Desk report new

DESK RESEARCH REPORT ON HOSPITALITY INDUSTRY
PREPARED BY
RAVIKANT RATHOD
ANKITA SRIVASTAVA
ANURAG BANOTH
SUBMITTED TO
INDIRA INSTITUTE OF MANAGEMENT,PUNE
PROJECT GUIDE
Mrs.PALLAVI SAJJANPWAR

INDUSTRY ANALYSIS-BASICS
NATURE OF THE INDUSTRY:
The hospitality industry is a several billion dollar industry that mostly depends on the availability
of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an
amusement park consists of multiple groups such as facility maintenance, direct operations
(servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and
human resources. Usage rate is an important variable for the hospitality industry. Just as a
factory owner would wish to have his or her productive asset in use as much as possible , so do
restaurants, hotels, and theme parks seek to maximize the number of customers they "process".
Among other things, hospitality industry players find advantage in old classics (location), initial
and ongoing investment support .
Hospitality means 'care for strangers'. This trait seems to be an inherent part of human nature.
The hotels wide area of business activities can be grouped into four factors:
1. Providing living accommodation
2. Supplying food, drinks, etc for immediate consumption.
3. Having transportation, recreational and entertainment facilities.
4. Any other functions incidental or ancillary to any of these activities.
PLAYERS IN THE INDUSTRY:
 The Oberoi Udaivilas, Udaipur
 The Taj Mumbai
 The Leela Palace
 ITC
 Marriot
 Hayatt
 Sayaji

TOP 3 HOTEL MARKET CAPITALIZATION:
Hotel Leela-724.84
Taj GVK Hotels-384.05
Oriental Hotels-285.76
BOTTOM 3 HOTEL MARKET CAPITALIZATION
Vithal Kamat-
Ginger-
Marriot-
POSSIBLE CLASSIFICATION OF PLAYERS:
Leaders- Leela Hotel
Challenger –Taj
Followers-Oberoi
Nichers- Oriental
POSITIONING STRATEGIES:
Hotel Leela, with an established presence across the major cities in the country, seems well-positioned
to benefit from the surge in inbound tourist arrivals.It currently owns and operates six
hotels across the country — New Delhi, Mumbai, Bangalore, Goa, Kovalam and Udaipur. It also
has another hotel at Gurgaon under management contract. This puts its overall room inventory at
over 1,800. The opening of the 330 guest-rooms and suites in Chennai, expected by end of this
year, will only add to this count.
Taj is recognised as one of the world’s leading hotel groups, with 93 hotels located in 55 areas
across India, with an additional 16 International hotels in the Maldives, Malaysia, Australia, UK,
USA, Bhutan, Sir Lanka, Africa and the Middle East. 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.
Mandarin Oriental’s US$ multi-million global print advertising campaign, which launched in
2000, continues to gather ‘fans’ from around the world. The campaign simply and elegantly
connects the Group’s well-recognized symbol – the fan- with international celebrities who
regularly stay at the hotels and are true fans of the Group.
BRANDING STRATEGIES:
The 112-year-old Tata enterprise continued with its flagship brand, Taj, for over a century before
it launched its upscale chain of hotels called Gateway in September 2008, and Vivanta by Taj
two years later. These were geared to grab the opportunities in upscale hotels, so much so that it
divided the segment further into upper-upscale (Vivanta by Taj) and upscale (Gateway). With 76
properties, the brand name of Taj was getting over-stretched.
The Group’s strategy remains focused on positioning Mandarin Oriental as one of the world’s
leading luxury hotel brands. The growth strategy of the Group is to successfully operate 10,000
rooms in major business centers and key leisure destinations around the world, whilst continuing
to expand our presence globally. Our current portfolio reaches across four continents, and we
remain firmly on track with our development plans.
The Leela Palaces , Hotels and Resorts, owned and operated by Hotel Leela venture, the
country's fourth largest hospitality player, is launching its first branded residences project in the
country, in Bangalore. Leela is the second hospitality player, after Four Seasons, to enter the
city's branded residences market, which is being fuelled by consumer aspirations for luxury
living.
PRICING POLICIES:
Hotels that can afford to take a hit may employ predatory pricing strategies when they want to
thwart competition. Predatory pricing is the practice of lowering your prices so much that your
competitors cannot match them, thus losing business. While predatory pricing may appear unfair
or unethical, in the hospitality industry it is a viable marketing strategy commonly employed by
hotels, motels and restaurants.
By lowering its prices, a hotel in a certain neighborhood gains an advantage over competitors
who offer basically the same services on their properties. According to pricing typically does not
last long enough to create a monopoly in a certain industry. Instead, competitors often match the
lower prices and put the properties back on equal footing. The first property that starts the price
lowering strategy has a window of opportunity to lure new guests and introduce its line to
visitors who might not have visited initially.

