A Report on Indian Hotel Industry by Parakramesh Jaroli

A Report on Indian Hotel Industry
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ROYAL ORCHID HOTELS LIMITED
HISTORY
Mr. Chender K. Baljee, Managing Director of Royal Orchid Hotels Limited., started the
organization more than 3 decades ago and today is still directly spearheading the aggressive
expansion plans of the group. Renowned for attention to detail and design, Royal Orchid
hotels offers myriad options of business hotels ranging from luxurious 5-star hotels to
economy business hotels. In 2013, the group made its first international foray with the Royal
Orchid Malaika Beach resort at Mwanza. The hotel is situated next to Lake Victoria – the
second largest lake in the world and just a short drive to the Serengeti National Park. There
are two more hotels in the pipeline foreseen at Nairobi and Dar-Es-Salaam in Tanzania. .
Today, we operate 28 business and leisure hotels in 20 popular destination. Presently, Royal
Orchid Hotels is among India's fastest growing hospitality chains.
BUSINESS PROFILE
Incorporated in 1986, Royal Orchid Hotel Limited (Royal Orchid) is the flagship company of
the Royal Orchid Group of Hotels. The group, comprises of 14 subsidiaries, five joint
ventures and one associate company, with an inventory of 1,724 rooms and 20 operational
properties pan India. The flagship five star property of the company, Hotel Royal Orchid is
located in Bangalore. Historically skewed towards the Bangalore market, the company in the
last few years has been setting its foothold in other cities (viz.) Mysore, Pune, Jaipur, Goa,
Ahmedabad, Mumbai, Mussorie, Gurgaon Shimoga, Vadodara and Hospet. The company is
listed on the BSE and NSE with 70.2% shares held by the promoters as on December 31,
2011. During 2010-11, the company reported a 27.9% growth in operating income to Rs.
154.2 crore at the consolidated level with net profits of Rs. 12.2 crore.
REVENUE GROWTH
Royal Orchid reported a subdued 6% y-o-y growth in revenues during Q3, 2011-12, owing to
flat ARRs and some improvement in occupancies in its Bangalore properties.

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PROFITABILITY
In line with the indsutry, Royal Orchid also witnessed a y-o-y decline in operating margins;
OPM declined from 29.5% to 24.0% owing to inflated cosumables costs and other expenses.
Increase in interest expenses furthur dented the bottom line with the company’’s net margins
falling to 5.8%.
CAPEX
The company is currently in the midst of an aggressive expansion phase to add ~1,400 rooms
over the next three years of which ~650 (Tanzania, Mumbai and Hyderabad) are expected
under direct ownership (including subsidiaries). Bulk of the expansion is however through
management contracts (37% of pipeline) and leased properties (16% of pipeline) which limits
the company’s investments to around Rs. 200.0 crore.
OUTLOOK
The heavy dependance of the company on the Bangalore market exposes the company to city
specific issues. However the current expansion into Hyderabad and Mumbai markets with
relatively larger hotels is expected to provide the company with geographic diversification
and an entry into the gateway city of Mumbai. We expects susbstantial scale up in the
company’s revenues during the coming years with the addition of these owned and leased
proerties. Properties under management contracts are expected to provide some support to
margins. The company’s capital structure is however expected to be impacted by this
aggressive expansion.
MANAGING DIRECTOR'S NOTE (CHENDER BALJEE)
What began three decades ago as an inspired vision is now becoming a reality.
Today, we have a presence in most major Tier I & Tier II cities with strategic plans to expand
into international markets in the immediate future. With this in mind, we have started our
international foray in Tanzania this year. This has been made possible by associating with
partners who share a common goal of offering excellence to our clients consistently and
efficiently.

With multiple hotel brands we have successfully captured the attention of the most discerning
and demanding clientele in terms of luxury, comfort and value for money. We strongly
believe in exceeding expectations with unparalleled levels of professionalism and making
certain they enjoy a memorable experience, always.
Our independent Board of Directors along with a team of highly motivated professional and
experienced management team have successfully contributed to our growing portfolio using
the latest technology. And thereby achieving the highest standards of customer satisfaction.
With an expanding global economy, we foresee a rapid growth in demand and plan to double
the size of our brand within the next three years. By innovating and introducing multiple
formats we have been able to grow fast and prove profitable for us and our partners.
So, be it business or leisure, city or town, India or the world as its platform, Royal Orchid
Hotels has proven to be one of the most sought after hotels. Partner with us today, and let us
together keep moving ahead by committing ourselves to providing nothing but the very best.
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Thank you and I look forward to a long lasting relationship with you
CORPORATE MISSION STATEMENT
To our guests
Royal Orchid Hotels is in the hospitality business to provide superior service with
competitive pricing. We are committed to offer quality accommodation and services to our
guests. We strive to achieve Excellence in Service and Standards.
To our employees
To provide all employees with a fair package of employment and a conducive working
environment. This is done by recruiting and training employees who are keen to progress,
willing to learn new skills and accept greater responsibilities.
To the community
To ensure each hotel recognizes its responsibilities and contribution to the community.
CODE OF CONDUCT AND CODE OF ETHICS
There is nothing of more value to ROHL than our reputation: with our customers; with our
employees; with our suppliers; with our owners (employer) and with our communities. As
our company grows, our associates grow in their careers, and of necessity new people join us
from outside our company, it is imperative that we have a common understanding of our

expectations of behaviour, not just policies and manuals. The following stated elements of
expected conduct and ethics couldn’t be all encompassing. However, we expect our
leadership to conduct themselves in the spirit as well as the letter of these codes. Failure to
comply with ROHL’S Code of Conduct and Ethics may result in disciplinary action, which
could include termination. Underlying our expectations is the principle of integrity, in all of
our behaviours, in all of our relationships. We must personally and professionally always be
seen to be of high integrity.
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With respect to our customers:
• We will give them fair value in the market in which we serve.
• If we do not meet their expectations we will not expect them to pay for the services
rendered, rather we will endeavour to motivate them to give us the opportunity to redeem
their confidence in Royal Orchid Hotels Ltd.
• We will not falsify records such that individuals may make misrepresentation to their
employers.
• We will look at each customer as a potential long-term relationship for our group and
endeavour to earn their loyalty through quality service and experiences.
With respect to our employees:
• We will respect them as individuals in the belief that all employees want to do a good job,
and it is our responsibility as leaders to provide the environment, processes and motivation to
enable them to fulfil their potential.
• We will provide staff facilities that are pleasing and have high quality, as deserving for our
"internal customers". We should have "heart of the house" facilities/services for our
employees that are the envy of our industry.
• To the degree practical we will sincerely care for the total well being of our employees and
their families in our health and welfare programs.
• Honesty and candour will be practiced as we counsel our employees in their performance
and job/career expectations.
• We will offer career opportunities to qualified internal candidates and employees of other
Royal Orchid hotels in preference to external candidates.

• We will conduct ourselves as an equal opportunity employer and will not discriminate on
the basis of race, religion or sex.
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With respect to our suppliers:
• We will treat them with respect as business partners who play a vital role in our mission of
serving our guests.
• We will award business based upon quality and price without personal favouritism.
• We will not solicit gifts under any circumstances nor personally accept them of a value
exceeding Rs.100/-. Any gift that cannot be refused or returned must be donated to a
charitable cause and the transaction documented to the unit General Managers.
• We will endeavour to create long-term "win-win" relationships with quality suppliers that
allow us to enjoy excellent quality, price, and supplier involvement in continuously
improving our product, services and profitability.
• Our immediate family or we will not own, or have a vested interest in, or be a HOD of, any
supplier of goods or services to ROHL, except by way of shares in a public company. Any
such relationship that exists or may exist must have the express written approval of ROHL.
In respect to our owners (employers):
• All decisions must be made in their best long-term interest as investors and providers of
employment.
• We will at all times be fair and honest, never taking unwarranted personal advantage of our
authority and privileges.
• We will recognize that as long as we accept our income from ROHL, we owe our employer
our best effort and a fair commitment of time.
• We will respect the confidentiality and proprietorship of all information learned as a result
of our employment, and undertakes not to share this information outside our company during,
or after employment with ROHL.
• We will manage our hotels in accordance with the policies and procedures as established by
Royal Orchid Hotels, and seek approval for any deviation from them.

