20811971 Hotel Industry Project Report

CHAPTER 1
INDUSTRY PROFILE
HOSPITALITY INDUSTRY – AN OVERVIEW
Hospitality is all about offering warmth to someone who looks for help at a strange or
unfriendly place. It refers to the process of receiving and entertaining a guest with
goodwill. Hospitality in the commercial context refers to the activity of hotels,
restaurants, catering, inn, resorts or clubs who make a vocation of treating tourists.
Helped With unique efforts by government and all other stakeholders, including hotel
owners, resort managers, tour and travel operators and employees who work in the
1

sector, Indian hospitality industry has gained a level of acceptance world over. It has
yet to go miles for recognition as a world leader of hospitality. Many take Indian
hospitality service not for its quality of service but India being a cheap destination for
leisure tourism.
With unlimited tourism and untapped business prospects, in the coming years Indian
hospitality is seeing green pastures of growth. Availability of qualified human
resources and untapped geographical resources give great prospects to the hospitality
industry. The number of tourists coming to India is growing year after year. Likewise,
internal tourism is another area with great potentials.
The hospitality industry is a 3.5 trillion dollar service sector within the global
economy. It is an umbrella term for a broad variety of service industries including, but
not limited to, hotels, food service, casinos, and tourism. The hospitality industry is
very diverse and global. The industry is cyclical; dictated by the fluctuations that
occur with an economy every year. Today hospitality sector is one of the fastest
growing sectors in India. It is expected to grow at the rate of 8% between 2007 and
2016. Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four
Seasons Regent, and Marriott International are already established in the Indian
markets and are still expanding. Nowadays the travel and tourism industry is also
included in hospitality sector. The boom in travel and tourism has led to the further
development of hospitality industry.
In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is
projected to grow at a rate of 8.8% between 2007-16, which would place India as the
second-fastest growing tourism market in the world. This year the number of tourists
visiting India is estimated to have touched the figure of 4.4 million. With this huge
figure, India is becoming the hottest tourist destination. The arrival of foreign tourists
has shown a compounded annual growth of 6 per cent over the past 10 years. Besides,
travel and tourism is the second highest foreign exchange earner for India. Moreover,
it is also estimated that the tourism sector will account for nearly 5.3 per cent of GDP
and 5.4 per cent of total employment.
EVOLUTION
Hotel Industry in India has witnessed tremendous boom in recent years.
Hotel Industry is inextricably linked to the tourism industry and the
growth in the Indian tourism industry has fuelled the growth of Indian
hotel industry. The thriving economy and increased business
opportunities in India have acted as a boon for Indian hotel industry. The
arrival of low cost airlines and the associated price wars have given
2

domestic tourists a host of options. The 'Incredible India' destination
campaign and the recently launched 'Atithi Devo Bhavah' (ADB)
campaign have also helped in the growth of domestic and international
tourism and consequently the hotel industry.
According to a report, Hotel Industry in India currently has supply of
110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel
room rates across India. According to estimates demand is going to
exceed supply by at least 100% over the next 2 years. Five-star hotels in
metro cities allot same room, more than once a day to different guests,
receiving almost 24-hour rates from both guests against 6-8 hours usage.
With demand-supply disparity, hotel rates in India are likely to rise by
25% annually and occupancy by 80%, over the next two years. This will
affect the competitiveness of India as a cost-effective tourist destination.
To overcome, this shortage Indian hotel industry is adding about 60,000
quality rooms, currently in different stages of planning and development,
which should be ready by 2012. Hotel Industry in India is also set to get a
fillip with Delhi hosting 2010 Commonwealth Games. The future
scenario of Indian hotel industry looks extremely rosy. It is expected that
the budget and mid-market hotel segment will witness huge growth and
expansion while the luxury segment will continue to perform extremely
well over the next few years.
SWOT ANALYSIS
 STRENGTHS
➢ Natural and cultural diversity : India has a rich cultural heritage. The
"unity in diversity" tag attracts most tourists. The coastlines, sunny beaches,
3

backwaters of Kerala, snow capped Himalayas and the quiescent lakes are
incredible.
➢ Demand-supply gap : Indian hotel industry is facing a mismatch between
the demand and supply of rooms leading to higher room rates and
occupancy levels. With the privilege of hosting Commonwealth Games
2010 there is more demand of rooms in five star hotels. This has led to the
rapid expansion of the sector
➢ Government support: The government has realized the importance of
tourism and has proposed a budget of Rs. 540 crore for the development of
the industry. The priority is being given to the development of the
infrastructure and of new tourist destinations and circuits. The Department
of Tourism (DOT) has already started the "Incredible India" campaign for
the promotion of tourism in India.
➢ Increase in the market share: India's share in international tourism and
hospitality market is expected to increase over the long-term. New budget
and star hotels are being established. Moreover, foreign hospitality players
are heading towards Indian markets.
 WEAKNESSES
➢ Poor support infrastructure: Though the government is taking necessary
steps, many more things need to be done to improve the infrastructure. In
2003, the total expenditure made in this regard was US $150 billion in
China compared to US$ 21 billion in India.
➢ Slow implementation: The lack of adequate recognition for the tourism
industry has been hampering its growth prospects. Whatever steps are being
taken by the government are implemented at a slower pace.
➢ Susceptible to political events: The internal security scenario and social
unrest also hamper the foreign tourist arrival rates.
 OPPORTUNITIES
4

➢ Rising income: Owing to the rise in income levels, Indians have more
spare money to spend, which is expected to enhance leisure tourism.
➢ Open sky benefits: With the open sky policy, the travel and tourism
industry has seen an increase in business. Increased airline activity has
stimulated demand and has helped improve the infrastructure. It has
benefited both international and domestic travels.
 THREATS
➢ Fluctuations in international tourist arrivals: The total dependency on
foreign tourists can be risky, as there are wide fluctuations in international
tourism. Domestic tourism needs to be given equal importance and measures
should be taken to promote it.
➢ Increasing competition: Several international majors like the Four Seasons,
Shangri-La and Aman Resorts are entering the Indian markets. Two other
groups - the Carlson Group and the Marriott chain - are also looking forward to
join this race. This will increase the competition for the existing Indian hotel
majors.
IMPACT OF RECESSION ON INDUSTRY
The state of turmoil in global financial markets has generated new concerns for
the hospitality industry.
Existing hotels in India are also likely to benefit from the improved performance
of the non-room sources of income, namely Food & Beverage (including banquet
operations), Spa, Corporate Club memberships and other ancillary services.
India is expected to see Asia's biggest drop in corporate travel spending, falling
25% this year compared to 2008.
5

 Trends that will shape the future of hospitality sector are:
1. Low Cost Carriers
2. Budget Hotels
3. Service Apartments
4. Technology
5. Loyalty Travel
 Challenges for the hospitality industry are:
1. Shortage of skilled employees
2. Retaining quality workforce
3. Shortage of rooms
4. Intense competition and image of India
5. Customer expectations
6. Manual back-end
7

SEGMENTATION PATTERN
FUTURE TREND ANALYSIS
8

DISTRIBUTION PATTERN OF BRANDED HOTELS
9

COMPANY 1:
TAJ GROUP OF
HOTELS
11

COMPANY PROFILE:TAJ GROUP OF HOTELS
A. TAJ History
The Taj Mahal Palace and Tower, built in 1903, stands on the shores of the
Arabian Sea, a resplendent tribute to the vision of Jamsetji N Tata, founder of the
Tata group, who wished to build the finest hotel that India had ever seen.
With a tradition of commitment to excellence, personal attention and guest delight,
the Taj brand succeeds in making guests feel completely at home. There is a strong
focus on exceeding customer expectations, reinventing service concepts and
upgrading physical products. By benchmarking
Itself constantly against the best in its class, this brand, the oldest in the Tata
group, has built a solid reputation in the hospitality industry.
The Taj brand, deeply rooted in traditional Indian values of hospitality and
graciousness, and committed to acquainting guests with India’s living heritage, has
evolved with time, assuming a more contemporary avatar. Its appeal therefore cuts
across all generations.
With a total of 57 properties in 40 locations across India and 18 international
hotels, the Taj family of hotels encompasses iconic city hotels, grand palaces,
modern business hotels, beach resorts and rustic safari lodges.
Taj Hotels is justifiably proud to belong to the Tata group, an association that
automatically elicits trust and esteem from its customers and stakeholders. The
brand is a crowning achievement in the Tata group’s array of brands.
12

Ratan Naval Tata
Born
December 28, 1937 (1937-12-28)
(age 71)
Bombay Presidency, British India
Residence Mumbai, India
Nationality India
Ethnicity Parsi
13

Citizenship India
Alma mater Cornell University
Occupation Chairman of Tata Group
Home town Mumbai, India
Religious
beliefs
Zoroastrianism
Ratan Tata became the Chairman of the Tata Group in 1981 after serving as
Chairman in charge of the Nelco division of the group. Tata is India's largest
conglomerate and includes the brands Tata Motors, Tata Steel, Tata Power,
Indian Hotels, as well as other brands labeled under the Tata name.
Ratan Tata was born on December 28, 1937 in Mumbai, India in one of the
richest families in the country. His great grandfather, Jamsedji Tata, was the
founder of the Tata group and passed the power and inheritance down to his
family.
Tata was a good student and studied hard at the Campion School in Mumbai
followed by studies in architecture and structural engineering at Cornell
University. He graduated with his bachelors degree in 1962 and joined the Tata
Group in December of that same year. Tata's first job with the Group involved
working with the Tata Steel division where he worked with the blue-collar
employees shoveling stone and working with the furnaces.
With Tata Industries, Ratan Tata was able to transform the management and
vision of the division and bring in significantly larger dividends. This renewed
financial success helped bring the Tata Group to the New York Stock
Exchange and gave the company even more international power and prestige.
Ratan Tata continued to acquire different industries for the Tata Group,
eventually purchasing the steel an aluminum producer, Corus Group as well as
Jaguar and Land Rover brands from the Ford Company.
Ratan Tata lives a very private life in Mumbai, India.
B. Product profile – Market Analysis
14

Taj Hotels, Resorts and Palaces covers a wider market in the hotel industry
than the other luxury hotels in the race. They have a better product profile than
the rest: i.e. They have great management, hospitality and facilities provided by
them to their customers. Some of them are:
• Launch of Knowledge Management Site
• Systems and Technology
• Electronic Signage
• Guest Wireless Internet access
• In Room Guest Entertainment Systems
• The Taj Contact Centre
• Project Orion, the Integrated Back Office System
• Self service Kiosks
• Taj Website
• Outlook
• Global Reach and 24 x 7 x 365 Access for our customers across the
world
A.Client Profile
Taj Hotels have a client profile consultation service provided wherein they
diagnose the clientele needs and thus, with that information they try and provide
the required facilities to their customers. Generally, Taj concentrates on the Upper
class of the society who can spend lavishly on the luxury provided.
B. Vision
The Taj Group of Hotels commits itself to the overall improvement of the
ecological environment, which we are all a part of.
We recognize that we are not owners but caretakers of the Planet and owe it to our
children and future generations of humankind.
It is our endeavor not only to conserve and protect but also to renew and
regenerate the environment in which we live and operate.
Our commitment encompasses all actions related to our products, services,
associates, partners, vendors and communities.
15