Hoteliers learn about pricing in "marketing" type courses taught by "marketing" type instructors.
Whether the course is called Hospitality Marketing, Hospitality Sales, Front Office Management,
Revenue Management or something similar, hotel managers will immediately recognize the
philosophy.
GEOGRAPHICAL SPREAD:
Taj Hotels Resorts and Palaces comprises 93 hotels in 55 locations across India with an
additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri
Lanka, Africa and the Middle East. Spanning the length and breadth of the country, gracing
important industrial towns and cities, beaches, hill stations, historical and pilgrim centres and
wildlife destinations, each Taj hotel offers the luxury of service, the apogee of Indian hospitality,
vantage locations, modern amenities and business facilities.
In 1991, Captain Nair opened his second hotel in Goa. The Leela Goa was designed keeping the
overall architecture of the state in mind. In 1997, Captain Nair went on to build the group's first
modern hotel with 357 rooms, inspired by the Mysore Palace and the architecture of the 13th
century Vijayanagara empire and is surrounded by seven acres of gardens.The Leela Group
opened its second resort in 2005 - The Leela Kovalam in Trivandrum.By 2009, Nair added two
more properties to his portfolio in Udaipur (Rajasthan) and Gurgaon. The Leela
Kempinski Gurgaon is the group's first non-owned, managed property.The Leela Palace New
Delhi opened in April 2011. The palace is inspired by Sir Edwin Lutyens Delhi.
Mandarin Oriental, Atlanta is a five-star hotel in the Buckhead neighborhood of Atlanta.
Mandarin Oriental, Bangkok is a five-star hotel in Bangkok, located on the banks of the Chao
Phraya River. The original structure was the first hotel built in Thailand when it opened The
Oriental in 1879. The group hotel in Barcelona is located on Passeig de Grácia, regarded by
some calculations as the most "expensive" street in Spain. Mandarin Oriental, Boston, located
on Boylston Street , Newyork, Paris , Singapore, San Franciso and many more.
Demand Supply balance in Industry:
Supply creates its own demand in the hotel industry. The presence of a large meeting area with
the ability to house (through neighbouring hotels) long-stay convention guests would have to be
in place before any large conventions are drawn to the city. However, initial periods of any major
supply additions can create significant demand supply imbalance. During the peak of the last
hotel cycle in 2013, India had an extremely large pipeline inventory. The hotel industry is on
cloud nine, with hotels witnessing record occupancies and average rate growth. The macro
economic outlook is expected to continue providing momentum for growth, and we expect
demand for room nights across key commercial and leisure destinations across India to grow

annually at an average of 16-20 percent over the next three to five years. In the next five years,
the Indian hotel industry is expected to witness an acute shortage of room supply. The demand-supply
imbalance will transform the market into a supplier's market and this will, naturally, lead
to a dramatic rise in rates in most cities. Companies will find rates prohibitive for the mid-level
business traveler, forcing them to look for more cost-effective alternatives.
In order to carry out its mission, global and departmental goals and objectives, every company
shall build a formal structure depicting different hierarchy of management, supervision, and
employee (staff) levels. This very structure is refereed to as organization chart. Moreover, the
organization chart shows reporting relationships span of management, and staff/line functions.
PROMOTORS AND MANAGEMENT ETHOS:
TAJ PROMOTORS GROUP
No. Name of the Shareholder
Total Shares held Shares pledged or otherwise encumbered
Number
As a % of
grand total
(A) + (B) +
(C)
Number
% of Total
shares held
As a % of
grand total
(A) + (B) + (C)
1 Vertex Projects Ltd 22,238,646 35.47 - - -
2 Indian Hotels Company Ltd 16,000,000 25.52 - - -
3 G Indira Krishna Reddy 5,065,000 8.08 - - -
4 G V Sanjay Reddy 1,250,000 1.99 - - -
5 Krishnaram Bhupal 850,000 1.36 - - -
6 Shalini Bhupal 425,000 0.68 - - -
7 Shriya Bhupal 425,000 0.68 - - -
8 G V Krishna Reddy 314,160 0.5 - - -
9 G Aparna Reddy 250,000 0.4 - - -
10 G V Keshav Reddy 100,000 0.16 - - -
11 G Mallika Reddy 100,000 0.16 - - -
Total 47,017,806 74.99 - - -