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With respect to our communities:
• We will be good "corporate citizens" through leadership and our involvement in civic and
charitable organizations.
• We will take a leadership role in every community with respect to environmental issues and
programs.
• We will respect the cultural and religious traditions of the country in which we operate and
make every effort to educate ourselves in the ways of its people.

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EIH LIMITED
EIH Limited, under the aegis of The Oberoi Group, operates hotels and 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 with providing the right blend of
service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and
unparalleled levels of service, Oberoi hotels and resorts have received innumerable awards
and accolades. The last decade has witnessed the debut of new luxury Oberoi leisure hotels in
India and abroad.
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, presenting the ideal choice for business and
leisure travellers.
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.
HISTORY
The late Rai Bahadur Mohan Singh Oberoi founded the Oberoi Group in 1934. The Company
was incorporated as a public limited company in India on 26 May 1949 and its initial
business activity was as the lessee and operator of The Oberoi Palace Hotel in Srinagar,
Kashmir. The equity shares of the Company were first listed on the BSE in 1956. In 1965, we
built our first hotel, The Oberoi Intercontinental, now known as The Oberoi, New Delhi, and
in 1957, we started our flight services business. On 9 September 1968, The Associated Hotels
of India Limited and Hotels (1938) Private Limited merged into the Company pursuant to
which our Company acquired five hotels including, The Oberoi Grand in Kolkata, The
Maidens Hotel in Delhi and The Oberoi Cecil, Shimla. In 1973, we commenced operations at
the Oberoi Towers in Mumbai and subsequently expanded our operations from the five star

deluxe segment to - Trident branded hotels which were targeted at business and leisure
customers seeking high-quality service at more affordable prices. Between 1986 and 2009,
we added nine hotels branded Trident. In 1974, the Company established a printing press in
Delhi primarily to ensure supply of high quality guest interactive stationery.
In 1994, we made an offering of GDRs representing equity shares of ' 10 each. The
Company‘s GDRs are listed on the London Stock Exchange. In 1997, we opened The Oberoi
Rajvilas, our first premier leisure hotel targeting the high - income international and domestic
leisure traveller. Subsequently, we opened three more such hotels, The Oberoi Vanyavilas
and The Oberoi Amarvilas in 2001 and The Oberoi Udayvilas in 2002. We also commenced
operations at the Wildflower Hall in Shimla in 2001.
In 2004, we entered into a strategic arrangement with Hilton for the international marketing
and handling of reservations of the "Trident" hotels. As part of this arrangement, all the
"Trident" hotels were re-branded as "Trident Hilton", and the Oberoi Towers in Mumbai was
re-branded as the Hilton Towers. In April 2008, this alliance ended and the "Trident" Hilton
hotels and the Hilton Towers hotel were renamed "Trident" hotels.
In April 2005, Indus Hotels Corporation Limited, a 50% joint venture between us and the R.
Raheja Group, merged with our associate company, EIH Associated Hotels Limited, to
achieve a balanced portfolio of business and leisure properties by creating a single entity
focused primarily on the five star segment. The merger resulted in our Company holding
approximately 36% of the equity of EIH Associated Hotels Limited. Effective 1 April 2006,
The Oberoi Cecil, Shimla and the Trident Bhubaneshwar were transferred from us to EIH
Associated Hotels Limited.
In 2006, we acquired a 66.67% equity stake in Mercury Car Rentals Limited, a joint venture
with Avis Europe for car rental business. In June 2010, EIH International Ltd, a wholly
owned subsidiary of our Company completed an acquisition of approximately 46% of the
equity interest of Amex Investment Limited, in its international hotels joint venture company
EIH Holdings Ltd. Pursuant to this acquisition, EIH Holdings Ltd is now a wholly owned
subsidiary of EIH International Ltd.
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FOUNDER
Rai Bahadur Mohan Singh Oberoi - Founder Chairman, EIH Limited

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EARLY LIFE
Rai Bahadur Mohan Singh Oberoi was born on 15th August, 1898, in a part of the erstwhile
undivided Punjab, now located in Pakistan. He was only six months old when his father died.
Success and fortune, therefore, did not 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.
Rai Bahadur Mohan Singh Oberoi 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. Incidentally, today The Oberoi Group owns the Cecil Hotel, now renamed The Oberoi
Cecil, where the young Mr. Oberoi found his métier.
The diligence, enthusiasm and intelligence displayed by Mr. Oberoi impressed Mr. Grove,
the manager of the hotel. A quick learner, Mr. Oberoi did not restrict his efforts to fulfilling
the job description of a desk clerk. Instead, he sought and shouldered additional
responsibilities. A few years later, when Mr. Clarke acquired a small hotel, he asked Mr.
Oberoi to assist him. It was here at the Clarkes Hotel that Mr. Oberoi gained first-hand
experience in all aspects of operating a hotel.
BUDDING ENTREPRENEUR
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 500 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 the years, Mr. Oberoi 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.

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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 modern, five-star
hotel in the country. The Oberoi Inter Continental, New Delhi opened in 1965. The I-Con,
as it became popularly known, offered facilities that no other hotel in the country could
match 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 a healthy average of 85%. This enabled The
Oberoi Hotels to significantly contribute to India's foreign exchange earnings.
In 1966, another pioneering landmark was achieved. The prestigious Oberoi School of Hotel
Management, recognised by the International Hotel Association in Paris, was established.
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
adhering to 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, provides in-flight meals of international quality to reputed airlines.
Mr. Oberoi realised that the hotel and hospitality business was greatly dependent on travel
agents, a vital element in the distribution chain. Therefore, he decided to establish his own
travel agency. Today Mercury Travels, part of The Oberoi Group, ranks amongst the leading
travel agencies in India.
With vision and imagination, Mr. Oberoi converted old and dilapidated palaces, historical
monuments and buildings into magnificent hotels such as The Oberoi Grand in Calcutta, the
historic Mena House Oberoi 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.

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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, the third highest civilian award.
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 Indonesia, 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 nine Trident hotels in India
located in Mumbai at Bandra Kurla and Nariman Point, Gurgaon (Delhi National Capital
Region), Chennai, Bhubaneswar, Cochin, Agra, Jaipur and Udaipur. 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; The Oberoi, Mauritius and The Oberoi Zahra,
Luxury Nile Cruiser, Egypt.