We will partner and engage with our environment through EARTH:
Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a
program, nor a process; it is a way of life.
EARTH
Taj Hotels Resorts and Palaces presents EARTH
~ Environment Awareness & Renewal at Taj Hotels gets Green Globe Certification
~
In an endeavour to reinstate its vision and efforts to boost sustainable tourism and
integrate environment management in all business areas, Taj Hotels Resorts and
Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a
project which reiterates the conscious effort of one of Asia’s largest and finest group
of hotels to commit to energy conservation and environmental management. EARTH
has received certification from Green Globe, the only worldwide environmental
certification program for travel and tourism.
C. Taj Values
PEOPLE DIVERSITY, INTEGRITY &
RESPECT
PASSION FOR EXCELLENCE
EXCEED EXPECTATIONS
INNOVATION
SENSE OF URGENCY &
ACCOUNTABILITY
SOCIAL RESPONSIBILITY
16

JOY AT WORK
People are our greatest asset and the key to our success.
We respect diversity of people, ideas, cultures and honor the value of
individuals in a team.
We believe in perfection to achieve excellence.
We continuously improve processes to surpass global benchmarks.
We succeed by exceeding expectations of all stakeholders and protecting the
interest of our shareholders and playing by the rules.
We encourage innovation, embrace change and support growth through
knowledge and learning.
We accept responsibility and deliver on promises with a sense of urgency and
agility.
We commit to improve the quality of life of the communities we serve and our
concern for the environment by returning to society what we earn
We recognize and respect each other in all interactions and set the example for
our guests, business associates and colleagues. We encourage a fair
environment that supports equal opportunity to attract, develop and retain the
best talent and endeavor to have fun too.
D. Taj Promises
At the Taj Group, our commitment to service excellence is rooted in our two
guiding principles called the Four Steps of Service and the Taj People
Philosophy. One of our key priorities is to empower our people to deliver on our
legacy of impeccable service.
Four Steps of Service:
1. A warm and sincere welcome. Use the guest name, whenever possible.
2. Fulfill guest needs and provide anticipatory service.
3. Defect free products and services.
4. Fond farewell using the guest name, whenever possible.
17

The following philosophy is a summary of our beliefs and values towards our
employees.
H. Taj People Philosophy
The Taj People Philosophy displays our commitment to and belief in our people.
We see Talent Management as the most important sustainable competitive
advantage in the future.
You are an important member of the Taj family.
We endeavor to select, retain and compensate the best talent in the industry.
We reward and recognize quality customer care based upon individual and
team performance.
We commit to providing you with opportunities for continuous learning and
development.
We abide by fair and just policies that ensure your well-being and that of your
family, the community and the environment.
We commit to regular and formal channels of communication, which nurture
openness and
transparency.
We strongly believe that you are the Taj.
I. Organizational Structure Of Taj Hotels
• Board of Directors
Ratan N. Tata Chairman
R. K. Krishna Kumar Vice Chairman
J. J. Bhabha
N. A. Soonawala
S. K. Kandhari
K. B. Dadiseth
18

Deepak Parekh
Jagdish Capoor
Tejendra Khanna
Shapoor Mistry
Raymond N. Bickson Managing Director
Dev Bajpai Company Secretary
• Committees of the Board Audit Committee
S. K. Kandhari Chairman
Deepak Parekh
Jagdish Capoor
• Remuneration Committee
Jagdish Capoor Chairman
R. N. Tata
R. K. Krishna Kumar
N. A. Soonawala
• Shareholders’/ Investor Grievance Committee
N. A. Soonawala Chairman
R. K. Krishna Kumar
Raymond N. Bickson
• Registered Office
Mandlik House, Mandlik Road, Mumbai 400 001.
Tel: 6639 5515
Fax: 2202 7442
• Share Department
Mandlik House, Mandlik Road, Mumbai 400 001.
Tel: 2202 6260
Fax: 2202 7442
Email: shares.dept@tajhotels.com
• Solicitors
Mulla & Mulla & Craigie Blunt & Caroe
Udwadia and Udeshi
• Auditors
S. B. Billimoria & Company
N. M. Raiji & Company
• Bankers
The Hongkong and Shanghai Banking Corporation Ltd.
19

Standard Chartered Grindlays Bank
Citibank n.a.
Website: www.tajhotels.com
• Management
Raymond N. Bickson Managing Director
Anil P. Goel Sr. Vice President - Finance
Ajoy K. Misra Sr. Vice President - Sales &
Marketing
Yogi Sriram Sr. Vice President - Human
Resources
Prakash Shukla Sr. Vice President - Technology
& CIO
Rajiv Gujral Chief Operating Officer & Sr.
Vice President-
- Mergers, Acquisitions &
Development
Franz Zeller Sr. Vice President & Chief
Operating Officer
Luxury SBU - International
Abhijit Mukerji Chief Operating Officer - Luxury
SBU - India
Jyoti Narang Chief Operating Officer - Leisure
SBU
Jamshed S. Daboo Chief Operating Officer -
Business SBU
Dev Bajpai Vice President (Legal) &
Company Secretary
Only for Taj Hotels:
J. Present market share
20

K. Future Strategies
• Urban Sanctuaries – Luxury Weekends from the Taj
• City Escapes
• Island Escapes
• Rejuvenate with Jiva
• Christmas and New Year breaks
Some more developments in progress are:
○ TAJ opens its 5th
hotel in Bangalore
○ Taj Coromandel presents ‘ANISE’
○ ‘No Room for the Ordinary’ advertising campaign
○ Taj Residency Bangalore unveils ‘Jiva’ Spa
○ ‘Heritage & Nature Walk’ At The Taj West End, Bangalore
○ Bhairo’,The Stunning New Rooftop Restaurant At Taj Lake Palace,
Udaipur
○ Intoxicating Bhutanese Bath’ At Taj Tashi, Thimphu, Bhutan
○ Two More Taj Safari Lodges Will Open In 2009
– Many more developments and strategies have been introduced
but sufficient information is not available.
L. Financial information
21

Balance Sheet(as at 31st
March 2006)
22

M. Awards and Accolades
Global
Awards
Sep-2008 Taj Hotels Resorts and Palaces is proud to receive the 2008
GOLD Magellan Award for its Brand Campaign - 'No Room for
the Ordinary' in the Advertising / Marketing Campaign Category
and Print advertising Category.
Sep-2008 Taj Hotels Resorts and Palaces is proud to receive the award for
‘The Best Business Hotel Chain in India’ by the readers in UK at
the 2008 Business Traveller Awards.
Sep-2008 Taj Hotels Resorts and Palaces tops the ranking in hotels segment
in 'Asia Pacific's Top 1,000 Brands' survey for 2008.
National
(Indian)
Awards
Apr-2009 Jiva Spa is nominated for the award of ‘Best Spa Treatment –
Ventoz’ Asia Spa India Awards held on 8th April 2009 held at
Delhi.
Jan-2008 Dun & Bradstreet - American Express Corporate Awards 2007 -
India's Top 500 Companies 2007 - in the "Hotels" category - The
Indian Hotels Company Ltd.
Jan-2008 Taj Hotels Resorts & Palaces - Avaya GlobalConnect Customer
Responsiveness Awards 2007- “ India’s Most Customer
Responsive Hotel “ – Category Hotels.
Regional
Awards
Sep-2004 TTG Travel Awards 2004 at the Sofitel Central Plaza, Bangkok–
for the Best Local Hotel Chain.
2003 Pacific Asia Travel Writers Association (PATWA)– ITB, Berlin
29

2002 – Lifetime contribution for promoting the Hospitality
Industry.
2003 PATA Gold Awards 2003 (Pacific Asia Travel Association)
Corporate Environmental Programme - ECOTAJ Environmental
Initiatives.
N. Categories Of Taj Hotels
Taj Hotels, Resorts and Palaces is an international hospitality group with strong
roots in India. For over 100 years, we have built our reputation on legendary
properties, unparalleled facilities and impeccable service. We operate in the luxury,
premium, mid-market and value segments of the market through our following
brands:
Taj (luxury full-service hotels, resorts and palaces) is our flagship brand for the
world’s most discerning travelers seeking authentic experiences given that luxury is a
way of life to which they are accustomed. Spanning world-renowned landmarks,
modern business hotels, idyllic beach resorts, authentic Rajput palaces and rustic
safari lodges, each Taj hotel reinterprets the tradition of hospitality in a refreshingly
modern way to create unique experiences and lifelong memories.
Taj also encompasses a unique set of iconic properties rooted in history and tradition
that deliver truly unforgettable experiences. A collection of outstanding properties
with strong heritage as hotels or palaces which offer something more than great
physical product and exceptional service. This group is defined by the emotional and
unique equity of its iconic properties that are authentic, non- replicable with great
potential to create memories and stories.
Taj Exotica is our resort and spa brand found in the most exotic and relaxing locales
of the world. The properties are defined by the privacy and intimacy they provide. The
hotels are clearly differentiated by their product philosophy and service design. They
are centered around high end accommodation, intimacy and an environment that
allows its guest unrivalled comfort and privacy. They are defined by a a sensibility of
intimate design and by their varied and eclectic culinary experiences, impeccable
service and authentic Indian Spa sanctuaries.
Taj Safaris are wildlife lodges that allow travelers to experience the unparalleled
beauty of the Indian jungle amidst luxurious surroundings. They offer India’s first and
only wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate,
interpretive, wild life experience based on a proven sustainable ecotourism model.
30

Premium Hotels (premium full-service hotels and resorts) provide a new generation
of travelers a contemporary and creative hospitality experience that matches their
work-hard play-hard lifestyles. Stylish interiors, innovative cuisine, hip bars, and a
focus on technology set these properties apart.
The Gateway Hotel (upscale/mid-market full service hotels and resorts) is a pan-
India network of hotels and resorts that offers business and leisure travelers a hotel
designed, keeping the modern nomad in mind. At the Gateway Hotel, we believe in
keeping things simple. This is why, our hotels are divided into 7 simple zones- Stay,
Hangout, Meet, Work, Workout, Unwind and Explore.
As travel often means more hassle than harmony, more stress than satisfaction,
modern travelers are looking for smarter choices. Driven by our passion for
perfection, we welcome our customers to a refreshingly enjoyable and hassle-free
experience, anytime, everywhere. Offering the highest consistency in quality, service
and style we set new standards and take the unwanted surprises out of traveling. Our
warm welcomes make our guests feel at home, away from home and our crisp and
courteous service empowers them to get more done with greater effectiveness and
control. And through our unrivalled network we provide service that is effortless,
simple, never overwhelming, always warm.
Ginger (economy hotels) is their revolutionary concept in hospitality for the value
segment. Intelligently designed facilities, consistency and affordability are hallmarks
of this brand targeted at travelers who value simplicity and self-service.
O. Corporate Information
Domestic Subsidiaries
1. Tifco Holdings Limited
2. KTC Hotels Limited
3. United Hotels Limited
4. Taj SATS Air Catering Limited
5. Roots Corporation Limited
6. Residency Foods & Beverages
Limited
7. Innovative Foods Limited
1.
31

