of the hotel to a third-party vendor.Additionally, the increasing number of stand-alone dining options across several cities, which include both
fine-dining and casual-dining options, is also expected to affect the number of locals visiting hotel restaurants
3
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Exhibit 1: Source of Revenue 2006/07 to 2010/11
59.66% 61.20% 60.49% 56.66% 57.16%
34.11% 33.48% 34.46% 37.52% 36.62%
6.23% 5.32% 5.05% 5.82% 6.23%
0%
10%
20%
30%40%
50%
60%
70%
80%
90%
100%
2006-07 2007-08 2008-09 2009-10 2010-11
Rooms F&B and Banquets Other
Exhibit 2 illustrates the PAR trends in revenue and net income over the past five years. While revenue
increased by approximately 13.0%, net income showed a decline of 4.0% as a percentage of revenue over theprevious year. This could be attributed to a POR increase in departmental and operating expenses over lastyear; both of which grew by 2.8% and 10.5% respectively. The growing inflation in 2010/11 resulted in PORexpenses for the rooms division and F&B to grow by 4.0% and 1.0% respectively. Additionally, POR expensespertaining to administrative and general (A&G) and property operations and maintenance also saw a 16.0%and 15.0% rise respectively over last year.
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City Trends
The year 2010/11 steadily saw performance levels improve for the Indian hotel industry over 2009/10 whichhad witnessed the effects of the global economic crisis. Most hotel markets across the country saw improvedoccupancy levels and average rates with an increase in international leisure demand (up 11.7% from the
previous year), strong growth in domestic leisure demand (up 9.7% from the previous year) and a doubledigit growth emanating from Meetings, Incentives, Conventions and Events (MICE) up approximately 17.3%from the previous year.
It should be noted that the country average is not representative of the trends seen in certain key hotelmarkets in India as it includes the results of lower star category hotels across several cities which,comparatively, have a more restrained operating environment. Table 2 illustrates average occupancy and ratefor 32 cities/regions across the country over the last five years, which is followed by HVS's viewpoint on thedemand-supply scenario and performance of the 19 identified hotel markets based on in-house research.
TABLE 2: Average Occupancy and Average Room Rate: 32 Cities/Regions in India
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City 2006/07 2007/08 2008/09 2009/10 2010/11 2006/07 2007/08 2008/09 2009/10 2010/11
All India 66.8% 69.3% 63.1% 61.3% 62.1% 4,556 4,487 4,842 4,578Agra 58.9% 62.8% 54.8% 57.0% 63.2% 2,361 3,307 4,211 2,482 3,968Ahmedabad 69.6% 74.9% 63.7% 65.7% 67.6% 2,108
4,138
4,039
3,367
3,234
Aurangabad 52.9% ID 56.5% 57.9% 59.5% 2,160
ID 2,289
2,850
2,612
Bengaluru 67.9% 73.1% 56.5% 52.6% 53.8% 8,519
9,679
9,757
6,766
5,838
Bhopal 74.7% 70.3% 72.2% 66.1% ID 2,028
2,647
2,639
3,110
ID
Chandigarh 88.7% 79.6% 79.6% 69.1% 70.4% 1,103
4,057
3,716
4,780
4,544Chennai 78.7% 77.4% 64.6% 65.6% 64.8% 3,340
3,076
4,678
4,083
5,508
Coimbatore 72.9% 77.8% 72.1% 75.5% 72.8% 2,322
2,634
3,255
3,236
3,989
Darjeeling 56.3% 57.8% ID 47.2% ID 2,090 1,719 ID 3,193 IDGoa 71.3% 70.1% 61.7% 63.1% 64.4% 4,515
4,368
5,378
4,757
7,807Hyderabad 71.6% 63.7% 56.3% 58.8% 53.3% 4,660
5,643
4,730
5,137
4,152
Indore 69.8% 72.9% 68.7% 65.2% 65.4% 992
1,486
1,933
1,814
1,869
Jaipur 69.2% 63.0% 61.4% 57.7% 64.0% 2,743
5,460
4,472
4,059
3,071
Jodhpur 50.7% 53.6% 51.0% 43.2% 49.2% 4,066
5,468
3,964
4,552
5,519
Kochi 75.4% 75.2% 67.4% 64.4% 74.2% 1,237
1,486
2,062
2,806
1,528
Kolkata 75.6% 72.5% 69.6% 64.5% 65.4% 3,567
5,138
5,342
4,880
4,788
Kullu-Manali 46.9% 48.1% 50.9% ID ID 2,334
1,688
3,716
ID ID
Lucknow 70.8% 71.6% 63.0% 58.7% 59.8% 1,988
2,208
2,491
5,109
2,393
Mount Abu 56.6% 57.0% 69.4% 67.5% 63.0% 1,558
1,825
1,823
2,159
2,821
Mumbai 79.2% 80.1% 71.2% 67.2% 69.0% 4,996
6,665
6,822
5,833
5,087
Mussoorie 50.9% ID 48.0% 45.9% 52.5% 1,454
ID 4,099
6,078
5,817
Mysore 46.4% 66.3% 67.7% 67.7% 71.4% 3,300
1,254
2,340
2,637
4,634
Nagpur 69.4% ID ID 61.5% 76.6% 1,144
ID ID 3,132
2,314
New Delhi - NCR 82.2% 78.0% 64.8% 64.6% 59.0% 7,459
9,728
6,087
6,985
6,763
Pune 80.7% 76.5% 65.5% 53.2% 53.3% 3,232
4,927
4,951
3,921
3,140
Raipur 74.1% 52.7% 64.3% 39.0% ID 2,550
1,055
1,087
1,521
ID
Shimla 52.2% 64.6% 52.7% 48.0% 42.7% 1,554
1,033
1,766
1,790
2,267
Thiruvananthapuram62.4% 65.1% 57.9% 55.3% 61.8% 3,959
2,221
1,570
1,422
1,380
Ootacamund 48.5% 58.3% 58.1% ID ID 1,527
1,258
1,956
ID ID
Udaipur 57.8% 58.2% 51.6% 47.0% 55.2% 3,700
6,320
7,319
3,543
7,406
Vadodara 71.9% ID 77.9% 65.6% 77.8% 1,730 ID 2,779 4,360 3,703
Visakhapatnam 71.4% 75.9% 69.0% 62.1% 76.3% 2,495 3,169 3,687 2,809 5,431
Occupancy Average Room Rate(`)
3,741
ID: Insufficient Data
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Seven Major Cities
Bengaluru
Bengaluru witnessed a steady increase in both occupancy and average rate in 2010/11. The average rate
reflected in Table 2 includes a large percentage of unbranded hotels and, therefore, presents a lower averagerate than that in the previous year. HVS's research on branded hotels reveals that the city saw a considerableincrease in demand for hotel rooms as a result of increased corporate travel post the economic slowdown ofthe previous years. The hotel market in Bengaluru is broadly divided into three micromarkets i.e. the CentralBusiness District (CBD), the Whitefield area and the Electronic City area. The city is expected to furthersegregate into two additional micromarkets i.e. the Northern (Devanhalli) and Western (Yashwantpur)markets. While the CBD comprises mostly first class/luxury hotels that cater to mid-management or higherranked corporate clients, Electronic City and Whitefield largely consist of midmarket to budget hotels withthe exception of a few first class hotels. The city relies heavily on Commercial demand emanating from thevarious micromarkets highlighted above. The year 2010/11 witnessed growth in Extended Stay demand inareas like Whitefield and ORR-Sarjapur. The city's MICE demand potential, however, continues to remainuntapped owing to a lack of significant meeting spaces. The delay in the development of a proposed
3
convention centre in Devanhalli is a further set back. Going forward, we expect approximately 12,500 roomsto enter the Bengaluru market with a 67-percent probability factor of these rooms actually commissioning.This addition of inventory is expected to result in occupancy and average rate pressures especially in theWhitefield and Electronic City areas.
Chennai
Similar to most major cities, Chennai also witnessed a steady increase in occupancy in 2010/11 and a marginalgrowth in average rate as well. The city saw a resurgence of demand from the IT Sector as well as the
4automobile sector, which witnessed a record year-on-year volume growth of 26.0% in total units produceddue to revival in demand and easy availability of financing. City hotels, however, continue to cater to demandemanating from traditional sectors like banking and finance.
