Hvs fhrai - indian hotel industry survey 2012-13

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Hvs fhrai - indian hotel industry survey 2012-13

  1. 1. For more information, or additional copies of this document, please contact: Secretary General Federation of Hotel & Restaurant Associations of India (FHRAI) B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg New Delhi - 110 001 India Tel: Fax: Email: Website: +91 (11) 4078 0780 +91 (11) 4078 0777 fhrai@vsnl.com www.fhrai.com Price: FHRAI Members: FHRAI Non-Members: International: `500 (per additional copy) `700 US$50 © Federation of Hotel & Restaurant Associations of India, 2013 Reproduction of data from within this publication is permitted provided that acknowledgement is accredited to the FHRAI and HVS India.
  2. 2. Table of Contents Foreword from the President, FHRAI About HVS Synopsis and Key Highlights .................................................................................................................................. 1 Country Trends ............................................................................................................................................ 3 City Trends ................................................................................................................................................... 8 1. Indian Hotel Industry – Star Category ........................................................................................................... 17 2. Indian Hotel Industry – Inventory and Chain Affiliation .......................................................................... 26 3. Indian Hotel Industry – Seven Major Cities ................................................................................................. 34 4. Indian Hotel Industry – Thirteen Other Cities ............................................................................................. 45
  3. 3. Foreword The Federation of Hotel & Restaurant Associations of India is pleased to present the sixteenth annual edition of the Indian Hotel Industry Survey, in cooperation with HVS India. 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 all the detailed information they have provided, thereby helping to improve the quality of this research. The Indian Hotel Industry Survey analyses the performance of the Indian hospitality industry across parameters 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 a clear picture of the operating statistics of India's hospitality sector. Data collected from our member hotels, our extensive historic database and the credibility of our research have helped make this report a preferred tool for hotel professionals, consultants, investors, bankers, researchers, government officials in the tourism department, 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 detailed information and thirteen other cities where information was available with us for some hotels, though not in sufficient numbers for all the star categories. We earnestly request all our members to be more forthcoming with sharing the required information as this helps to take up various issues confronting the industry, both at the centre and state level. It is only when armed with accurate data that we can convince the policy makers to give us the importance and priority that our industry deserves to fulfil its potential in India's economic growth. Therefore, while we have basic data for 1,450 members (an increase from the 1,320 responses received last year), the financial data is not available for all of them. Though the major apprehension of each one of those members for not sharing the required information for this report might be the confidentiality of their data, members should rest assured that there is complete security of data by HVS. We encourage feedback on the presentation and content of this report to enable us to improve it each year. We are thankful to HVS India for their continued support for this project as well as HVS Sustainability for having sponsored the current edition. S M Shervani President, FHRAI www.fhrai.com
  4. 4. About HVS HVS is the world's leading consulting and services organisation focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries. Established in 1980, the company performs 4,500+ assignments each year for hotel and real estate owners, operators, and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of more than 30 offices and 450 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. 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 Asian region covering India, Sri Lanka, Bangladesh, Pakistan, Nepal, Bhutan, and the Maldives. The different verticals based on the services offered by the HVS India are summarised below: CONSULTING AND VALUATION The Consulting and Valuation team comprises highly experienced industry professionals offering the utmost level of expertise and credibility. Our consultants understand the hotel business and have received qualifications from leading hospitality schools across the world, while also possessing actual hotel operating experience. As a part of our Consulting and Valuation services, we offer the following: • Market Studies • Feasibility Studies and Return-on-Investment Analyses • Development Strategy Recommendations • Valuations (Single Asset and Portfolio) • Market Entry Strategy Studies • Land Bid Evaluations and Residual Land Valuations • Investment and Transaction Advisory Services (Buy and Sell Side) • Operator Search and Management Contract Negotiations • Operational Audit & Advisory Services EXECUTIVE SEARCH Executive Search, another vertical to the base of services offered, entered the Indian subcontinent in 2001 and currently manages diverse portfolios across varied sectors. In India, HVS Executive Search has offices in New Delhi and Mumbai, and is among South Asia's first retained Executive Search practices. It provides advisory services to leaders of the hotel, restaurant, real-estate, manufacturing, retail, telecom, energy, and education industries. Practice areas include senior-level executive search, mid-management recruitment, and compensation consulting.
  5. 5. MARKETING AND COMMUNICATIONS HVS Marketing Communications (HVS MC) offers comprehensive strategic marketing and creative implementation support to upcoming and existing hotels in India and across the globe. Uniquely positioned as a strategic marketing consultancy powered by an innovative design/creative team, HVS MC specialises in proactive conceptualisation and consistent implementation of brand positioning, marketing strategies and creative communications, all with a focus on return on investment. Founded on HVS's renowned understanding of hospitality industry and its operations, HVS MC has the unique ability to create and implement successful marketing solutions for its clients and ensures brand maximisation through a consistent marketing approach. HVS Marketing & Communications services include conceptualisation and implementation of: • Strategic Launch/Promotional Marketing and Media Plans • Brand Architecture, Identities and Manuals • Advertising and Creative Development Support • Proactive and Seamless Implementation SUSTAINABILITY HVS Sustainability provides a range of business-driven consulting services helping hotel owners and operators reduce their operating expenses through diligent facility management and informed strategic investment into building equipment. We adapt our approach on an asset-by-asset basis and focus on the provision of financially-viable recommendations that can be immediately incorporated into both operational and capital plans for a particular property. Our unique approach leverages the resources and technical expertise of the world's leading engineers, facility management professionals, and equipment vendors. We further promote accessibility to conventional and non-conventional financing mechanisms for utility efficiency projects. ® Additionally, ECOTEL is a prestigious We specialise in the following: environmental certification managed by HVS Sustainability specifically for the hospitality • Benchmarking sector. This certification enables hotels to become sustainable by • Auditing primarily reducing the environmental impact of their business and • Project Implementation Support becoming financially more viable and socially responsible. • Strategic Advisory HVS FOOD & BEVERAGE SERVICES HVS Food & Beverage Services specialises in consulting and project execution of all aspects of the F&B business - restaurants, banquet/catering facilities, hotels, conference centres and private clubs. Specific services offered by us include: • Restaurant, Bar and Events' Facility Appraisal • Market Overview for F&B Projects • F&B Feasibility Studies • F&B Consulting • Conceptualisation of F&B Solutions • Complete Project Execution • Management Contracts - Restaurants and Bars The FHRAI Indian Hotel Industry Survey 2012-13, which will be referred as FHRAI Survey from here on, brings together the industry's key statistics and serves as an easy reference volume. We are grateful to all those who have contributed towards the same and look forward to increased participation in the years to come. Kaushik Vardharajan Managing Director Bhoomija Vadehra Analyst Tulika Das Research Associate
  6. 6. Synopsis and Key Highlights Introduction The Indian hospitality industry has emerged as one of the key industries driving the growth of the services sector. The FHRAI Indian Hotel Survey 2012-13 aims to provide the most comprehensive guide to all India performance trends for this industry. Results of the Survey will empower industry stakeholders such as owners, investors, operators, business analysts, and researchers with information on the operational aspects of the industry. It will also help owners benchmark the performance of their operations against industry standards and seek professional help if corrective measures are required. Data Collection The data for the FHRAI Indian Hotel Survey 2012-13 has been contributed by the member hotels of FHRAI. The FHRAI sends out a questionnaire to each of its members (numbering 2,505 hotels as of December 2013), of which 1,450 responded. The data received is then analysed and presented in this report. Methodology The data received from hotels participating in the Survey is sorted and filtered according to the objectives of the Survey. The data is then processed and analysed to extract important information pertaining to the performance of the Indian hospitality sector across crucial parameters. These parameters such as guest segmentation, hotel finances, marketing, sources of reservations, and seasonality, amongst others are then presented under the following categories: • Star: Five-Star Deluxe, Five, Four, Three, Two, and One Star, Heritage hotels, and Other hotels (which are not classified under any star rating). • Inventory: Number of rooms in hotels are categorised as Less than 50 Rooms, 50-150 Rooms, and More than 150 Rooms. • Affiliation: The two types of affiliations used to categorise hotels are Affiliated to Chain and Independent. • Primary Markets: The seven major cities covered in this report are Bengaluru, Chennai, Goa, Kolkata, Mumbai, Delhi-NCR, and Pune. • Secondary Markets: The thirteen secondary cities presented in this report are Agra, Ahmedabad, Bhopal, Coimbatore, Gurgaon, Hyderabad, Indore, Jaipur, Kochi, Nagpur, Shimla, Thiruvananthapuram, and Vadodara. Page 1