International Subsidiaries International Hotel Management
Services Inc.
2. Taj International Hotels (H.K.) Limited
3. St. James Court Hotel Limited
4. Chieftain Corporation NV
5. IHOCO BV
6. Taj International Hotels Limited
7. Samsara Properties Limited
8. IHMS (Australia) Pty Limited
9. IHMS (Restaurants) Pty Limited
10.Apex Hotel Management Services Pte. Ltd.
11.IHMS (HK) Limited
Associates Domestic
1. Ideal Ice & Cold Storage Company
Limited
2. Benares Hotels Limited
3. Taj Air Limited
4. Piem Hotels Limited
5. Taj Trade and Transport Limited
6. Taj Enterprises Limited
7. Taida Trading and Industries Limited
8. Inditravel Private Limited
9. Oriental Hotels Limited
10.Taj Madurai Limited
International
1. Taj Lanka Resorts Limited
2. Taj Lanka Hotels Limited
Joint Ventures Domestic
32

1. Taj Madras Flight Kitchen Pvt. Ltd.
2. Taj Karnataka Hotels & Resorts Ltd.
3. Taj Kerala Hotels & Resorts Ltd.
4. Taj GVK Hotels & Resorts Limited
5. Taj Safaris Ltd.
International
1. Taj Asia Limited
2. Taj International Hotels (South Africa)
(Pty) Ltd.
3. Taj Asia (Thailand) Ltd.
P. Key Initiatives
Ginger Hotels
IHCL is in the process of rolling out its Smart Basics hotels, under the brand
name “Ginger”. The first prototype has been launched in June 2004 in
Bangalore, with roll out being planned in a number of cities and towns
subsequently. These hotels will cater to the economy or ‘value for money’
segment and being predominantly domestic clientele based, are far less prone
to fluctuations than the luxury and upscale segments. In the long run, this
segment will help in derisking the current revenue stream of the company.
Brand Architecture
IHCL is in the process of clearly defining the product and service standards in
order to have consistency across properties under each brand. This will help in
further enhancing the brand value of Taj.
Product Upgradation
IHCL continues to invest in renovation and relaunch of key / brand defining
properties. In the last financial year IHCL upgraded rooms at the Taj Mahal
Palace & Tower, Mumbai and Taj West End, Bangalore The lobby and public
33

areas of Taj Lake Palace, Udaipur and Rambagh Palace, Jaipur were also
renovated to provide a luxurious sense of arrival. The Sea Lounge and Harbour
Bar at Taj Mahal Palace & Tower, Mumbai was relaunched, while a new
Vietnamese restaurant 'Blue Ginger' was opened in Taj West End, Bangalore
The renovated products and the new outlets were very well received in the
market. The renovated rooms at Taj Mahal Palace & Tower, Mumbai and Taj
West End, Bangalore have emerged as the price leaders in the respective cities.
In the coming year IHCL intends to open a number of F&B outlets by celebrity
Chefs with international cuisine. In the upscale segment, the properties are
being relaunched to be at par with international level upscale hotels. The rooms
at Taj President, Mumbai, Taj Residency, Bangalore, Jai Mahal Palace, Jaipur
and Taj Holiday Village, Goa are being renovated and relaunched.
Service Excellence
In the last few years IHCL has undertaken a number of steps to significantly
enhance service levels to be in line with the best in class. IHCL has constantly
benchmarked itself with the key international luxury chains and strived to raise
the bar. IHCL’s service excellence philosophy, has at its core, delivery through
our people, processes and culture.
IHCL has taken a number of steps to provide highly personalized service to the
discerning customer, including butler services in its luxury properties. In order
to take care of the entire stay experience, IHCL has also completely revamped
its Concierge services. The Centers of Excellence have been strengthened
considerably to train staff to meet the exacting standards of a truly luxury hotel.
Tata Business Excellence Model (TBEM) will play a significant role in raising
the bar of service provided. The TBEM has been rolled out in all the three hotel
divisions and will be rolled out to the international properties also.
Tata Business Excellence Model (TBEM)
In order to intensify the drive for Business Excellence, IHCL conducted
Internal Assessments based on the Tata Business Excellence Model for Luxury,
Leisure, Business SBUs as well as for Taj SATS Air Catering Limited. The
Luxury Division has also applied for External Assessment, which is to be
facilitated by Tata Quality Management Services.
Based on the External Assessment (2003) feedback report and the feedback
from the Internal Assessment, action plans to improve processes which finally
34

impact the overall organizational effectiveness, have been drawn out and
worked upon.
Some of the key initiatives deployed across key hotels of the Taj group in the
year 2003-04 are:
Rollout of the Customer Feedback System (CFS)
The CFS was launched in November 2003 and has taken root in 30 hotels across Taj
group. It is the primary and sole customer feedback system of the group. Till date, the
system has clocked around 12,000 pieces of customer feedback. The feedback from
all sources gets recorded and aggregated and analyzed to improve the service quality
in areas of concern at each of the hotels. Feedback is not restricted to only guest
difficulties (complaints) but also consists of compliments and suggestions. The
feedback would ultimately be used for product planning as well.
IT initiatives
From a situation in 1999 where there was limited IT application, Taj group has today
achieved domestic leadership in deploying IT to leverage its competencies and is
rapidly approaching benchmarks set by international highly regarded chains. The first
three phases of implementation of the IT strategy included putting in place the
physical infrastructure across the Taj Group and getting customer relationship
applications to ride on this physical infrastructure, with a view to enhancing customer
services through customer information and recognition systems and better inventory
management.
Some of the key IT initiatives being under taken by IHCL are Orion, a comprehensive
back office system, implementing Revenue Management system, Interactive TV
Systems and National Call Center.
Q. Competition
A Tata company shall fully strive for the establishment and support of a competitive,
open market economy in India and abroad, and shall cooperate in efforts to promote
the progressive and judicious liberalisation of trade and investment by a country.
Specifically, a Tata company shall not engage in activities that generate or support the
35

formation of monopolies, dominant market positions, cartels and similar unfair trade
practices.
A Tata company shall market its products and services on its own merits and shall not
make unfair and misleading statements about competitors' products and services. Any
collection of competitive information shall be made only in the normal course of
business and shall be obtained only through legally permitted sources and means.
Direct Competitors:
1. Oberoi Hotels
2. Oriental Hotels
3. ITC Welcomgroup
4. Hotel Leela etc.
Potential Target market : The upper class of the society is targeted. i.e. the richer
people in the society. Their fares or tariffs are high as the luxuries provided by them
are also standard and 5-star. Thus, this is in context to the Indian branches of Taj
Hotels.
SWOT Analysis
Strengths
The group has enormous power and strengths, which makes it the best and
competitive, some of them are:
✔ It consists of 57 properties in 40 locations across India and 18
international hotels.
✔ Its stylish variety of hotels like; Taj exotica, Taj safari, The gateway
hotels, Ginger hotels, Jivas spa etc.
✔ Its effective and efficient management techniques and staff.
✔ Its brand name.
✔ The presence of Taj Hotels, Resorts and Palaces in various countries like
United Kingdom, France, Germany, Italy, Dubai, Singapore, Australia,
Japan, Russia and the United States of America.
✔ Securing management contracts at Palm Island, Jumeirah in Dubai,
Saraya Islands in Ras Al Khaimah, Aldar Group in Abu Dhabi, UAE
Langkawi in Malaysia and Thimpu in Bhutan.
36

✔ The various initiatives taken like; rollout of Customer
Feedback System, Tata Business Excellence Model, IT
initiatives, Ginger hotels etc.
Weakness
Taj hotels being such a big brand, has a lot of advantages but every big
company faces some odds and so does Taj. Some of its weakness;
✔ Its hard to maintain such a huge chain of subsidiaries and there are
more chances of mishaps in management.
✔ Its huge competitors like Oberoi, Leela, Oriental, ITC etc are also
providing same facilities and thus it becomes a weakness for Taj
hotels.
✔ Its very costly for the Indians to afford the tariffs and service
charges set by Taj hotels. Thus, they loose a major part of their
market share.
✔ They need a lot of investment.
✔ As Taj hotels is a popular group, it is always in the eyes of the
terrorists, as taj has already faced such an incident. Therefore, it
proves to be a weakness some times, to be so popular.
Opportunities
The Group is poised strategically to take advantage of the following situation:
✔ In the backdrop of a healthy economy having its positive fallouts on the Tourism
Sector leading to rapid growth in markets in India, South Asia and key gateway cities
in source-market destinations.
✔ Rapid expansion in both International and Domestic destinations, with top-of-the-line
Luxury, Leisure and Business properties.
✔ Meeting growing demand in the budget and mid-market segments.
✔ Extending the product portfolio into related offerings viz. luxury residences, wildlife
lodges and health spas.
37

Threats
The threats identified by the Group are related mainly to the markets in which the Group
operates and general factors related to the tourism industry. Significant among these are:
✔ Cheaper international airfares, increasing affordability of travel to International
destinations, especially South East Asia, Europe and Australia.
✔ Growing presence of international hospitality chains competing in the Luxury and
Business segments, to meet excess demand situation.
✔ Appreciating Indian Rupee vis-à-vis the US Dollar, resulting in lower realisation on
foreign exchange earnings.
✔ Slowdown of international demand resulting in reduction of revenues.
COMPANY 2:
OBEROI
GROUP OF HOTELS
38

OBEROI INTRODUCTION
The Oberoi Group, founded in 1934, operates 27 hotels and three cruisers in five
countries under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. The Group is also
engaged in flight catering, airport restaurants, travel and tour services, car rentals,
project management and corporate air charters.
‘Oberoi Hotels & Resorts’ is synonymous the world over for providing the right blend
of service, luxury and quiet efficiency. Internationally recognised for all-round
excellence and unparalleled levels of service, ‘Oberoi Hotels & Resorts’ has received
innumerable awards and accolades.
A distinctive feature of The Group’s hotels is their highly motivated and well trained
staff that provides the kind of attentive, personalised and warm service that is rare
today. The Group’s new luxury hotels have established a reputation for redefining the
paradigm of luxury and excellence in service amongst leisure hotels around the world.
Trident hotels are five-star hotels that have established a reputation for excellence and
are acknowledged for offering quality and value. These hotels combine state of the art
facilities with dependable service in a caring environment, making them the ideal
choice for business and leisure travellers. Presently there are eight Trident hotels in
India located in Mumbai, Gurgaon (Delhi National Capital Region), Chennai,
Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur. Trident, Bandra Kurla, Mumbai is
39