Going forward, as the city expands further, significant investments into hotels primarily in the budget andmidmarket segments in the Sriperumbudur and OMR areas is estimated to result in these areas converting toindividual micromarkets within Chennai. OMR is the IT corridor of the city and Sriperumbudur, along withOragadam, is fast becoming an industrial hub with manufacturing and automotive sectors playing a key role.As these areas continue to witness additions of major companies, HVS expects hotels to benefit fromincreased demand from the Commercial and Extended Stay segments. Additionally, new hotels that areplanned with large meeting facilities are expected to increase demand for MICE as well. A total of 2,500 roomsare expected in the next three years in the upscale and luxury segments, adding to an existing base ofapproximately 2,000 rooms in the same segments. The large amount of supply entering the market is bound toput pressure on occupancy levels in the short to medium term, but the city-wide average rate is expected towitness growth due to the luxury and upscale products entering the market.
Goa
Goa, which is among the most popular leisure destinations of the country, saw a marginal increase inmarketwide occupancy in 2010/11. The survey results reveal a significant jump in average rates, which canlargely be attributed to the recovery of average rate among upscale hotels across Goa post the effects of thedownward pressure faced in 2009/10 as a result of the global economic crisis. The city continues to witnesssteady year-on-year demand growth. However, this growth would require the facilities at the current airportto be further developed to handle passenger movement round-the-clock. The proposed development of anew airport in North Goa has also shown no signs of progress. Additionally, other issues such as lack of a
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4 Society of Indian Automobile Manufacturers
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comprehensive tourism policy, obstacles in obtaining approvals and clearances, lack of clarity regarding thelatest CRZ norms and frequent disputes over land use and ownership have resulted in a relatively slowincrease in supply within the Goa hotel market. In the short to medium term, MICE demand for the city isexpected to get a fillip with the recent opening of the Grand Hyatt. Overall, the outlook for the city remainspositive with average rates expected to grow gradually in the medium to long term. We are of the opinion thatGoa will continue to remain a lucrative market that will witness year-on-year growth in tourist arrivals. We
expect the proposed supply of new hotel rooms to therefore be successfully absorbed by the market inaddition to an in increase in overall occupancy levels.
Kolkata
Kolkata, witnessed marginal improvements in occupancy but a slight correction in average rates from 2009/10.The city's hotels cater to demand mainly from the Commercial and MICE segment, although in the last twoyears demand from the Leisure segment has also seen significant growth. Although the city has seen limitedimprovements in the civic infrastructure of the old CBD areas, new developing areas like Rajarhat promise an
3overall positive outlook for Kolkata. Approximately 3,600 rooms are expected to be developed in the market,of which we estimate 58% room inventory to be developed over the next five years. A large percentage ofthese hotels are expected to be positioned in the upscale and midmarket segments which will strengthen the
overall product offering and make it comparable to the other metro locations in India. In the short term thiswill result in overall average rates to remain at their current levels, however with the entry of new supply,occupancy levels are expected to correct in the short term and retain their current levels once the newproperties achieve stabilized performance levels.
Mumbai
Mumbai has maintained its 2009/10 occupancy levels with a slight decline in average rates. Still recoveringfrom the significant drop in marketwide performance following the economic downturn in 2008 and 2009coupled with the addition of new supply, growth for the overall market remains slow paced. The futureoutlook for Mumbai, however, remains positive; being the financial hub of the country, it will continue to
attract commercial demand from the services sector, comprising financial services, consulting, insurance andbanking companies. North Mumbai continues to develop into a major commercial hub on account of loweroffice rentals and the majority of the city's working population residing here. From an infrastructurestandpoint, the Chhatrapati Shivaji Airport is continuing its expansion and the Mumbai Metro Rail Project isexpected to start partial operations of Phase I in 2012. However, intra-city roads and the burgeoning trafficconditions continue to be a sore point for commuters in the city. A new international airport development inNavi Mumbai finally received clearance in 2010 and is expected to commence development sometime in thenext twenty four months.
Delhi-National Capital Region (NCR)
The NCR comprises of hotels located in Delhi, Noida, Gurgaon, Ghaziabad and Faridabad. Supply pressuresin the NCR saw the city occupancy and average rates drop from those in the previous year. TheCommonwealth Games which was hosted in Delhi during October 2010, did not result in the expectedincrease in room night demand for Delhi, neither did it provide the anticipated fill up business in the lead upto the event. Gurgaon and Noida have established themselves as strong individual micromarkets although,only Gurgaon, continues to add new hotel rooms year-on-year. The abundance of Grade A office space atrelatively low rentals have resulted in several companies shifting base from Central and South Delhi to theseareas and thereby significantly affecting Commercial demand across the various micromarkets. Additionally,infrastructure developments such as improved Metro connectivity to Gurgaon and Noida have furtherimproved overall development of the area. However, poor public road transport, civic infrastructure andinadequate traffic management solutions continue to dampen the otherwise forward looking regions. On the
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other hand, the main areas of Central Delhi have seen much improved infrastructure on account ofpreparations for the Commonwealth Games. These include the expansion of the Delhi Metro, construction ofintra-city roads and the development of the new International Terminal (T3) among others that have helpedin making the city more attractive for both investors and travellers.
On the supply side, land acquisition and project implementation in many areas of Noida-Greater Noida has
seen a slowdown in spite of this area hosting world class events like the recently concluded Indian FormulaOne Grand Prix in October 2011. Other identified growth areas in Delhi like the DIAL Aerocity (about 15hotels under planning and development), Gurgaon, Dwarka, West and East Delhi continue to see activehospitality focused developments. Gurgaon, alone is expected to double its supply over the next five yearsand has had the highest completion ratio of announced projects in the NCR. In the short term, the NCRcontinues to be a strong market and the phased introduction of the DIAL hotels from late 2012 coupled withthe addition of proposed commercial developments in Gurgaon, Noida and Faridabad and a conventioncentre in the Aerocity area is estimated to augment room night demand in the years ahead. In the short term,individual micro markets like Ghaziabad, Greater Noida, Faridabad and East Delhi will see a correction in themarket occupancy; this will be reflective of the rate of entry of new supply into these markets. However, in themedium to long term each of these markets will see significant growth in demand and will allow occupancylevels to strengthen. In the next two years, the market wide average rates in most locations of NCR will see a
correction especially with the opening of the DIAL Aerocity hotels.
Pune
Pune saw both, occupancy levels and average rates come under pressure in 2010/11. With a supply increase of3approximately 2,000 hotel rooms in 2010/11, the city which was largely a Commercial-demand driven market
is also developing as a MICE destination in west India. The city hotels today support a total indoor meetingspace area of approximately 8,500 square metres. Micromarkets like Hinjewadi, Chakan, Ranjangaon, andTalegaon are the main demand generators for the city hotels, filling the void created by the lack of a traditionalCBD. Going forward, the city is still expected to see a large influx of supply in each micromarket; of this newsupply, midmarket and budget hotels now form a large share that bodes well for the hotel market growth inthe 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 the medium to long-term, as MICEdemand continues to grow we estimate the market to reach stable levels of performance.
Ahmedabad
The Ahmedabad hotel market saw a steady increase in occupancy in 2010/11 with a very marginal dip inaverage rates. Under the current government's investor-friendly regime, an increasingly large number ofcompanies are moving to Ahmedabad and are looking to make major investments into the state. ThoughAhmedabad is considered a business friendly destination with transparent government policies, some
projects such as the Gujarat International Financial Tec-City (GIFT) and the Sabarmati Riverfront3Development Project have encountered delays. A hotel room supply pipeline of approximately 2,300 rooms,
of which we believe 73% is being actively developed, is testament to the bullish nature of hotel investors in thearea. The strong demand growth in the market is expected to support the proposed new supply, and weexpect this trend to continue in the medium to long term. However, owing to the price sensitive nature of theAhmedabad market and supply pressures, we expect only moderate rate increases in the near future.
BhubaneswarBhubaneswar is the capital city of Orissa and is also popularly known as the 'Temple City of India'. It is an
Twelve Other Cities
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important Hindu pilgrimage centre and has hundreds of temples that dot the landscape of the city. It is alsoan 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 primarily has hotels in the unbrandedsegment with a few midmarket and first class hotel brands. Demand for the city is primarily Leisure in naturewherein the city acts as a gateway to other cities in Odisha like Puri, Cuttack and Rourkela.