LEELA HOTEL
Total Shares held
Shares pledged or otherwise
encumbered
Number
As a %
of
grand
total
(A) + (B)
+ (C)
Number
% of
Total
shares
held
As a % of
grand total
(A) + (B) +
(C)
1 Leela Lace Holdings Pvt Ltd 188,649,985 41.77 188,649,985 100 41.77
2 Leela Lace Software Solutions Pvt Ltd 55,285,467 12.24 55,034,020 99.55 12.19
3 Leela Fashions Pvt Ltd 4,250,000 0.94 4,250,000 100 0.94
4
Krishnan Nair Leela Family Trust (through
Trustees Vivek Nair & Dinesh Nair)
792,355 0.18 - - -
5 Dinesh Nair 374,050 0.08 - - -
6 Amrudha Nair 300,000 0.07 - - -
7 Vivek Nair 246,460 0.05 - - -
8 Capt C P Krishnan Nair 231,000 0.05 - - -
9 P V Leela Amma 75,000 0.02 - - -
10 Lakshmi Nair 18,330 0 - - -
11 Madhu Nair 360 0 - - -
12 Rockfort Easte Developers Pvt Ltd 32,961,460 7.3 16,810,345 51 3.72
Total 283,184,467 62.71 264,744,350 93.49 58.62

ORIENTAL HOTEL
No.
Name of the
Shareholder
Number
As a %
of
grand
total
(A) + (B)
+ (C)
Number
% of
Total
shares
held
As a % of
grand total
(A) + (B) + (C)
1
Tata Investment
Corporation Ltd
1,076,000 0.6 - - -
2
The Indian Hotels
Company Limited
33,764,550 18.91 - - -
3 Tifco Holdings Limited 17,208,360 9.64 - - -
4 Tata Chemicals Ltd 4,123,000 2.31 - - -
5 Piem Hotels Limited 3,657,170 2.05 - - -
6
Taj Trade & Transport
Co Ltd
1,664,090 0.93 - - -
7 Taj Madurai Limited 68,260 0.04 - - -
8 D.Amit Reddy . . 27,521 0.02 - - -
9 D Sunder Nischal 99,000 0.06 - - -
10 D.Naveen K . Reddy 650,000 0.36 - - -
11
Dodla Kameswari
Reddy
5,200 0 - - -
12 Pramod Ranjan 2,927,660 1.64 - -
KAMAT HOTELS
Shareholding belonging to the category : "Promoter and Promoter Group"
Total Shares held
Shares pledged or otherwise
encumbered
Number
As a % of
grand total
(A) + (B) +
Number
% of Total
shares held
As a % of
grand total
(A) + (B) + (C)

(C)
1 Vithal V Kamat HUF 149,864 0.68 138,890 92.68 0.63
2 Vithal V Kamat 2,376,473 10.82 189,833 7.99 0.86
3 Vithal V Kamat / Vidya V Kamat 728,653 3.32 728,653 100 3.32
4 Vishal V Kamat 15,127 0.07 14,819 97.96 0.07
5 Vishal Kamat / Vidya V Kamat 500 0 500 100 -
6 Vidya Vithal Kamat 95,621 0.44 28,005 29.29 0.13
7
Vidya V Kamat / Vithal Venketesh
Kamat
1,000 0 1,000 100 -
8 Vidita V Kamat / Vidya V Kamat 500 0 500 100 -
9 Vikram V Kamat / Vidya V Kamat 500 0 500 100 -
10 Kamat Holdings Pvt Ltd 1,500,000 6.83 1,500,000 100 6.83
11 Indira Investments Pvt Ltd 1,563,794 7.12 1,529,100 97.78 6.96
12 Plaza Hotels Pvt Ltd 3,535,545 16.1 3,215,927 90.96 14.65
13 Kamat Developments Pvt Ltd 839,272 3.82 839,272 100 3.82
14 Venkatesh Hotels Pvt Ltd 757,000 3.45 757,000 100 3.45
15 Kamats Club Pvt Ltd 4,900 0.02 4,900 100 0.02
16 Kamburger Foods Pvt Ltd 40,551 0.18 38,319 94.5 0.17
17 Kamats Super Snacks Pvt Ltd 182,445 0.83 182,445 100 0.83
18 Karaoke Amusements Pvt Ltd 80,877 0.37 80,877 100 0.37
19 Vishal Amusements Ltd 258,897 1.18 229,090 88.49 1.04
20 Kamat Holiday Resorts (S) Pvt Ltd 276,439 1.26 276,439 100 1.26
21 Kamat Eateries Pvt Ltd 119,245 0.54 115,227 96.63 0.52
22 Kamats Amusements Pvt Ltd 205,128 0.93 - - -
Total 12,732,331 57.99 9,871,296 77.53 44.96
ORIENTAL HOTELS
o. Name of the Shareholder
Number
As a % of
grand total
Number
% of Total
shares held
As a % of
grand total