scheduled to open in 2009. The Oberoi Group also operates a Trident hotel in the
Saudi Arabian city of Jeddah.
The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India
and abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The Oberoi
Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi Vanyavilas,
Ranthambhore; The Oberoi Cecil, Shimla and The Oberoi Udaivilas, Udaipur.
Overseas, the new hotels include The Oberoi, Lombok in Indonesia, The Oberoi,
Mauritius and The Oberoi, Sahl Hasheesh in Egypt. The Oberoi Zahra, Luxury Nile
Cruiser, Egypt was launched in 2007.The Group’s commitment to excellence,
attention to detail and personalised service has ensured a loyal list of guests and
accolades in the worldwide hospitality industry.
Recognising the importance of quality training in hospitality management, The Oberoi
Group established The Oberoi Centre of Learning and Development in New Delhi in
1966. The Group is committed to employing the best environmental and ecological
practices in technology, equipment and operational processes. The Oberoi Group also
supports philanthropic activities that range from education to assistance for the
mentally and physically challenged. The Group is also a keen contributor to the
conservation of nature and of cultural heritage.
Rai Bahadur Mohan Singh Oberoi
Founder Chairman, EIH Limited
(1898 - 2002)
Early Life
Rai Bahadur Mohan Singh Oberoi was born on 15th
August, 1898 in erstwhile
undivided Punjab, which is now in Pakistan. He was only six months old when his
father died. Success and fortune did not, therefore, come easily to him. Initiative,
resourcefulness and hard work, combined with the capability to face and overcome the
most overwhelming odds can best characterise this phenomenal entrepreneur.
Mohan Singh completed his primary education in Rawalpindi and moved to Lahore
for his Bachelor's degree. Shortly thereafter, to flee the ravages of a virulent plague,
he went to seek his fortune in Shimla, the summer capital of British India. Arriving
penniless, he found a job at a monthly salary of INR 50, as the front desk clerk at the
Cecil Hotel. Today, The Oberoi Group owns the hotel The Oberoi Cecil where the
young Mohan Singh found his metier.
The diligence, enthusiasm and intelligence displayed by Mohan Singh impressed Mr.
Grove, the manager of the hotel. A quick learner, Mohan Singh did not restrict his
efforts to fulfilling the job description of a desk clerk but sought and shouldered
additional responsibilities. A few years later, when a Mr. Clarke acquired a small
hotel he asked Mr. Oberoi to assist him. It was here, at Clarkes Hotel, that Mohan
Singh gained first hand experience in all aspects of operating a hotel.
Budding Entrepreneur
40

In 1934, Mr. Oberoi acquired his first property, The Clarkes Hotel, from his mentor
by mortgaging his wife's jewellery and all his assets. Four years later, he signed a
lease to take over operations of the five hundred rooms Grand Hotel in Calcutta that
was on sale following a cholera epidemic. With his customary confidence and sheer
determination to succeed, he was able to convert this hotel into a highly profitable
business venture.
Over several years, Mr. Oberoi had purchased shares in Associated Hotels of India
(AHI), which owned Cecil and Corstophans hotels in Shimla, Maidens and Imperial
hotels in Delhi and a hotel each in Lahore, Murree, Rawalpindi and Peshawar. In
1943, Mr. Oberoi acquired controlling interest in AHI. He thus became the first Indian
to run the country's largest and finest hotel chain. In the tumultuous years just prior to
Indian independence, Mr. Oberoi met and intimately interacted with the would-be
leaders of Free India, all of whom were, at one time or other, guests at his hotels.
International Pioneer
Having consolidated his early ventures, Mr. Oberoi became the first Indian hotelier to
enter into an agreement with an internationally renowned hotel chain, to open the first
modem, five-star hotel in the country. The Oberoi Inter Continental, in New Delhi
opened in 1965.The I-Con, as it became popularly known, offered facilities that no
other hotel in the country matched and was India's first luxury hotel.
This achievement was enhanced with the opening of the 35-storey Oberoi Sheraton in
Bombay, in 1973. Mr. Oberoi was the first Indian to work in association with
international chains to woo international travellers to India. This led to a heavy influx
of international travellers and foreign occupancy soared to an average of 85%. This
enabled The Oberoi Hotels to significantly contribute to India's foreign exchange
earnings.
Another pioneering landmark was the establishment in 1966 of the prestigious Oberoi
School of Hotel Management, recognised by the International Hotel Association in
Paris. Considered India's premier institute, the school is now known as The Oberoi
Centre of Learning and Development and continues to provide high quality
professional training in hospitality management.
Other notable firsts were the decision to employ women in his hotels and to establish a
chain of ancillary industries producing and supplying items like consumables and
stationery to ensure the highest quality. The Oberoi Group was also the first to start
flight catering operations in India, in 1959. The Oberoi Flight Services, located in
New Delhi, Mumbai, Cochin and Chennai, provide in-flight meals of international
quality to reputed airlines.
Mr. Oberoi realised that the hotel and hospitality business is greatly dependent on
travel agents, a vital element in the distribution chain. Therefore, he decided to
establish his own travel agency. Mercury Travels, part of The Oberoi Group, ranks
amongst the leading travel agencies in India. With vision and imagination, Mr. Oberoi
41

converted old and dilapidated palaces, historical monuments and buildings into
magnificent hotels such as The Oberoi Grand in Calcutta, the historic Mena House in
Cairo and The Windsor in Australia. It was, in fact, in the face of severe opposition
that the State Government of Victoria awarded Mr. Oberoi the lease of The Windsor,
a heritage building in Melbourne. He personally supervised the restoration of the hotel
to its original grandeur and later acquired it. The Oberoi Cecil in Shimla, built in the
early 20th century, reopened in April 1997 after extensive and meticulous renovation.
Awards and Honours
In 1943, Mr. Oberoi was conferred the title of Rai Bahadur by the British Government
in recognition of his services to the Crown. Thereafter, Mr. Oberoi won acclaim and
received several national and international awards including admission to the Hall of
Fame by the American Society of Travel Agents (ASTA) and Man of The World
award by the International Hotel Association (IHA), New York. He was presented the
Order of The Republic, First Class by the President of Egypt. He got an Honorary
Doctorate of Business Administration from the International Management Centre,
Buckingham, UK. Newsweek named him one of the Elite Winners of 1978. The
PHDCCI Millennium award in 2000 was presented in recognition of his
entrepreneurial and business success. In 2001, the Government of India accorded him
the Padma Bhushan.
Globalisation of The Oberoi Group
To place The Oberoi Group on the world map, Mr. Oberoi exported management
expertise to Australia, Egypt and Singapore, where The Oberoi Group took charge of
the management of existing luxury hotels. The success of Oberoi Hotels & Resorts
overseas, in the face of global competition, greatly enhanced the image of The Group.
Today, Oberoi Hotels & Resorts in fudonesia, Egypt, Mauritius, Saudi Arabia and
India add value and distinction to their host countries.
Foundations of the Future
Under Mr. Oberoi’s dynamic leadership, The Oberoi Group introduced its second
brand of hotels, 'Trident'. Trident hotels are five-star hotels that have established a
reputation for excellence and are acknowledged for offering quality and value. These
hotels combine state of the art facilities with dependable service in a caring
environment, making them the ideal choice for business and leisure travellers.
Presently there are eight Trident hotels in India located in Mumbai, Gurgaon (Delhi
National Capital Region), Chennai, Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur.
Trident, Bandra Kurla, Mumbai is scheduled to open in 2009. The Oberoi Group also
operates a Trident hotel in the Saudi Arabian city of Jeddah.
In the luxury category, The Group opened The Oberoi Rajvilas, Jaipur; The Oberoi
Cecil, Shimla; The Oberoi Udaivilas, Udaipur; The Oberoi Vanyavilas,
Ranthambhore; The Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the
Himalayas; The Oberoi, Lombok, Indonesia; The Oberoi, Sahl Hasheesh, Egypt and
The Oberoi, Mauritius and The Oberoi Zahra, Luxury Nile Cruiser, Egypt.
42

The Group employs more than 12,000 people worldwide and operates 27 hotels and
three cruisers in five countries.
Mr. Oberoi’s achievements and successes did not, however, take from his simplicity
and old fashioned charm. He retained, until his death in May 2002 at the age of 103, a
unique humility. He was fond of saying, “I have been able to accept the challenge and
make good. There is comfort in knowing that whatever little I have achieved has also
helped to raise the prestige of my country.”
Mr. P.R.S. Oberoi
Chairman and CEO, EIH Limited
Mr. P.R.S. Oberoi is the Chairman and Chief Executive Officer of EIH Limited, the
flagship company of The Oberoi Group. He is also the Chairman of Oberoi Hotels
Private Limited, the major shareholder of EIH Limited. Popularly known as “Biki”,
Mr. Oberoi is the son of late Rai Bahadur M.S. Oberoi, the founder of The Oberoi
Group.
Mr. P.R.S. Oberoi was educated in India, the United Kingdom and in Switzerland.
In addition to providing leadership for the management of luxury hotels in several
countries, Mr. Oberoi has been instrumental in pioneering the development of the new
Oberoi hotels and resorts. The “Oberoi” brand has come to represent fine luxury
hotels.
Mr. Oberoi is credited with placing Oberoi hotels on the international luxury
travellers’ map with the opening of several new luxury hotels in important locations,
thus redefining architectural and design standards in luxury hospitality. A key aspect
of this is the development of hotels that reflect their environment.
It is Mr. Oberoi’s firm belief that people are the most valuable asset of any
organisation. Recognising the importance of quality in hospitality management, Mr.
Oberoi established ‘The Oberoi Centre of Learning and Development’ at New Delhi
in 1966. Today, this institution is considered amongst the best in Asia.
As a member of the World Wide Fund for Nature, Mr. Oberoi is committed to the
conservation of the environment.
43

Above all, Mr. Oberoi is aware of the need to constantly promote quality in every
segment of the hospitality industry. Under his leadership, Oberoi Hotels and Resorts
have received numerous international awards.
In 2001, His Majesty King Mohammed VI of Morocco personally awarded Mr.
Oberoi the Grand Officer of the Alalaoui Wissam, which is one of the highest awards
in Morocco. The award was conferred in recognition of Mr. Oberoi’s contribution to
tourism and to Indo-Moroccan relations.
In recognition of his exceptional leadership and vision, the 6th International Hotels
Investment Forum in Berlin honoured Mr. Oberoi with the prestigious Lifetime
Achievement Award in March 2003.
In January 2004, Mr. Oberoi was conferred a Special Award by the Department of
Tourism, Government of India, in recognition of his contribution to the tourism sector.
The letter from the Department stated, “Due to your entrepreneurial skills and
visionary leadership, The Oberoi Group has risen to a global brand, renowned for its
high standards of service and excellence”.
In October 2005, the Hotel Investment Conference Asia Pacific (HICAP), which is the
preeminent gathering of hotel investors, investment bankers and leading industry
professionals in the region, honoured Mr. Oberoi with the Lifetime Achievement
Award at its annual Conference in Hong Kong. This award was given in recognition
of Mr. Oberoi’s contribution to the hospitality industry and his pioneering leadership
in making The Oberoi Group a global brand by taking the concept of luxury to a new
paradigm.
Mr. Oberoi was also conferred the Lifetime Achievement Award at the CNBC TV 18
India Business Leader Awards 2007 for building a world-class hotel chain that caters
to both luxury and business travellers and for shaping the hospitality industry of the
country. India Business Leader Awards, the Indian Edition of Asia Business Leader
Awards, define and celebrate vision, the spirit of achievement and excellence in
business leadership.
In January 2008, Mr. Oberoi was awarded the Padma Vibhushan, India’s second
highest civilian honour, in recognition of his exceptional service to the country.
Mr. Oberoi received the Lifetime Achievement Award at the South Asia Travel &
44