The Group employs more than 12,000 people worldwide, and operates 28 hotels and three
cruisers in five countries.
However, Mr. Oberoi's achievements and successes did not take from him 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."
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OVERVIEW
EIH Limited is a public limited company incorporated under the Indian Companies Act, 1913
and existing under The Companies Act, 1956. It has its Registered Office at 4, Mangoe Lane,
Kolkata - 700 001, West Bengal and Corporate Office at 7, Sham Nath Marg, Delhi - 110
054.
COMPANY ASSOCIATES
Company Associates of EIH Limited are as follows: EIH Associated Hotels Limited, L&T
Bangalore Airport Hotel Limited, Golden Jubilee Hotels Limited and Oberoi Mauritius
Limited.
COMPANY SUBSIDIARIES
Company Subsidiaries of EIH Limited are as follows: Mercury Car Rentals Limited,
Mashobra Resort Limited, Oberoi Kerala Hotels and Resorts Limited, Mumtaz Hotels
Limited, EIH International Ltd, EIH Flight Services Limited, EIH Holdings Ltd, EIH Flight
Catering Services Limited, EIH Marrakech Limited, J&W Hong Kong Limited, Oberoi Turtle
Bay Limited, EIHH Corporation Limited, EIH Investments NV, EIH Management Services
BV, PT Widja Putra Karya, PT Waka Oberoi Indonesia and PT Astina Graha Ubud.
THE OBEROI GROUP
The group of companies affiliated through the common ownership interests of EIH Limited,
Executive Chairman Mr. Prithviraj Singh Oberoi, his family and some of their affiliates, is
referred to as The Oberoi Group.
BUSINESS PROFILE
EIH Limited, founded in 1949 by Mr. P.R.S Oberoi, is the third largest hospitality company
in India after Indian Hotels Company Limited and the ITC Welcome Group. It is the flagship

company of the 1934 founded Oberoi Group which owns/manages luxury hotels across five
countries under The Oberoi brand in the 5-star Deluxe category and the Trident brand in the
5-star category. EIH has a portfolio of 24 luxury hotels with an inventory of 3,721 rooms
(March-11), three luxury cruises, Oberoi printing press and Oberoi Flight Services (a division
that provides commercial in-flight catering and operates airport lounges and restaurants in
India, Mauritius, Egypt and Indonesia). EIH’s associated businesses include Mercury Car
Rentals for car rental operations, Corporate Air Charters and Mercury Travels for travel
agency operations. The promoter group holds 34.9% stake in the company. EIH Limited is
listed on the BSE and NSE in India. During 2010-11 the company reported a 24% growth in
operating income to Rs. 1,288.0 at the consolidated level with net loss (after minority
interest) of Rs. 5.2 crore. The same at the standalone level stood at Rs. 1,044.6 crore and a
profit of Rs. 64.5 crore.
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REVENUE GROWTH
EIH, at the standalone level, reported a subdued 5% y-o-y growth in revenues for Q3, 2011-
12 in the absence of any room additions, a marginal improvement in RevPARs across its key
hotels. The muted revenue growth remains largely in line with the industry trends with
several hoteliers indicating an inability to increase rates owing to the uncertain economic
environment in general and oversupply situation in a few markets.
PROFITABILITY
Sluggish revenue growth overlaid with inflated operating costs eroded margins. With
operating expenses growing in the range of 6-13% and revenues by 5%, operating profits
declined by 3% while margins declined by 230 bps to 32.4%, again largely in line with the
industry trend. However, with the company having retired a large chunk of its debt utilizing
funds raised from a rights issue in March 2011, a sharp fall in interest expense has boosted
PAT margins which improved to 13.5%.
CAPEX
Over the next 2-3 years the company expects majority of the new hotel additions to take place
through the management contracts route. The company proposes to invest in owned
properties on land parcels it owns in Goa and Bangalore. At Goa, EIH owns a 55 acre beach
front site on which the company proposes to set up a luxury hotel while at Bangalore it is
planning a 250 room luxury propery with 65 luxury branded residences.

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OUTLOOK
EIH’s revenues growth over the medium term would remain restricted in the absence of any
major owned inventory additon, however inventory would be added under margin accretive
management contracts. Further, the current improvement in capital structure is expected to
enable the company to comfortably fund its upcoming Bangalore and Goa projects.
OBEROI DHARMA
FUNDAMENTAL CODE OF CONDUCT
We, as members of The Oberoi Group, are committed to display through our behaviour and
actions the following conduct which applies to all aspects of our business:
 CONDUCT which is of the highest ethical standards-intellectual, financial and moral, and
which reflects the highest levels of courtesy and consideration to others.
 CONDUCT which builds and maintains teamwork, with mutual trust as the basis of all
working relationships.
 CONDUCT which puts the customer first, the Company second and the self last.
 CONDUCT which exemplifies care for the customer through anticipation of need,
attention to detail, excellence, aesthetics and style, and respect for privacy along with
warmth and concern.
 CONDUCT which demonstrates two-way communication accepting constructive debate
and dissent whilst acting fearlessly with conviction.
 CONDUCT which demonstrates that people are our key asset, through respect for every
employee, and leading from the front regarding performance achievement as well as
individual development.
 CONDUCT which at all times safeguards the safety, security, health and environment of
guests, employees and the assets of the Company.
 CONDUCT which eschews the short-term quick - fix for the long-term establishment of a
healthy precedent.

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THE OBEROI GROUP MISSION
Our Guests
We are committed to meeting and exceeding the expectations of our guests through our
unremitting dedication to perfection to every aspect of service.
Our People
We realise that people are our true assets. We are totally committed to their growth,
development and welfare.
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 the Asia-Pacific.
Our Shareholders
We believe it is our responsibility and duty to create extraordinary value for our shareholders.
They have reposed their trust in us and our abilities.
BUSINESSES
We are the flagship company of The Oberoi Group, one of the largest and most well-known
hospitality groups in India. Our primary business is the ownership, management and
operation of five star deluxe and five star hotels in metropolitan and major tourist destinations
throughout India and in select tourist locations overseas.
In addition to our primary hotel business, we are also involved in other businesses, such as
flight and airport services, car rentals, air charter services, and a printing press.
The Company has a 100% equity interest in the six ‘The Oberoi Hotels’ located in Mumbai,
New Delhi, Kolkata, Bangalore, Udaipur and Ranthambhore. Through its subsidiaries or
associate companies, the Company has equity interests in, and manages, The Oberoi Hotels in
Agra, Jaipur, and Shimla. The Oberoi Hotels and Resorts are luxury properties serving
foreign and domestic business customers and high-end leisure travellers. The Oberoi Hotels
are widely recognised as being among the leading hotels in their markets and several have
been assigned five star deluxe ratings, the highest available rating in India, by the Ministry of
Tourism.

The Company also has equity interests in nine hotels that operate under the “Trident” name.
Trident Hotels target business and leisure travellers to metropolitan and tier two cities in
India who seek high-quality boarding, lodging and business or recreational facilities at more
affordable rates than the five star deluxe segment. Several of the Trident Hotels have been
assigned five star ratings. We have a 100% equity interest in and manage the Trident,
Nariman Point and Trident, Bandra-Kurla Complex in Mumbai. We have a 36% equity
interest in the Trident Hotels located in Agra, Bhubaneswar, Chennai, Cochin, Jaipur and
Udaipur and manage the Trident in Gurgaon, just outside of Delhi.
Our business strategy calls for continued emphasis on high-end, upscale accommodation
through the existing ‘The Oberoi and Trident Hotels’, as well as selective expansion in both
the five star deluxe and five star segments of the Indian hotel industry by participating in the
development and management of new hotel properties in destinations where we see
significant opportunities. Development work is in progress for The Oberoi Hotel in
Hyderabad and Trident Hotels in Bangalore, Dehradun and Hyderabad. Our international
expansion plans include luxury properties in Dubai, Abu Dhabi, Greece, Oman, Mauritius
and Morocco, which are in the planning stages and for which we have signed management
contracts. We own and operate Oberoi Flight Services and Oberoi Airport Services, which
provides catering and other services to leading international airlines, and operates restaurants
and lounges in a number of India’s domestic and international airports. Our other businesses
include air charter services through EIH Aviation, a division of the Company, a commercial
printing press, and a car rental business in India through our 66.67% equity interest in
Mercury Car Rentals Limited, a venture with Avis Europe.
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HOTEL LEELAVENTURES LIMITED
HISTORY
 1987 - Capt. Nair Opens The First Leela Hotel In Mumbai: The Leela Penta
 1988 - The Leela Penta Becomes The Leela Kempinski
 1991 - The Leela Goa, Designed By Tom Pugliaso
 1997- Foundation Stone For The Leela Palace Bangalore Placed By Prime Minister H. D.
Deve Gowda And Chief Minister J. H. Patel
 2001 - The Leela Palace Bangalore
 2005 - The Leela Kovalam Beach, Kerala
 2009 - The Leela Ambience Gurgaon Hotel & Residences
 2009 - The Leela Palace Udaipur
 2011 - The Leela Palace New Delhi, Designed By John Gerondelis
 2013 - The Leela Palace Chennai
The Leela Palaces, Hotels and Resorts, headquartered in Mumbai, India, is owned by Hotel
Leelaventure Ltd. The ultra-luxury hotel group owns and manages eight award-winning
properties in prime urban locations and magical holiday destinations across India including
Mumbai, New Delhi, Gurgaon, Bangalore, Chennai, Goa, Udaipur and Kovalam. New
properties under development include Jaipur, Bangalore, Noida, Agra and Lake Ashtamudi,
Kerala. The Leela Palaces, Hotels and Resorts is committed to providing warm, gracious and