Hyderabad
Political turmoil in Hyderabad was responsible for reduced travel to the city in 2009/10. As a result, occupancylevels and average rates for the city suffered. However, tired of waiting for the political situation to resolve,travel has commenced once again in Hyderabad's corporate sector. This has led to the increase in Commercialdemand from existing companies and marginally improving overall performance levels of hotels in 2010/11.However, no new companies are/or investments are moving to Hyderabad, which is a cause of concern forhotel operators as the existing demand for hotel rooms will keep getting divided between more hotels in theyears to come. The Hyderabad International Convention Centre (HICC), which should have reached astabilized level of performance by now, has had to rely heavily upon weddings and social functions to sustainoperations, a major deviation from the initial strategy of hosting only high-profile domestic and internationalconventions and groups. The muted demand growth coupled with approximately 7.0% increase in supply
has led to eroding rates with hotel operators giving precedence to raising occupancy levels. Going forward,we expect this trend to continue over the next few years.
Indore
Indore is the economic and commercial capital of Madhya Pradesh. Historically, business activity had beenlimited to textile production and domestic trade. These production houses, factories and mills areconcentrated in the heart of the city. The state government is now trying to improve the IT infrastructure inthe city and the plan to set up an IT SEZ near the proposed international airport has received approval fromthe state government. The city is also now becoming a key manufacturing centre for automobile units likeForce Motors, Bajaj Tempo and Eicher Motors. The hotel market consists of budget and midmarket hotels,
and has shown stable performance in the past five years. The recent opening of the Radisson Blu Hotel sawthe first five-star deluxe hotel being added to the city. Going forward, we expect the addition of medium sized
budget and midmarket hotels both in the branded and independent hotel segments. With the expansion anddevelopment of automobile units and the development of multi-use SEZs in the city, we expect a stableperformance for Indore in the next few years.
Jaipur
Jaipur continues to be one of the top leisure destinations of the country owing to its rich cultural heritage andpresence in the Golden-Triangle itinerary together with Delhi and Agra. Commercial demand, which isrestricted mainly to the city centre area, has historically emanated from its large base of garments, gems and
jewelry traders. In the recent past, Commercial demand has been supplemented by the addition of thebusiness process outsourcing (BPO) sector, specifically, Infosys and Genpact and telecommunicationcompanies such as Airtel, Vodafone, Reliance etc. Telecommunication companies have set up both technicalas well as sales offices in Jaipur with the purpose of rolling out 3G services in the state. Similar to other leisuredestinations in the country, Jaipur witnessed improved performances in 2010/11. The city is also beginning togenerate large amounts of MICE demand on the back of hotel openings like the Marriott and the soon to openFairmont, which come with substantial meeting spaces on offer. Additionally, a convention centre planned bythe state government in Sanganer is further expected to boost MICE demand in the city. The year alsowitnessed much improved domestic leisure travel movement and this trend is expected to continue in theshort to medium term. The domestic traveller now contributes to 40% of Jaipur's Leisure segment as against
3the earlier 30%. A supply pipeline of approximately 4,800 rooms, of which 45% are expected to see
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completion, is expected to result in occupancy and rate pressures across the city. Additionally, a largepercentage of the proposed supply is expected in the first class segment, which may act as a deterrent for theprice-conscious domestic traveller who now comprises a significant portion of the leisure segment.
Kochi
Kochi has historically been the trade and financial hub for Kerala and has now added tourism to its portfolioby becoming the gateway to some of the country's most popular tourist destinations like Kumarakom andThekkady amongst others. Although the major portion of demand for hotel accommodation comprises of theCommercial segment, Kochi caters to large MICE and Individual Leisure demand as well. The InternationalContainer Transshipment Terminal (ICCT), the first transshipment terminal in India, is expected to see the citygrow into an international sea port. For the hotel industry, this will augment the growth of Commercialdemand for the city with the port positioned to handle 5.5 million large container vessels each year. Also theintroduction of the Kochi Tuskers, the IPL cricket team of the city, is expected to provide a major fillip to roomnight demand when IPL matches are held in the city. However, air travel to and from Kochi continues to beexpensive and overall connectivity will also need to improve to enable the city to further capitalize on itsMICE and Leisure demand.
Kottayam
Kottayam, which is located in Kerala, is famous for its panoramic backwater stretches, lush paddy fields,highlands, hills, hillocks and extensive rubber plantations. The city is an important centre for trading spicesand commercial crops, especially rubber. It was the first town of India to achieve 100% literacy back in 1989.The city is primarily a leisure destination and forms a part of several Kerala tourism itineraries that includeother places like Peermade, Munnar, Thekkady, Ernakulam and the temple city, Madurai. Most hotels in thearea are in the unbranded segment with a few select First Class branded resorts. Given the steady nature ofLeisure demand that the city receives, we expect the Kottayam hotel market to be relatively stable in themedium to long term.
Mysore
Mysore's proximity to Bengaluru and excellent climatic conditions allows it to be a popular tourist destination,receiving over two million visitors annually. The city's growth and expansion is managed by the MysoreUrban Development Authority (MUDA). Mysore is well connected to Bengaluru, Ooty, Coorg, Kozhikodeand Coimbatore. Traditional industries in Mysore comprise of weaving, sandalwood carving, bronze workand the production of lime and salt. Additionally, industries in Mysore also comprise of tourism, engineering,auto ancillaries, silk production, IT and ITeS. The city also houses several education and research facilities thatinclude medical, dental, pharmacy, engineering and science colleges. The hotel market currently comprises ofsmall unbranded hotels in the budget and midmarket segments. Future supply indicates the addition of
branded medium-sized midmarket hotels to this current supply. The Bengaluru-Mysore Infrastructurecorridor, planned commercial developments, growth in tourism and improved operations of the airport are
expected to facilitate the further growth of the hotel market in Mysore. The commencement of the airport atMandakalli is expected to stimulate the development of a peripheral area and we expect it to emerge as amajor demand generator in the long run.
Shimla
Shimla, the capital city of Himachal Pradesh, has historically been the summer getaway for domestictravellers emanating from Delhi-NCR, Punjab, Uttar Pradesh and Haryana. As a market the city tends to seepeak occupancies in the summer months (April to September) and lower occupancies in the winter ones(October to March). The surrounding areas of Shimla, which include locations like Kasauli, Chail, Nalderah
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and Kufri have witnessed increased visitation with the opening of several small unbranded midmarketresorts resulting in occupancy pressures in the city. Additionally, rapid commercialization of the city hasaffected the destruction of the flora and fauna of the area resulting in eroding Leisure demand to the city. Assmaller independent resorts continue to open in the area, we expect hotel occupancies and rates to comeunder some pressure in the next few years.
Thiruvananthapuram
Thiruvananthapuram, the capital city of Kerala, is fairly dissimilar to other cities in the state in that Leisuretravel is not the main demand segment for hotels in the area. Room night demand in the city primarilyemanates from the Commercial and Government segments. Kovalam, which is located approximately 16kilometers south of the city, is the only area that generates Leisure demand by way of its quality hotels withprivate beach access. A lack of any significant new commercial development has resulted in decliningoccupancy and average rates for Thiruvananthapuram. Although the government is trying to encouragegrowth of the IT and ITeS sector with the expansion of the Technopark campus, these developments have
been slow in taking shape and are not helping generate new demand for the city hotels. As this trend isexpected to continue in the short to medium term coupled with a limited addition to future supply, the hotelmarket in the city is expected to see limited growth for the next few years.
Udaipur
Udaipur, in the state of Rajasthan, is a popular tourist destination famous for its forts, palaces, havelis,architecture, heritage and culture. The city's location along NH-8, which connects the city to Delhi via Jaipurin the north of India and Mumbai via Ahmedabad in the west, acts as an advantage. The city benefits from asignificant number of domestic and international tourists and by virtue of the number of luxury propertiesthat exist here, Udaipur hotels attract high average rates. Though Udaipur has moderate climate throughoutthe year as compared to the rest of the state, the period from September to March is considered to be the peakseason in the city as the temperatures are very pleasant. The overall performance of the city has been fairlystable for the past five years with a slight dip in 2009/10 owing to a decline in foreign tourists as a result of the
global economic crisis. The year 2010/11 saw a revival of sorts, albeit at a slow rate. Considering theimportance of the city as a popular destination for tourists, we expect the city's performance to be relativelystable in the medium to long term.