Tourism Exchange (SATTE) and the 4th Hotel Investment Conference – South Asia
(HICSA) in April 2008. In August 2008, Mr. Oberoi was presented with the Lifetime
Achievement Award at the Businessworld-NID (National School of Design) Design
Brilliance Awards. These awards honour new levels of excellence in design.
Mr. Oberoi received the Outstanding Business Leader Award from the Associated
Chambers of Commerce and Industry (ASSOCHAM) and Society of Indian Law
Firms in September 2008. This award was presented in recognition of Mr. Oberoi’s
leadership in establishing high standards of excellence which has won The Oberoi
Group international acclaim.
In November 2008, Mr. Oberoi was conferred the Lifetime Achievement Award at the
Ernst & Young Entrepreneur of the Year Awards for redefining design standards in
luxury hotels.
Business India magazine adjudged Mr. Oberoi the Businessman of the Year 2008. Mr.
Oberoi received this award for building a world-class premium hospitality brand.
Mr. Oberoi was honoured with the first Hall of Fame Award at the Hotel Investment
Forum India (HIFI) in February 2009. The HIFI Hall of Fame Award is presented to
an individual who exemplifies outstanding business practices, leadership and
achievement, both professionally and personally.
Mission & Vision
Our Guests
We are committed to meeting and exceeding the expectations of our guests through
our unremitting dedication to every aspect of service.
Our People
We are committed to the growth, development and welfare of our people upon whom
we rely to make this happen.
Our Distinctiveness
Together, we shall continue the Oberoi tradition of pioneering in the hospitality
industry, striving for unsurpassed excellence in high-potential locations all the way
from the Middle East to Asia-Pacific.
Our Shareholders
45

As a result, we will create extraordinary value for our stakeholders.
Vision
• We see an organization which aims at leadership in the hospitality industry by
understanding its guests, and designing and delivering products and services
which enable it to exceed their expectations. We will always demonstrate care
for our customers through anticipation of their needs, attention to detail,
distinctive excellence, warmth and concern.
• We see a lean, responsive organization where decision making is encouraged at
each level and which accepts change. It is committed and responsive to its
guests and other stakeholders.
• We see a multi-skilled workforce, which consists of team players who have
pride of ownership, translating organizational vision into reality.
• We see an organization where people are nurtured through permanent learning
and skill improvement, and are respected, heard and encouraged to do their
best. Oberoi is recognized as best practice for training and developing its
people.
• We see a more multinational workforce which has been exposed to different
cultures, problems and situations and can use its experiences to enrich the local
employees whether in India or overseas.
• We see the world dotted with hotels of The Oberoi Group, in strategic
commercial and resort locations.
• We see user-friendly technology enhancing value for our customers and
helping our personnel by making information more accessible.
• We see an organization which is conscious of its role in the community,
supporting social needs and ensuring employment from within the local
community.
• We see an organization which is committed to the environment, using natural
products and recycling items, thus ensuring proper use of diminishing natural
resources.
➢ Business Hotels
Oberoi Hotels & Resorts is synonymous the world over with providing the
right blend of luxury, warm service and quiet efficiency. Internationally
recognised for all-round excellence and unparalleled levels of service, the
business travellers acknowledge Oberoi Hotels & Resorts as amongst the
finest.
46

This was reaffirmed recently in Condé Nast Traveler, Business Travel Awards,
a readers’ poll of business travellers, in which Oberoi Hotels & Resorts was
rated the best hotel chain in the world (outside the United States).
The Oberoi, New Delhi The Oberoi, Mumbai The Oberoi, Bangalore The Oberoi
Grand, Kolkata
➢ Leisure Hotels
Oberoi Hotels & Resorts is synonymous the world over with providing the right blend
of luxury, warm service and quiet efficiency.
Luxury as a unique, memorable and personal experience is core to the Oberoi
philosophy. It encompasses every element of a guest’s stay at the Oberoi hotels that
creatively combine breathtaking locations, luxurious environs and the best of modern
amenities with personalised and warm service delivered with genuine care.
The design and architecture of the hotels, is inspired by the historical style of the
region. This coupled with luxurious interiors that replete with local arts and crafts, to
menus that offer an extensive selection of local specialties and classical and folk
dance and music performances.
The Oberoi Amarvilas, Agra The Oberoi Rajvilas, Jaipur The Oberoi Udaivilas,
Udaipur The Oberoi Vanyavilas, Ranthambhore Wildflower Hall,
Shimla in the Himalayas The Oberoi Cecil, Shimla Mena House Oberoi, Cairo The
Oberoi, Sahl Hasheesh,Red Sea,Egypt The Oberoi, Bali The Oberoi, Lombok The
Oberoi, Mauritius
➢ Cruises
Oberoi Hotels and Resorts offer unparalleled luxury cruise experiences, on the
Nile and the Kerala Backwaters. The right blend of impeccable service, luxury
and quiet efficiency, hallmarks of Oberoi Hotels & Resorts worldwide, make
the stay onboard the Luxury Cruisers memorable.
The Oberoi, Motor Vessel Vrinda, Kerala The Oberoi Philae, Nile Cruiser The Oberoi
Zahra, Luxury Nile Cruiser
➢ Spas
47

Oberoi Spas provide a serene and truly unforgettable experience of pure pampering
and relaxation in exquisitely beautiful surroundings, using holistic therapies and
massages which combine the very best of Eastern and Western practices.
Expert in the use of Western & traditional Eastern techniques, only highly skilled and
trained therapists are handpicked for our hotels and resorts.
Oberoi Spa recipes feature only the finest natural ingredients, often local to the resort
and the Oberoi Group are committed to remaining true to the Asian tradition of
respect for the environment.
The extraordinary levels of comfort and service that guests expect from Oberoi reach
a peak in the Oberoi Spas, world-acclaimed pioneers of the tropical spa experience.
The Oberoi, New Delhi The Oberoi, Mumbai The Oberoi, Bangalore The Oberoi
Grand, Kolkata The Oberoi Amarvilas, Agra The Oberoi Rajvilas, Jaipur The Oberoi
Udaivilas, Udaipur The Oberoi Vanyavilas, Ranthambhore Wildflower Hall, Shimla
in the Himalayas The Oberoi Cecil, Shimla The Oberoi, Sahl Hasheesh,Red Sea,Egypt
The Oberoi, Bali The Oberoi, Lombok The Oberoi, Mauritius
SWOT ANALYSIS
Strengths
• Cost advantage
• Asset leverage
• Effective communication
• High R&D
• Innovation
• Online growth
• Loyal customers
• Market share leadership
• Strong management team
• Strong brand equity
Weaknesses
• Bad communication
• Diseconomies to scale
• Over leveraged financial position
48

• Low R&D
• Low market share
• No online presence
• Not innovative
• Not diversified
• Poor supply chain
• Weak management team
• Weak real estate
Opportunities
• Acquisitions
• Asset leverage
• Financial markets (raise money through debt, etc)
• Emerging markets and expansion abroad
• Innovation
• Online
• Product and services expansion
• Takeovers
Threats
• Competition
• Cheaper technology
• Economic slowdown
• External changes (government, politics, taxes, etc)
• Exchange rate fluctuations
• Lower cost competitors or imports
• Maturing categories, products, or services
• Price wars
PRODUCT PROFILE
49

The group is committed to employing the best environmental and ecological practices
in technology, equipment and operational processes. The Oberoi group also supports
Philanthropic activities that range from education to assistance for the mentally and
physically challenged. The group is also keen contributor to the conservation of nature
and of cultural heritage.
50

FINANCIAL INFORMATION
BSE Code 500840
NSE Code EIHOTEL
Bloomberg Code EIH@IN
Face Value 10
CMP Rs 224
Market Cap Rs 11.7bn
(as on August 27th 2004)
Share Price Chart
54

Gross revenues improved
FY02 and FY03 were challenging years for the
hotel and tourism industry and the
company was no exception to it as their gross
revenues were under pressure. In
FY04, the company’s gross revenue grew by 16%
to Rs5bn.In FY04, company’s
room revenue grew by 18.7% to Rs2.2 bn, food
and beverages revenue grew by
12.7% to Rs1.8bn and other services grew by
21.4% to Rs385mn.
55

Profits up
In FY04, the company’s profit increased by 82%
to 282mn. Profits grew due increasing
occupancy levels and improving OPM. During the
year, occupancy levels increased
to 61% against 55% in FY03.OPM increased from
21.3% in FY03 to 26.6% in
FY04.
In FY04, the company declared dividend per
equity share [DPS] of Rs3 and its
earning per share EPS stood at Rs5.4.
56

Debt equity ratio
The company’s debt to equity ratio increased
from 0.76 in FY03 to 0.91 in FY04.
Loanable funds of the company increased from
Rs6bn in FY03 to Rs7.4bn in FY04.As
a result, interest cost increased from Rs188mn in
FY03 to Rs348mn in FY04.
Working capital management
EIH’s net working capital increased from Rs1.2bn
in FY03 to Rs1.4bn in FY04,
primarily due to increase in loans and advances
from Rs1.4bn in FY03 to Rs1.7bn in
FY04. The company increased loans to its
subsidiaries Mumtaz resorts by 136% to
Rs126mn and Mashobra resort by 165% to
Rs209mn Debtor’s days increased
marginally from 37.4 days to 39.2 days. Creditor
days increased marginally from
50.5 to 51.3 days. Inventory turnover improved
from 30.1 days to 25.9 days.
57

Oberoi Hotels & Resorts has been ranked
the best hotel chain (outside the US)
in Condé Nast Traveler’s 2007 Business
Travel Awards readers’ survey. Oberoi
Hotels & Resorts has been ranked the best
hotel chain (outside the UK)
in The Guardian, Observer and
guardian.co.uk Travel Awards 2008 readers’
survey.
Condé Nast Traveler, Readers'
Choice Awards 2008 Poll
The Oberoi Vanyavilas,
Ranthambore
Rated the 2nd best resort in
Asia
Rated the 2nd best hotel in
the World
The Oberoi Udaivilas,
Udaipur
Rated the best hotel in Asia
Rated 4th best hotel in the
World
The Oberoi Amarvilas.
63

Agra
Rated the 2nd best hotel in
Asia
Rated the 8th best hotel in
the World
The Oberoi Rajvilas,
Jaipur
Rated the 5th best hotel in
Asia
Rated amongst the top 25
hotels in the World
Wildflower Hall, Shimla
in the Himalayas
Rated the 5th best resort in
Asia
Travel + Leisure, 2008
Readers’ Poll
The Oberoi Rajvilas,
Jaipur
Rated No.1 hotel in Asia
Rated 2nd best hotel in the
World
64

The Oberoi Udaivilas,
Udaipur
Rated No. 2 hotel in Asia
World
The Oberoi Amarvilas.
Agra
Rated No. 3 hotel in Asia
World
65