  7. 7. Qualifying Conditions • While it is our endeavour to represent all the cities in India, we are limited by the data received from the participating hotels. In order to make the study relevant, we present data for only those categories for which we have a minimum of four participating hotels. • Hotels across different categories showing similar characteristics have been combined under the same category when sufficient responses are not available for each category. • To facilitate better evaluation of data across comparable groups, the financial statements are presented through Net Income before any deduction of depreciation and interest, which are hotel/owner specific. Limiting Condition • In some cases, there are large fluctuations in the data and this noise in the data may be attributed to the changing participation in the Survey and this may not be an accurate representation of market performance. Presentation of Financial Data • Percentage of Revenue is an assessment of costs as a percentage of revenue. Departmental expenses are portions of individual revenue heads while Operating and Fixed Expenses are deducted from Gross Hotel Revenue following the international accounting guidelines. • Amount per Available Room (PAR) is the financial performance of a single room and is based on the total inventory. • Amount per Occupied Room (POR) is the financial performance of a single occupied room. All amounts presented in this report have been rounded to the nearest whole number and are in Indian rupees (`) for the fiscal year 2012-13 (April-March). In the financial statements, amounts are provided as amounts per available room (PAR) and per occupied room (POR) in order to eliminate differences in the size of hotels surveyed. Page 2
  8. 8. Key Trends This section is divided into two parts: Country Trends and City Trends. In the first subsection, an overview is provided of the broad trends along with Survey findings related to key operating statistics that have been observed in the country in the past year. This is followed by the City Trends, which reflect HVS’s perception of each city, as well as our expectations with regard to its future performance. An interesting trend to note is the correlation between the supply and demand growth, with the supply growing at 17.8% compounded annual growth rate (CAGR) and demand at 17.3% from 2008-09 to 2012-131. The fact that occupancy levels remained generally stable during this period despite strong increases in supply, is indicative of the healthy growth in demand. However, the occupancy performance is only part of the story; there appears to be a trend where hotels are dropping average rates to attract customers in the face of increased supply. As a result, HVS is of the opinion that a new customer mindset is emerging that is sensitive to the price instead of the traditional one, which was more loyal to a hotel/brand. As operators battle increasing departmental costs and owners struggle with debt service payments, hotel companies need to reconsider their rate strategies. Country Trends • Hotel Industry Performance – Growth in Demand and Supply: In 2012-13, the country experienced a slowdown in growth across sectors, as reflected in GDP growth of 5%2. Despite this slowdown, the year saw hotels maintain occupancy levels at a steady 60.4% (60.9% in 2011-12). HVS estimated that major cities across the country witnessed a growth of 11% in hotel room supply in 2012-13, while demand exhibited a strong increase of 9.2% during the same period1. The nationwide results of this year's Survey, however, reveal that the average rates declined by 3.6% when compared to those in 2011-12 (Exhibit 1). EXHIBIT 1: Occupancy and Average Rate – 2008-09 to 2012-13 5,000 65% 63.1% 62.1% 60.9% 3,000 59.9% 60.4% 2,000 55% 1,000 50% 2008-09 2009-10 2010-11 Average Rate • 1 2 60% Occupancy (%) Average Rate (`) 4,000 70% 2011-12 2012-13 Occupancy Increasing Contribution from Food & Beverage and Banquets & Conferences to the Revenue Mix: India continues to receive a greater contribution from both the Food & Beverage (F&B) and the Banquets & Conferences department. The Banquets & Conferences segment also recorded a year-on-year increase of 17.4% in PAR revenue in 2012-13 (`2,26,793) over that in 2011-12, while Food & Beverage recorded an increase of 4.2% in the PAR revenue (`5,41,494) for the same period. HVS 2013 Hotels in India Trends and Opportunities Report Economic Survey 2012-13, Ministry of Finance, Government of India Page 3
  9. 9. Exhibit 2 illustrates that the revenue contribution (in percentage of total revenue) from Rooms has seen a steady decline over the last five years, recording a negative CAGR of 4% between 2008-09 and 2012-13. Going forward, as the competition further increases in the market with the entry of new supply, we expect F&B revenues to continue to contribute a large portion of gross revenues as they are not solely driven by occupancies. Additionally, the burgeoning middle class and its propensity to spend will continue to augment demand for F&B across cities in India. With hotels focusing on the Banquets & Conferences segment in off-season months to beat seasonality, this department is also anticipated to increase its contribution to the total revenue pie. EXHIBIT 2: Sources of Revenue – 2008-09 to 2012-13 100% 5.0% 8.8% 5.8% 6.2% 6.5% 6.6% 8.9% 9.6% 10.4% 12.2% 25.6% 28.6% 27.0% 27.9% 60.5% 56.7% 57.2% 55.2% 52.2% 2008-09 2009-10 2010-11 2011-12 2012-13 80% 29.0% 60% 40% CAGR-4% 20% 0% Rooms • Food & Beverage Banquets & Conferences Other Declining Net Income (as a percentage of total revenue): The FHRAI Survey results in the last five years have shown that Net Income as a percentage of the total revenue has consistently declined year-on-year, as witnessed by a CAGR of -5.7%. The year 2012-13 has seen a decline of 4.7% in Net Income as a percentage of revenue over the previous year. This phenomenon is mainly attributable to rising departmental costs, which are a result of rising inflation coupled with an increase in Energy costs. The last year also experienced an increase in departmental expenses as a percentage of total revenues, resulting in declining profits. Exhibit 3 illustrates the FHRAI Survey trends in Revenue and Net Incomes over the past five years. Page 4
  10. 10. EXHIBIT 3: Revenue and Net Income – 2008-09 to 2012-13 2,000 40% 37.9% 1,800 35% 32.4% 1,600 31.4% 30.0% 25% 1,200 1,000 20% 800 15% 600 10% 400 5% 200 0 0% 2008-09 2009-10 Revenue (PAR) • 30% 1,400 Net Income (%) PAR Revenue and Net Income (`000s) 33.8% 2010-11 Net Income (PAR) 2011-12 2012-13 Net Income % Increasing Utility Costs: Energy costs continue to rise and pose a challenge to the hotel industry. The Survey, this year, has revealed a rise of 13% in PAR energy costs (`1,82,067) over that in the previous year (`1,61,479). Additionally, the Survey results show that only 26% of the hotels surveyed have an energy management system in place across India (Table 1-10). The rise in Energy costs coupled with the limited conservation measures employed highlight the dire need for sustainable practices to be used in the industry. HVS is currently tracking a proposed supply of 84,650 branded rooms2, of which 60% is actively under development and is expected to enter the Indian hotel market over the next five years. Given the anticipated increase in hotel room supply, together with a high inflationary environment, HVS reemphasises the need for operational efficiency and sustainable practices in order to curtail further decline of profitability. Going forward, companies like HVS Sustainability can assist hotels in improving their financial performance along with the environmental and social one. • Continuing High Manpower to Room ratios: Employee-to-room ratios in India continue to be on the higher side when compared with global benchmarks, almost twice as much. The all India average of employee-to-room ratio stands at 1.6. This can be attributed to the large chunk of four star and three-star hotel respondents, which have an average employee-to-room ratio of 1.7. Typically, hotels in India provide services and facilities beyond their positioning; hence, they require more manpower. With rising manpower costs, the higher ratios are posing a problem to hotel companies. Hence, companies are now seeking ways to rationalise employee-to-room ratios and cut down on payroll costs, which will improve operational efficiency. Effective manpower management is the need of the hour along with effective training programmes. The training programmes include cross exposure to other 2 HVS 2013 Hotels in India Trends and Opportunities Page 5
  11. 11. departments, hotels and brands, consequently incentivising staff and simultaneously training them to multitask. This training focusing on multitasking would save on manpower and reduce payroll costs, leading to overall increase in efficiency. Additionally, given the increasing supply of new hotels entering the country, effective training should be accompanied by growth opportunities for existing employees and sound retention policies, to keep good talent from moving to the competition. This will also help stabilise costs over time, as companies need not incur fresh costs in hiring replacements. • Changing Source Markets: The United Kingdom and the United States of America are the largest international source markets for the Indian hospitality sector, contributing 23% of the overall demand in 2012-13. However, it has been observed that their share continues to decline as witnessed by the 4.3% drop this year as compared to last year’s arrivals. This may be attributed to the fact that Indian hotels have seen a greater contribution from the Middle East, Russia, and the SAARC nations. The rise in visitation from Asia and the Middle East may be attributed to the improved connectivity, easier visa norms and infrastructure development. • Market Mix and Declining Seasonality: The Indian hotel industry continues to cater to the Business traveller, who contributes the largest share to the market mix at 39%(Exhibit 4); this is primarily due to the fact that most hotels are situated in business cities. The Survey also reveals an increase in the growth of Meeting Participants segments (fewer than 100 and more than 100 attendees). As mentioned earlier, it has been noticed across the country that hotels are targeting Banquets & Conferences in off-season months with attractive packages and rates in order to off-set the low occupancies experienced during the traditionally slow season. Additionally, both the Domestic Business and the Domestic Leisure traveller have continued to show resilience and maintain their share of the pie and overall length of stay, when compared to the nationwide average from last year's survey. While the real growth in 2012-13 came from the Domestic travellers, it is interesting to note that India also experienced an increase of 5.4% in foreign tourist arrivals (FTA)3 . EXHIBIT 4: Market Mix – 2012-13 1.30% Airline Crew 3.90% Business Traveller - Domestic 5.18% Business Traveller - Foreign 7.10% Complimentary Rooms 30.10% Domestic - Tourists/Leisure FIT Foreign - Tourists/Leisure FIT Meeting Participants (Less than 100 Attendees) Meeting Participants (Over 100 Attendees) 8.13% 4.54% 8.36% 8.90% Tour Groups - Domestic Tour Groups - Foreign 20.47% Other 2.02% Table 1 illustrates the nationwide key operating statistics of the respondents of the Survey. 3 Annual Report 2012-13 Ministry of Tourism Page 6