anticipatory service in settings that capture the essence of India. The group has a marketing
alliance with US-based Preferred Hotels & Resorts and is a member of the Global Hotel
Alliance based in Geneva, Switzerland. With a range of award-winning properties that
celebrate India's diverse geography and rich architectural history, The Leela Palaces, Hotels
and Resorts is on a continuous journey to delight each traveller who crosses our threshold.
18
REVENUE GROWTH
Leela reported a healthy 27% growth in revenues during Q3, 2011-12 driven largely by
inventory additions. The company added 260 rooms to its inventory in Q1, 2011-12 with the
launch of its Chanakyapuri, New Delhi property. The RevPAR growth for the company
across business as well as leisure destinations remained subdued.
PROFITABILITY
Leela’s operating margins dropped during Q3,2011-12 to 18.9% in the absence of any
meaningful traction in operating metrics while costs increased sharply on account of the
newly launched Delhi property. The New Delhi property is in the initial stages of operations
with less than one full year of operations. High interest costs on borrowings for the New
Delhi hotel have led to heavy losses for the company during the the last three quarters.
CAPEX
Leela’s capex over the next year would be primarily towards the 326 room project at Chennai
which is expected to be launched in 2013. The company has further plans to open new
properties at Agra and Ashtamudi, Kerala. To support its severely strained balance sheet, the
company sold its Kovalum property for Rs. 500 crore in August 2011. It would however
continue to manage the hotel under a long term contract.
OUTLOOK
Leela’s growth going forward is expected to be derived from a mix of its business and leisure
destinations. The new property in New Delhi provides the company with a presence in the
national-capital-region. The current cash losses and stretched capital structure remains a
concern. The board and its lenders have recently approved the restructuring of company’s
debt under the CDR mechanism. Under these circumstances the funding for the new projects
could become challenging, however, steps such as the sale of the Kovalam hotel to raise
funds is a positive. Furthermore the company also expects income from the sale of residential
property in Bangalore. The company entered into a joint development agreement with

Bangalore based Prestige Estate Projects Limited in July 2011 for the development of owned
land adjacent to its luxuty property in Bangalore.
19
BUSINESS PROFILE
Hotel Leelaventure Limited, founded by Capt. C. P. Krishnan Nair and headquarterd in
Mumbai, owns the hotel chain The Leela Palaces, Hotels and Resorts which manages seven
hotels in India with a total inventory of 1,869 keys including business hotels in Bangalore,
Gurgaon, Mumbai, New Delhi and leisure properties in Goa, Kovalam and Udaipur. While
the properties at Bangalore, Mumbai, New Delhi, Goa and Udaipur are owned by the
company, Gurgaon is a management contract. The resort at Kovalam was also earlier owned
by the company however it has been sold off in August 2011 while still remaining under a
long term managmeent contract with Leela. Properties under development include Chennai
followed by Agra, Jaipur and Ashtamudi, Kerala. The company is listed on the BSE and NSE
with 56.6% shares still by promoter group.
The group has marketing alliances with US-based Preferred Hotels & Resorts and is a
member of Global Hotel Alliance based in Switzerland. In February-12, Leela exited its 25
year alliance with Germany based Kempinski, intending to undertake its own distribution.
Kempinski will still continue to market Leela hotels till the earlier agreement of 2015-16.
During 2010-11 the company reported a 17% growth in operating income to Rs. 525.8 crore
with net profit of Rs. 37.8 crore.
WEDDINGS
Weddings take on a grander feel at The Leela’s royal wedding venues.
Bestowed with an incredible array of national and international awards for exceptional
service, quality and world-class facilities, a world of experience andits legendary attention for
detail, The Leela and its luxury wedding venuesbecome the ideal location to celebrate luxury
Indian weddings.
So celebrate your wedding or reception at the most sought-after luxury venue for Indian
weddings.

You may even choose to celebrate other eventsat The Leela, for whether it is a small
gathering of 5 or a wedding with 1,200 guests in attendance, our well-experienced staff and
state-of-the-art facilities will ensure that your needs are met to perfection. We work tirelessly
with local companies and event planners to provide any service—entertainment or
otherwise—so every need of your guests at your special event is taken care of.
In addition to the facilities and services provided at the luxury wedding and reception venues,
our world-class restaurants and internationally renowned chefs help you craft the perfect
menu for your event. Select from a wide array of sample menus laden with both traditional
Indian cuisine and international specialties or team up with the chef to craft your own
personalised menu options.
Bring your special occasions to The Leela’s luxury venues, because some memories must last
a lifetime.
20
MEETINGS
Get the advantage of the best when you choose to set up meetings and celebrations in our
hotel. The Leela Palaces, Hotels and Resorts has one of the most well-appointed conference
halls in India.
Whether it is for personal celebrations with family and friends or company-wide corporate
meetings and functions, rest assured that with our state-of-the-art meeting venues, we will
deliver the best. And that’s an assurance, no matter what the size of your celebration or the
level of sophistication you demand from us. Bring your intimate cocktail parties or mega-indoor/-
outdoor functions to our meeting venues across all our hotels in India, and we will be
prepared with five-star dining options and lavishly appointed conference halls.
SPA & SALON
Counted among one of the best luxury spas in India , the spa at The Leela hotels across the
country exceeds the expectations of our guests. Exquisite locales, stunning facilities and a
crop of well-trained staff add to the pleasures of unwinding.
Get the best of the secrets of Ayurveda, penetrating your being at our Ayurvedic spas at The
Leela Palace Bangalore and The Leela Kovalam. Or book yourself for an ultimate spa
experience at our other hotels, and try not to miss our body spa at The Leela Palace Udaipur.
ESPA is our luxury spa partner of choice at The Leela Palace Bangalore, The Leela Palace
Chennai, The Leela Mumbai, The Leela Palace New Delhi and The Leela Palace Udaipur.

The luxury spas at our other luxury hotels in India are The Spa at The Leela Goa, Lavanya at
The Leela Ambience Gurgaon Hotel & Residences and The Divya Spa at The Leela
Kovalam.
Let the ancient secrets of Ayurveda work its magic on you or enjoy the best European and
Oriental rejuvenation therapies. No matter what you choose, we assure you a holistic
experience for your mind, body and soul.
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THE ROYAL CLUB
Unlike other five star hotels in India, The Leela Palaces, Hotels and Resorts know how make
even luxury premium. And the Royal Club at The Leela is just the answer to that quest. It is,
undoubtedly, a luxury haven that is one notch above any you may have experienced across
any luxury hotels. Exclusive check-ins and check-outs, a welcome drink on arrival, a butler-on-
call, personalised services and accommodations rooms and suites that give you a peek into
royal living—the Royal Club is your exclusive luxury getaway.
CORPORATE GOVERNANCE
Corporate Governance is based on the principles of integrity, fairness, equity, transparency,
accountability and commitment to values. Good governance practices stem from the quality
and mindset of the organization. Companies stand to gain by adopting systems that bolster
the stakeholders' trust through transparency, accountability and fairness. With increasing
interdependence and free trade among countries and citizens across the globe, good
Corporate Governance should be followed by every company to distinguish itself.
Keeping the above in mind, your Company has also committed itself to the philosophy of
good Corporate Governance in all its dealings, utmost integrity in its conduct and in
compliance with the highest standards of corporate values and ethics. Your Company
considers Corporate Governance as a continuous journey to provide a congenial environment
to harmonise the goals of maximizing the stakeholders' value and maintaining a customer-centric
focus in all its dealings with the outside world, besides keeping important segments of
the society adequately informed.
It has been the endeavour of your Company to give fair and equitable treatment to all its
stakeholders, including employees, customers and shareholders.