COMPANY 3:
ITC HOTELS LIMITED
(NOW MERGED WITH ITC LTD)
COMPANY PROFILE- ITC HOTELS LTD
ITC’s hotel division was launched on October 18, 1975, with the opening of its first
hotel - Chola Sheraton in Chennai. ITC - Welcomgroup Hotels, Palaces and Resorts,
66

is today one of India’s finest hotel chains, with its distinctive logo of hands folded in
the traditional Namaste is widely recognised as the ultimate in Indian hospitality.
Each of the chain’s hotels pays architectural tribute to ancient dynasties, which ruled
India from time to time. The design concept and themes of these dynasties play an
important part in their respective style and decor.
With more and more hotels being added at strategic destinations, the group has joined
hands with the Sheraton Corporation to strengthen its international marketing base.
HISTORY OF ITC LTD
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha
Bazar Lane, Kolkata, was the centre of the Company's existence. The Company
celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of
Rs 310,000. This decision of the Company was historic in more ways than one. It was
to mark the beginning of a long and eventful journey into India's future. The
Company's headquarter building, 'Virginia House', which came up on that plot of land
two years later, would go on to become one of Kolkata's most venerated landmarks.
The Company's ownership progressively Indianised, and the name of the Company
was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-
business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-
Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops
in the Company's name were removed effective September 18, 2001. The Company
now stands rechristened 'ITC Limited'.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of
ITC's entry into the hotels business was rooted in the concept of creating value for the
nation. ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a position of
leadership, with over 100 owned and managed properties spread across India.
67

List of ITC Hotels by Brand
 ITC Hotel Luxury Collection
 ITC Maurya, New Delhi
 ITC Mughal, Agra
 ITC Maratha, Mumbai
 ITC Grand Central, Mumbai
 ITC Sonar, Kolkata
 ITC Kakatiya, Hyderabad
 ITC Windsor, Bengaluru
 WelcomHotel / Sheraton properties
 Sheraton Chola, Chennai
 Sheraton Park Hotel & Towers, Chennai
 Sheraton Rajputana, Jaipur
 Sheraton New Delhi, New Delhi
 List of Fortune Hotels
 Fortune Global Select Gurgaon
 Fortune Select Palms Chennai
 Fortune Select Trinity Bangalore
 Fortune Select Exotica Navi Mumbai
 Fortune Select Manohar Hyderabad
 Fortune Select JP Cosmos Bengaluru
 Fortune Park Bella Casa Jaipur
 Fortune Landmark Ahmedabad
 Fortune Landmark Indore
 Fortune Park Centre Point Jamshedpur
68

 Fortune Hotel The South Park Trivandrum
 Fortune Park Calicut Calicut
 Fortune Park Galaxy Vapi
 Fortune Murali Park Vijaywada
 Fortune Park Klassik Ludhiana
 Fortune Pandiyan Hotel Madhurai
 Fortune Park Panchwati Kolkata
 Fortune Fences Tirupati Tirupati
 Fortune Resort Bay Island Port Blair
 Fortune Resort Sullivan Court Ooty
 Fortune Chariot Resort Mahabalipuram
 Fortune Resort Central Darjeeling
 Fortune Inn Riviera Jammu
 Fortune Inn Jukaso Pune
 Fortune Inn Sree Kanya Vishakapatnam
 List of WelcomHeritage Properties
 Bal Samand Lake Palace Jodhpur
 Bal Samand Garden Retreat Jodhpur
 Bandhavgarh Jungle Lodge Bandhavgarh
 Bassi Fort Chittorgarh
 Bijay Niwas Palace Ajmer
 Bob's Place Nathuakhan
 Burra Sahib's Bungalow Jorhat
 Calve Pondicherry
 Camellia Hotel & Resort Shantiniketan
 Chalets Naldehra Naldehra
 Chinnar Plantation Bungalow Elappara, Idukki Dist.
 Connaught House Mount Abu
69

 Corbett Ramganga Resort Corbett National Park
 Denzong Regency Retreat Gangtok
 Elephant Point Retreat Village Tippi
 Fernhills Palace Ooty
 Golf View Pachmarhi
 Grace Hotel Dharamsala
 Grand Imperial Agra
 Gulaab Niwaas Palace Pushkar
 Gurkha Houseboat Srinagar
 Hirlicheena Nature Resort Manan Village
 Judge's Court Pragpur
 Kanha Jungle Lodge Kanha
 Kasmanda Palace Mussoorie
 Khazanchand Mansion Almora
 Khimsar Fort Khimsar
 Khimsar Sand Dunes Village Khimsar
 Kikar Lodge Anandpur Sahib
 Koolwal Kothi Nawalgarh
 Lal Niwas Phalodi
 Lallgarh Palace Bikaner
 Maharani Bagh Orchard Retreat Ranakpur
 Mandir Palace Jaisalmer
 Mistry Sahib's Bungalow Jorhat
 Narmada Jackson Jabalpur
 Noor-Us-Sabah Palace Bhopal
 Palace Belvedere Nainital
 Pemaling Dirang
Pragati Resorts Hyderabad]]
70

 Rajendra Villas Palace Mysore
 Ranjit's Svaasa Amritsar
 Ranthambore Forest Resort Sawai Madhopur
 Raobagh Palace Bundelkhand
 Regency Villas Ooty]]
 Rosaville Shillong
 Royal Camp Nagaur Fort
 Royal Camp Pushkar]]
 Sardar Samand Palace Pali
 Shalini Palace Kolhapur
 Shambha - La Leh Ladakh
 Sheikhpura Kothi Hansi
 Singhasan Haveli Mandwa
 Solang Valley Resort Manali
 Taradale Cottage Ramgarh
 Taragarh Palace Palampur
 Thengal Manor Jorhat
 Umed Bhawan Palace Kota
 Windamere Darjeeling
 Windsor Lodge Ranikhet
Art collection
Art Collection Since 1975, ITC-Welcomgroup has collected a massive bank of art by
over 50 artists including some of India’s most important contemporary artists like
A.G. Subramanyam, Krishan Khanna, Jatin Das, Ram Kumar, M.F. Hussain, F.N.
Souza, J. Swaminathan, Tyeb Mehta, Anjolie Ela Menon, Akbar Padamsee, A.
Ramachandran, Satish Gujral, Meera Mukherjee, Jamini Roy, Bikash Bhattacharjee,
71

Sanjay Bhattacharjee, Gopi Gajwani, Biren Dey, Kim Michael, G.R. Santosh and
Arpita Singh.
CORPORATE STRATEGIES
ITC’s corporate strategies are :
Create multiple drivers of growth by developing a portfolio of world class
businesses that best matches organisational capability with opportunities in domestic
and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of
Market Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC’s various businesses.
Create distributed leadership within the organisation by nurturing talented and
focused top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
72

UNIQUE SELLING PROPOSITION
Accommodation
The exclusive Towers concept of a hotel within a hotel, with its own Towers Club and
an unique service design is now available at six ITC Luxury Collection hotels. The
Executive Club, a concept designed to meet the specific needs of the business
traveller, pioneers a tradition in corporate hospitality, setting a premium on discreet
efficiency and business related services. Executive Club services are available at nine
ITC-Welcomgroup hotels at key business locations. The recently launched ITC One
offers a new dimension in Corporate Hospitality and is about discovering the‘Power
of Personal Space’. ITC One is available at the ITC Maurya, New Delhi , ITC
Maratha, Mumbai, ITC Grand Central, Mumbai, ITC Sonar, Kolkata, ITC Windsor,
Bangalore and ITC Kakatiya, Hyderabad.
EVA
Exclusive rooms dedicated for the single lady traveler. These rooms have amenities
keeping in mind the requirements of a lady pertaining to her special needs in
bathroom accessories, security, safety and comfort levels . Service in these rooms , is
done by an all ladies team
Promotion of India’s Cultural Heritage
WelcomTheatre was launched eight years ago, to provide guests with a complete
experience through entertainment. Acknowledging theatre and art as integral to a
74

country’s culture and tradition, Welcomgroup offers Quality entertainment &
theatrical experiences through WelcomTheatre. While each hotel has its own vast
collection of art and art objects, the group decided to brand all art activities, under the
banner WelcomArt. Through the Srishti Art Galleries located at Welcomgroup hotels,
the best of Indian contemporary art finds a focus.
WelcomJawan
In re-deploying ex-servicemen it assists the national effort by offering a platform for
their rehabilitation into productive civilian life.
WelcomEnviron
WelcomEnviron defines Welcomgroup’s active commitment to the environment. The
need for maintaining an ecological balance and working towards that goal as a
concerned "Corporate Citizen" is a high priority at Welcomgroup. Each hotel thus
operates in harmony with nature. "Reduce, Re-use and Recycle" is the Environmental
message sent out by every ITC-Welcomgroup hotel.
Sustain ITC's position as one
of India's most valuable
corporations through world
class performance, creating
growing value for the Indian
economy and the Company’s
stakeholders
To enhance the wealth
generating capability of the
enterprise in a globalising
environment, delivering
superior and sustainable
stakeholder value
75

ORGANIZATION STRUCTURE OF ITC HOTELS LTD
PORTER’S 5 P’S ANALYSIS
�
�
�
� MARKET SHARE
�
76

GOVERNMENT REGULATIONS
For information on Indian government regulations and general laws for the hotel
industry please follow the link(pdf doc):
http://www.hotelverband.at/down/AGBH_englisch.pdf
ITC Welcomgroup combines the best of the east and west traditional Indian hospitality with
contemporary international standards. At any ITC-Welcomgroup hotel, the guest will find a
true reflection of the culture and ethos of each destination. The theme, colours and design of the
ITC-Welcomgroup Stall at SATTE, 2008 have all been driven by our brand positioning —
"Nobody gives you India like we do", and our brand personality. These ideas of warmth,
Indian-ness and luxury come together in all aspects of the design. From the warm and exclusive
cherry oak wooden flooring, to the grandness of the staggered panels which give a sense of
depth and magnitude to the warm Indian colours and motifs at the base of each panel.
The design of our pavilion does not borrow from any international design format. Being a pan
Indian hotel chain, with a heavy emphasis on the great Indian. experience (with international
standards of luxury), it was imperative to evolve our own style of presentation. Participating in
trade shows and events like ITB, WTM, PATA and closer to home, SATTE, is part of our
marketing strategy as here we are able to showcase our products/brands to potential buyers,
transact some real time business and network with the travel trade fraternity under one roof.
77

AWARD AND RECOGNITIONS
ITC constantly endeavours to benchmark its products, services and processes to
global standards.
• FICCI Outstanding Vision
Triple Impact Corporate
Award 2007 for exemplary
triple bottom line performance.
• The Development Gateway
Award in 2005 for its
trailblazing e-Choupal
initiative. ITC is the first Indian
company and the second in the
world to win this award for the
importance of its contribution
to development priorities like
poverty reduction, its scale and replicability, sustainability and transparency.
• Wills Lifestyle rated amongst the top 5 Luxury brands in the country in a
Global Luxury Survey conducted by TIME Magazine.
84