  12. 12. Page 7 72 15,768 62.1% 4,578 2010-11 All India Average 544 8.7 2.7 2.7 0.5 5.4 8.5 28.5 41.2 0.6 0.3 1.1 1.3 3.4 37.9% OPERATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Property Taxes Insurance Other Fixed Expenses Rent Total NET INCOME** 0.9 0.3 2.8 1.4 5.4 32.4% 9.6 2.8 3.7 0.3 6.0 8.5 31.0 37.8 16.1 52.9 104.0 70.4 11.3 31.3 68.7 0.7 0.3 1.5 1.1 3.6 31.4% 10.2 2.7 3.1 0.5 5.6 8.7 30.9 35.0 18.0 57.0 94.7 57.4 7.4 34.1 65.9 55.2% 27.9 10.4 0.4 3.1 3.0 100.0 77 16,864 60.9% 4,677 0.8 0.3 1.4 1.3 3.9 30.0% 9.5 2.0 3.0 0.5 5.9 9.8 30.7 33.8 19.3 55.2 91.7 66.0 9.4 35.4 64.6 52.2% 29.0 12.2 0.4 2.9 3.3 100.0 74 15,990 60.4% 4,507 2011-2012 All 2012-2013 All India Average India Average 515 629 10,031 4,522 18,365 21,784 54,702 616,694 141,121 44,133 44,439 8,496 87,780 138,749 464,717 671,396 146,192 310,165 7,291 25,554 3,553 492,755 1,136,110 985,310 417,248 144,054 9,154 36,360 36,743 1,628,870 72 15,174 59.9% 4,149 2009-10 All India Average 526 72 15,768 62.1% 4,578 2010-11 All India Average 544 11,819 5,355 21,935 15,392 54,500 523,484 140,057 40,243 39,920 7,795 88,550 138,097 454,661 577,985 149,683 325,793 7,776 28,555 3,285 515,092 1,032,645 876,919 443,367 137,353 8,618 43,594 37,885 1,547,737 15,310 5,727 48,282 24,044 93,363 565,633 167,965 49,008 65,375 5,317 105,099 147,899 540,662 658,996 160,980 337,840 8,945 32,254 6,124 546,142 1,199,660 997,815 471,013 168,253 8,600 45,825 54,294 1,745,800 Amount Per Available Room (`) 69 15,143 63.1% 4,487 2008-09 All India Average 474 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes 0.8 0.4 1.4 1.0 3.5 33.8% 9.1 2.6 2.6 0.5 5.7 8.9 29.4 37.4 17.1 56.1 90.2 65.5 8.7 33.3 66.7 14.8 55.3 79.7 70.3 9.7 30.3 69.8 57.2% 27.0 9.6 0.5 2.6 3.1 100.0 Percentage of Revenue 72 15,174 59.9% 4,149 56.7% 28.7 8.9 0.6 2.8 2.5 100.0 Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): 60.5% 25.9 8.6 0.6 2.2 2.3 100.0 69 15,143 63.1% 4,487 COMPOSITION Number of responses: 2009-10 All India Average 526 REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME 2008-09 All India Average 474 TABLE 1: Trends in Key Operating Statistics 13,478 5,297 27,797 20,803 67,374 584,534 189,533 50,767 58,263 10,014 103,827 161,479 573,883 651,908 185,231 406,005 6,775 32,827 4,195 635,033 1,225,790 1,026,910 519,739 193,211 7,158 57,221 56,586 1,860,820 77 16,864 60.9% 4,677 15,571 6,231 26,773 23,777 72,353 559,009 177,611 37,389 56,470 8,920 109,845 182,067 572,302 631,362 188,227 424,357 6,140 36,208 5,735 660,667 1,203,660 973,670 541,494 226,793 6,693 54,881 60,800 1,864,330 74 15,990 60.4% 4,507 2011-2012 2012-2013 All India All India Average Average 515 629 72 15,174 59.9% 4,149 2009-10 All India Average 526 46 21 84 99 249 2,808 643 201 202 39 400 632 2,116 3,058 666 1,412 33 116 16 2,244 5,174 4,487 1,900 656 42 166 167 7,418 56 25 104 73 258 2,477 663 190 189 37 419 653 2,151 2,734 708 1,541 37 135 16 2,437 4,885 4,149 2,098 650 41 206 179 7,322 70 26 222 110 428 2,595 771 225 300 24 482 679 2,480 3,023 739 1,550 41 148 28 2,506 5,504 4,578 2,161 772 39 210 249 8,009 72 15,768 62.1% 4,578 2010-11 All India Average 544 Amount Per Occupied Room(`) 69 15,143 63.1% 4,487 2008-09 All India Average 474 61 24 127 95 307 2,662 863 231 265 46 473 736 2,614 2,969 844 1,849 31 150 19 2,892 5,583 4,677 2,367 880 33 261 258 8,476 77 16,864 60.9% 4,677 72 29 124 110 335 2,587 822 173 261 41 508 843 2,649 2,922 871 1,964 28 168 27 3,058 5,571 4,507 2,506 1,050 31 254 281 8,629 74 15,990 60.4% 4,507 2011-2012 2012-2013 All India All India Average Average 515 629
  13. 13. City Trends Table 2 illustrates average occupancy and rate for 33 cities/regions across the country over the last five years culled from the FHRAI 2012-13 Survey results. This is followed by HVS's viewpoint on the demand-supply scenario and performance of the 20 identified hotel markets, based on in-house research and data from ‘HVS 2013 Hotels in India Trends & Opportunities’. TABLE 2: Average Occupancy and Average Room Rate: 33 Cities/Regions in India City All India Agra Ahmedabad Aurangabad Bengaluru Bhopal Chandigarh Chennai Coimbatore Darjeeling Delhi - NCR* Goa Hyderabad Indore Jaipur Jodhpur Kochi Kolkata Kullu-Manali Lucknow Mount Abu Mumbai Mussoorie Mysore Nagpur Pune Raipur Shimla Thiruvananthapuram Ootacamund Udaipur Vadodara Visakhapatnam Gurgaon 2008-09 2009-10 Occupancy 2010-11 63.1% 54.8% 63.7% 56.5% 56.5% 72.2% 79.6% 64.6% 72.1% ID 64.8% 61.7% 56.3% 68.7% 61.4% 51.0% 67.4% 69.6% 50.9% 63.0% 69.4% 71.2% 48.0% 67.7% ID 65.5% 64.3% 52.7% 57.9% 58.1% 51.6% 77.9% 69.0% 59.9% 57.0% 65.7% 57.9% 52.6% 66.1% 69.1% 65.6% 75.5% 47.2% 64.6% 63.1% 58.8% 65.2% 57.7% 43.2% 64.4% 64.5% ID 58.7% 67.5% 67.2% 45.9% 67.7% 61.5% 53.2% 39.0% 48.0% 55.3% ID 47.0% 65.6% 62.1% 62.1% 63.2% 67.6% 59.5% 53.8% ID 70.4% 64.8% 72.8% ID 59.0% 64.4% 53.3% 65.4% 64.0% 49.2% 74.2% 65.4% ID 59.8% 63.0% 69.0% 52.5% 71.4% 76.6% 53.3% ID 42.7% 61.8% ID 55.2% 77.8% 76.3% 2011-12 2012-13 60.9% 68.3% 65.1% ID 58.7% 78.0% ID 69.1% 66.5% ID 61.4% 69.5% 55.4% 57.9% 59.4% 48.8% 81.1% 67.1% ID 63.3% ID 73.5% 39.4% 62.4% ID 53.2% ID 47.8% 60.9% ID 52.1% 71.7% ID 65.5% 60.4% 60.3% 63.0% 49.0% 56.6% 72.4% 65.4% 69.8% 61.3% ID 57.1% 67.7% 55.7% 61.4% 58.6% 46.3% 71.5% 67.1% ID 65.0% ID 71.5% ID 65.7% 54.1% 57.8% ID 56.5% 57.1% ID 59.5% 68.0% 63.3% 61.0% 2008-09 4,487 4,211 4,039 2,289 9,757 2,639 3,716 4,678 3,255 ID 6,087 5,378 4,730 1,933 4,472 3,964 2,062 5,342 3,716 2,491 1,823 6,822 4,099 2,340 ID 4,951 1,087 1,766 1,570 1,956 7,319 2,779 3,687 ID: Insufficient Data *New Delhi - NCR data including Faridabad, Ghaziabad, Gurgaon and NOIDA (Shaded Portion), rest excluding Gurgaon data Page 8 Average Room Rate( ` ) 2009-10 2010-11 2011-12 4,149 2,482 3,367 2,850 6,766 3,110 4,780 4,083 3,236 3,193 6,985 4,757 5,137 1,814 4,059 4,552 2,806 4,880 ID 5,109 2,159 5,833 6,078 2,637 3,132 3,921 1,521 1,790 1,422 ID 3,543 4,360 2,809 4,578 3,968 3,234 2,612 5,838 ID 4,544 5,508 3,989 ID 6,763 7,807 4,152 1,869 3,071 5,519 1,528 4,788 ID 2,393 2,821 5,087 5,817 4,634 2,314 3,140 ID 2,267 1,380 ID 7,406 3,703 5,431 4,677 3,974 3,650 ID 6,849 3,827 ID 4,365 4,100 ID 7,319 5,856 4,020 2,590 3,447 7,005 1,536 5,302 ID 2,966 ID 6,063 4,807 1,973 ID 3,293 ID 1,904 2,330 ID 2,081 3,901 ID 8,122 2012-13 4,507 4,381 3,902 3,203 5,533 4,300 3,639 4,345 3,655 2,253 7,455 5,749 3,856 2,631 3,490 8,431 2,882 5,461 ID 3,047 ID 5,971 ID 3,738 3,018 2,724 ID 2,636 1,474 ID 4,449 3,698 3,367 7,776
  14. 14. Seven Major Cities Bengaluru Given the travel time, distances and new hotel supply in different parts of the city, Bengaluru has witnessed the formation of micromarkets. The city remains heavily dependent on Commercial demand with peak occupancy being recorded from Monday to Thursday. Bengaluru's hotel market relies heavily on the IT/ITeS sector with a high foreign-to-domestic-guests ratio, making it more vulnerable to global economic changes than most other cities in the country. The city experienced an increase in supply of 10.7%, while demand grew by 9% resulting in only a marginal drop in occupancy. The year saw the entry of mid market and budget hotels; consequently, the marketwide average rate declined by 4.5%. The Central Business District (CBD), with the highest concentration of luxury and upscale hotels, witnessed a marginal drop in average rate while still maintaining near similar occupancies as last year. Whitefield, with budget, mid market, and upscale hotels saw an increase in occupancy and a decrease in average rate. Electronic City, with mostly budget and mid market hotels recorded declining occupancy owing to new supply but no marked increase in average rate. The newly formed micromarkets of ORR South and Yeshwantpur saw a rise in branded supply and increase in occupancies and rates, with new hotels ramping up operations. Going forward, Bengaluru is anticipating 10,700 hotel rooms to enter the market in the next five years; this, coupled with approximately 50% increase in office supply and overall vacancy rates below 15% makes us bullish about the future outlook for the hotel market here. Chennai Chennai is the southern financial capital of the country and its diversified economy consists of the finance sector along with the growing auto and auto-ancillary sector, manufacturing, and IT/ITeS sectors. The city has witnessed a significant increase in hotel supply over the last 18 months mainly in the luxury and upper upscale segments. As a result, occupancy and average rates have declined; however, demand for hotels has witnessed steady growth across all areas in the city. Going forward, Chennai is expected to witness a substantial increase in supply over the next two to three years especially along Old Mahabalipuram Road (OMR), and consequently, further pressure on occupancy and average rate is anticipated. However, with considerable investment in infrastructure projects, we anticipate steady growth in the office, retail and residential sectors, which will in turn drive growth in demand across different segments for hotels. The Commercial segment continues to be the largest for the city with demand generated from the finance sector in the CBD, manufacturing and automobile companies in the industrial pockets of Sriperumbudur, Irungattukottai and Oragadam located along the periphery of Chennai, and from OMR, widely known as the IT Corridor of Chennai. The growth of commercial activities in these areas along with the development of Omega Township, a 1,500-acre industrial and residential zone about 50 km south of Chennai, is expected to support continued growth in demand in the Commercial and Extended Stay segments. Additionally, with the opening of hotels with large meeting and conference facilities, we expect the city to start witnessing large-scale conventions and events. Moreover, the opening of the new international and domestic airport terminals is anticipated to increase air traffic and consequently, Airline demand for hotels in the city. Goa Goa continues to show year-on-year growth, both in marketwide occupancy and average rates. Much of the growth over the past four years has been domestically driven, with improved visitation during the summer and monsoon periods (June to October). As a result, it has reduced the sharp seasonality that was inherent in the market and helped mitigate the large occupancy gap between seasonal peaks and troughs. Average room rates, though, continue to vary significantly between the strong foreign-tourist dominated winter months Page 9
  15. 15. and the domestically driven summers and monsoons. Growth in FTA has been driven by a year-on-year increase in charter business to Goa. While Russia, United Kingdom, and Scandinavia remain the major feeder markets for the Foreign Leisure segment, Goa has lately seen a strong growth in demand emerging from the CIS (Commonwealth of Independent States) countries. Another segment that has seen recent growth is Meetings and Conferences especially since the opening of the Grand Hyatt that offers extensive meeting facilities. Goa is India's preferred destination for company off-sites, conferences, incentive programmes, and social events. However, lack of quality infrastructure continues to be a major hurdle in the overall progress of the state. Although, the new integrated terminal at Dabolim Airport is ready and scheduled to begin operations in January 2014, there is high uncertainty associated with the development of the new international airport at Mopa. Historically, supply growth in Goa has been moderate; however, the current government's promptness in rewarding necessary licenses and permits has resulted in a strong pipeline of hotel projects that are under active development. We view this as a positive sign and a welcome development for a state that displays strong demand growth every year. Goa continued to witness a marginal increase in occupancy in 2012-13 over that in the previous fiscal. During the same period, average rates exhibited a healthy increase. Due to a robust charter season coupled with strong growth in domestic demand, we expect this trend to continue in the current fiscal. Kolkata Kolkata is the regional headquarters for a number of domestic and international companies, banks and financial institutions, such as ITC