(A) + (B) +
(C)
(A) + (B) + (C)
1 Lady Tata Memorial Trust 17,728,200 2.2 - - -
2 Sir Dorabji Tata Trust 50,221,040 6.22 - - -
3 Sir Ratan Tata Trust 11,023,220 1.37 - - -
4 Tata Sons Ltd 202,052,004 25.02 - - -
5 Tata Investment Corporation Ltd 9,894,060 1.23 - - -
6 Ewart Investments Ltd 1,318,543 0.16 - - -
7 Tata Chemicals Ltd 7,271,666 0.9 - - -
8 Tata Global Beverages Ltd 1,687,742 0.21 - - -
9 Tata Industries Ltd 452,571 0.06 - - -
10 Tata Capital Ltd 12,000 0 - - -
11 Oriental Hotels Ltd 511,836 0.06 - - -
12 Taida Trading & Industries Ltd 127,768 0.02 - - -
13 Taj Madurai Ltd 765,574 0.09 - - -
Total 303,066,224 37.53 - - -
Taj GVK Hotels:
Managing Director, Director and Member of Shareholders'/Investors' Grievance
Committee, TAJGVK Hotels & Resorts Limited
Mrs. G. V. Indira Krishna Reddy, B.Sc. serves as Managing Director of TAJGVK Hotels &
Resorts Limited. Mrs. Reddy serves as Vice Chairperson of Novopan Industries Limited. Mrs.
Reddy has over 25 years of experience in the fields of finance, hospitality and management. She
has been Non-Executive Director of Novopan Industries Limited since October 05, 1995. She
serves as a Director at GVK Industries Ltd., GVK Capital & Finance Ltd., Pinakini Share &
Stock Brokers Ltd. Alaknanda Hydro Power Co. Ltd., Sri Tripurasundari Hotels Ltd., GVK
Energy Limited, GVK Projects & Technical Services limited, GVK Goutami Power Limited and
Bangalore International Airport Limited. Mrs. Reddy has been a Director of TAJGVK Hotels &
Resorts Limited since May 8, 2000.
HOTEL LEELA

Capt. Chittarath Poovakkatt Krishnan Nair (February 9, 1922) is an Indian businessman, who
founded Leela Lace Ltd., a textile company in 1957 and later became the Founder-Chairman of
the Leela Group of Hotels, established in 1986.[2][3][4] and a 2010 recipient of the Padma
Bhushan, given by Government of India. He served in the Indian National Army under Netaji
Subhash Chandra Bose. In 1950, he married Leela, the daughter of a handloom owner from
Kannur, subsequently, he started helping his father-in-law in the latter's garment export business,
eventually taking it over and developing export markets, becoming one of the pioneers of
the Bleeding Madras fabric, which became much popular in the 1960s. By 1980s his textile
business, called "Leela Lace" after his wife, was flourishing and had built textile factory in North
Mumbai
HOTEL ORIENTAL
SimonKeswick ,ChairmanEdouard Ettedgui, Group Chief Executive;Stuart Dickie, Chief
Financial OfficerMichael Hobson, Sales and Marketing Director; Terry Stinson, Development
Director and President, The Americas.
Simon Lindley Keswick (born 20 May 1942) is a Scottish businessman and the younger brother
of Sir Chips Keswick and Sir Henry Keswick.
He is a director of Matheson & Co. (owned by Jardine Matheson Holdings), Fleming Mercantile
Investment Trust, Hanson plc, Jardine Lloyd Thompson Group plc. and theMandarin Oriental
Hotel Group. He was previously Chairman of the Kwik Save Group plc
CORPORATE SOCIAL RESPONSIBILITY
The Tata Group has always held that what comes from the society, must, in reasonable measure,
go back to it. The Taj is proud to be a part of this legacy, and is deeply committed to serve the
community. We recognize that the community is not just another stakeholder in our businesses,
but serving the community, especially the underprivileged sections, is central to our core values.
We further believe that serving people in the form of corporate volunteering has positive spin-offs
by way of reviving a sense of bonding and the spirit of learning in our employees.
CORPORATE GOVERNANCE
The Indian Hotels Company Limited (“the Company”) has been practicing good Corporate
Governance even before Securities Exchange Board of India (SEBI) made it a mandatory