Vadodara
Vadodara, the third-largest city in Gujarat, has emerged as an important industrial hub. Most of the industrialactivity is based out of industrial estates established by the Gujarat Industrial development Corporation(GIDC) in the peripheral areas of Savli, Halol, Waghodia and Makarpura. In 2009, Larsen & Tourbo (L&T) setup Knowledge City near Waghodia as the headquarters of three of its companies. Going forward, we expectmost of the new developments to take place outside the municipal corporation limits due to pressures of localtaxation and land availability. Moreover, the central business district of the city is highly congested and has
limited growth potential.
Unbranded hotels positioned predominantly in the budget and midmarket segments constitute a largeportion of the Vadodara hotel market. Presently, there are only five branded hotels operational in the city, ofwhich, two have commenced operations in 2011. While historically Vadodara has been a stable market, themarket dynamics are expected to change with the addition of approximately 825 rooms across branded andindependent segments over the next few years. The marketwide occupancy and average rates are expectedto come under pressure for the next two to three years; however, considering the proposed expansion of thesurrounding industrial estates, an overall steady growth for the city is anticipated.
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1. Indian Hotel Industry by Star Category
Introduction
This section presents the results of the performance of the hotels analyzed according to the star classificationof the hotels participating in the survey. An overall total of 1,318 hotels participated in the survey for 2010/11.The hotels have been classified into the eight categories applicable in India. Table 1-1 to 1-10 present the results
of the performance of Indian hotels according to their star classification for the year 2010/11.
To provide further comparisons, we have included a column for All India Totals across all star categories. Eachsection includes the total number of respondents for each component of the survey, allowing the reader to
judge the validity of the data received.
The layout has been standardized in each section to enable consistency throughout the entire document. Allfigures pertain to 2010/11 (April-March), and monetary figures are in Indian rupees (`).
Trends
q Employee to Room Ratio: The survey results reveal the difference between five-star deluxe and four-
star hotels as far as the employee to room ratio is concerned as not that significant. While the formeraveraged 2.0 employees per hotel room in 2010/11, the latter was at 1.8 for the same period. Globally, theroom to employee ratios for four-star hotels and below tend to be lower than or equal to 1.0. In fact if onewere to analyze the lower positioning of hotels as well, none were below 1.0 employee per hotel room intheir respective categories.
q Market Segmentation: Market segments, overall, saw some distinct changes in 2010/11. While domestictravel dominated, the contribution of the domestic business traveller dropped from that in the previousyear by 16.0%. On the other hand, both domestic and foreign FIT movement grew by 8.0% and 13.0%,respectively in line with the overall economic growth in India. Additionally, MICE as a segment, hasgrown steadily over the last two years to form approximately 11.5% of the overall segmentation. Thismay be attributed to a number of properties added to the market with large meeting spaces and room
inventories. Airline Crew, as a segment, continues to be largely catered to by five-star deluxe, five-starand four-star hotels.
q Country of Origin:
.
The overall composition of the country of origin of guests continues to mirror that ofthe previous years' i.e. the UK, USA, followed by other European countries dominate the overallvisitations. The warmer climate in India as compared to the sub-freezing temperatures in Europe is aprimary driver of the European-led tourism. This year also witnessed increased visitation from theASEAN countries, China and Japan. The increasing presence of Asian companies in India, has led to thecreation of a fairly developed corporate travel market
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TABLE 1-1: Indian Hotel Industry by Star Category: Facilities Analysis and Staffing
Page 19
Typical Room Profile of an Average Hotel
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heri tage Others
2010-2011 All
India Average
Number of Responses 47 66 103 473 295 97 45 193 1,318
Air-Conditioned Single 43.4 24.0 12.7 4.6 3.0 1.5 1.4 1.5 6.4Double 136.0 99.2 65.5 41.7 23.6 14.9 21.4 19.3 39.8Suites 20.6 10.2 9.4 5.4 3.3 1.6 6.2 2.4 5.3
Non-Air-Conditioned Single 0.0 0.0 0.3 0.7 1.3 1.6 0.3 0.6 0.8Double 0.0 1.9 3.7 4.3 6.9 7.2 5.5 7.8 5.3Suites 0.0 0.1 1.2 0.5 0.7 0.3 1.2 0.6 0.6
Total average rooms 199.9 135.5 92.7 57.2 38.9 27.0 36.0 32.3 58.2
Average Number of Food & Beverage Outlets Per Hotel
COMPOSITIONFive-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heri tage Others2010-2011 AllIndia Average
Number of Responses 47 61 96 426 239 70 40 139 1,121
Restaurant 3.3 2.9 2.1 1.6 1.3 1.2 1.5 1.4 1.7Bars 1.5 0.9 1.1 0.9 0.6 0.5 0.7 0.6 0.8Others 0.8 1.1 1.5 1.0 0.5 0.3 0.4 0.3 0.8
Total 5.6 5.0 4.7 3.4 2.5 2.1 2.6 2.2 3.2
Average Number of Total Employees Per Hotel (Permanent / Contract / Full Time / Part Time)
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heri tage Others
2010-2011 All
India Average
Number of Responses 46 57 91 419 266 88 39 135 1,144
Managers Male 50.9 26.9 15.3 6.7 2.8 1.9 4.9 2.4 8.3Female 13.9 5.8 2.7 0.9 0.5 0.3 0.5 0.2 1.5
Supervisors Male 53.2 30.8 19.1 9.5 4.0 2.7 7.4 3.2 10.4Female 9.5 5.0 3.1 1.4 0.7 0.4 0.6 0.4 1.7
Staff Male 250.2 151.5 114.0 62.6 32.0 19.7 47.1 25.3 63.2Female 33.1 17.6 10.9 7.0 3.2 3.0 3.6 1.9 7.0
Total 410.8 237.5 165.1 88.0 43.1 27.9 63.9 33.4 92.0
Avg. Employees / Room 2.1 1.7 1.8 1.5 1.1 1.1 1.8 1.1 1.6
Average Percentage of Trained Employees Per Hotel
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heri tage Others
2010-2011 All
India Average
Number of Responses 38 52 80 293 151 52 29 53 751