Limited, Britannia Industries, Coal India Limited, Allahabad Bank, and United Bank of India. Despite being a major metro, Kolkata has seen limited hotel supply in the last five years; consequently, the city boasts of high and stable occupancy and steady growth in average rates. Demand in the city continues to be driven by PSUs and domestic companies, insulating the city from global economic changes. Kolkata is also a preferred location for conferences and seminars in the eastern part of the country. This is due to facilities such as the Science City and Milan Mela, located along Eastern Metropolitan Bypass, which are favoured destinations for large conferences, seminars, and exhibitions. The past three to four years have also seen rapid development along the city's eastern periphery into areas of New Town (Rajarhat) and Salt Lake. Prominent IT/ITeS companies have set up operations in these areas with some companies also moving from the CBD to New Town. Kolkata has recently seen some modernisation with the opening of the Netaji Subhash Chandra Bose International Airport, which has triple the airport capacity than before. HVS is currently tracking 3,511 rooms that are proposed to enter the market with 64% of them under active development. Like most other cities, the proposed supply is primarily in the upscale and mid market segments; consequently, we anticipate occupancy to be subdued while average rates are expected to experience moderate growth. Mumbai Mumbai, the state capital of Maharashtra, is also India's financial capital and its largest trading port. This metropolitan city makes an important contribution to the economy of Maharashtra as well as to India on the whole. The main industries in and around Mumbai are pharmaceuticals, textiles, gems and jewellery, film equipment, automotive parts, food processing, electronics, manufacturing, IT/ITeS related businesses, financial services, and petrochemicals. The city is also home to Bollywood, India's largest film industry and also one of the largest film industries in the world. With several offices shifting base to business districts across North Mumbai, hotels here were positively impacted while those in South and Central Mumbai continued to witness drop in demand. Additionally, various micromarkets in North Mumbai such as Bandra Kurla Complex (BKC), Andheri, Malad, Goregaon Page 10
  16. 16. and Vikhroli amongst others are witnessing continuous additions to office stock, which is expected to fuel demand for hotels located in these micromarkets. Going forward, these areas are anticipated to witness new hotel supply. With supply increase in the branded space over the next year expected to be almost negligible, we estimate marketwide occupancy to continue improving. We anticipate a majority of hotels to give precedence to growth in occupancy to capture a larger market share, thereby we believe average rate to witness a decline and thereafter to grow marginally. However, as new hotels enter the market in the medium-to-long term, we expect the city to witness some occupancy and average rate pressure before stabilising in the long term. The robust nature of the hotel market along with infrastructure development such as the metro and monorail, upgradation of the existing airport, and the opening of the Bombay Port Trust Road amongst others, leads us to be bullish in our long term outlook for Mumbai. Delhi-National Capital Region (NCR) In the Delhi-NCR region are included hotels located in Delhi, NOIDA, and Greater NOIDA. Delhi, the administrative capital of India, houses several government bodies and embassies of various countries. Additionally, the city is regarded as one of the largest commercial hubs across the country. Over the last decade, the central administration has worked towards improving the infrastructure of the city, which is evident in the development of several flyovers, arterial roads, and expansion of the Delhi Metro. The city also acts as the aviation hub for the country as Indira Gandhi International Airport provides connectivity to various cities within the country and around the world. In the past few years, Delhi has witnessed the addition of several new hotels, primarily in the western and eastern parts of the city that have displaced demand from South and Central Delhi hotels. This has led to a decline in the overall performance of hotels situated in and around the CBD area. We anticipate this trend to continue in the short term. As per the Trends and Opportunities Report 2013, also published by HVS, around 5,200 rooms are expected to be developed in the various submarkets in Delhi, with a majority of them located within Aerocity. We expect the development of these hotels to put pressure on the marketwide occupancy and rates in the short-to-medium term. However, owing to the collective meeting facilities and inventory these hotels offer and their proximity to the airport, we expect them to induce demand in the Meetings & Conference segment. Therefore, our outlook for the market remains positive in the long term. For little over a decade, NOIDA and Greater NOIDA have developed into hubs of industrial activity and have, therefore, received focus from hotel developers in recent times. However, with lack of demand for branded hotel rooms coupled with a substantial increase in hotel room supply, performance of hotels within these micromarkets has been declining. HVS is tracking a proposed supply of 5,615 rooms in NOIDA and Greater NOIDA, of which 28% are actively under development and are expected to open over the next five years – an increase of 87% over the existing base. Given such significant supply increase, we anticipate considerable occupancy and average rate pressure over the next few years. Pune Pune is the second-largest city in the state of Maharashtra, and is also known as the cultural and educational centre of the state. The economy of the city is centred on manufacturing and forging industries and more recently on the automobile manufacturing and IT/ITeS sectors. Unlike other major cities, Pune lacks a conventional CBD and demand for hotels is predominantly generated from the industrial pockets of Pimpri, Chinchwad, Talegaon, Chakan, and Rajangaon, along with the IT hubs of Hinjewadi, Magarpatta and Kharadi. In 2012-13, the city witnessed a growth in occupancy as growth in demand outpaced change in supply. Demand growth was fuelled by new projects being set up in Talegaon, Chakan, and Hinjewadi. Additionally, the city witnessed tremendous increase in Meetings, Incentives, Conferences & Events (MICE) demand as it played host to several large-scale conferences and weddings. As hotels continued to focus on building occupancy levels, average rates declined moderately in 2012-13 when compared with those in 2011-12. Page 11
  17. 17. Going forward, in the short term, we anticipate strong growth in demand, led by the IT/ITeS sector. Demand from the manufacturing sector, however, is expected to be subdued owing to the slowdown in the automobile industry. Increase in supply is anticipated to be moderate over the next two to three years and will mainly be concentrated in the pockets of Hinjewadi, Chakan and Nagar Road. With steady growth in demand and modest increase in supply, we expect occupancy levels to continually improve. Average rate growth, however, is expected to remain muted in the short term. Thirteen Other Cities Agra Along with Delhi and Jaipur, Agra is a vital component of the immensely popular Golden Triangle leisure itinerary in the country. Historically, the destination has largely focused on attracting demand from the Individual and Group Leisure segments. With the opening of the Yamuna Expressway linking Greater NOIDA to Agra in August 2012, which has significantly improved connectivity with Delhi-NCR, the city has witnessed a surge in MICE demand. Also, with travel time reduced by half, growth in demand from the Individual Leisure (Domestic) segment has seen a spurt especially during holidays and extended weekends. This growth in demand, coupled with limited new branded room supply, resulted in an increase in both occupancy and average rate in 2012-13 as compared to that in 2011-12. Going forward, we expect continued growth in demand from the MICE and Individual Leisure (Domestic) segments. Moreover, the city is anticipated to see the opening of over 750 rooms within the budget and mid market space over the next three to four years. HVS believes that the addition in new supply will cause some pressure on occupancy and average rates in the short term; however, we are of the opinion that the development of midscale and budget hotels will fuel the growth in demand from the Domestic Leisure segment. Furthermore, the recent introduction of domestic flights to the existing airport and the proposed construction of a new civilian airport terminal is anticipated to improve connectivity and enhance tourism for Agra. Ahmedabad Ahmedabad continues to grow rapidly as one of the important commercial hubs in the country. Room night demand in Ahmedabad, driven primarily by the Commercial segment, is generated by companies located in the CBD (Ashram and CG Road) with the industrial clusters along the periphery of the city. In the past few years, owing to rapid development in the commercial sector, the Sarkhej Gandhinagar Highway (SG Highway) along with the neighbouring areas of Prahlad Nagar and Satellite Town has gradually developed into an alternate CBD. Furthermore, industrial clusters of Bol-Sanand and Vitthalapur are emerging as the new automobile hubs with the existing Tata Nano plant and Ford and Maruti factories under development. Other multinational corporations like Bosch, Hitachi, Baosteel, and Nestle are also developing units in these upcoming industrial estates. These commercial developments have led to a surge in room night demand in Ahmedabad. Also, seven new hotels with a combined inventory of 700 rooms opened in the city in 2012-13. Thus, while the city has seen a double-digit demand growth, supply has outpaced demand resulting in a decline in occupancy and average rate in 2012-13. This trend is likely to continue in the short term as an additional ten hotels with an aggregate supply of 1,500 rooms are expected to enter the market over the next two years (of which four hotels with an aggregate supply of 400 rooms have opened till November 2013). In the medium to long term, as new developments like Gujarat International Finance Tec-City, Mindspace, Sabarmati Riverfront Project and industrial activity along the western periphery of the city gain momentum and as supply pressure reduces, we anticipate occupancies and average rates to stabilise and improve thereafter. Page 12