22
PARTNERS
The Leela Palaces, Hotels and Resorts, headquartered in Mumbai, India, is owned by Hotel
Leelaventure Ltd. The ultra-luxury hotel group owns and manages eight award-winning
properties in prime urban locations and magical holiday destinations across India including
Mumbai, New Delhi, Gurgaon, Bangalore, Chennai, Goa, Udaipur and Kovalam. New
properties under development include Jaipur, Bangalore, Noida, Agra and Lake Ashtamudi,
Kerala. The Leela Palaces, Hotels and Resorts is committed to providing warm, gracious and
anticipatory service in settings that capture the essence of India.
The group has marketing alliances with Germany-based Kempinski hotels, US-based
Preferred Hotels & Resorts and is a member of the Global Hotel Alliance based in Geneva,
Switzerland.

23
TAJGVK HOTELS & RESORTS LIMITED
INTRODUCTION AND OVERVIEW
The Company was incorporated in 1902 and it opened its first hotel, The Taj Mahal Palace &
Tower, Mumbai, in 1903. The Company then undertook major expansion of The Taj Mahal
Palace & Tower, Mumbai by constructing an adjacent tower block and increasing the number
of rooms from 225 to 565 rooms. With the completion of its initial public offering in the early
1970s, the Company began a long term programme of geographic expansion and
development of new tourist destinations in India which led to its emergence as a leading hotel
chain in India. From the 1970s to the present day, the Taj Group has played an important role
in launching several of India's key tourist destinations, working in close association with the
Indian Government. The Taj Group has a philosophy of service excellence which entails
providing consistently high levels of personalized service and innovative means of improving
service quality.
The Taj Group has been active in converting former royal palaces in India into world class
luxury hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur
and Umaid Bhawan Palace in Jodhpur. In 1974, the Taj Group opened India's first
international five star deluxe beach resort, the Fort Aguada Beach Resort in Goa. The Taj
Group also began its business in metropolitan hotels in the 1970s, opening the five-star
deluxe hotel Taj Coromandel in Chennai in 1974, acquiring an equity interest and operating
contract for theTaj President, a business hotel in Mumbai, in 1977, and opening the Taj
Mahal Hotel in Delhi in 1978.
In 1980, the Taj Group took its first step internationally by opening its first hotel outside
India, the Taj Sheba Hotel in Sana'a, Yemen and in the late 1980s, acquired interests in
the Crown Plaza - James Court, London and 51 Buckingham Gate Luxury Suites and
Apartmentsin London.

In 1984, the Taj Group acquired under a license agreement each of The Taj West End,
Bangalore, Taj Connemara, Chennai and Savoy Hotel, Ooty, with which the Taj Group made
its foray into Bangalore.
With the opening of the five star deluxe hotel Taj Bengal in Kolkata in 1989; the Taj Group
became the only hotel chain with a presence in the five major metropolitan cities of Mumbai,
Delhi, Kolkatta, Bangalore and Chennai. Concurrently with the expansion of its luxury hotel
chain in the major metropolitan cities, the Taj Group also expanded its business hotels
division in the major metropolitan and large secondary cities in India.
During the 1990s, the Taj Group continued to expand its geographic and market coverage in
India. It developed specialized operations (such as wildlife lodges) and consolidated its
position in established markets through the upgrading of existing properties and development
of new properties. Taj Kerala Hotels & Resorts Limited was set up in the early 1990s along
with the Kerala Tourism Development Corporation. In 1998 the Taj Group opened the Taj
Exotica Bentota which strengthened the Taj Group's market position in Sri Lanka. In 2000,
the launch of the 56 acre Taj Exotica, Goa and the Taj Hari Mahal in Jodhpur were
completed.
In 2000, the Taj Group entered into a partnership with the GVK Reddy Group to set up Taj
GVK Hotels and Resorts Limited and thereby obtained a prominent position in the market in
the southern business city of Hyderabad, holding three hotels and a major share of the
market. In 2001, the Taj Group took on the management contract of Taj Palace Hotel, Dubai,
and has established itself as an up-market hotel in the Middle East region. The Taj Exotica
Resort & Spa, Maldives launched the Taj Group into the premium luxury hotel market and
since its opening in July 2002, has won several international awards. The Taj Group also
obtained licenses to manage and operate two leisure hotels; the Rawal-Kot,
Jaisalmer and Usha Kiran Palace, Gwalior in October 2002.
In September 2002, the Taj Group acquired an equity interest in the former Regent Hotel in
Bandra which gave the Taj Group access to the midtown and North Mumbai market. The
hotel has since been renamed as the Taj Lands End, Mumbai.
In 2003, the Company celebrated the centenary of the opening of its Flagship hotel, the Taj
Mahal Palace & Tower, Mumbai.
In 2004 the Taj Group opened Wellington Mews, its first luxury serviced apartment in
Mumbai. In the same year, the Taj Group also launched the first of its "value-for-money"
24

hotels in Bangalore branded 'Ginger', which division has 11 hotels in various locations in
India and is owned through its wholly owned subsidiary.
In 2005 the Company acquired on lease The Pierre, a renowned hotel in New York City, to
enter the luxury end of the developed hotel markets internationally. The Company entered
into a management contract for Taj Exotica in Palm Island Jumeirah in Dubai to expand its
existing presence in the United Arab Emirates.
The Company enhanced its position as an operator of converted palaces by entering into a
management contract for Umaid Bhawan Palace, Jodhpur in the princely state of Rajasthan in
India. The Company, through a subsidiary, acquired the erstwhile 'W' hotel in Sydney,
Australia in February 2006 and renamed it as 'Blue, Woolloomooloo Bay'. To expand its
presence in the US market, the Company acquired in early 2007 Ritz Carlton
in Boston and Taj Campton Place in San Francisco.
Hotels operated by the Taj Group internationally are located in US, Australia, Dubai,
Maldives, Malaysia, Sri Lanka, the United Kingdom, South Africa, Bhutan and Zambia.
TAJGVK Hotels & Resorts Limited (TAJGVK) is a joint venture, formed through a Strategic
Alliance, between the Indian Hotels Company Limited (IHCL) and the Hyderabad based
GVK Group in the year 1999/00. GVK Group is a Hyderabad based multi product and multi-location
business conglomerate with several integrated companies in India and abroad. IHCL
is a TATA enterprise with a chain of hotels owning the Taj Group of Hotels and manages and
operates various hotels across the country and abroad. The Company owns & operates three
five star hotels in Hyderabad and one five star hotel each in the cities of Chennai and
Chandigarh.
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SCHEME OF AMALGAMATION ("SCHEME")
On October 12, 2006, the Board of Directors of the Company approved the Scheme, under
Sections 391 to 394 of the Companies Act for the for the amalgamation of Indian Resorts
Hotel Limited, Gateway Hotels and Getaway Resorts Limited, Kuteeram Resorts Private
Limited, Asia Pacific Hotels Limited, Taj Lands End Limited (Transferor Companies) with
the Company. The Scheme was approved by the respective High Courts.
Rationale for the Scheme of Amalgamation
The Transferor Companies and the Company were engaged in the leisure and business hotels
as part of the Taj group of hotels. A consolidation of the Transferor Companies and the