Managers 91.7 85.8 91.0 86.0 87.2 93.9 90.2 86.1 87.8
Supervisors 85.1 78.5 86.0 81.4 75.0 83.3 84.7 82.6 81.0
Staff 74.1 67.2 86.0 64.0 58.7 68.8 67.0 64.6 66.5
Total Avg. Trained Employees* 83.6 77.2 87.7 77.1 73.6 82.0 80.6 77.8 78.4
Total Avg. Un-Trained Employees 16.4 22.9 12.3 22.9 26.4 18.0 19.4 22.2 21.6
* The number of non-air-conditioned rooms in lower star category hotels appears to be higher, par tly because many are locatedin hill stations where air-conditioning is not provided in hotels
* Trained Employees includes those with a minimum one-year certificate coursefrom a hotel management or equivalent institution;however, some hotels may have included those with short term (in-house) training
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TABLE1-2:IndianHotelIndustrybyStarCategory:FinancialReportPercentage
ofRevenue(2010-11)
Page 20
COMPOSITION
Five-Star
Deluxe
Five-Star
Four-Star
Three-Star
Two-Star
One-Star
Heritage
Others
2010-2011All
IndiaAverage
NumberofResponses
39
47
65
200
111
54
19
9
544
AverageTotalRoomsPerHotel:
192
141
93
61
39
28
34
26
72
AverageOccupiedRoomsPerHotel:
43,853
30,6
65
20,
125
13,6
33
8,7
82
6,1
03
6,7
35
4,6
81
15,7
68
AverageOccupancyPerHotel:
66.2
%
61.4
%
60
.3%
61.8
%
64.6
%
68.0
%
50.5
%
48.7
%
62.1
%
AverageRatePerHotel(`):
8,045
6,5
16
4,3
11
2,775
2,1
88
866
3,257
1,772
4,578
REVENUE
Rooms
56.9
%
58.7
%
61
.5%
55.8
%
50.7
%
47.7
%
48.4
%
56.1
%
57.2
%
Food&Beverage
23.3
24.8
25.3
31.6
42.3
34.4
36.3
34.3
27.0
Banquets&Conferences
12.1
9.8
9.7
7.9
3.2
2.0
1.8
8.6
9.6
Telephone&Other
0.6
0.4
0.4
0.5
0.7
0.3
0.1
0.0
0.5
MinorOperated*
3.0
3.8
1.7
1.7
1.4
0.2
2.4
0.6
2.6
Rental&OtherIncome
4.1
2.5
1.5
2.6
1.7
15.4
11.0
0.4
3.1
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
DEPARTMENTALEXPENSES
Rooms
18.3
12.7
16.0
16.5
18.0
38.6
19.3
20.0
16.1
Food&Beverage
54.2
37.8
5
6.4
61.6
69.0
72.7
53.6
73.8
52.9
Telephone&Other
48.5
134.8
32.0
253.3
83.0
270.0
120.0
110.0
104.0
MinorOperated*
51.6
40.6
135.9
155.4
95.7
160.0
117.8
167.9
70.4
Rental&OtherIncome
1.6
2.6
9.8
39.7
71.5
9.1
7.5
75.0
11.3
Total
31.5
22.7
32.1
38.3
43.6
50.8
33.6
45.9
31.3
DEPARTMENTALINCOME
49.2
28.7
6
1.7
67.9
56.4
68.5
66.3
54.1
68.7
OPERATINGEXPENSES
Administrative&General
9.6
10.8
10.9
9.4
6.1
7.8
8.8
5.8
9.6
ManagementFee
3.7
2.9
2.1
1.8
3.1
1.7
0.4
0.7
2.8
Marketing
4.8
5.1
2.6
2.2
1.7
4.3
0.9
1.8
3.7
FranchiseFees
0.1
0.5
0.4
0.5
0.0
0.1
0.3
0.1
0.3
PropertyOperations&Maintenance
5.2
5.7
7.9
5.8
7.2
7.8
10.5
6.7
6.0
Energy
7.8
7.3
9.3
11.2
9.8
9.8
8.0
9.9
8.5
Total
31.2
32.2
33.3
30.9
27.9
31.5
28.9
24.9
31.0
HOUSEPROFIT
37.3
45.1
3
4.6
30.8
28.5
17.7
37.5
29.2
37.8
FIXEDEXPENSES
PropertyTaxes
1.1
0.6
0.6
0.8
1.5
2.0
0.2
0.6
0.9
Insurance
0.3
0.3
0.3
0.4
0.5
0.3
0.2
0.9
0.3
OtherFixedCharges
6.5
1.0
0.5
0.7
0.5
1.1
0.2
0.7
2.8
Rent
1.5
1.5
0.8
1.3
1.4
0.8
4.6
0.3
1.4
Total
9.4
3.3
2.2
3.3
3.9
4.2
5.2
2.5
5.4
NETINCOME**
27.7
%
41.8
%
32
.3%
27.6
%
24.6
%
13.5
%
32.3
%
26.7
%
32.4
%
*Minoroperateddepartmentsinclude:
laundry,
giftshop,
businesscentre,
newsstand,
sports,
healthclub,
garage,
parkingan
dsoforth
**NetIncomeisbeforedepreciation,i
nterestpaymentsandtaxes
ID:InsufficientData
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TABLE 1-5: Indian Hotel Industry by Star Category: Market Data
Page 23
Market Segmentation
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011
All India
Average
Number of Responses 38 52 77 338 208 65 30 53 861
Airline Crew 5.2 3.2 1.6 1.0 0.7 0.7 0.0 0.2 1.2Business Traveller - Domestic 18.3 18.6 32.4 32.8 35.2 38.1 6.8 36.2 31.5Business Traveller - Foreign 23.8 21.0 13.5 10.5 6.2 6.8 9.6 8.7 10.5Complimentary Rooms 2.5 1.7 2.1 1.9 1.6 2.1 2.5 1.2 1.8Domestic - Tourists/Leisure FIT 13.2 13.5 14.7 18.0 24.2 21.8 26.7 26.3 19.8Foreign - Tourists/Leisure FIT 10.0 9.2 8.3 8.1 7.5 6.6 27.4 6.3 8.6Meeting Participants (Less than 100 Attendees) 3.1 4.0 4.3 4.3 4.3 3.4 3.6 3.4 4.1Meeting Participants (Over 100 Attendees) 8.1 10.3 8.2 8.3 6.2 5.1 3.5 6.5 7.4Tour Groups - Domestic 4.1 4.2 5.4 7.6 8.6 9.2 4.2 6.7 7.2Tour Groups - Foreign 3.5 9.0 5.7 4.7 2.8 2.8 14.7 3.4 4.7Other 8.1 5.4 3.8 2.9 2.6 3.7 1.1 1.1 3.2Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Guest Analysis
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011
All India
Average
Number of Responses 44 57 91 373 233 67 35 62 962
Domestic Guests 47.1 54.5 70.1 76.8 82.2 79.1 40.7 85.3 74.0Foreign Guests 52.9 45.5 29.9 23.2 17.8 19.3 59.3 14.7 26.0Total 100.0 100.0 100.0 100.0 100.0 98.4 100.0 100.0 100.0
Total Business Guests 67.5 55.5 66.2 60.6 59.5 63.1 24.4 58.0 60.0Total Leisure Guests 32.5 44.5 33.8 38.3 40.5 36.9 75.6 42.0 40.0Total 100.0 100.0 100.0 98.9 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Foreign Guests (Days) 3.2 4.3 3.1 3.7 2.9 2.1 3.1 3.0 3.4Avg. Stay of Domestic Guests (Days) 2.1 2.3 2.6 3.1 2.7 2.1 2.4 2.8 2.8Avg. Stay of Business Guests (Days) 2.1 2.3 2.1 3.9 2.6 2.0 1.7 2.8 3.0Avg. Stay of Leisure Guests (Days) 2.4 2.3 1.9 2.5 2.3 2.3 2.2 2.1 2.3Percentage of Repeat Guests 40.0 32.7 41.3 47.4 46.8 47.4 24.9 52.9 45.1
Country of Origin of Guests
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011
All India
Average
Number of Responses 29 44 51 188 95 21 25 10 463
ASEAN* 4.6 3.9 4.0 6.1 5.1 16.7 0.4 3.0 5.5Australia 3.1 2.9 4.3 3.4 3.4 4.1 4.4 1.1 3.5Canada 2.9 1.7 4.2 4.1 5.2 3.9 3.4 6.6 4.1Caribbean 1.3 0.5 2.9 1.3 0.5 1.9 0.2 0.9 1.2China 2.7 3.4 5.0 6.0 4.5 4.6 1.5 0.8 4.7France 3.2 4.2 4.8 5.1 4.8 4.3 15.1 5.8 5.3Germany 6.0 6.6 7.3 7.4 5.4 5.5 13.2 6.7 7.0
Japan 4.3 6.1 5.9 5.6 3.2 2.5 1.7 6.9 4.8Middle East 2.6 2.7 5.2 4.6 5.5 8.1 1.1 2.2 4.5Other European 8.6 14.2 9.8 9.1 11.4 5.0 13.2 4.9 10.0Russia 6.3 7.6 4.2 4.3 3.4 3.5 1.6 6.0 4.4SAARC ** 3.1 3.4 5.3 5.1 9.0 8.9 1.4 11.7 5.8South Africa 1.9 1.6 2.8 2.8 1.4 5.1 0.6 3.0 2.3UK 16.0 14.3 10.6 12.5 16.8 9.4 21.3 21.7 14.1USA 18.2 10.8 11.0 12.0 11.4 8.7 9.1 12.6 11.7Other 15.3 16.3 12.9 10.7 9.1 7.8 11.8 6.1 11.2Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
* ASEAN: Association of South East Asian Nations
** SAARC: South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives
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TABLE 1-6: Indian Hotel Industry by Star Category: Monthly and Daily Occupancy