  18. 18. Bhopal Bhopal's economy is driven by electrical goods, cotton, handicrafts, and jewellery. The city is also home to the Govindpura Industrial Estate, which houses the BHEL manufacturing plant. Additionally, areas such as TT Nagar and Maharana Pratap Nagar (MP Nagar) continue to see a growth in financial institutions, banks, service providers such as telecommunications companies, and insurance firms. Bhopal also serves as a rail and road hub, and it is amongst the best connected cities in the country. It provides daily transport to prominent tourist destinations in Madhya Pradesh such as Ujjain, Jabalpur, Gwalior, Khajurao, and the renowned Buddhist Stupas of Sanchi, located 46 km northeast of Bhopal. Currently, the hotel market is largely unorganised, consisting of small boutique and heritage properties. Going forward, we expect the market to grow and attract Commercial, MICE, and Leisure business in the medium to long term. Coimbatore Coimbatore, situated along the western extremity of Tamil Nadu and surrounded by the Western Ghats, is one of the fastest growing Tier II cities in India. The city is a municipal corporation as well as headquarters of the Coimbatore district. Coimbatore is one of the most industrialised cities in Tamil Nadu and is known for textiles, information technology and healthcare. It is increasingly well-known for its high quality yet affordable healthcare. The medical facilities in Coimbatore generate demand from neighbouring towns in Tamil Nadu and Kerala as well as from overseas locations like Sri Lanka, Malaysia, and Singapore. Coimbatore also has more than 25,000 small to large-scale industries, and major SEZs such as Coimbatore Hi-Tech Infrastructure and IT SEZ by Electronics Corporation of Tamilnadu (ELCOT) near Peelamedu. The city continues to see the entry of new IT parks and is next only to Chennai in IT software production in the state. Coimbatore also has a large manufacturing industry producing automotive components, pumps and wet grinders. It is served well by road, rail and an international airport making the city easily accessible. Traditionally, the city has supported a small base of hotel rooms, predominantly in the mid market and budget segments catering to demand emanating from the Commercial and MICE segments. However, in the last few years, the city has seen the entry of international and branded players such as Le Meridien, Aloft, Park Plaza, and Vivanta by Taj. Gurgaon Gurgaon, the second-largest city and the industrial and financial centre of Haryana, is located south of the national capital. Over the past decade, Gurgaon has emerged as the preferred choice for relocation for many of India's, and in particular, Delhi's multinational companies due to its proximity to the Indira Gandhi International Airport and lower rentals as compared to Delhi. Additionally, Gurgaon's connectivity with Delhi has improved over the last few years with the development of the Delhi-Gurgaon Expressway and the Delhi Metro. The Commercial segment has, over the years, established itself as Gurgaon's strongest demand generator. The demand generators for this segment in Gurgaon are widespread and traditionally include IT/ITeS, pharmaceutical, manufacturing, and organisations in the services sector such as banks, telecommunications, and consulting firms. Furthermore, increasing Commercial demand is being generated by infrastructure and construction companies as new projects are continually launched in the city. Over the past few years, Gurgaon has continued to witness strong year-on-year growth in demand for room nights, making it one of the strongest markets in the country. In 2012-13, Gurgaon witnessed the supply for room nights outpace its demand, which resulted in a decline in occupancy and average rates. However, in the medium-to-long term, with relatively slow paced growth in supply coupled with continuous growth in commercial development in and around the city, our outlook for the Gurgaon market remains buoyant. Page 13
  19. 19. Hyderabad Hyderabad, the capital city of Andhra Pradesh, has evolved into a bustling metropolis and IT city with 75% of its commercial space occupied by IT/ITeS companies. Demand is primarily Commercial in nature followed by MICE. In the recent past, the city has also witnessed the establishment of the first International Convention Bureau, set up with an aim to market Hyderabad globally as an attractive MICE destination and generate demand for the city hotels. Hyderabad's economy benefits from industrial parks and SEZs spread across the western boundaries of the city in Madhapur and Gachibowli. Hyderabad Information Technology and Engineering Consultancy (HITEC) City in Madhapur is spread over 1,500 acres of land and has primarily IT/ITeS developments. As Madhapur is reaching saturation levels, business is expanding to Gachibowli, which now houses the Indian School of Business, Microsoft, Polaris, and the Infosys campus. Together with Gachibowli, HITEC is now the leading demand generator for most of the hotels in Hyderabad. However, in the past few years Hyderabad witnessed wide-spread disturbance due to the demand for Telangana state. This resulted in a loss in investor confidence with business getting affected throughout the city. We believe that the current uncertainty will continue to have a negative impact on new investments and that investor sentiment will remain muted until this situation is resolved. During the past year, Hyderabad has witnessed an increase of 20% in supply and HVS is currently tracking a supply of 5,433 rooms over the next five years, with an 87% probability factor of these rooms actually opening for operations. A majority of the supply is expected in the areas of Gachibowli and HITEC City. HVS is of the opinion that although demand will continue to grow, the impending supply pressures are likely to keep the occupancy and average rates fairly muted in the short run. Indore Indore, the largest city of Madhya Pradesh, is also the economic and commercial capital of the state. The city is well connected and served by Devi Ahilyabai Holkar International Airport, which is also a hub for international cargo. The hotel demand in the city is primarily Commercial, originating from the Pithampur and Dewas industrial areas. Textile manufacturing and trading remain key economic activities. Indore is a key centre for major automobile units like Force Motors and Eicher Motors. Other key manufacturing units that are housed in Pithampur Industrial Area, located 22 km from Indore, are Bridgestone, Larsen & Toubro, TATA Steel, Panasonic Energy, Cipla, and Ipca Laboratories. Asia's largest auto testing track is being built in the industrial town of Pithampur to cater to the growing automobile industry of the country. Indore is also the closest major town to the famous Hindu pilgrim destinations situated in Ujjain and Narmada and, hence, the city receives a limited amount of Leisure demand. The city hosts the prestigious Global Investors Summit (GIS) attracting investors from more than 20 countries. The third GIS, held on 18-20 October 2012, attracted considerable interest from companies such as Future Group, TCS, Steel Authority of India Limited, and Bharat Forge. Going forward, Indore can expect to see planned investments, which are anticipated to create jobs and boost the economy of the city and state. The current landscape consists of mid market and budget hotels and we are currently tracking 230 rooms in the branded budget space. The Indore hotel market is expected to benefit from the anticipated investments and expansions in Indore and limited increase in hotel supply. Jaipur Jaipur ranks amongst the top leisure destinations of the country. The city has witnessed a rapid growth in hotel supply over the last two to three years with the opening of several new properties across different positionings in various pockets of the city. Consequently, the city has come under some occupancy and ARR pressure; however, demand for hotels still continues to be robust and has shown steady year-on-year growth. The Leisure segment, though highly seasonal, still continues to be the top draw for the city. With more hotels now being available in the city at a budget to mid market positioning, the Domestic Leisure segment has Page 14
  20. 20. witnessed healthy growth over the last two to three years. Furthermore, MICE as a segment has become increasingly favourable with the opening of hotels like the Fairmont, LaLit, and Marriott that offer large room inventories as well as significant meeting spaces that cater to large-scale events. ‘Destination Weddings’ have become synonymous with the city, with hotels offering an ideal setting and historical splendour to host grand Indian weddings. Jaipur's much improved highway connectivity with Gurgaon and Delhi, in addition to the competitive room rates, make it ideal for short-stay conferences and events. Going forward, the city is expected to see a further increase in supply over the next three to four years. While this is anticipated to result in further occupancy and rate pressures, supply pace in the long term is anticipated to be slow. Furthermore, airline connectivity is anticipated to improve considerably, thereby, providing a further fillip to the growing MICE and Domestic Leisure segments of the city. Overall, our outlook for Jaipur over the long term remains positive. Kochi Kochi, formerly known as Cochin, is located in the north of Kerala, off the Arabian Sea shore. Although, Thiruvananthapuram is the state capital of Kerala, Kochi is regarded as the commercial capital due to its welldeveloped port facilities and commercial centres. The city also has one of the highest literacy rates and human indices for development in the country. In addition to serving the role of Kerala's commercial hub, Kochi acts as the gateway city to the states's most popular tourism circuit comprising Marari, Alleppey, Kumarakom, Thekkady, and Munnar. Consequently, the Commercial segment driven primarily by the shipping and port sector constitutes a major portion of demand accommodated by hotels. Going forward, the planned development of Smart City, a `3,000-crore IT Township spread across 250 acres, will augment the growth of Commercial demand. Over the last few years, MICE and Leisure segments have also gained share and further growth is expected with the opening of new hotels such as the Crowne Plaza with its extensive meeting facilities. Going forward, we are tracking approximately 2,000 rooms planned to enter the market over the next few years. About 60% of the new supply lies in the budget and mid market space; in our opinion this trend bodes well for the market as it is anticipated to drive growth in demand from the Domestic Leisure segment. Nagpur Nagpur, a major commercial and political centre in the Vidarbha region of Maharashtra, is the third-most populous city after Mumbai and Pune in the state. The Vidarbha region holds two-thirds of the state's mineral resources and three-quarters of forest resources, making Nagpur a power centre. Located at the geographic centre of the country, the city enjoys relatively easy access to major cities like New Delhi, Mumbai, Hyderabad, and Bengaluru due to NH-7 and NH-6, which run north-south and east-west, respectively. The city's economy is largely dependent on trading, manufacturing and agriculture. The future of the city also hinges on the Multi-Modal International Hub Airport Nagpur (MIHAN) planned over 4,354 hectares and targeted to be a hub for both passengers and cargo, handling 14 million passengers and over 8.7 lakh tonnes of cargo a year. Historically, majority of demand for hotel room accommodation in Nagpur originated from industrial estates like Butibori, Hingna and Wadi; however, over the years the demand generation capacities from these industrial estates has reduced. Bulk of the Commercial demand is now being generated by financial services, banking and trading companies located within the city's CBD. Demand from sectors such as telecom, pharmaceuticals, and insurance has also been growing consistently. Nagpur also attracts some Leisure demand given its proximity to tiger reserves such as Pench and Kanha. Page 15