Company was therefore expected to lead to greater synergy in operations, a more efficient
utilisation of capital and create a stronger base for future growth of business in general and
the Company in particular. The amalgamation was expected to result in administrative
rationalization, organizational efficiencies, and optimal utilization of various resources.
26
Hospitality - Being the perfect host.
TIME & AGAIN
Bearing proof to India's reputation of playing host to its guests is TAJGVK. Venturing with
just a single property, TAJGVK, has established its presence as an industry stalwart in just
over 10 years. With 5 world-class properties and another coming up in Begumpet, TAJGVK
now has a total room base of over 900. This constitutes a powerful base to address the
growing opportunities offered by the emergence of India as a major business destination.
Taj Krishna
Taj Krishna, the flagship 5-star deluxe property of TAJGVK, with a 260 room inventory, is a
magnificent structure in Banjara Hills. It immediately reflects the E-culture of Hyderabad,
without forgetting its illustrious aristocratic past. A distinguished mark of the finest quality
standards, it comes as no surprise that Taj Krishna is a member of The Leading Hotels of the
World.
An architectural masterpiece, this luxurious hotel offers a grand staircase, marble pillars, and
ornately carved decor that wraps our guests in opulent luxury, and where every moment feels
like a fantasy. Nearby, guests can find much to do and experience with Golconda Fort,
Salarjung Museum, and Hussain Sagar Lake minutes away.
Taj Banjara
Nestled away from the busy traffic of Banjara Hills, with its own private approach and
overlooking the lake is Taj Banjara, unique in every respect and equally popular with
Tollywood & Bollywood. Taj Banjara has 122 rooms and offers the best of kebabs and
biryani at the popular Kebab - e - bahar - outdoor dining by the lake for dinner.
Taj Deccan
Taj Deccan, with 151 rooms and set in a six acres lush green landscaping - Taj Deccan offers
a variety of options for every business requirement ranging from rooms spread across various
categories to Banqueting facilities which meet the requirements of guest for all kinds of
social gatherings ranging from 20 - 2000 guests.

Syn - the popular Asian Bar and Grill is known amongst the young and happening crowd in
Hyderabad.
27
Taj Chandigarh
TAJGVK's growing national presence is yet another indicator to its steadfast position in the
industry. Chandigarh's first ever branded property, the Taj Chandigarh was successfully
launched a little over 5 years ago with a room inventory of 149 rooms.
Taj Chandigarh celebrates the dynamic spirit of Chandigarh in its sophisticated architecture
and interiors. The newly built hotel, located in Sector 17, the city's prime business and
shopping area, is a comfortable drive from both the airport and from the railway station. Taj
Chandigarh is the city's finest hotel and is well suited to both business and leisure travelers to
Chandigarh.
Taj Club House
IIn Chennai too, Taj Club House with 220 rooms, is one more proof of TAJGVK's dedication
to being recognized as a global synonym for the warmest greeting in the hospitality industry.
Taj Club House has all it takes to make it the ideal venue for the discerning business traveller.
As you approach, you will come face to face with a grand, 45,000 sq. ft. blue glass facade,
which acts as a preview to all the hotel has to offer. A vibrant new-age atmosphere, a feast of
dining options, warm contemporary accommodations and impeccable levels of service, that
are at once attentive and unobtrusive.
Ongoing Projects
The Company´ project for a 181 rooms five star property in Begumpet, Hyderabad is in
advanced stages and expected to commence operations in 2011. Further, the Company has
forayed into the value for money segment thru its first "Ginger" project near the Shamshabad
airport in Hyderabad.
REVENUE GROWTH
TAJGVK reported a weak Q3, 2011-12 performance with revenues de-growing by 6% on
account of falling occupancies and flat ARRs. The properties in Hyderabad were particularly
impacted by the Telengana issue and intensified competition due to the supply overhang.
Further competition for the company intensified in the hereto monopolistic Chandigarh
market with the launch of the JW Marriott, effectively capping Taj Chandigarh’s RevPARs.

28
PROFITABILITY
With revenues shrinking and operating costs rising, a drop in operating margins was
inevitable. The operating profits were further impacted by the pre-operative expenses for the
181 room Vivanta at Begumpet which was launched in Q3,2011-12. The operating profits of
the company fell by 32% while operating margins contracted sharply to 28.6% from a healthy
39.6% in the corresponding period in the previous year. The company’s current debt burden
remains moderate leading to low interest expense. The drop in PAT was in tandem with the
lower operating profits.
CAPEX
The company’s capex plans are focussed on ensuring both geographic as well as segmental
diversification. New projects in the pipeline include a 275 room 5-StarD luxury property
strategically located at the Mumbai domestic airport, expected to be launched by mid 2014.
The company also proposes to enter the Bangalore market with a premium 150 room Vivanta
at Yelahanka, Bangalore. It also intends to invest in consolidating its business in Hyderabad
with the construction of banqueting and additional parking space at Taj Krishna. Further, in
collaboration with its parent IHCL, the company is proposing to enter the budget segment
through its maiden Ginger hotel near the International Airport in Shamshabad, Hyderabad.
Expected to be launched in 2014, the 250 room Ginger hotel would widen TAJGVK’s price
point diversification in Hyderabad. TAJGVK enjoys the first right of refusal for owning
Ginger hotels in Andhra Pradesh and over the long term intends to own a majority of the
Ginger properties in the state.

29
OUTLOOK
While the company has a strong position in the Hyderabad premium market with four
properties in the Banjara Hills area, it has over the years reduced its dependence on the
market-diversifing to Chennai and Chandigarh. Going forward, the company intends to
diversify into the Bangalore and Mumbai markets while strengthening its Hyderabad
foothold. Growth going forward would hence be driven both by accretion to inventory and
improving operating metrics.
BUSINESS PROFILE
Incorporated in 2000, TAJGVK Hotels & Resorts Limited (TAJGVK) is a joint venture
between Indian Hotels Company Limited (IHCL) and the Hyderabad based GVK Group.
IHCL holds 25.5% stake in TAJGVK while the GVK group holds 49.5% stake; the balance is
held by the public. TAJGVK currently has six 5-star/D properties with a cumulative
inventory of 1,083 rooms. Of these four 5-star hotel properties are located in Hyderabad - an
inventory of 717 rooms, viz. Taj Krishna, Taj Deccan, Taj Banjara and Vivanta by Taj
Begumpet. The company also owns a 150 room hotel in Chandigarh (Taj Chandigarh) and a
220 room property in Chennai (Taj Club House) which opened in December 2008. The most
recent addition to the inventory is the 181 key Vivanta at Begumpet launched in Q3,2011-12.
During 2011-12 the company reported a 14% growth in operating income to Rs. 260.7 crore
with net profits of Rs. 43.3 crore.