TABLE 1-7: Indian Hotel Industry by Star Category: Sources of Reservations
Average Monthly Occupancy
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011 All
India Average
Number of Responses 43 56 87 344 231 65 35 49 910
January 69.0 68.5 66.6 63.3 64.0 68.3 56.8 65.0 64.6February 77.5 74.4 71.4 66.3 63.4 66.5 62.1 80.9 67.7March 67.8 67.8 62.9 59.6 60.2 61.8 56.7 61.5 61.1April 65.0 62.1 57.8 59.8 61.0 62.5 47.3 63.9 60.2May 60.0 57.5 56.3 74.8 63.2 64.7 40.7 74.8 66.3June 59.2 57.4 54.9 57.8 60.8 65.2 41.2 64.8 58.6July 59.7 54.3 55.4 54.8 55.7 63.4 38.1 58.0 55.4August 74.5 67.0 55.9 69.2 55.9 61.6 46.8 57.8 62.7September 65.7 56.2 56.5 57.4 57.6 61.6 43.7 60.1 57.6October 65.0 65.0 61.6 61.6 64.4 68.1 58.2 66.0 63.2November 68.0 70.8 68.5 65.5 65.9 71.0 66.4 70.3 67.0December 66.7 68.3 68.9 68.8 69.4 74.6 63.1 75.1 69.4
Average Daily Occupancy
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011 All
India Average
Number of Responses 40 49 81 325 201 60 23 49 828
Monday 68.3 63.8 60.4 57.2 55.1 60.4 37.8 58.7 57.7Tuesday 69.8 65.9 71.5 57.6 56.6 61.9 37.4 59.8 59.7Wednesday 69.5 67.4 64.2 59.6 58.4 64.7 37.8 60.7 60.6Thursday 67.5 65.9 61.3 60.2 58.6 63.6 38.5 62.7 60.4Friday 62.2 60.8 60.0 60.3 61.8 68.3 47.6 65.5 61.3Saturday 59.2 57.7 55.5 55.6 58.8 64.6 54.6 59.4 57.5Sunday 60.9 54.7 52.4 49.1 50.6 53.3 43.3 49.8 50.9
Source of Advance Reservations
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011 All
India Average
Number of Responses 39 54 86 344 203 61 29 53 869
Chain CRS (Central Reservation System) 11.5 6.7 6.0 3.9 2.9 1.3 6.7 0.8 4.1Direct Enquiry / Hotel Representation 45.7 42.0 46.1 50.6 53.4 61.4 25.8 51.3 50.0Global Distribution System (GDS) 11.0 7.0 3.9 1.9 0.7 0.5 0.7 0.7 2.4Hotel / Chain Website 6.3 4.8 6.4 7.6 8.8 4.5 10.7 10.6 7.6Travel Agent and Tour Operator 13.5 22.1 18.6 20.4 19.6 17.5 44.6 19.9 20.4Other Online Reservation Systems 5.8 5.6 6.8 3.4 2.3 0.8 4.3 3.4 3.6Other Website 2.7 3.7 5.7 6.0 5.5 3.7 4.6 4.8 5.3Other 3.5 8.0 6.6 6.3 6.8 10.3 2.6 8.6 6.7Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
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Technology in Hotels - Percentage of Hotels Using Each Technology
COMPOSITION
Five-Star
Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others
2010-2011
All India
AverageNumber of Responses 37 47 77 328 199 58 30 37 813
Accounting System 94.6% 93.6% 90.9% 90.9% 84.9% 89.7% 86.7% 86.5% 89.3%Call Accounting System 78.4 91.5 76.6 58.5 44.2 41.4 40.0 48.7 57.2Central Reservation System (CRS) 70.3 55.3 57.1 31.7 22.1 8.6 33.3 10.8 32.4Electronic Keycard 83.8 74.5 75.3 42.4 18.6 19.0 10.0 13.5 39.2Energy Management System 46.0 40.4 36.4 26.8 14.6 8.6 13.3 10.8 23.9Internet / E-Mail 97.3 91.5 98.7 95.4 92.5 82.8 100.0 94.6 94.1Internet / Website 94.6 95.7 97.4 89.0 78.4 67.2 93.3 86.5 86.4Intranet System 81.1 57.5 66.2 48.5 32.2 22.4 53.3 35.1 45.9Local Area Network (LAN) 94.6 95.7 94.8 84.2 62.8 53.5 73.3 56.8 77.2Management Information System 75.7 78.7 81.8 61.0 40.7 24.1 70.0 43.2 56.6Point of Sale System for Food and Beverage 100.0 93.6 90.9 79.3 56.8 39.7 73.3 56.8 72.6Property Management System 94.6 89.4 84.4 52.7 28.1 12.1 40.0 24.3 49.1Yield Management System 59.5 27.7 45.5 24.7 13.1 0.0 10.0 5.4 22.4Other 18.9 17.0 20.8 10.7 4.5 0.0 6.7 0.0 9.5
TABLE 1-10: Indian Hotel Industry by Star Category: Technology Management Practices
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2. Indian Hotel Industry Inventory andChain Affiliation
Introduction
In this section, we present key operating statistics and other data for the survey participants according to the
number of rooms. The participating hotels have been classified into three categories: 'less than 50 rooms', '50to 150 rooms', and 'more than 150 rooms'. We have also drawn a comparison between Chain Affiliated andIndependent hotels.
Trends
q Marketing Media: The survey results reveal that TV and outdoor marketing were maximum for hotelswith 50-150 rooms. Direct mail, hotel web site, loyalty card program, merchandising, other Internet site,print advertising, promotions and radio advertising all increase with the size of the inventory, beingmaximum in hotels with more than 150 rooms. The survey analyzed key trends that Chain Affiliated andIndependent hotels use in terms of the medium for marketing tools for their respective properties. Theresults of the analysis show that the use of Direct Mailing, Outdoor Advertising and TV Advertising are
common to both Chain Affiliated and Independent hotels. However, Chain Affiliated hotels are able tobetter leverage their brand names and further reach, enabling greater usage of tools like Hotel Website,Loyalty Card Programs, Merchandising and Telemarketing. An important aspect to note is the increaseduse of Radio Advertising, which is far more economical than TV advertising and also captive to a localmarket.
q Technology: Technology continues to play a vital role in operations for a hotel. Given today's accountingprocedures being mostly online, most hotels whether Chain Affiliated or Independent have AccountingSoftware Systems in place. Property Management Systems, Call Accounting Systems, EnergyManagement Systems and Point of Sale Systems continue to be greater in number for hotels with largerinventory and Chain Affiliation.
q Market Segmentation: An analysis of the market segmentation of hotels based on the stipulatedparameters reveals that properties with inventories below 50 rooms tend to benefit more from domesticdemand, be it for business or leisure. Airline Crew and Foreign Travellers (including business and FIT)tend to generate more demand for hotels with larger inventories (greater than 150 rooms) and those thatare Chain Affiliated.
q Overall Performance: Net income percentages of Chain Affiliated hotels and properties with inventoriesgreater than 150 rooms tend to be higher than their counterparts as they are able to leverage betteroperating efficiency through trained staff, the availability of standard operating procedures andeconomies of scale in operations.