  21. 21. Shimla Shimla, the capital city of Himachal Pradesh, is one of the earliest established hill stations in India and amongst the top leisure hill destinations (by annual visitors) in North India. The city receives a large majority of Domestic Leisure travellers, given its proximity to key cities such as Delhi, Ludhiana, Jalandhar, Chandigarh, and Amritsar. The highlight of the travel experience to Shimla is the 2.6-metre-wide narrow gauge rail network between Kalka and Shimla that has also been recognised by UNESCO as a World Heritage Site. Shimla's economy is primarily driven by travel & tourism and agriculture. Recently, there has been a growth in the inventory of budget and mid market hotel rooms in Shimla. With respect to the luxury and upscale positioning, the Oberoi Cecil, Wildflower Hall, and Radisson are the three operating hotels. We are currently tracking 200 rooms in the branded mid market space and anticipate this to support the Domestic Leisure demand. Thiruvananthapuram Formerly known as Trivandrum, Thiruvananthapuram is the capital city of Kerala. Apart from being a political hub, it is also home to major academic institutions with the most prominent ones being Indian Space Research Organisation (ISRO), Vikram Sarabhai Space Centre (VSSC), and Rajiv Gandhi Centre for Biotechnology. Historically, majority of the population in the city had been employed in the government sector. However, of late, the city has seen a surge in IT/ITeS and Biotechnology professionals with the city contributing 80% to the state's IT software export. Thiruvananthapuram's 300-acre Technopark, home to over 290 companies, is currently under expansion. The planned development of 90 acres of office space along with 450 acres of an integrated IT township is expected to create much needed growth and demand for the city. Thiruvananthapuram also serves as the gateway city to the rest of Kerala, with the state itself being a very popular tourist destination for international and domestic tourists. The city also experiences a healthy amount of demand from the medical tourism sector given the number of Ayurvedic centres across the state. Given Thiruvananthapuram's emergence as a Tier II destination with the adequate mix of talent, infrastructure and local industry resources, the city has the capacity to meet the needs of different sectors. Given the fact that there is limited hotel supply expected in the next few years, the city's hotel market is expected to experience moderate growth. Vadodara Vadodara (formerly Baroda) is one of the three important cities in Gujarat and is located on NH-8 between Ahmedabad and Surat. The city has good connectivity to Delhi and Mumbai – by road, rail and air – which serve as the city's top feeder markets. Vadodara acts as the entry/exit point for major industrial zones such as Savli and Halol (located on the periphery of the city) along with the industrial townships of Dahej, Bharuch, and Ankleshwar. These industrial zones are focused on chemicals, power, petrochemicals, oil and gas sectors and are home to manufacturing plants of companies such as Larson and Toubro, ONGC, Alstom, Linde, Bombardier, Adani and Reliance. Over the last few years, these zones have witnessed tremendous development driven by the availability of raw materials, skilled labour, and Special Economic Zones (SEZ). Consequently, a major share of the room night demand for hotels in Vadodara is generated from these industrial areas. While new factory setups and expansions of existing plants have contributed to the growth in demand, opening of new hotels in recent years and absorption of room nights by some of the new hotels in Bharuch and Ankleshwar have added to supply pressures. These factors, combined with major companies setting up guesthouses close to their plants, have resulted in a decline in both occupancies and average rates in the city. With additional branded hotels under development in the city, this trend is likely to continue in the short term. However, continued investment in the region supported by a pro-incentive state government along with expansions planned in existing manufacturing units, is anticipated to drive steady growth of demand for hotels located in Vadodara. Page 16
  22. 22. 1. Indian Hotel Industry – Star Category Introduction This section presents the results of the performance of the hotels analysed according to the star classification of the hotels participating in the Survey. An overall total of 1,450 hotels (Table 1-1) participated in the Survey for 2012-13. The hotels have been classified into the eight star categories applicable in India. To provide further comparisons, we have included a column for all India averages across all star categories. Each section includes the total number of respondents for each component of the survey, allowing the reader to judge the validity of the data received. All figures pertain to 2012-13 (April-March), and monetary figures are in Indian rupees (`). Trends • Rooms Profile: The Survey results reveal that the three, two, and one-star hotels, along with heritage and others category make up 84% of the respondents; this contributes to the all India average of 58 rooms per hotel. Another observation is that the average inventory continues to decline from higher to lower category, implying that the lower category and smaller hotels do not benefit from economies of scale. Their Net Incomes as a percentage of total revenues are also lower when compared with hotels of higher categories. Going forward, with the increasing demand for budget and mid market hotels, HVS believes that lower category hotels will increase in number and also have larger inventories. • Departmental Expenses: We note that departmental expenses steadily increase as a percentage of departmental revenues as the category of hotels decreases. The Rooms expense is as high as 35.7% and 28.1% for the two star and one-star hotels respectively, as compared to 19.1% and 18.5% for the five-star deluxe and five-star hotels, respectively. Poor performance of the Rooms department with respect to occupancy levels and low average rates results in the departmental expenses being high when represented as a percentage of departmental revenue. Also, Food & Beverage expenses range from 63% to 70% of the departmental income in three and one-star hotels as against 50% in five and five-star deluxe categories. As discussed earlier, the smaller inventories of the lower category of hotels do not allow them to achieve economies of scale. We believe that the increasing operating and manpower costs present an opportunity for hotels to streamline their operations by opting to outsource departments such a Laundry, Housekeeping and Food & Beverage. • Market Segmentation and Guest Analysis: There is a difference in the customer segmentation across star categories with lower categories recording a higher contribution from the Domestic segment while the five-star deluxe hotels record a higher contribution from the foreign traveller. These results suggest the price sensitivity of the local traveller. The business travellers continue to drive demand across star categories except heritage hotels, which are typically located in leisure destinations. As mentioned earlier, the FHRAI Survey results reveal a year-on-year increase of 17% in the Meeting Participants segment over the previous fiscal. Page 17
  23. 23. TABLE 1-1: Indian Hotel Industry – Star Category: Facilities Analysis and Staffing Typical Room Profile of an Average Hotel COMPOSITION Number of Responses Five-Star Room Category Deluxe 46 Five-Star 69 Four-Star 123 Three-Star 519 Two-Star 268 One-Star 95 Heritage 55 Others 275 2012-2013 All India Average 1,450 Air-Conditioned Single Double Suites 50.4 152.9 17.4 21.3 104.3 7.3 11.8 72.1 8.5 4.6 39.4 4.5 3.6 26.9 3.3 1.2 15.0 1.5 2.3 21.9 6.8 2.8 21.7 2.8 6.6 40.9 4.7 Non-Air-Conditioned Single Double Suites 0.0 0.0 3.7 224.4 0.0 1.8 0.1 134.7 0.0 1.8 0.2 94.3 0.6 3.9 0.5 53.4 0.9 6.5 1.0 42.2 2.1 7.0 0.5 27.3 0.3 3.9 0.9 36.0 0.8 6.0 0.5 34.5 0.7 4.6 0.7 58.1 Total average rooms * The number of non-air-conditioned rooms in lower star category hotels appears to be higher, partly because many are located in hill stations where air-conditioning is not provided in hotels. Average Number of Food & Beverage Outlets Per Hotel Five-Star Deluxe 45 COMPOSITION Number of Responses Restaurants Bars Others Total 3.4 1.4 1.1 5.9 Five-Star 65 Four-Star 110 2.8 1.2 0.9 4.9 2.1 1.1 1.1 4.2 Three-Star 458 1.5 0.9 1.0 3.4 Two-Star 200 1.3 0.6 0.7 2.6 One-Star 69 1.1 0.5 0.3 1.9 Heritage 46 1.7 0.8 0.5 2.9 2012-2013 All India Others Average 172 1,165 1.4 0.7 0.6 2.6 1.7 0.8 0.8 3.3 Average Number of Employees Per Hotel (Permanent / Contract / Full Time / Part Time) Five-Star Deluxe 46 COMPOSITION Number of Responses Managers Supervisors Staff Male Female Male Female Male Female Total Avg. Employees / Room Five-Star 61 Four-Star 107 Three-Star 468 Two-Star 236 One-Star 87 Heritage 50 Others 185 2012-2013 All India Average 1,238 49.7 12.8 54.2 11.6 262.5 34.2 425.0 29.4 5.5 37.7 5.4 153.3 15.4 246.8 16.7 2.8 21.9 3.1 111.4 12.3 167.0 6.8 0.8 10.3 1.5 61.1 7.4 87.9 3.2 0.6 4.6 0.8 33.4 3.8 46.4 1.9 0.2 2.5 0.8 19.6 2.2 27.2 5.3 0.7 8.1 0.6 52.4 4.0 71.2 3.0 0.4 4.0 0.6 28.5 3.1 39.6 8.7 1.5 11.6 1.9 64.0 7.5 95.1 1.9 1.8 1.7 1.7 1.1 1.0 2.0 1.2 1.6 Average Percentage of Trained Employees Per Hotel Five-Star Deluxe 44 Five-Star 55 Four-Star 97 Three-Star 333 Managers 94.4% 89.2% 90.1% 88.2% Supervisors 89.8 87.5 87.4 Staff 80.9 92.3 Total Avg. Trained Employees* Total Avg. Un-Trained Employees 88.4 11.7 89.7 10.3 COMPOSITION Number of Responses Two-Star 142 2012-2013 All India Others Average 76 819 One-Star 39 Heritage 33 86.8% 83.9% 88.4% 88.7% 79.8 73.8 83.1 93.8 81.6 83.6 73.4 63.2 59.2 62.4 66.3 63.3 66.7 83.7 16.4 77.1 22.9 73.3 26.8 76.5 23.5 82.8 17.2 77.9 22.1 79.6 20.4 88.4% * 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. Page 18
  24. 24. Page 19 52.8% 28.7 13.1 0.3 2.8 2.4 100.0 141 29,632 59.8% 5,547 18.5 50.1 87.6 54.0 4.0 32.5 67.5 10.3 1.4 3.4 0.5 5.7 10.0 31.4 36.1 0.5 0.5 0.8 0.6 2.3 33.8% 53.4% 25.1 14.1 0.5 4.0 2.9 100.0 230 55,216 66.2% 7,959 Five-Star 50 19.1 50.5 58.3 63.5 5.3 33.0 67.0 8.8 2.3 2.9 0.5 5.4 8.1 28.0 39.0 1.1 0.3 1.9 1.7 4.9 34.1% 0.8 0.3 1.3 0.9 3.3 27.6% 10.6 2.1 3.5 0.5 6.6 11.4 34.7 30.9 15.1 59.6 122.1 72.8 10.5 34.4 65.6 53.7% 28.0 12.2 0.3 2.2 3.6 100.0 101 21,401 60.7% 4,068 Four-Star 81 0.8 0.3 1.3 1.4 3.9 22.7% 10.0 2.1 2.6 0.4 6.4 11.5 33.0 26.6 20.2 62.7 262.4 87.7 14.4 40.4 59.6 48.7% 35.6 9.3 0.2 1.7 4.6 100.0 57 12,032 60.8% 2,760 Three-Star 246 0.9 0.4 1.4 0.7 3.4 15.0% 7.5 1.7 2.3 0.2 7.0 12.7 31.5 18.4 35.7 66.0 129.4 89.0 33.0 50.2 49.8 51.5% 36.8 6.4 0.4 2.0 2.8 100.0 39 8,162 60.6% 1,544 Two-Star 112 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME OPERATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Property Taxes Insurance Other Fixed Charges Rent Total NET INCOME** Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): COMPOSITION Number of Responses Five-Star Deluxe 43 1.3 0.4 0.8 1.2 3.7 18.9% 6.0 1.1 1.8 0.2 5.4 13.1 27.6 22.6 28.1 70.0 298.7 414.1 25.3 49.8 50.2 49.8% 42.2 5.0 0.4 0.2 2.3 100.0 27 6,106 62.0% 920 One-Star 48 0.3 0.2 1.0 1.7 3.2 26.9% 10.6 1.5 4.0 0.6 6.1 8.5 31.3 30.0 24.1 58.0 163.2 50.4 7.9 38.6 61.4 51.0% 34.7 6.9 0.1 3.5 3.9 100.0 41 7,465 49.6% 5,000 Heritage 28 TABLE 1-2: Indian Hotel Industry – Star Category: Financial Report – Percentage of Revenue (2012-13) 0.4 0.3 0.4 1.5 2.6 24.2% 6.2 0.8 2.6 0.1 8.1 10.2 28.1 26.8 28.3 60.2 109.2 89.5 13.5 45.2 54.8 43.3% 46.1 6.2 0.2 0.9 3.3 100.0 32 6,406 58.6% 1,967 Others 21 0.8 0.3 1.4 1.3 3.9 30% 9.5 2.0 3.0 0.5 5.9 9.8 30.7 33.8 19.3 55.2 91.7 66.0 9.4 35.4 64.6 52.2% 29.0 12.2 0.4 2.9 3.3 100.0 74 15,990 60.4% 4,507 2012-2013 All India Average 629