30
KAMAT HOTELS (INDIA) LIMITED
Kamat Hotels (India) Limited was incorporated on 21st March, 1986 in the State of
Maharashtra by Late Mr. Venkatesh Krishna Kamat and his
associates with the main object of setting up and running of
hotels and related business. The Company obtained the
Certificate of Commencement of Business on 31st March,
1986.
Kamat Hotels (India) Ltd. (KHIL), is engaged in the business
of hospitality and allied businesses, and its activities may be broadly categorized into
(i) operation of hotels owned by the Company,
(ii) management of hotels owned by other parties under contract
(iii) catering services and
(iv) timeshare.
KHIL has firmly established four hotel brands viz. The Orchid – An Ecotel Hotel in the 5-
Star segment and VITS Luxury Business Hotel in the 4-Star segment, Gadh Hotels and Lotus
Resorts. The focus of the Company is in positioning its hotels to the business segment in the
mid to up-market category. In addition, the Company consciously follows the policy of
environment conservation in the operation of its hotels in all aspects viz. design, construction
and operations. This environment positioning gives a duel advantage to the Company in
terms of marketing & visibility coupled with lower cost of operations.
In Asia, The Orchid Hotel – Ecotel, Mumbai, was the first to receive the Ecotel certification.
Both The Orchid – An Ecotel Hotel and VITS have consistent past performance in terms of
being in the top three hotels in the city of Mumbai in the respective category in terms of
average revenue per room.
The average occupancy level of The Orchid, Mumbai, was, around 60% as compared to 62%
in the previous year. The average occupancy level of VITS Mumbai was around 70% as
compared to 71% in the previous year. The Average Room Rate, during the year under
review, was at Rs. 5,213/- at The Orchid, Mumbai as compared to Rs. 5,127/- in the previous
year and at Rs. 3,148/- at VITS, Mumbai as compared to Rs. 3,281/- in the previous year.
The total turnover of the Company for the year was recorded at Rs.15,679.06 lakhs (of which
the turnover of Rs. 7,335.32 lakhs pertains to The Orchid, Mumbai, Rs. 2,762.05 lakhs to

VITS, Mumbai and Rs. 5,581.69 lakhs to other units) as against Rs. 16,287.26 lakhs in the
previous year, a decrease of around 3.73% over the last year. The Company has registered
loss after tax of Rs. 23,260.69 lakhs as compared to loss of Rs. 566.39 lakhs in the previous
year.
The Company is having management contracts for managing hotel and restaurant properties
at Aurangabad, Pune, Bhubaneswar and Mahad (Discontinued w.e.f 01.04.2014). The
Company is also having franchisee agreement for properties at Lotus Resort Silvassa, Vithal
Kamats Original Family Restaurants at Titwala, Ale Phata, Trimbakeshwar, Shahapur,
Solhapur, Hinjewadi and Mulsi – Dam (Paud).
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COMPANY OVERVIEW
Kamat Hotels (India) Limited
The Group – Kamats had a humble and modest beginning. A clear vision along with
determination and hard work, have gone a long way in helping the Group achieve successful
results and has laid the foundation of the most successful Restaurant Chain in India, which of
course had gained a strong foothold in the hospitality Industry. The brand equity “Kamats”
has also gone up substantially over the years and the name is synonymous with value for
money and represents a philosophy of best quality of service at the most affordable prices.
Former Chairman, Late Mr. Venkatesh Krishna Kamat who lay the foundation of what was to
later become one of India’s largest and most successful restaurant chain started its business
with a small restaurant at Mazgaon. The group has been involved in some of the most
innovative expansions and business extensions, covering city and highway-side restaurants,
night clubs, international restaurants, catering contrcts and hotels.
GROWTH PATTERN
1958 : Satkar Restaurant (*), opposite Churchgate Station at Mumbai was the first Restaurant
started. The success of Satkar Restaurant and increasing demand for fast-food prompted the
group to launch Samrat Restaurant (*) at Churchgate in 1972 and a host of eateries and
catering businesses in western India. (*) Not part of the KHIL Group now.
1986 : The Company KAMAT HOTELS (INDIA) LIMITED was incorporated on 21st
March, 1986. It took over its first residential hotel in Vapi – Shalimar Hotel. The group also
purchased a Residential Hotel at Khandala, a Hill Resort, between Mumbai and Pune. In the
same year, Kamat Super Snacks was also started at Nana Chowk, Mumbai with 69 covers.
1988 : The group built a Three Star Hotel with 32 rooms in first phase with provision for

another 60 rooms at Silvassa, a Union Territory, about kms from Mumbai.
1990 : Plaza Hotel which was a four star Hotel in operation with 81 rooms situated near
Domestic Airport was purchased. The Hotel was remodelled and a Family Club with
discotheque 'Go Bananas' was started.
32
1994 : The Group went public through an IPO.
1995 : Inception of the Kamats Catering Institute at Goregaon. Kamats Tours & Travels
established. In September same year the Management of Kamats Plaza decided to upgrade
and reopen the property as a Five Star Hotel.
1996 : Hotel Siddharth (Nasik) – 32 rooms – 3 star hotel with permit room, was taken over
under a management contract for 35 years.
1997 : The Orchid, An Ecotel Hotel, Asia's first Eco Friendly Five Star Hotel, was opened to
Public on 27th September, 1997.
2001 : The Company ventured, abroad by opening two of its branches to begin with in San
Francisco, USA in the name of "Vithal Kamat" on Management Contract basis, further
expansion is in the pipeline. In the same year 'Vits Luxury Business Hotel at Mumbai' was
opened.
2007 : Clear Water Capital Partners funding for the New Projects. Also the First Heritage
Hotel "Fort Jadhav Gadh" was opened.
2008 : VITS successfully rolls out across 5 major cities in India , Pune , Nagpur ,
Aurangabad , Nasik 2008 : Lotus Resorts launched and roll out across Goa, Murud Dapoli
Beach, Udaipur, Silvassa, Aronda Backwaters.
2009 : Fort Mahodadhi commences 1st phase of operations.
2009 : Lotus Konark Commences operations.
MILESTONE
1958 : Satkar Restaurant (*), opposite Churchgate Station at Mumbai was the first Restaurant
started. The success of Satkar Restaurant and increasing demand for fast-food prompted the
group to launch Samrat Restaurant (*) at Churchgate in 1972 and a host of eateries and
catering businesses in western India. (*) Not part of the KHIL Group now.
1986 : The Company KAMAT HOTELS (INDIA) LIMITED was incorporated on 21st
March, 1986. It took over its first residential hotel in Vapi – Shalimar Hotel. The group also

purchased a Residential Hotel at Khandala, a Hill Resort, between Mumbai and Pune. In the
same year, Kamat Super Snacks was also started at Nana Chowk, Mumbai with 69 covers.
1988 : The group built a Three Star Hotel with 32 rooms in first phase with provision for
another 60 rooms at Silvassa, a Union Territory, about kms from Mumbai.
1990 : Plaza Hotel which was a four star Hotel in operation with 81 rooms situated near
Domestic Airport was purchased. The Hotel was remodelled and a Family Club with
discotheque ‘Go Bananas’ was started.
33
1994 : The Group went public through an IPO.
1995 : Inception of the Kamats Catering Institute at Goregaon. Kamats Tours & Travels
established. In September same year the Management of Kamats Plaza decided to upgrade
and reopen the property as a Five Star Hotel.
1996 : Hotel Siddharth (Nasik) – 32 rooms – 3 star hotel with permit room & a turnover of
Rs. 76 lakhs in 2000/01, was taken over under a management contract for 35 years.
1997 : The Orchid, An Ecotel Hotel, Asia’s first Eco Friendly Five Star Hotel, was opened to
Public on 27th September, 1997.
2001 : The Company ventured, abroad by opening two of its branches to begin with in San
Francisco, USA in the name of “Vithal Kamat” on Management Contract basis, further
expansion is in the pipeline. In the same year ‘Vits Luxury Business Hotel at Mumbai’ was
opened.
2007 : Clear Water Capital Partners funding for the New Projects. Also the First Heritage
Hotel “Fort Jadhav Gadh” was opened.
2008 : VITS successfully rolls out across 5 major cities in India , Pune , Nagpur ,
Aurangabad , Nasik 2008 : Lotus Resorts launched and roll out across Goa, Murud Dapoli
Beach, Udaipur, Silvassa, Aronda Backwaters.
2009 : Fort Mahodadhi commences 1st phase of operations.
2009 : Lotus Konark Commences operations.
2010 : Lotus Karwar commences operations 2010 VITS Delhi & Bhubhaneshwar to
commence operations 2010 Orchid Mumbai Expansion to commence operations 2010 Vithal
Kamat, Honourable CMD wins PATWA award at Berlin for his achievements in Hospitality
Industry.