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TABLE 2-1: Indian Hotel Industry Inventory and Chain Affiliation: Facilities Analysisand Staffing
Typical Room Profile of an Average Hotel
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affil iated Independent
Number of Responses 805 443 70 248 1070
Air-Conditioned Single 2.1 8.3 44.3 19.1 3.5
Double 20.2 57.1 155.5 69.1 33.0
Suites 2.9 7.3 20.6 9.8 4.3
Non-Air-Conditioned Single 0.6 1.2 0.2 0.2 0.9
Double 4.8 6.1 5.7 4.1 5.6
Suites 0.5 0.5 1.4 0.9 0.5
Total Average Rooms 31.1 80.6 227.8 103.1 47.7
Average Number of Food & Beverage Outlets Per Hotel
COMPOSITIONLess Than 50
Rooms50 to 150
RoomsMore Than
150 RoomsChain
Affil iated Independent
Number of Responses 652 400 66 228 890
Restaurant 1.4 1.9 3.1 2.1 1.6
Bars 0.7 0.9 1.4 1.1 0.8
Others 0.5 1.0 1.2 1.0 0.7
Total 2.7 3.9 5.7 4.3 3.0
Average Number of Total Employees Per Hotel (Permanent / Contract / Full Time / Part Time)
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affil iated Independent
Number of Responses 692 386 63 228 913
Managers Male 3.4 11.6 42.2 19.0 5.7
Female 0.5 1.7 12.0 4.1 0.9
Supervisors Male 4.5 14.6 49.8 21.3 7.7
Female 0.7 2.3 8.8 3.5 1.2
Staff Male 33.0 89.9 234.0 115.3 50.0
Female 3.1 10.2 29.6 13.5 5.3
Total 42.5 130.0 376.5 176.7 70.8
Average Number of Employees per Room 1.4 1.6 1.7 1.7 1.4
Average Percentage of Trained Employees Per Hotel
COMPOSITIONLess Than 50
Rooms50 to 150
RoomsMore Than
150 RoomsChain
Affil iated Independent
Number of Responses 413 286 49 189 559
Managers 87.3% 87.9% 89.8% 92.5% 86.1%
Supervisors 80.1 81.9 81.4 88.7 78.2
Staff 62.8 71.3 68.3 70.2 65.1
Total Avg. Trained Employees* 76.7 80.4 79.8 83.8 76.5
Total Avg. Un-Trained Employees 23.3 19.6 20.2 16.2 23.5
* Trained Employees includes those with a minimum one-year certificate course from a hotel management or equivalent institution; however, some hotels may
have included those with short term (in-house) training
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TABLE 2-4: Indian Hotel Industry Inventory & Chain Affiliation: Market Data
Page 31
Market Segmentation
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affi liated Independent
Number of Responses 496 311 51 188 670
Airline Crew 0.6% 1.5% 4.6% 2.4% 0.8%
Business Traveller - Domestic 33.5 30.2 20.3 24.1 33.6
Business Traveller - Foreign 7.6 13.0 24.7 15.3 9.2
Complimentary Rooms 1.8 1.9 2.6 1.8 1.9
Domestic - Tourists / Leisure FIT 23.4 15.9 8.7 20.0 19.8
Foreign - Tourists / Leisure FIT 8.9 7.8 9.9 9.8 8.2
Meeting Participants (Less than 100 Attendees) 3.9 4.2 5.2 3.9 4.1
Meeting Participants (Over 100 Attendees) 6.2 9.2 7.6 8.4 7.1
Tour Groups - Domestic 7.6 7.1 4.9 5.7 7.7
Tour Groups - Foreign 4.0 5.7 4.7 5.5 4.4
Other 2.7 3.5 6.8 3.2 3.2
Total 100.0 100.0 100.0 100.0 100.0
Guest Analysis
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affi liated Independent
Number of Responses 344 147 60 412 139
Domestic Guests 78.9% 70.2% 51.2% 64.4% 76.8%
Foreign Guests 20.9 29.8 82.0 35.7 23.1
Total 100.0 100.0 100.0 100.0 100.0
Total business 56.9% 61.7% 70.3% 61.3% 59.3%
Total leisure 42.6 37.8 29.7 38.1 40.3
Total 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Foreign Guests (Days) 3.0 3.7 3.7 2.4 2.9
Avg. Stay of Domestic Guests (Days) 3.0 2.6 2.2 3.7 2.9Avg. Stay of Business Guests (Days) 2.7 3.4 2.1 3.3 3.4
Avg. Stay of Leisure Guests (Days) 2.4 2.3 2.1 2.1 2.4
Percentage of Repeat Guests 46.5 42.8 45.9 36.5 47.3
Country of Origin of Guests
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affi liated Independent
Number of Responses 230 192 38 113 347
ASEAN* 5.7% 5.4% 4.6% 4.4% 5.8%
Australia 3.7 3.3 3.0 3.6 3.4
Canada 4.9 3.4 2.3 3.2 4.3
Caribbean 0.9 1.6 1.2 2.0 0.9
China 4.3 5.6 2.6 4.9 4.6France 6.0 4.8 3.1 5.8 5.1
Germany 7.1 6.9 6.9 5.8 7.4
Japan 4.1 5.7 4.3 5.8 4.5
Middle East 4.7 4.5 2.5 2.6 5.1
Other european 10.3 9.3 12.4 10.4 10.0
Russia 3.0 5.4 8.1 3.4 4.8
SAARC ** 5.8 5.8 4.9 4.0 6.2
South Africa 2.3 2.5 1.5 1.8 2.5
UK 15.3 12.6 14.8 13.6 14.3
USA 11.9 11.0 14.8 12.9 11.4
Other 10.0 12.4 13.4 15.9 9.8
Total 100.0 100.0 100.0 100.0 100.0
* ASEAN: Association of South East Asian Nations
** SAARC: South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives
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Sources of Advance Reservations
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated IndependentNumber of Responses 486 325 56 201 666
Chain CRS (Central Reservation System) 3.5% 4.4% 8.0% 11.2% 2.0%
Direct Enquiry / Hotel Representative 51.3 48.8 46.4 42.9 52.2
Global Distribution System (GDS) 1.2 2.9 9.5 5.4 1.5
Hotel / Chain Website 8.9 5.8 6.0 6.8 7.8
Travel Agent & Tour Operator 20.0 21.3 18.6 17.7 21.2
Other Online Reservation Systems 2.7 4.7 4.8 6.6 2.7
Other Websites 5.3 5.4 3.6 4.2 5.5
Other 7.2 6.6 3.2 5.2 7.2
Total 100.0 100.0 100.0 100.0 100.0
Average Monthly Occupancy
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 517 331 58 203 703
January 63.0% 66.5% 68.2% 64.9% 64.5%
February 65.5 69.6 77.1 70.6 66.9
March 59.4 62.6 69.1 63.9 60.4
April 59.8 60.6 62.8 59.3 60.6
May 61.6 74.1 57.9 57.8 68.3
June 59.6 57.7 55.9 57.0 59.1
July 55.0 56.2 55.8 55.2 55.6
August 64.7 58.8 67.6 62.0 63.0
September 56.5 58.4 63.5 57.8 57.6
October 63.0 63.1 66.5 63.2 63.3
November 66.3 67.5 70.8 68.7 66.6December 69.5 69.7 67.8 66.2 70.4
Average Daily Occupancy
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 459 316 51 179 647
Monday 54.0% 61.0% 69.5% 60.6% 56.8%
Tuesday 55.7 63.4 71.7 65.6 58.0
Wednesday 57.5 63.2 71.8 63.6 59.7
Thursday 57.7 62.9 69.7 62.1 59.9Friday 61.1 61.6 61.2 59.4 61.8
Saturday 58.0 56.7 57.6 56.2 57.8
Sunday 49.0 51.9 60.5 53.1 50.2
TABLE 2-5: Indian Hotel Industry Inventory and Chain Affiliation: Monthly and DailyOccupancy
TABLE 2-6:Indian Hotel Industry Inventory and Chain Affiliation:Sources of Reservation
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Payment Methods Used
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 462 291 50 162 641
Cash Sales 48.8% 33.5% 16.1% 23.5% 45.7%
Credit Card Sales 30.0
37.5
49.1
44.2
31.3
Credit Sales (Other Than Cards) 15.2
23.7
29.6
27.6
17.1
Electronic Fund Transfer 5.9
5.3
5.2
4.6
5.9
Total 100.0 100.0 100.0 100.0 100.0
Credit Cards Used
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 393 266 48 152 555
American Express 5.6% 12.7% 28.7% 20.6% 6.8%
Diners club 2.2
2.6
2.1
3.2 2.1
Mastercard/Eurocard 40.9
35.3
33.3
34.2 39.4
Visa 46.8
45.5
34.0
39.2 47.1
Other 4.6
4.0
2.0
2.8 4.6
Total 100.0
100.0
100.0
100.0
100.0
Average Credit Card Commission
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 308 237 45 144 446
American Express 2.0 2.9 3.0 3.3 2.2
Diners club 0.5 0.8 1.4 1.1 0.5
Mastercard/Eurocard 1.8 1.8 1.2 1.3 1.9
Visa 1.9 2.0 1.2 1.9 1.9
Other 0.3 0.3 0.1 0.2 0.3
Marketing Media - Percentage of Hotels Using Each Media
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 500 339 61 195 705
Direct Mail 78.8 81.7 86.9 80.0 80.6Hotel Web site 81.0 90.9 98.4 95.4 83.3
Loyalty Card Program 24.6 43.1 82.0 65.1 27.2Merchandising 17.6 25.7 36.1 36.4 17.9
Other Internet Site 55.6 69.0 75.4 73.3 58.9Outdoor Advertising 51.6 62.8 59.0 66.7 53.5
Print Advertising 81.8 87.9 95.1 89.2 83.8Promotions 57.0 72.3 86.9 84.1 59.4
Radio Advertising 13.2 24.8 39.3 29.2 16.6Telemarketing 42.2 59.9 59.0 61.0 47.0
TV Advertising 22.2 25.4 18.0 24.1 22.8
TABLE 2-7:Indian Hotel Industry Inventory and Chain Affiliation: Marketing Media
TABLE 2-8:Indian Hotel Industry Inventory and Chain Affiliation: Payment Methods
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TABLE 2-9: Indian Hotel Industry Inventory and Chain Affiliation: Technology
Page 34
Technology in Hotels - Percentage of Hotels Using Each Technology
COMPOSITION
Less Than 50
Rooms
50 to 150
Rooms
More Than
150 Rooms
Chain
Affiliated Independent
Number of Responses 456 302 51 186 623
Accounting System 88.8% 90.1% 94.1% 93.0% 88.6%
Call Accounting System 47.4 68.5 80.4 71.0 53.3
Central Reservation System (CRS) 24.6 40.7 52.9 66.1 22.3
Electronic Keycard 24.3 54.3 86.3 61.8 32.7
Energy Management System 18.2 28.8 47.1 37.1 20.1
Internet / E-Mail 92.5 95.7 98.0 94.1 94.1
Internet / Website 80.9 92.7 96.1 88.7 85.6
Intranet System 37.9 53.0 72.6 62.9 40.6
Local Area Network (LAN) 68.2 87.8 94.1 85.5 74.6
Management Information System 45.6 71.2 70.6 72.6 52.0
Point of Sale System for Food and Beverage 62.3 84.4 94.1 85.0 68.9
Property Management System 35.1 62.6 98.0 75.3 41.6
Yield Management System 14.7 28.8 54.9 40.9 17.0
Other 4.8 14.6 21.6 18.8 6.7
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3. Indian Hotel Industry Seven Major Cities
Introduction
In this section, we present the operating profiles and financial data for different categories of hotels in sevenmajor cities: Bengaluru, Chennai, Goa, Kolkata, Mumbai, Delhi-NCR and Pune. This section will provide thereader an understanding of hotel performance in these cities.