requirement from 2001. Out of more than 5000 companies listed with the BSE Limited, the
Company is categorized as an "A Group" Company which group comprises only 200 companies
and the criteria for selection is based on Market Capitalisation, Liquidity, Industry
Representation, Listed History and track record of Compliance. Being a TATA group Company,
the Company goes beyond the mandatory requirements of Corporate Governance and conducts
business in a fair and transparent manner. It maintains good investor relationships and endeavors
to deliver to investor consistent quality services. quality services.
The Social Inclusion Division supports a number of social inclusion initiatives.
These include:
The Young Social Innovators Annual Showcase:
The Social Inclusion Division in the Department of Social Protection has sponsored the award
‘Making Our Country more Inclusive and Poverty Free’ for the Young Social Innovators Annual
Showcase over the last number of years. Funding made available in 2012 was €15,000.
EXTERNAL ENVIRONMENT:
CONTROLLING MINISTRY:
Hotels are an important component of the tourism product. They contribute in the overall tourism
experience through the standards of facilities and services offered by them. With the aim of
providing contemporary standards of facilities and services available in the hotels, the Ministry
of Tourism has formulated a voluntary scheme for classification of operational hotels which will
be applicable to the following categories:
Star Category Hotels: 5 Star Deluxe, 5 Star, 4 Star, 3 Star, 2 Star & 1 Star
Heritage Category Hotels: Heritage Grand, Heritage Classic & Heritage Basic.
REGULATION ACTION
The raft of legislation governing the hospitality industry can be divided into three sectors. The
first governs the construction and commissioning of hotels, restaurants, guest houses and other

establishments, and includes the Foreign Exchange Management Act, the industrial licensing
policy, the Transfer of Property Act, and various development control orders issued by central
and state governments and local municipal councils.
The second governs the operation, maintenance and management of establishments, and the
health and safety of occupants.
REGULATORY POLICIES:
Hospitality law doesn’t just involve one area of law. It encompasses a wide variety of practice
areas, including contracts, antitrust, tort law, and more.
Recent events have made hospitality law even more relevant. Food allergies are on the rise,
making it increasingly important for restaurants to not only train staff about ingredients but to
also have appropriate labels for food containing peanuts or wheat. The Mumbai terrorist attacks,
which included a hostage situation at the Taj Mahal Hotel, among other places, and the 2009
Jakarta bombings at the JW Marriott and the Ritz-Carlton hotels, raise questions about what a
hotel can legally do to ensure the safety of its guests.
NATIONAL AND GLOBAL ISSUES AFFECTING THE INDUSTRY:
Sustainable Development Calls for Green Hospitality Going green is a white-hot issue in the
hospitality-design industry. People are beginning to look at sustainable solutions in a whole new
way. The perception of green has changed; it has gone from a fringe movement to mainstream.
Labor Cost Issues :
In 2005, labor expenses remained the largest single expense item for hospitality managers,
accounting for 44.6 percent of total operating costs. Consequently, any trend or issue that could
potentially impact labor costs must be taken seriously by hospitality owners and managers alike.
"Due to the magnitude of the expense, labor costs and issues have always consumed a substantial
portion of the time and efforts of hospitality managers.
Multicultural Issues:
The newest trends and topics surrounding hospitality research and development is the
management of multicultural talent and the political landscape affecting the hospitality industry.
Initiatives taken by the government industry:
Atithi Devo Bhavah

The Atithi Devo Bhavah is a seven point programme of hospitality and training. The components
are captured in the table below.
FINANCIAL:
TAJ:
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 Q3,2013-14. 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.
Profit & Loss account of Taj GVK Hotels & Resorts
------------------- in Rs. Cr. -------------------
Mar'13 Mar '12 Mar '11
12
mths
12 mths 12 mths
Income