• The inaugural 'World Business Award' in 2004, that recognises companies
who have made significant efforts to create sustainable livelihood opportunities
and enduring wealth in developing countries.
• Sustainability Leadership Award 2007 conferred on Chairman Y C
Deveshwar by the Sustainability Forum, Zurich and SAM/SPG at the
International Sustainability Leadership Symposium.
• The Corporate Social Responsibility Crown Award for Water Practices from
UNESCO and Water Digest for its distinguished work carried out in the water
sector in India.
• The Corporate Award for Social
Responsibility 2008 from The Energy and
Resources Institute (TERI) in recognition of
its exemplary initiatives in implementing
integrated watershed development
programmes across 7 states in India. The
Company also won the award in 2004 for its
e-Choupal initiative.
• NDTV Profit Business Leadership
Award for being the Best Food Company of
2007. The Award has been instituted to
recognise organizational excellence.
• The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for
using Information Technology for the economic development of rural
communities.
BUSINESS NEWS FOR ITC HOTELS
No hostile bids for rival hotels
ITC Ltd said it was not interested in hostile takeover of hotel chains like EIH Ltd and
Hotel Leelaventures.
“We are not interested in hostile takeover,” said Deveshwar, “These are good
investments but if the other side ever thinks of joining hands with ITC it will come in
handy, either in terms of joint ownership or handling just the marketing management.”
ITC owns 14.98 percent of EIH, which runs the Trident and Oberoi chain of hotels,
and 3.72 percent of Hotel Leela through its unit, Russell Credit, stock exchange filings
showed.
Hotels: Growth phase
85

ITC's hotels division outperformed most of its peers in the hospitality industry in FY-
06, registering a 35 per cent revenue growth; its earnings also registered a significant
rise. Though revenues and earnings from this division are only marginal, there appears
to be a lot of potential for growth. ITC has firmed up plans to expand its hospitality
business by setting up hotels in Chennai and Bangalore.
ITC HOTEL Q4 NET RISES 169%
New Delhi, May 14: ITC Hotels recorded a net profit of Rs 11.6 crore, an increase of
169 per cent in the fourth quarter ended March 31, 2004. The total income went up by
32 per cent from Rs 39.2 crore to Rs 51.9 crore during the period.
For the financial year 2003-2004, ITC Hotels Ltd recorded an impressive turnover and
profit thanks to the buoyancy in the tourism market and measures taken by the
management to streamline operations and increase profitability, said a release.
The company’s turnover increased to Rs 160.7 crore for the year from Rs 122.6 crore
in the previous year.
After two years, travel and hospitality industry is on a high growth curve.
ITC willing to ‘join hands’ with competing hotel firms
Investment arm Russell Credit owns 58.7 million shares in EIH and 14.1 million
shares in Hotel Leela Venture
Aniek Paul
Kolkata: For the first time, ITC Ltd—the country’s biggest tobacco company which
also runs hotels—told its shareholders that it was willing to integrate with itself the
businesses of competing hotel companies such as EIH Ltd and Hotel Leela Venture
Ltd in which it has acquired substantial equity interest.
The overture of “partnership” comes at a time when ITC is looking to aggressively
expand its hotel business and has lined up an investment of around $2 billion, or close
to Rs10,000 crore, to build new properties over the next 7-10 years. “We are hungry
(for growth),” said ITC chairman Y.C. Deveshwar.
86

Partenship overture: Deveshwar says ITC
isn’t interested in a hostile takeover, but
the stake would come in handy if the firms
decided to join. Indranil Bhoumik / Mint
ITC’s investment arm Russell Credit Ltd
owns 58.7 million shares, or a 14.98%,
stake in EIH, which runs the Oberoi group of hotels. ITC started acquiring shares of
EIH in 2000. It has till now spent Rs215.70 crore to increase its stake.
Russell Credit also owns 14.1 million shares in Hotel Leela Venture—owner of the
Leela hotels and resorts—which translates into a stake of 3.8%. The shares were
acquired in fiscal 2009 for Rs31.18 crore, according to ITC’s annual report.
Addressing shareholders at the company’s annual general meeting in Kolkata on
Friday, Deveshwar said, “We are not interested in hostile takeover… Sometime, if the
other side wants to join hands with us, it (the stake) will come handy.”
He has so far maintained that ITC invests its surplus cash “in areas that we have
knowledge of”—he reiterated this on Friday. “These are very good investments…they
have appreciated by Rs600-700 crore already,” he said.
Deveshwar is a director of HT Media Ltd, which publishes Mint.
When contacted, EIH vice-chairman S.S. Mukherji said his company hadn’t received
a firm proposal from ITC yet. “I cannot comment on what he (Deveshwar) told ITC’s
shareholders. ITC has never approached us directly…we haven’t ever considered or
discussed any partnership with ITC.”
The management of Hotel Leela Venture wasn’t immediately available for comment.
Calls made to its managing director Vivek Nair weren’t answered or returned.
87

Since ITC started acquiring shares of EIH in 2000, the latter’s promoters—the Delhi-
based Oberoi family led by patriarch P.R.S. Oberoi—have ramped up their holding in
the firm through so-called creeping acquisition, or purchase of shares from the open
market. They currently hold 46.42%.
Asked what he meant by “partnership” with competing hotel companies, Deveshwar
later told reporters: “The hotel business lends itself to separation of ownership of
properties and marketing… We could, for instance, market hotels under a common
umbrella.”
ITC is looking to snap up unfinished hotel projects from cash-strapped real estate
firms, too. “Lots of people were trying to develop hotels with borrowed money… A
lot of dialogues (with developers) are going on,” he added.
On organic growth plans, he said the firm had bought land across the country—in
cities such as Bangalore, Hyderabad, Ahmedabad, Bhubaneswar, Coimbatore and
Amritsar—to build new hotels. “We are currently negotiating for a piece of land in
Gurgaon,” he added.
Three years ago, Deveshwar had said the biggest problem facing ITC’s expansion
plans was real estate prices. On Friday, he said the company was making full use of
the downturn in the real estate market.
88

Phone charges, liquor sales keep ITC Hotels afloat
Veeshal Bakshi
New Delhi, Aug 30: If you thought five-star hotels make profit by renting out lavish
rooms and serving delicious food, you are in for a big surprise, at least in the case of
one top hotel chain.
ITC Hotels' balance sheet for the year-ended March 2000 would have made an
unpalatable reading to its shareholders, but for the moolah raked in by the company
from telephone service charges and liquor/wine sales to its guests.
The company earned Rs 11.62 crore as telephone/telex service charges and from
wine/liquor sales during the year-ended March 2000, which is almost equal to its
profit after tax of Rs 11.97 crore for the year. Add another Rs 1.01 crore income
earned by way of interest on loans and deposits under the `other income' head, and it
is not difficult to make out what has kept the company afloat.
The company also earned a hefty amount of Rs 25.83 crore from management
consultancy and other services during the year, which is more than 20 per cent higher
than 1998-99 figure of Rs 20.47 crore.
.Of the total income of Rs 130 crore, income from rooms and food and beverages was
Rs 91 crore. The balance income of Rs 39 crore comprised mainly of management
consultancy charges (Rs 25.83 crore) and recreation and services income (Rs 12.95
crore).
89

The company's salary and wage burden rose to Rs 18.51 crore during the year from Rs
15.52 crore in 1998-99. However, it has drastically reduced debts (outstanding for
over six months) from Rs 18 crore as on March 31, 1999 to Rs 10.71 crore as on
March 2000.
Its biggest subsidiary Srinivasa Resorts continues to have accumulated losses of Rs
3.65 crore though it made a profit in the year ended March 2000. On a total income of
Rs 26.25 crore, profit after tax was Rs 1.98 crore during the year. Here too, income
from sale of telephone/telex services and wine/liquor sale was Rs 3.92 crore while the
company's net profit of Rs 1.98 crore. The accumulated loss as on March 31, 1999
was Rs 5.63 crore.
The other two subsidiaries, though smaller, are making good profit. Fortune Park
Hotels recorded a total income of Rs 1.32 crore on which it made a net profit of Rs
14.72 lakh. Bay Islands Hotels Ltd, which has a hotel at Port Blair in Andamans, had
a turnover of Rs 31.56 lakh on which it made a net profit of Rs 21.92 lakh, a profit
margin of over 70 per cent on turnover.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
COMPANY 4:
ITDC LIMITED
90

COMPANY PROFILE:ITDC LIMITED
Ashoka Hotel New Delhi
City New Delhi
Location 50B Chanakyapuri New Delhi 110021 INDIA
State Delhi
Rooms 550 well appointed rooms
Group The Ashok Group of Hotels
Providing the guests of the hotel with luxury that is synonymous with perfect
satisfaction for them, the Ashok Hotel, Delhi is one of the best known five star hotels
in Delhi.
The Ashok is the pride of hospitality. No hotel symbolizes the traditional Grandeur
and hospitality of the historic Capital of India more then The Ashok The first and
Foremost of Delhi 5 star hotels. Set in a prime Location in New Delhi's Diplomatic
Enclave, The Ashok is a distinctive landmark.
91

Ashok Hotel: Overview
The Ashok has the Rashtrapati Bhavan, Connaught Place, Pragati Maidan, the airports
and the railway station in its vicinity. It is hailed as the epitome of regal grandeur of
India. Built in red sandstone, the architecture is unique, breathtaking and a reminder
of the Mughal era. The walls are rose-pink and the building is resplendent with arched
arc-turreted contours. It has 12 award-winning restaurants along with Capitol one of
the hottest nightclubs in the capital.
The Ashok Fact
> Grandest Hotel with 550 Centrally Air-Conditioned Rooms
> Variety of Suites - ranging from Executive Suite to theme Suites and Presidential
Suite > Broad-band Internet access from all the rooms
> Corporate and Conferences/ Events
> New Delhi's most magnificent Banquet venue
> International and National cuisine Specialty Restaurants
> World class state of the art Health SPA
Accommodation facilities at the Ashok Hotel Delhi
Comprising of 550 well appointed rooms, with 60 executive suites, 40 double suites,
10 deluxe suites and a Presidential suit, the accommodation facilities at The Ashok
Hotel, Delhi are excellent and are also inclusive of the following room amenities: The
rooms at the hotel Taj Ambassador are elegantly appointed and offer luxurious stay.
The rooms at the hotel feature:
Centrally air-conditioned

Attached baths

Hot & cold water

Color TV

Voicemail

Fruit Basket

92

Refrigerator

Telephone

Hairdryer

24-Hour Room Service

Dining at the The Ashok Hotel Delhi
The dining facilities at the The Ashok Hotel, Delhi are varied with a number of
restaurants and eating options present in the premises of the hotel. These include 12
outlets throughout the hotel which offer a range of cuisines including Indian, mughlai,
South Indian, Korean, Chinese, Lebanese and continental as well as a resto bar.
Recreational Facilities at the Ashok Hotel Delhi
Tour/Excursion Service

Multilingual Staff

Spa Services

Swimming Pool

Tennis Courts

Sauna and Jacuzzi

Steam Baths

Club Olympus Fitness

Centre
Business Centre

Boutiques

Beauty Salon

Florist

Other facilities
24-Hour Front Desk

Babysitting Service

Car Rental Service

Travel Services

Medical Services Available

Currency Exchange

93

Dry Cleaning Service

Wake-up Service Available

Secretarial Service

Laundry Service

Tour Service

Business Center/Services

24-Hour Room Service

Wireless High Speed

Internet (Charge) Access in
Public Areas
Concierge Desk

Tennis

Luggage Storage

Cash Machine (ATM)