Trends
The key trends noted in the 2010/11 survey across the seven major participating cities are presented below.
q Guest Analysis: Goa, as expected, witnessed the highest number of days with respect to the length ofstay in the international traveller segment. The length of stay was relatively lower among domestictravellers, highlighting a trend wherein domestic travellers visit Goa for short weekend getaways.Length of stay durations in Delhi-NCR and Mumbai continue to remain the shortest, indicative of thehigh Commercial demand these cities benefit from.
q Market Segmentation: A distinct change from the previous year's survey is seen across the market
segmentation for the seven major cities. While the overall contribution of the business traveller hasdropped slightly across all cities, the percentage contribution of the Leisure segment has grown overthat in last year. Almost all cities with the exception of Bengaluru have seen a double digit growth in theLeisure segment.
q Monthly Occupancy: Occupancy trends during the year reveal the seasonal nature of the Goa marketwhich primarily benefits from Leisure demand. June to August is monsoon season in Goa and tends towitness low occupancy levels owing to lower tourist movement during that time. Occupancy levelsacross the other major cities indicate the Commercial nature of demand the cities benefit from resultingin fairly stable occupancies all year round.
q Operating Costs: Energy costs as a percentage of revenue are observed to be high in Chennai, Mumbai
and Pune. The Per Occupied Room (POR) expenses in Rooms and F&B across all cities when comparedto those last year indicate the effects of inflationary pressures on operating costs of hotels.
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TABLE3-2:IndianHotelIndustrySevenMajorCities:Staffing
Page 37
AverageNumberofTotalEmployeesP
erHotel(Permanent/Contract/FullTime/PartTime)
Pune
COMPOSITION
Five-S
tar
Deluxe,
Five-S
tar
Four
Star,Three-
Star&Two-
Star
Five-S
tar
Deluxe,
Five-S
tar
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Four-Star
&Three-
Star
Five-S
tar
Deluxe,
Five-S
tar
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Four-Star
&Three-
Star
Two-S
tar&
One-S
tar
Five-S
tar
Deluxe&
Five-S
tar
FourStar
&Three-
Star
TwoStar
&One
Star
FourStar
Three-S
tar
&Two-S
tar
NumberofResponses
11
35
10
24
11
19
8
21
17
47
52
8
2
6
13
33
Managers
Male
35.8
10.7
35.3
13.0
3
7.7
6.6
36.9
2.7
57.7
8.9
2.4
48.9
14
.9
1.7
4.0
Female
11.0
1.7
7.0
1.6
9.6
1.1
11.0
0.3
17.5
1.5
0.3
11.3
3
.3
0.7
0.9
Supervisors
Male
35.9
14.0
41.2
14.3
3
5.9
9.0
43.9
6.5
60.6
12.0
2.7
64.5
14
.5
1.4
5.4
Female
5.9
2.1
4.3
1.5
6.5
2.2
9.3
0.8
11.8
2.6
0.7
12.9
3
.1
0.2
1.0
Staff
Male
212.6
84.1
217.2
88.4
20
2.6
87.2
195.8
37.0
228.3
77.3
25.2
174.1
102
.2
14.0
29.1
Female
25.8
7.4
25.8
10.5
3
1.6
8.8
37.1
1.5
3
3.1
5.5
1.6
16.1
9
.2
0.9
2.9
Total
327.1
120.0
330.8
129.1
32
4.0
114.8
333.9
48.7
409.0
107.8
32.9
327.8
147
.0
18.8
43.4
AverageNumberofEmployeesperRoom
1.9
1.7
2.1
1.9
2.0
1.8
2.0
1.3
1.9
1.9
1.1
2.6
1
.7
0.5
1.0
AveragePercentageofTrainedEmplo
yeesPerHotel
Pune
COMPOSITION
Five-S
tar
Deluxe,
Five-S
tar
Four
Star,Three-
Star&Two-
Star
Five-S
tar
Deluxe,
Five-S
tar
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Four-Star
&Three-
Star
Five-S
tar
Deluxe,
Five-S
tar
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Four-Star
&Three-
Star
Two-S
tar&
One-S
tar
Five-S
tar
Deluxe&
Five-S
tar
FourStar
&Three-
Star
TwoStar
&One
Star
FourStar
Three-S
tar
&Two-S
tar
NumberofResponses
9
21
8
18
10
12
8
11
13
34
18
8
2
3
9
17
Managers
83.2%
87.5
%
97.2
%
82.4
%
76.9
%
88.1
%
90.6
%
94.6
%
89.
0%
89.6
%
100.0
%
86.5
%
93.9
%
98.2
%
95.1
%
Supervisors
81.1
80.8
94.9
82.5
6
3.4
83.5
77.4
83.0
8
7.1
66.1
70.2
74.2
129
.3
88.9
85.8
Staff
66.4
67.2
80.7
69.7
5
9.2
63.9
72.2
53.8
69.9
55.4
55.4
71.8
79
.7
91.9
83.0
TotalAvg.
TrainedEmployees*
76.9
78.5
90.9
78.2
6
6.5
78.5
80.1
77.1
82.0
70.4
75.2
77.5
101
.0
93.0
88.0
TotalAvg.
Un-TrainedEmployees
23.1
21.5
9.1
21.8
3
3.5
21.5
19.9
22.9
18.0
29.7
24.8
22.5
10
.0
7.0
12.0
*TrainedEmployeesincludesthosewithaminimumone-yearcertificatecoursefromahotelmanage
mentorequivalentinstitution;however,somehotelsmayhaveincludedthosewithshortterm(in-house)training
Bengaluru
Chennai
Goa
Kolkata
Mumbai
Bengaluru
Chennai
Goa
Kolkata
Mumbai
NewDelhi-NCR
NewDelhi-NCR
-
8/2/2019 FH & RA India.
42/60
-
8/2/2019 FH & RA India.
43/60
-
8/2/2019 FH & RA India.
44/60
-
8/2/2019 FH & RA India.
45/60
-
8/2/2019 FH & RA India.
46/60
AverageMonthlyOccupancy
Pune
COMPOSITION
Five-S
tar
Deluxe,
Five-S
tar
Four-
Star,Three-
Star&
Two-
Star
Five-S
tar
Deluxe,
Five-S
tar
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Fo
ur-Star
&
Three-
Star
Five-S
tar
Deluxe,
Five-
Star
&Four-
Star
Three-S
tar
&Two-S
tar
Five-S
tar
Deluxe&
Five-S
tarF
our-Star
&Three-
Star
Two-S
tar&
One-S
tar
Five-S
tar
Deluxe&
Five-S
tar
Four-Star&
Three-S
tar
Two-S
tar&
One-S
tar
FourStar
Three-S
tar
&Two-S
tar
NumberofResponses
11
28
8
21
11
18
8
22
16
39
48
9
23
9
24
January
64.3
%
55.2
%
67.8
%
67.3
%
84.4
%
75.9
%
76.9
%
72.1
%
76.3
%
79.9
%
75.5
%
68.6
%
65.3
%
61.1
%
58.3
%
February
74.2
59.0
74.6
68.3
86.6
80.1
83.0
71.7
83.8
83.4
76.3
85.4
79.5
60.3
61.3
March
70.7
52.0
70.3
62.9
84.6
71.5
76.2
63.7
67.9