  25. 25. Page 20 1,165,660 632,928 288,556 5,578 62,235 53,190 2,208,150 141 29,632 59.8% 5,547 215,983 461,621 4,883 33,590 2,139 718,216 1,489,930 227,235 31,158 75,975 12,000 124,895 221,171 692,433 797,501 10,164 10,128 16,890 13,436 50,618 746,883 1,907,800 896,925 504,004 19,391 142,486 102,800 3,573,400 230 55,216 66.2% 7,959 Five-Star 50 365,195 707,474 11,311 90,514 5,446 1,179,940 2,393,460 313,713 81,926 103,554 18,361 191,709 290,786 1,000,050 1,393,420 37,735 10,826 67,692 58,840 175,093 1,218,320 11,919 5,504 20,573 14,550 52,546 440,787 170,012 33,655 55,707 8,638 104,719 182,480 555,210 493,333 129,816 382,576 5,585 25,980 5,993 549,951 1,048,540 858,865 447,523 194,570 4,574 35,667 57,294 1,598,490 101 21,401 60.7% 4,068 Four-Star 81 10,084 3,467 15,891 17,132 46,574 273,940 119,595 24,555 31,548 4,200 77,069 135,700 392,667 320,514 117,873 336,222 4,811 17,419 7,971 484,295 713,180 583,589 425,676 110,952 1,833 19,858 55,567 1,197,480 57 12,032 60.8% 2,760 Three-Star 246 5,629 2,307 8,814 4,556 21,306 94,945 47,064 10,912 14,474 1,400 43,807 79,310 196,967 116,252 115,543 179,282 3,395 11,320 5,848 315,388 313,219 323,872 231,379 40,274 2,623 12,727 17,732 628,607 39 8,162 60.6% 1,544 Two-Star 112 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes REVENUE ( ` ) Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES ( ` ) Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME ( ` ) OPERATING EXPENSES ( ` ) Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT ( ` ) FIXED EXPENSES( ` ) Property Taxes Insurance Other Fixed Charges Rent Total NET INCOME(` )** Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): COMPOSITION Number of Responses Five-Star Deluxe 43 5,429 1,565 3,434 5,016 15,444 82,081 24,884 4,717 7,551 805 22,500 50,972 111,429 97,524 58,403 137,459 4,998 4,224 2,466 207,551 208,953 207,606 175,717 20,728 1,673 1,020 9,761 416,505 27 6,106 62.0% 920 One-Star 48 5,864 3,301 17,483 30,361 57,009 482,367 190,814 27,279 70,969 10,138 110,228 152,904 562,331 539,376 221,150 432,231 3,222 31,620 5,458 693,681 1,101,710 916,043 622,476 123,010 1,974 62,727 69,160 1,795,390 41 7,465 49.6% 5,000 Heritage 28 32 6,406 58.6% 1,967 Others 21 3,217 2,762 3,875 13,456 23,310 223,752 56,397 6,789 23,927 623 73,588 88,010 249,334 247,063 111,047 285,092 1,767 7,349 4,008 409,263 496,396 392,306 417,804 55,961 1,618 8,207 29,763 905,659 TABLE 1-3: Indian Hotel Industry – Star Category: Financial Report – Amount Per Available Room (2012-13) 15,571 6,231 26,773 23,777 72,353 559,009 177,611 37,389 56,470 8,920 109,845 182,067 572,302 631,362 188,227 424,357 6,140 36,208 5,735 660,667 1,203,660 973,670 541,494 226,793 6,693 54,881 60,800 1,864,330 74 15,990 60.4% 4,507 2012-2013 All India Average 629
  26. 26. Page 21 5,547 3,012 1,373 27 296 253 10,509 141 29,632 59.8% 5,547 1,028 2,197 23 160 10 3,418 7,091 1,081 148 362 57 594 1,053 3,295 3,795 48 48 80 64 241 3,554 7,959 3,742 2,103 81 594 429 14,908 230 55,216 66.2% 7,959 Five-Star 50 1,524 2,951 47 378 23 4,922 9,985 1,309 342 432 77 800 1,213 4,172 5,813 157 45 282 245 730 5,083 56 26 97 69 249 2,088 805 159 264 41 496 864 2,630 2,337 615 1,812 26 123 28 2,605 4,966 4,068 2,120 922 22 169 271 7,571 101 21,401 60.7% 4,068 Four-Star 81 48 16 75 81 220 1,295 566 116 149 20 364 642 1,857 1,516 557 1,590 23 82 38 2,290 3,372 2,760 2,013 525 9 94 263 5,663 57 12,032 60.8% 2,760 Three-Star 246 27 11 42 22 102 453 224 52 69 7 209 378 939 554 551 855 16 54 28 1,503 1,493 1,544 1,103 192 13 61 85 2,997 39 8,162 60.6% 1,544 Two-Star 112 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes REVENUE ( ` ) Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES ( ` ) Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME ( ` ) OPERATING EXPENSES ( ` ) Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT ( ` ) FIXED EXPENSES( ` ) Property Taxes Insurance Other Fixed Charges Rent Total NET INCOME(` )** Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): COMPOSITION Number of Responses Five-Star Deluxe 43 24 7 15 22 68 364 110 21 33 4 100 226 494 432 259 609 22 19 11 920 926 920 779 92 7 5 43 1,846 27 6,106 62.0% 920 One-Star 48 32 18 95 166 311 2,633 1,042 149 387 55 602 835 3,070 2,944 1,207 2,359 18 173 30 3,787 6,014 5,000 3,398 671 11 342 378 9,800 41 7,465 49.6% 5,000 Heritage 28 16 14 19 67 117 1,122 283 34 120 3 369 441 1,250 1,239 557 1,429 9 37 20 2,052 2,489 1,967 2,095 281 8 41 149 4,541 32 6,406 58.6% 1,967 Others 21 TABLE 1-4: Indian Hotel Industry – Star Category: Financial Report – Amount Per Occupied Room (2012-13) 72 29 124 110 335 2,587 822 173 261 41 508 843 2,649 2,922 871 1,964 28 168 27 3,058 5,571 4,507 2,506 1,050 31 254 281 8,629 74 15,990 60.4% 4,507 2012-2013 All India Average 629
  27. 27. TABLE 1-5: Indian Hotel Industry – Star Category: Market Data Market Segmentation COMPOSITION Number of Responses Airline Crew Business Traveller - Domestic Business Traveller - Foreign Complimentary Rooms Domestic - Tourists/Leisure FIT Foreign - Tourists/Leisure FIT Meeting Participants (Less than 100 Attendees) Meeting Participants (Over 100 Attendees) Tour Groups - Domestic Tour Groups - Foreign Other Total Five-Star Deluxe 43 7.3 % 16.1 15.9 2.4 12.6 14.8 4.0 9.3 3.4 6.5 7.6 100.0 Five-Star 62 2.3 % 21.1 16.3 2.3 16.6 8.4 5.0 11.4 4.5 7.3 4.8 100.0 Four-Star 98 Three-Star 375 2.6 % 30.7 13.7 2.1 13.7 8.0 5.6 7.1 5.7 6.9 3.9 100.0 1.1 % 31.1 7.5 2.1 19.9 8.3 4.7 9.4 7.2 5.2 3.6 100.0 Two-Star 196 0.6 % 36.4 6.9 1.7 21.6 6.2 4.3 6.4 9.0 2.9 4.1 100.0 One-Star 65 0.4 % 32.5 7.0 1.7 29.2 5.9 4.3 5.4 6.6 2.7 4.3 100.0 Heritage 44 0.0 % 13.3 8.2 3.0 25.1 21.4 2.1 2.8 7.1 13.0 3.9 100.0 Others 101 0.2 % 31.1 7.3 1.9 25.0 6.2 4.5 9.2 8.2 4.3 2.2 100.0 2012-2013 All India Average 984 1.3% 30.1 8.9 2.0 20.5 8.4 4.5 8.1 7.1 5.2 3.9 100.0 Guest Analysis COMPOSITION Number of Responses Five-Star Deluxe 46 Five-Star 64 Four-Star 105 Three-Star 405 Domestic Guests Foreign Guests Total 47.7 % 52.3 100.0 62.9 % 37.1 100.0 66.7 % 33.3 100.0 77.7 % 22.3 100.0 Total Business Guests Total Leisure Guests Total 63.1 36.9 100.0 62.2 37.8 100.0 61.4 38.6 100.0 60.0 40.0 100.0 2.5 2.0 1.9 2.2 41.8 4.1 2.3 2.2 2.2 36.0 3.4 2.4 3.0 2.2 43.5 3.1 2.8 3.0 2.3 45.5 Avg. Stay of Foreign Guests (Days) Avg. Stay of Domestic Guests (Days) Avg. Stay of Business Guests (Days) Avg. Stay of Leisure Guests (Days) Percentage of Repeat Guests Two-Star 215 81.4 % 18.6 100.0 One-Star 68 Heritage 44 Others 115 2012-2013 All India Average 1,062 86.8 % 13.2 100.0 54.7 % 45.3 100.0 83.6 % 16.4 100.0 75.2 % 24.8 100.0 55.5 44.2 99.7 58.8 41.2 100.0 27.9 72.1 100.0 60.5 39.4 100.0 58.2 41.8 100.0 2.9 2.8 2.7 2.5 50.9 2.2 2.0 2.0 2.0 48.1 2.4 2.0 2.0 2.2 28.5 2.7 5.0 2.3 2.9 48.4 3.0 2.7 2.7 2.3 45.7 Country of Origin of Guests COMPOSITION Number of Responses ASEAN* Australia Canada Caribbean China France Germany Japan Middle East Other European Countries Russia SAARC ** South Africa UK USA Other Total Five-Star Deluxe 33 3.5 % 2.1 2.2 0.4 1.8 4.4 4.2 4.0 4.2 6.9 1.3 4.2 1.7 11.7 16.9 30.5 100.0 Five-Star 52 3.5 % 3.1 2.1 0.5 4.1 3.3 4.9 6.3 2.7 10.2 6.6 4.4 1.6 10.5 11.5 24.8 100.0 Four-Star 69 Three-Star 217 4.9 % 3.2 2.8 0.8 4.1 4.3 5.0 5.6 5.1 8.7 5.3 5.1 1.9 10.7 9.3 23.3 100.0 6.4 % 3.3 3.9 0.8 5.5 6.6 7.4 3.9 6.2 9.6 4.3 5.7 2.3 12.2 12.2 9.8 100.0 Two-Star 81 5.3 % 3.4 3.4 0.4 5.0 4.9 6.4 3.3 6.5 8.9 3.9 10.5 1.5 13.8 10.1 12.8 100.0 One-Star 19 2.6 % 6.0 2.2 0.8 3.7 8.8 5.2 2.6 9.9 11.3 2.3 10.2 2.5 10.0 9.2 12.6 100.0 Heritage 28 1.5 % 4.1 3.8 0.4 1.8 15.1 10.4 2.2 2.2 12.6 1.0 2.7 0.5 10.3 8.5 23.2 100.0 * ASEAN: Association of South East Asian Nations - Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam ** SAARC: South Asian Association for Regional Co-operation - Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives Page 22 Others 26 4.0 % 6.9 3.5 1.2 7.0 6.8 4.1 3.2 2.9 8.5 2.4 11.6 2.6 10.6 7.4 17.5 100.0 2012-2013 All India Average 525 5.1 % 3.5 3.3 0.7 4.7 6.1 6.4 4.1 5.4 9.4 4.0 6.4 1.9 11.8 11.2 16.0 100.0
  28. 28. TABLE 1-6: Indian Hotel Industry – Star Category: Monthly and Daily Occupancy Average Monthly Occupancy COMPOSITION Number of Responses January February March April May June July August September October November December Five-Star Deluxe 45 71.5 % 77.2 68.8 65.3 59.3 58.9 59.2 60.9 64.2 67.8 70.8 69.9 Five-Star 62 66.4 % 70.8 63.8 61.0 55.9 56.7 53.4 53.3 55.0 59.5 65.7 65.7 Four-Star 105 Three-Star 400 68.8 % 71.2 62.8 61.5 61.4 55.4 53.7 58.0 57.5 62.1 67.8 68.1 61.7 % 63.9 56.7 57.3 59.2 55.1 51.6 52.2 55.6 58.6 63.3 67.1 Two-Star 209 67.4 % 61.9 58.5 59.6 64.5 66.5 55.4 55.0 56.5 65.0 63.8 68.7 One-Star 66 62.3 % 62.6 54.5 57.9 64.8 60.7 55.5 56.7 57.5 62.1 64.6 67.3 Heritage 44 53.8 % 59.9 55.3 49.9 48.1 45.1 39.3 45.3 43.0 54.0 62.7 58.6 Others 91 59.9 % 59.8 55.6 54.8 59.6 58.5 50.9 52.0 52.2 58.5 62.3 66.7 2012-2013 All India Average 1,022 63.8 % 64.6 58.4 58.3 60.2 58.0 52.7 53.8 55.6 60.8 64.3 67.2 Average Daily Occupancy COMPOSITION Number of Responses Monday Tuesday Wednesday Thursday Friday Saturday Sunday Five-Star Deluxe 41 63.7 % 66.0 67.1 62.1 57.8 54.6 56.2 Five-Star 58 55.7 % 59.9 62.1 60.6 57.9 55.1 48.6 Four-Star 97 Three-Star 368 60.6 % 63.8 64.2 62.4 59.7 55.9 52.1 55.2 % 55.5 60.1 57.6 57.4 54.0 47.0 Two-Star 204 53.3 % 55.4 57.2 57.5 60.6 57.6 48.4 One-Star 63 54.9 % 54.9 57.7 57.7 62.1 61.2 53.9 Heritage 34 41.1 % 40.7 42.9 45.2 52.0 55.4 45.9 Others 93 55.7 % 56.6 57.7 57.1 60.0 54.3 43.7 2012-2013 All India Average 958 55.3 % 56.6 59.3 58.0 58.7 55.6 48.4 TABLE 1-7: Indian Hotel Industry – Star Category: Sources of Reservations Source of Advance Reservations COMPOSITION Number of Responses Chain CRS (Central Reservation System) Direct Enquiry / Hotel Representation Global Distribution System (GDS) Hotel / Chain Website Travel Agent and Tour Operator Other Online Reservation Systems Other Website Other Total Five-Star Deluxe 43 8.0 % 43.2 8.9 7.8 15.5 6.5 5.4 4.7 100.0 Five-Star 60 6.4 % 45.1 6.3 6.7 16.5 6.0 5.6 7.4 100.0 Four-Star 100 Three-Star 393 5.6 % 44.6 3.4 9.1 18.4 5.2 7.6 6.2 100.0 3.7 % 50.1 1.7 8.2 19.4 3.5 7.3 6.0 100.0 Page 23 Two-Star 204 2.3 % 52.9 0.7 7.5 20.7 2.7 6.9 6.4 100.0 One-Star 62 1.1 % 63.8 0.2 3.6 16.5 0.9 5.2 8.7 100.0 Heritage 38 7.9 % 24.2 2.8 13.0 35.2 6.5 6.9 3.6 100.0 Others 101 2.7 % 58.1 0.9 6.7 17.6 1.1 5.7 7.2 100.0 2013-2013 All India Average 1,001 3.8 % 50.2 2.1 7.8 19.5 3.5 6.8 6.3 100.0
  29. 29. TABLE 1-8: Indian Hotel Industry – Star Category: Marketing Media Marketing Media COMPOSITION Number of Responses Blogs Direct Mail Hotel Website Loyalty Card program Merchandising Other Internet Sites Outdoor Advertising Pay Per Click Print Advertising Promotions Radio Advertising Telemarketing TV Advertising Viral Marketing Five-Star Deluxe 43 46.5 % 76.7 95.4 86.1 32.6 83.7 46.5 32.6 95.4 93.0 37.2 46.5 23.3 23.3 Five-Star 62 22.6 % 79.0 90.3 71.0 33.9 71.0 72.6 25.8 93.6 87.1 46.8 48.4 27.4 25.8 Four-Star Three-Star 105 410 33.3 % 83.8 95.2 55.2 42.9 70.5 72.4 21.9 92.4 84.8 43.8 70.5 29.5 20.0 17.3 % 79.3 88.5 29.8 23.7 67.1 59.3 15.9 85.9 69.0 24.4 54.6 26.1 13.4 Two-Star 206 14.1 % 76.7 80.6 23.3 18.5 66.0 54.9 9.2 85.4 57.3 17.5 38.8 18.5 8.7 One-Star 61 3.3 % 70.5 63.9 16.4 18.0 55.7 49.2 4.9 70.5 47.5 0.0 26.2 9.8 6.6 Heritage 45 26.7 % 86.7 91.1 33.3 35.6 71.1 64.4 13.3 84.4 77.8 15.6 48.9 35.6 13.3 2012-2013 All India Others Average 105 1,037 8.6 % 62.9 77.1 21.0 15.2 47.6 44.8 9.5 68.6 47.6 15.2 32.4 20.0 5.7 18.5 77.2 85.5 34.3 24.9 65.7 58.2 15.0 84.6 67.3 24.1 48.2 23.7 13.1 TABLE 1-9: Indian Hotel Industry – Star Category: Payment Methods Payment Methods Used COMPOSITION Number of Responses Cash Sales Credit Card Sales Credit Sales (other than cards) Electronic Fund Transfer Total Five-Star Deluxe 41 Five-Star 50 Four-Star 89 Three-Star 347 Two-Star 186 One-Star 61 Heritage 41 Others 88 2012-2013 All India Average 903 14.1% 49.6 28.1 8.2 100.0 20.4% 41.7 28.8 9.2 100.0 24.9% 38.2 29.1 7.9 100.0 36.4% 34.7 20.2 8.8 100.0 48.1% 30.3 13.8 7.9 100.0 61.0% 22.8 10.4 5.9 100.0 32.6% 25.9 31.2 10.3 100.0 54.2% 27.1 11.9 6.8 100.0 39.0% 33.2 19.6 8.2 100.0 Credit Cards Used COMPOSITION Number of Responses American Express Diners Club Mastercard / Eurocard Visa Other Total Five-Star Deluxe 40 Five-Star 51 Four-Star 87 Three-Star 314 Two-Star 151 One-Star 40 Heritage 35 Others 63 2012-2013 All India Average 781 30.2% 3.0 28.6 35.9 2.3 100.0 20.3% 1.9 34.0 38.7 5.1 100.0 13.9% 1.8 34.4 46.5 3.3 100.0 7.3% 1.6 40.7 45.2 5.1 100.0 3.6% 1.4 40.4 49.3 5.5 100.0 1.7% 3.0 39.5 50.5 5.3 100.0 7.7% 1.5 36.4 45.7 8.7 100.0 6.1% 2.1 37.9 48.1 5.8 100.0 9.0% 1.8 38.4 45.8 5.1 100.0 Average Credit Card Commission COMPOSITION Number of Responses American Express Diners Club Mastercard / Eurocard Visa Other Five-Star Deluxe 40 Five-Star 49 Four-Star 77 Three-Star 238 Two-Star 124 One-Star 35 Heritage 32 Others 42 2012-2013 All India Average 637 3.2% 1.8 1.1 1.1 0.3 3.7% 0.8 1.9 2.1 0.3 3.5% 1.1 2.2 2.7 0.2 3.0% 0.4 1.9 1.9 0.3 1.6% 0.4 1.7 1.7 0.3 1.0% 0.4 1.8 1.9 0.3 2.9% 0.3 1.8 1.9 0.3 1.6% 0.3 2.9 2.8 0.2 2.7% 0.6 1.9 2.0 0.3 Page 24