Sales Turnover 252.70 253.97 259.28
Excise Duty 0.00 0.00 0.00
Net Sales 252.70 253.97 259.28
Other Income -0.15 1.97 1.37
Stock Adjustments 0.00 0.00 0.00
Total Income 252.55 255.94 260.65
Expenditure
Raw Materials 0.00 0.00 0.00
Power & Fuel Cost 0.00 23.05 20.95
Employee Cost 52.82 49.25 34.28
Other Manufacturing Expenses 84.60 44.41 45.12
Selling and Admin Expenses 0.00 0.00 31.19
Miscellaneous Expenses 54.32 59.21 31.37
Preoperative Exp Capitalised 0.00 0.00 0.00
Total Expenses 191.74 175.92 162.91
Revenue Growth –
TAJGVK reported a weak Q3, 2012-13 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.
(Rs.in crores)
Particulars 2012-13 2011-12
Turnover 254.23 255.94
Profit before Depreciation, Interest
& Tax (PBDIT) 60.80 80.02
Less: Depreciation 24.85 22.10

Profit Before Interest & Tax 35.95 57.92
Less: Interest 22.35 15.14
Profit Before Tax 13.60 42.78
Less: Provision for
- Current Tax & Wealth Tax 3.05 8.70
- Deferred Tax 4.82 13.48
Key Financial Ratios of Taj GVK Hotels & Resorts
Mar'13 Mar '12 Mar '11 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share 0.50 1.50 2.00 2.00 2.00
Operating Profit Per Share (Rs) 9.72 12.45 15.37 13.75 16.26
Net Operating Profit Per Share (Rs) 40.30 40.50 41.35 36.40 37.88
Free Reserves Per Share (Rs) -- -- 43.52 38.90 35.43
Bonus in Equity Capital -- -- -- -- Profitability Ratios
Operating Profit Margin(%) 24.12 30.73 37.16 37.77 42.93
Profit Before Interest And Tax Margin(%) 14.20 21.86 29.06 29.04 37.01
Gross Profit Margin(%) 14.28 22.03 29.21 29.18 37.18
Cash Profit Margin(%) 13.89 20.08 24.53 24.57 28.29
Adjusted Cash Margin(%) 13.89 20.08 24.53 24.57 28.29
Net Profit Margin(%) 3.45 11.46 16.62 15.81 22.11

Adjusted Net Profit Margin(%) 3.45 11.46 16.62 15.81 22.11
Return On Capital Employed(%) 6.81 11.34 16.67 16.18 21.80
Return On Net Worth(%) 2.54 8.63 13.53 12.45 19.58
Adjusted Return on Net Worth(%) 3.03 8.62 13.53 12.61 19.99
Return on Assets Excluding Revaluations 55.02 54.20 51.05 46.44 42.96
Return on Assets Including Revaluations 55.02 54.20 51.05 46.44 42.96
Return on Long Term Funds(%) 7.24 11.34 17.10 16.41 22.43
Liquidity And Solvency Ratios
Current Ratio 0.80 0.90 0.53 0.42 0.38
Quick Ratio 0.92 0.84 0.56 0.39 0.42
Debt Equity Ratio 0.60 0.50 0.44 0.43 0.51
Long Term Debt Equity Ratio 0.51 0.50 0.40 0.41 0.47
Debt Coverage Ratios
Interest Cover 1.68 3.83 6.77 5.54 13.49
Total Debt to Owners Fund 0.60 0.50 0.44 0.43 0.51
Financial Charges Coverage Ratio 2.80 5.29 8.58 7.14 15.55
Financial Charges Coverage Ratio Post Tax 2.50 4.40 6.61 5.57 11.02
Management Efficiency Ratios
Inventory Turnover Ratio 29.12 36.42 96.16 87.42 96.36
Debtors Turnover Ratio 33.21 29.81 31.28 34.60 40.49
Investments Turnover Ratio 29.12 36.42 96.16 87.42 96.36
Fixed Assets Turnover Ratio 0.41 0.42 0.53 0.47 0.51
Total Assets Turnover Ratio 0.46 0.50 0.56 0.55 0.58
Asset Turnover Ratio 0.48 0.52 0.53 0.47 0.66
Average Raw Material Holding -- -- -- --