34
REVENUE GROWTH
Kamat Hotels reported a lackluster 5% y-o-y growth in revenues during Q3, 2011-12 despite
the additional 127 keys added to Orchid, Mumbai- the largest property in Kamat’s standalone
portfolio. RevPARs for the company remained subdued on account of passive business travel
owing to the uncertain economic environment.
PROFITABILITY
The company’s operating margins declined marginally (y-o-y) to 33.5% (PY 35.2%) on
account of poor revenue growth and increasing expenses. The company reported a net loss
for the seasonally strong quarter as interest expense eroded margins. The company’s interest
expense increased substantially with the charging off of interest on the additional inventory in
Mumbai.
CAPEX
A majority of the company’s inventory expansion going forward would be conducted through
the management contract route. However the company owns land at Mumbai, Baddi, Raipur,
Nagpur, Coimbatore, Kottayam-Kerala, and Amravati on which hospitality projects could be
planned. Further the company is developing Fort Mahodadhi Palace,Puri into a heritage hotel
through one of its wholly owned subsidiary.
OUTLOOK
In the absence of any major expansion plan over the medium term, the prospects of the
company would continue to depend upon the Mumbai hospitality market which currently
contributes to majority of its revenues. Further the company’s plans to amalgamate Kamat
Restaurants, Lotus Resort Murud (40 rooms) and Lotus Resort Goa (48 rooms) into Kamat
Hotels would help consolidate the group’s hospitality business while providing segmental
diversification. During the current fiscal, the company converted FCCBs worth Rs. 18
million into equity shares, strengthen its balance sheet and enabling it to raise funds for future
expansion purposes.

35
BUSINESS PROFILE
Kamat Hotels (India) Limited (Kamat Hotels), incorporated in 1986 by the late Mr.
Venkatesh Krishna Kamat is a hospitality company engaged in running hotels, restaurants
and resorts. The company has established four hotel brands viz. The Orchid – An Ecotel
Hotel in the 5-Star segment and VITS - Luxury Business Hotel in the 4-Star segment, Gadh
Hotels and Lotus Resorts. The company currently has 16 hotels with a total inventory of
1,149 rooms spread across these four brands.Majority of these properties are either under
franchisee or management contracts. The company is listed on the BSE and NSE with
57.59% shares held by the promoters as on December 31, 2011. During 2010-11, the
company reported a 18.5% growth in operating income to Rs. 127.7 crore at the consolidated
level with net losses (after minority interest) of Rs. 10.2 crore. The same at the standalone
level stood at Rs. 122.0 crore and a profit of Rs. 1.4 crore.
CAREERS
What makes Kamats! a great place to work? It's our people. That's why we invest in
everyone's capability so they can make the most of their career. With a diverse workforce and
growing opportunities for personal and professional success, we've built a culture that
rewards and recognizes great effort while providing a work/life balance that is so important to
all of us.
For our diversification/increasing our network we are looking for leaders at every level. Great
people who will make Kamats! Brand not only the biggest Restaurant Company in the world,
but also the industry leader in shareholder returns and employee satisfaction.
We believe in customer mania and the passionate pursuit of making our customers happy
regardless of job title. We also believe in helping the communities that we're a part of with
on-going stewardship programs.
We are always looking for employees who are quick learners and enthusiastic. You don't
even need experience...we'll train you! Are you a team player? Dependable and responsible?
Explore the opportunities at Kamats!
In the end, it's about bringing together the best and brightest people. It's what we value most,
and why we've always believed that Great Things Start Here. Kamats! is an equal opportunity
employer.

36
FUTURE PLANS
Having pioneered the Ecotel revolution in the country, Dr. Vithal V. Kamat is all set to
transform the hospitality industry in the country with his future projects and is eyeing
international markets.
The man behind the vision:
From a humble beginning as a small time restaurant owner to a Chairman and Managing
Director, Vithal Kamat's journey has definitely been long and arduous. When thirty-five years
back, a young lad barely in his teens joined the family restaurant business, not many would
have predicted the phenomenal rise of this easy-going man. His rustic charm along with his
street-smart acumen and a drive to succeed has made him achieve what he has set out to and
is a guiding force.
Dr. Vithal V. Kamat
 Dr. Vithal V. Kamat is a visiting faculty of various catering colleges and
management institutes like NMIMS, Symbiosis etc.
 With a 4th degree black belt in Karate, Dr. Vithal V. Kamat is the President of the All
India Karate Federation and also refereed many matches.
 He was felicitated as the best CEO and received a special Indian Express Editors
Choice Award for promoting eco-tourism and supporting the healthy cause of
environment.
 He was honoured with the degree of Doctor of Science (Honoris Causa) by
Padmashree Dr. D. Y. Patil University
SUBSIDIARY COMPANIES
Orchid Hotels Pune Private Limited (OHPPL) became wholly owned subsidiary of the
Company upon transfer of 16.67% shares in the paid up capital of OHPPL pursuant to Share
Purchase Agreement dated 8th February, 2012. OHPPL has two operational hotel units
situated at Pune Viz: 'The Orchid', Pune under five star category and 'VITS', Pune under four
star category. The other subsidiaries of the Company are Fort Mahodadhinivas Palace Private
Limited, Kamats Restaurants (India) Private Limited, Fort Jadhavgadh Hotels Private
Limited, Jadhavgadh Hotels Private Limited and Green Dot Restaurants Private Limited.

AMALGAMATION
The Hon'ble High Court of judicature at Bombay has, on 13th January, 2012, sanctioned the
Scheme of Arrangement and Amalgamation between the Company and Kamat Holiday
Resorts Private Limited, Kamats Restaurants Private Limited (amalgamating companies) and
Kamats Holiday Resorts (Silvassa) Limited (demerged company) as approved by the
shareholders of the Company at the Court convened meeting held on 24th September, 2011.
Upon coming into effect of the above mentioned Scheme of Arrangement and
Amalgamation, the authorized share capital of the Company has increased from Rs. 30 crores
to Rs. 34.25 crores. Since the amalgamating companies/demerged company have well
established, cash rich debt free business of resorts and restaurants, the amalgamation will
benefit the Company. Allotment of 28,61,035 equity shares of Rs. 10/- each fully paid up to
the equity shareholders of Kamat Holiday Resorts Private Limited and Kamats Restaurants
Private Limited and Kamats Holiday Resorts (Silvassa) Limited as per the Scheme of
Arrangement and Amalgamation will be made in due course of time.
37
SUBSIDIARY / JOINT VENTURES / ASSOCIATE COMPANIES
Subsidiary Companies
1. Orchid Hotels Pune Private Limited
2. Fort Mahodadhinivas Palace Private Limited
3. Kamats Restaurants (India) Private Limited
4. Fort Jadhavgadh Hotels Private Limited
5. Green Dot Restaurants Private Limited.
Joint Venture Company
1. Ilex Developers & Resorts Limited
Associate Company
1. Ilex Developers & Resorts Limited

38
CONCLUSION
This hotel industry report helps to know the full information of Indian hotel
industry. The government support towards the hotel industry and its development is
appreciable. It creates interest of the competitors to grow drastically. The hotel
industry comprises a major part of the tourism industry. The hotel industry contributes
employment and economical growth of the country. The report shows that the present
and future skyrocket scenario of the industry. Va r ious c lasses and c a tegor ie s
of hote ls and the ir se rvices of the indus try a re ve ry effective. The market
share and expansion of industry in Indian economy is rosy day by day. At
present the government is very liberal in regulating and licensing to the
hotels because to increase foreign tourist average daily rate.

A Report on Indian Hotel Industry by Parakramesh Jaroli

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A Report on Indian Hotel Industry by Parakramesh Jaroli