  30. 30. TABLE 1-10: Indian Hotel Industry – Star Category: Technology Management Practices Technology in Hotels COMPOSITION Number of Responses Accounting System Call Accounting System Central Reservation System (CRS) Electronic Keycard Energy Management System Internet / E-Mail Internet / Website Intranet System Local Area Network (LAN) Management Information System Point of Sale System for Food and Beverage Property Management System Yield Management System Other Five-Star Deluxe 34 Five-Star 47 94.1% 79.4 73.5 91.2 52.9 100.0 97.1 88.2 97.1 85.3 100.0 94.1 58.8 14.7 95.7% 83.0 61.7 85.1 38.3 100.0 100.0 59.6 100.0 78.7 97.9 80.9 29.8 19.2 Four-Star Three-Star 98 364 95.9% 74.5 49.0 75.5 51.0 98.0 95.9 60.2 91.8 79.6 92.9 81.6 38.8 13.3 Page 25 89.8% 54.7 35.7 45.6 30.0 97.0 90.1 48.6 83.0 69.5 80.8 52.8 22.3 10.4 Two-Star 191 One-Star 61 Heritage 41 87.4% 42.4 17.3 22.0 14.7 90.6 83.3 36.1 69.6 39.3 50.3 29.3 13.1 3.1 83.6% 27.9 4.9 14.8 3.3 88.5 63.9 16.4 52.5 23.0 32.8 13.1 1.6 0.0 90.2% 41.5 51.2 9.8 12.2 97.6 97.6 68.3 70.7 63.4 70.7 41.5 14.6 4.9 2012-2013 All India Others Average 87 923 86.2% 36.8 8.1 25.3 11.5 85.1 81.6 37.9 62.1 33.3 57.5 27.6 11.5 4.6 89.7% 52.6 32.1 42.0 26.0 94.4 87.9 47.0 78.0 58.6 71.5 48.4 21.1 8.3
  31. 31. 2. Indian Hotel Industry – Inventory and Chain 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', '50 to 150 rooms', and 'More than 150 rooms'. We have also drawn a comparison between Chain Affiliated and Independent hotels. Trends • Room Profile and Facilities: Chain Affiliated hotels tend to offer more expansive facilities (116 rooms and 4.5 Food & Beverage outlets on an average) as compared to independent ones (49 rooms and 3.1 Food & Beverage outlets on an average). Suites constitute a higher percentage (11%) of the total room inventory of hotels with less than 50 rooms as compared to the other categories. This is because heritage properties, with their small room count and relatively large suite inventory form a large portion of this category. We note that there is a distinct difference in the facilities of chain affiliated and independent hotels. • Total Employees per Hotel: It is interesting to note that there is not much difference in the employee-to-room ratio between differently sized hotels, which suggests some amount of inefficiency especially in the smaller sized ones. However, in India even hotels with small inventories provide various facilities such as F&B outlets, laundry, and room service amongst others, which leads to these ratios. • Profitability: The Net Income percentage of chain affiliated hotels is observed to be higher than that of independent hotels. This is primarily because the chain hotels are better at managing departmental costs through strong standard operating procedures and trained staff. FHRAI results have also shown the benefits of economies of scale that larger hotels achieve, and control both departmental and operating expenses effectively. • Marketing Media: The Survey reveals a greater percentage usage of loyalty card programmes, hotel websites, blogs, merchandising and telemarketing by the chain affiliated hotels as they are able to leverage on their brand name and reach. • Technology: Larger-sized hotels focus on yield management systems, management information systems and other technology such as electronic key cards and LAN networks. Hotels with smaller inventories continue to use more traditional accounting systems with the adoption of other technologies being limited. Typically, the chain affiliated hotels tend to have larger inventories, and standardised procedures and strong information management systems, hence, recording a greater usage of technologies when compared with independent hotels. Page 26
  32. 32. TABLE 2-1: Indian Hotel Industry – Inventory & Chain Affiliation: Facilities Analysis and Staffing Typical Room Profile of an Average Hotel COMPOSITION Number of Responses Room Category Less Than 50 Rooms 887 50 to 150 Rooms 485 More Than 150 Rooms 78 Chain 201 Independent 1,249 Air-Conditioned Single Double Suites 2.3 20.3 2.8 9.0 57.1 6.5 40.6 174.6 14.8 20.1 83.9 8.2 4.4 34.0 4.1 Non-Air-Conditioned Single Double Suites 0.6 4.2 0.5 30.7 0.9 5.7 0.8 80.0 0.0 2.3 2.2 234.5 0.2 2.2 1.2 115.8 0.8 5.0 0.6 48.9 Total Average Rooms Average Number of Food & Beverage Outlets Per Hotel Less Than 50 Rooms 671 COMPOSITION Number of Responses 1.3 0.7 0.6 2.7 Restaurants Bars Others Total 50 to 150 Rooms 420 1.9 1.0 1.0 3.8 More Than 150 Rooms 74 3.2 1.3 1.4 5.8 Chain 181 Independent 984 2.3 1.1 1.1 4.5 1.5 0.8 0.7 3.1 Average Number of Employees Per Hotel (Permanent / Contract / Full Time / Part Time) Less Than 50 Rooms 749 COMPOSITION Number of Responses Managers Supervisors Staff 50 to 150 Rooms 415 More Than 150 Rooms 74 Chain 188 Independent 1050 3.5 0.5 4.9 0.7 33.2 3.8 46.5 Total Average Number of Employees per Room 11.5 1.6 16.1 2.4 88.0 10.2 129.9 44.8 11.1 53.8 10.5 241.8 29.4 391.4 22.2 4.6 26.2 4.1 132.7 14.5 204.3 6.2 1.0 9.0 1.5 51.7 6.2 75.5 1.5 Male Female Male Female Male Female 1.6 1.7 1.7 1.5 Average Percentage of Trained Employees Per Hotel Less Than 50 Rooms 439 50 to 150 Rooms 312 More Than 150 Rooms 68 Chain 166 Independent 653 88.1% 88.6% 89.6% 94.7% 86.9% Supervisors 81.2 80.9 86.8 100.4 79.4 Staff 62.4 70.9 75.3 82.9 62.6 Total Avg. Trained Employees* Total Avg. Un-Trained Employees 77.3 22.8 80.2 19.8 83.9 16.1 89.3 10.7 76.3 23.7 COMPOSITION Number of Responses Managers some hotels may have included those with short term (in-house) training. Page 27
  33. 33. Page 28 248,833 524,459 7,925 41,222 5,463 827,901 1,708,460 1,346,120 678,193 362,499 11,262 76,359 61,932 2,536,360 241,252 66,497 78,264 16,956 135,164 237,045 775,177 933,283 21,089 8,716 40,469 39,184 109,457 823,825 18.5 50.4 70.4 54.0 8.8 32.6 67.4 53.1% 26.7 14.3 0.4 3.0 2.4 100.0 Percentage of Revenue 131 28,964 60.1% 6,083 Amount per Available Room ( ` ) 140 9.5 2.6 3.1 0.7 5.3 9.4 30.6 36.8 0.8 0.3 1.6 1.5 4.3 32% 95 39 183 177 495 3,723 1,090 301 354 77 611 1,071 3,503 4,218 1,124 2,370 36 186 25 3,741 7,721 6,083 3,065 1,638 51 345 280 11,462 Amount per Occupied Room ( ` ) 0.8 0.3 1.3 1.0 3.4 27% 9.5 1.3 3.0 0.3 6.5 10.3 30.8 30.5 20.3 60.8 133.7 80.5 9.8 38.7 61.3 51.3% 31.7 9.7 0.3 2.9 4.2 100.0 Percentage of Revenue 11,991 4,619 17,884 13,777 48,270 387,134 136,310 18,495 42,326 3,703 93,417 146,391 440,642 435,404 148,898 359,407 4,981 32,956 5,913 552,154 876,045 731,956 452,795 138,710 3,726 40,941 60,071 1,428,200 58 12,275 60.5% 3,442 Amount per Available Room ( ` ) Independent 489 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME OPERATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Property Taxes Insurance Other Fixed Charges Rent Total NET INCOME** COMPOSITION Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): Number of Responses 56 22 84 65 227 1,820 641 87 199 17 439 688 2,072 2,047 700 1,690 23 155 28 2,596 4,119 3,442 2,129 652 18 193 282 6,716 Amount per Occupied Room ( ` ) TABLE 2-2: Indian Hotel Industry – Chain Affiliated vs. Independent: Financial Report (2012-13) 0.8 0.3 1.4 1.3 3.9 30% 9.5 2.0 3.0 0.5 5.9 9.8 30.7 33.8 19.3 55.2 91.7 66.0 9.4 35.4 64.6 52.2% 29.0 12.2 0.4 2.9 3.3 100.0 Percentage of Revenue 15,571 6,231 26,773 23,777 72,353 559,009 177,611 37,389 56,470 8,920 109,845 182,067 572,302 631,362 188,227 424,357 6,140 36,208 5,735 660,667 1,203,660 973,670 541,494 226,793 6,693 54,881 60,800 1,864,330 74 15,990 60.4% 4,507 Amount per Available Room ( ` ) 72 29 124 110 335 2,587 822 173 261 41 508 843 2,649 2,922 871 1,964 28 168 27 3,058 5,571 4,507 2,506 1,050 31 254 281 8,629 Amount per Occupied Room ( ` ) 2012-2013 All India Average 629
  34. 34. Page 29 246 54,733 62.3% 6,788 More Than 150 Rooms 60 52.6% 30.0 11.0 0.2 2.4 3.8 100.0 18.4 58.7 124.2 66.6 9.5 36.0 64.0 11.1 2.3 2.8 0.5 6.6 11.1 34.3 29.8 0.7 0.3 1.1 0.9 3.0 26.8% 27.2 64.4 234.7 88.6 25.9 45.7 54.3 8.8 2.5 2.4 0.3 6.2 11.1 31.3 23.0 0.8 0.4 1.7 1.9 4.7 18.3% 1.0 0.4 1.7 1.4 4.5 34.9% 8.4 2.0 3.4 0.5 5.2 8.4 28.0 39.3 18.5 50.0 65.1 63.3 5.8 32.7 67.3 52.5% 26.0 14.4 0.5 3.7 2.9 100.0 Percentage of Revenue 84 18,319 61.5% 3,844 49.6% 39.2 6.4 0.2 1.8 2.8 100.0 32 6,499 59.4% 2,355 50 to 150 Rooms 260 0.8 0.3 1.4 1.3 3.9 30% 9.5 2.0 3.0 0.5 5.9 9.8 30.7 33.8 19.3 55.2 91.7 66.0 9.4 35.4 64.6 52.2% 29.0 12.2 0.4 2.9 3.3 100.0 74 15,990 60.4% 4,507 2012-13 All India Average 629 7,570 3,532 16,163 18,285 45,551 182,119 86,276 21,829 23,262 3,262 60,998 108,789 304,416 227,670 132,163 287,739 5,048 15,364 7,164 447,477 532,086 485,381 383,947 63,039 2,151 17,332 27,714 979,563 32 6,499 59.4% 2,355 Less Than 50 Rooms 309 * Minor Operated departments include laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth ** Net Income is before depreciation, interest payments and taxes REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME OPERATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Property Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Property Taxes Insurance Other Fixed Charges Rent Total NET INCOME** Average Total Rooms Per Hotel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel ( ` ): Number of Responses Less Than 50 Rooms 309 246 54,733 62.3% 6,788 More Than 150 Rooms 60 10,761 4,745 17,071 14,620 47,198 428,565 175,977 32,856 44,528 7,223 105,257 175,547 541,387 475,762 153,405 382,085 4,545 25,414 5,717 571,166 1,017,150 835,575 476,574 174,278 3,660 38,185 60,042 1,588,310 28,181 10,293 48,503 41,280 128,256 1,006,620 242,913 54,824 96,942 15,300 150,157 242,888 803,024 1,134,870 279,112 582,148 9,299 66,528 4,927 942,013 1,937,900 1,512,390 748,068 415,591 14,276 105,121 84,463 2,879,910 Amount per Available Room ( ` ) 84 18,319 61.5% 3,844 50 to 150 Rooms 260 TABLE 2-3: Indian Hotel Industry – Inventory: Financial Report (2012-13) 15,571 6,231 26,773 23,777 72,353 559,009 177,611 37,389 56,470 8,920 109,845 182,067 572,302 631,362 188,227 424,357 6,140 36,208 5,735 660,667 1,203,660 973,670 541,494 226,793 6,693 54,881 60,800 1,864,330 74 15,990 60.4% 4,507 2012-13 All India Average 629 37 17 78 89 221 884 419 106 113 16 296 528 1,477 1,105 641 1,396 24 75 35 2,171 2,582 2,355 1,863 306 10 84 134 4,753 32 6,499 59.4% 2,355 Less Than 50 Rooms 309 246 54,733 62.3% 6,788 More Than 150 Rooms 60 50 22 79 67 217 1,971 810 151 205 33 484 808 2,490 2,189 706 1,758 21 117 26 2,627 4,679 3,844 2,192 802 17 176 276 7,307 126 46 218 185 576 4,518 1,090 246 435 69 674 1,090 3,604 5,093 1,253 2,613 42 299 22 4,228 8,697 6,788 3,357 1,865 64 472 379 12,925 Amount per Occupied Room ( ` ) 84 18,319 61.5% 3,844 50 to 150 Rooms 260 72 29 124 110 335 2,587 822 173 261 41 508 843 2,649 2,922 871 1,964 28 168 27 3,058 5,571 4,507 2,506 1,050 31 254 281 8,629 74 15,990 60.4% 4,507 2012-13 All India Average 629

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