Average Finished Goods Held -- -- -- -- Number of Days In Working Capital 76.87 -15.23 -38.03 -68.28 -53.08
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- Imported Composition of Raw Materials Consumed -- -- -- -- Selling Distribution Cost Composition -- -- 3.67 3.95 3.61
Expenses as Composition of Total Sales 27.26 28.65 27.77 27.10 28.09
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 35.69 37.26 33.62 40.31 27.80
Dividend Payout Ratio Cash Profit 9.32 21.25 22.79 26.16 22.09
Earning Retention Ratio 70.08 62.70 66.37 60.21 72.77
Cash Earning Retention Ratio 91.13 78.74 77.21 74.06 78.27
AdjustedCash Flow Times 5.86 3.32 2.21 2.22 2.06
Mar
'13
Mar '12 Mar '11 Mar '10 Mar '09
Earnings Per Share 1.40 4.68 6.91 5.78 8.42
Book Value 55.02 54.20 51.26 46.68 43.22

HOTEL LEELA:
Profit & Loss account of Hotel Leela Venture
------------------- in Rs. Cr. -------------------
Mar
'13
Mar '12 Mar '11
12
mths
12 mths 12 mths
Income
Sales Turnover 653.86 571.09 526.23
Excise Duty 0.00 0.00 0.00
Net Sales 653.86 571.09 526.23
Other Income 9.98 428.23 25.30
Total Income 663.84 999.32 551.53
Expenditure
Power & Fuel Cost 0.00 50.61 44.46
Employee Cost 186.64 173.06 121.43
Total Expenses 541.19 552.49 357.16
REVENUE:
Rs.Lakhs
Financial
Year Financial
Year
2012-13 2011-12
Revenue from operations and other 66,054.75 58,843.97
income
Operating and other Expenses 53,790.07 55,326.51
Earnings before Interest, Depreciation, 12264.68 3517.46
Taxes and Amortisation (EBIDTA)

Interest 40,534.25 32,125.06
Depreciation 13,867.33 10,223.54
Profit from discontinuing operations & 41,766.36
gain on disposal of assets relating to
discontinuing operations
RATIOS:
Key Financial Ratios of Hotel Leela Venture
Mar'13 Mar '12 Mar '11 Mar '10 Mar '09
Inv estment Valuation Ratios
Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share -- -- 0.15 0.20 0.40
Free Reserves Per Share (Rs) -- -1.66 17.11 16.46 13.29
Bonus in Equity Capital -- -- -- -- Profitability Ratios
Profit Before Interest And Tax Margin(%) -3.93 -14.23 18.20 14.29 18.60
Gross Profit Margin(%) -3.97 -14.64 19.12 15.36 23.58
Cash Profit Margin(%) -44.79 -48.68 19.64 24.44 35.71
Adjusted Cash Margin(%) -44.79 -48.68 19.64 24.44 35.71
Net Profit Margin(%) -65.62 3.17 7.03 8.87 25.28
Adjusted Net Profit Margin(%) -65.62 3.17 7.03 8.87 25.28
Return On Capital Employed(%) -0.45 -1.28 2.71 2.65 7.23
Return On Net Worth(%) -35.45 1.22 4.37 4.95 20.64
Adjusted Return on Net Worth(%) -35.54 -25.43 4.51 5.39 21.34

Return on Long Term Funds(%) -0.49 -1.30 2.91 2.74 7.34
Liquidity And Solv ency Ratios
Current Ratio 0.20 0.39 0.75 0.72 0.80
Quick Ratio 0.23 0.40 1.21 0.86 0.82
Long Term Debt Equity Ratio 2.22 2.24 3.90 3.32 3.42
Debt Cov erage Ratios
Interest Cover -0.05 -0.21 2.21 4.02 8.53
Average Raw Material Holding -- -- -- -- Average Finished Goods Held -- -- -- -- -
Number of Days In Working Capital
814.64
-348.90 108.59 -2.72 -20.88
Material Cost Composition -- 5.53 4.25 4.98 4.47
Imported Composition of Raw Materials Consumed 36.99 33.90 23.40 17.75 Selling Distribution Cost Composition -- -- 7.69 3.91 3.36

Dividend Payout Ratio Net Profit -- -- 17.39 21.48 12.19
Dividend Payout Ratio Cash Profit -- -- 6.30 8.05 8.84
Earning Retention Ratio -- 100.00 83.18 80.29 88.21
Cash Earning Retention Ratio -- -- 93.78 92.21 91.37
AdjustedCash Flow Times -- -- 35.01 25.47 11.96
Mar
'13
Mar '12 Mar '11 Mar '10 Mar '09
Earnings Per Share -10.35 0.48 1.00 1.09 3.84
Book Value 29.20 41.01 22.94 21.91 18.59
HOTEL ORINTAL:
PROFITABILITY:
Profit & Loss account of Oriental Hotels
------------------- in Rs. Cr. -------------------
Mar
'13
Mar '12 Mar '11
12
mths
12 mths 12 mths
Income
Sales Turnover 290.04 263.13 234.72
Excise Duty 0.00 0.04 0.00
Net Sales 290.04 263.09 234.72
Other Income 20.95 6.67 1.49
Total Income 310.99 269.76 236.21
Expenditure
Power & Fuel Cost 36.29 26.67 20.88