Parking Available

Smoke Detectors

Safe Deposit Boxes

Undoubtedly, the rose-pink walls and arched arc turreted contours of the Ashok Hotel
takes one to a virtual tour of the erstwhile palaces of the mighty maharajas who once
reigned the heart of Delhi. Nestling in the prime location of Delhi's diplomatic
enclave, Chankyapuri, the hotel symbolizes the traditional grandeur and hospitality of
the historic Indian ethnicity. Ashok Hotel, named after Emperor Ashoka of ancient
India, is today's hottest ticket for those who want to experience India in all its glory
and mystique. Managed by the eminent Ashok Group of Hotels, it boasts of many
idiosyncratic facilities, exclusive to this group, that gives it an extra edge to its red
carpet treatment. Believe us, its exquisite ambiance and beauty will amaze you and the
unique dining experience, which it provides, will tickle your palate with authentic
Indian delicacies amidst luxurious comforts. Come experience the grandeur itself...
Stay Amidst An Impeccable Hospitality
This hotel was an architectural legend when it came up nearly 50 years ago. As you
will step into the brilliantly lit lobby, you will be carried to some bygone era of the
glorious past. A stay in this rich heritage is an experience in itself. The elaborate red
sandstone finish also adds to the pride. Enjoy a stay in the famous Natraj Suite,
portraying the tradition of South India's temple bells and dances, or the Kashmir Suite,
adorned with paper Mache and walnut produces amidst the unavoidable beauty of ice
and show, with the smiling fields of saffron, swinging with the warmth of the spring
sunshine. If you want to experience a royal stay like the maharajas of the princely
state of Rajasthan, check into the colorful Rajput Suite designed in red and yellow like
the undulating sand dunes of Rajasthan's Thar Desert, drawn with the brush of beaten
copper and brass on wood that stir the eyes with an amazing awe.
94

To meet the diverse culinary taste of the globe, the Ashok hotel affords a wide array
of cuisine to suit every taste and palate. Spend an evening at China Town, Ashok's
most celebrated restaurant. Splurge on exotic food items, recipes brought from four
parts of China with the euphony of a live band that presents here every evening. For
an Indian taste, go to Durbar. The restaurant serves lavish Indian buffets against the
strain of live Ghazals singers in an ethnic Indian setting! Refresh yourself with a plate
of sizzlers at Frontier, the cheerful 24 hour coffee shop looking over the greens of
South Delhi. 'Ssteel' and 'Capitol' are the new additions to Delhi's night club scene.
Serving exotic drinks, cocktails and choicest wines from the cell, 'Capitol' has evolved
as a favored hideout for trendsetting Delhi's divas and debonair men. Two transparent,
slim cylinders of bubbling water with 'Ssteel' embossed on the glass panel, greet you
and as you slide open the glass doors, be prepared to be bowled over by a complete
new look. Interestingly, this opulent alcove flaunts of the largest varietal of
intoxicants available at the first single piece longest bar counter Delhi has.
At Par With MICE
Wherever you go, your business matters, and surely, The Ashok takes complete care
of your conventions and meetings. Affording an impeccable blend of both the worlds -
the demands of modern day clinical and clockwork efficiency with the grace and
warmth of the old world hospitality - the hotel makes every business dream come true.
Choose from a grand array of rooms for your purpose. From the fairly compact Ruby
suite to the spacious Convention Hall (the largest in India) which has room enough to
accommodate 2000 in theatre style. Way back in 1956, the first ever international
event in free India - the UNIDO Conference, was held at the Ashok, and since then,
the hotel has hosted some of India's most memorable national and international
conventions, conferences, and congresses, political as well as commercial.
Drive Your Way
Besides known for its above-the-world grandeur and matching hospitality, the Ashok
is a favored place of stay for delegates because of prime location in the heart of the
city. With merely just at 15 km from the International Airport, and 6 km from
Connaught Place, Delhi's shopping hub, it has always remained in the first position in
visitor's list. The hotel also provides currency exchange facilities and might also help
you in your visa procedures. To add a cherry to the cake, it is also embraced by travel
agencies that offer sightseeing tours of Delhi. No doubt, a mere plan of staying in one
of the finest hotels of Delhi would give you a bouquet of immense surprises, a
memory you can take back home.
95

WHEN IT WAS ESTABLISHED?
In the year 1955 Pt Jawaharlal Nehru decided to hold a UNESCO meeting of 1956 in
India but India didn’t have a standard hotel or convention center. So in the year 1955-
56 India built its first five star hotel , the Ashok Hotel in Delhi at the cost of Rs 3
crores (300 million during that time (so do the calculations as to how much now). It
was constructed in 15 months-rose pink Kota stone walls, mogul style arches, natraj
suites, Kashmiri suites and presidential suites.
Banquet and conference facilities at the Ashok Hotel Delhi
Home to the largest convention hall in India, the banquet and conference facilities at
the Ashok Hotel, Delhi are excellent and can accommodate a number of events
including large seminars with thousands of delegates.
PRINTED TARIFF 2008-2009
Category of
Room/Suite
Tariff (w.e.f. 1.9.08 to
31.3.09)
(CP)
Off- season tariff
(w.e.f. 1.4.09 to
31.8.09)
(CP)
Regular Floor
Single room 13,000 10,000
Double room 14,000 10,000
Superior Double room 16,000 12,000
96

Executive Suite 20,000 15,000
Luxury Suite 22,000 18,000
Deluxe Suite 48,000 48,000
Presidential Suite 1,00,000 1,00,000
Extra bed 1,000 1,000
Executive floor
Executive Suite 22,000 18,000
Deluxe Suite 48,000 48,000
Extra bed 1,000 1,000
Club Floor
Extra bed 1,000 1,000
Hotel Amenities
Airline Counters, Ashok Travels & Tours, Business Centre, Baby Sitter, Bank,
Billiards Room, Beauty Salon and Barber Shop, High Speed Broad Band Internet
Connectivity from all rooms and business centre, Chemist, Theatre Evenings,
Confectionery, Courier Service, Credit Cards (Diners, American Express, ITDC,
Master Card, Visa), Dentist by appointment, Doctor on call, Florist, Golf, Health
Club, Laundry and Dry Cleaning same day service, Round-the-Clock Money Changer
Room Service - 24 hours, Safe Deposit Special rooms for Physically Challenged. Club
floor: The Club Floor offers 58 deluxe rooms / suites, amidst exquisite and
contemporary setting, ideal for the discerning business and leisure traveler. A
boardroom, an exclusive Club Lounge with a library and continental breakfast.
Leisure: Open-air Swimming Pool, Golf, Billiards Room, Theatre Evenings, Health
Club. Horse Riding and Gliding Club close by.
97

Directors Report India Tourism Development
Corporation Ltd
Year End: Mar '07
The Directors have pleasure in presenting the 42nd Annual Report
together with the audited accounts of the Company for the year ended
31st March, 2007.
Your Company posted yet another year of impressive results. It
registered an all time record turnover of Rs 561.75 crore, an increase
of 50.35% over the previous fiscal year. The profit (before tax) of
your Company grew by 33.35% thereby exhibiting consistent growth for
the fourth year in succession to reach to the level of Rs 68.77 crore.
Performance Highlights
The comparative position of the corporate profitability at a glance is
tabulated below: -
(Rs. in crore)
Particulars 2006-07 2005-06
Turnover 561.75 373.63
Operating Profit 74.33 54.53
Less: Interest 0.01 0.08
Less: Depreciation 4.27 3.49
Add / (Less): Prior period
Adjustments and
Extra-ordinary Items (-) 1.28 0.61
Profit / (Loss) before Tax 68.77 51.57
Add / (Less): Deferred Tax 2.89 (-) 6.04
Less: Provision for
Income Tax 26.50 12.60
Less: Provision for
Wealth Tax
Less: Provision for Fringe
Benefit Tax 0.42 0.32
Add: Provision for Income
Tax for earlier year
98

written back 0.82 -
Add: Deferred Tax Asset
Recognised - 13.18
Profit / (Loss) after Tax 45.56 45.79
Proposed Dividend 13.50 -
Dividend Tax - 2.30
Equity Capital 67.52 67.52
Capital Employed 188.13 158.71
Capital Structure
As on 31st March, 2007, the paid-up Share Capital of the Company
remained unchanged as in the last year i.e. Rs. 67.52 crore.
Dividend
Keeping in view the guidelines of the Ministry of Finance, Government
of India for declaration of dividend by profit making PSUs and
considering profit after tax of Rs 45.56 crore, your Board of Directors is pleased to
propose dividend of 20% paid-up equity capital for the year 2006-07. The total
liability for Dividend (Rs 13.50 crore) and Dividend Tax (Rs 2.30 crore) will be Rs
15.80 crore.
Rating of 1TDC vis-à-vis MoU Targets
Performance of the Company for the year 2005-06 has been rated as Very
Good in terms of the MoU signed with the Government of India. The Self
Performance Evaluation Report for 2006-07 on the basis of audited data
has been sent to DPE. Performance rating is awaited.
Management Discussion and Analysis
A report on the Management Discussion and Analysis is placed at
Annexure-l.
Hotels Division
During 2006-07, The Ashok Group of Hotels in New Delhi undertook the
major drive to upgrade guest rooms, public areas and other facilities
to bring about a visible change in the perception of the hotels image
in the eyes of the clients. It has been. Successfully achieved in the
Delhi properties and is being carried out in other units too. Some of
the initiatives taken in the Delhi hotels are aggressive direct
marketing campaign focused on domestic and international tourists,
corporate travellers and conferences, banquets business, training,
organizing/participating in Food & Cultural Festivals, etc.
99

The Ashok, the flagship hotel of ITDC, aggressively marketed into the
newer segments to improve the market share. Similarly, Hotel Samrat and Hotel
Janpath improved their room product to have image makeover. Some of the initiatives
taken in the Delhi hotels are:-
- Wi-fi Broadband Internet connectivity all over the hotel campus.
- Facility of Lap-top, Mobile, SIM card on rent.
- Plasma TVs & LCD TVs have been introduced in the rooms along with
Desktop computers in certain suites.
- Wooden flooring in guest rooms has been introduced.
- Electronic locks have been procured for all the guest rooms.
- Electronic Safes are placed in the rooms.
- New guest supplies - toiletries, bath wares, weighing scales, etc.
- Distinct pathological/lab tests are being offered to guests as an
initiative towards medical tourism in terms of hotel specifics.
- The existing Executive floor at The Ashok is being upgraded.
- An additional business floor has been introduced as Club Four at The
Ashok.
- Hotel Samrat has renovated reasonable number of guest rooms.
- Hotel Janpath, too, started with the process of product improvement
and created certain superior rooms with additional facilities/
amenities.
- Retaining its popularity and market share, the relaunched food and
beverage outlets in The Ashok - Frontier, Soho-Ssteel, Orange Room
Capitol and Boyarin which are the talk of the town.
The Ashok Group of Hotels continued to play host to several prestigious
international and national level conventions/events, including:
- World Economist Congress, Quality Council of India, Petrotech-2007,
International Conference on Peace and Non-Violence, 58th International
100

20811971 Hotel Industry Project Report

20811971 Hotel Industry Project Report

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to 20811971 Hotel Industry Project Report

Similar to 20811971 Hotel Industry Project Report (20)

More from Becky Goins

More from Becky Goins (20)

Recently uploaded

Recently uploaded (20)

20811971 Hotel Industry Project Report