Employee Cost 71.70 59.13 49.65
Total Expenses 243.18 211.89 174.27
REVENUES:
Financial Results
Year Ended Year Ended
Particulars March 31, 2013 March 31, 2012
Rs. in Lakhs Rs. in Lakhs
Profit before depreciation,
finance cost & Tax 5345 5771
Finance Cost 2774 1935
Depreciation and amortization expenses 2617 1955
Profit/(Loss) before tax and
exceptional items (46) 1881
Exceptional Items 1436
Profit Before Tax 1390 1881
RATIOS:
Key Financial Ratios of Oriental Hotels
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Investment Valuation Ratios
Face Value 1.00 1.00 1.00 10.00 10.00
Dividend Per Share 0.55 0.45 0.80 7.50 9.00

Free Reserves Per Share (Rs) -- 15.38 15.33 149.38 145.17
Bonus in Equity Capital 55.72 55.72 55.72 55.72 55.72
Profitability Ratios
Profit Before Interest And Tax Margin(%) 6.97 11.68 18.23 19.23 26.61
Gross Profit Margin(%) 7.13 11.96 18.47 19.90 26.99
Cash Profit Margin(%) 9.11 11.82 16.14 17.82 23.31
Adjusted Cash Margin(%) 9.11 11.82 16.14 17.82 23.31
Net Profit Margin(%) 4.82 4.68 9.37 11.60 17.13
Adjusted Net Profit Margin(%) 4.82 4.68 9.37 11.60 17.13
Return On Capital Employed(%) 5.26 6.99 9.16 9.49 17.70
Return On Net Worth(%) 4.80 4.28 7.63 8.08 13.38
Adjusted Return on Net Worth(%) 0.29 4.16 7.85 7.62 13.46
Return on Long Term Funds(%) 5.60 6.99 9.16 10.44 21.86
Liquidity And Solvency Ratios
Current Ratio 0.77 1.18 1.85 1.03 0.58
Quick Ratio 0.88 0.90 1.76 1.66 1.04
Long Term Debt Equity Ratio 0.63 0.83 0.74 0.51 Debt Coverage Ratios
Interest Cover 0.98 1.95 3.39 4.08 19.09

Average Raw Material Holding -- -- -- -- Average Finished Goods Held -- -- -- -- Number of Days In Working Capital -13.16 44.02 101.18 104.61 16.38
Material Cost Composition -- -- 2.96 2.78 2.62
Imported Composition of Raw Materials Consumed -- -- -- -- Selling Distribution Cost Composition -- 5.06 4.95 5.08 5.38
Dividend Payout Ratio Net Profit 80.37 73.94 74.51 67.48 50.38
Dividend Payout Ratio Cash Profit 28.40 29.02 44.03 42.37 37.19
Earning Retention Ratio
-
1,227.06
24.04 27.66 28.49 49.92
Cash Earning Retention Ratio 57.49 70.68 56.74 56.07 62.97
AdjustedCash Flow Times 8.15 7.71 5.59 5.31 1.29
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
Earnings Per Share 0.80 0.71 1.25 12.96 20.90

Book Value 16.67 16.51 16.35 160.34 156.13
RECENT DEVELOPMENTS:
IMPACT OF KEY RELEVANT PROVISIONS OF THE LATEST FISCAL
POLICY ON THE INDUSTRY:
Fiscal policy involves the use of government spending, taxation and borrowing to affect the
level and growth of aggregate demand, output and jobs Fiscal policy is also used to change
the pattern of spending on goods and services It is also a means by which a redistribution of
income & wealth can be achieved It is an instrument of intervention to correct for free-market
failures
Since decades, scholars and policy makers have been interested in how fiscal policy influences
entrepreneurship. Until now, research has focused on fiscal policy at the federal or regional level
and used macro-economic outcome measures. Considerably less attention was given to how
municipal governments can influence economic outcomes at the micro level. The present study
examines the effect of municipal taxes, spending and tax compliance costs on firm profitability
within the Flemish hospitality industry.
KEY ALLIANCES AND THEIR PERFORMANCE IN THE INDUSTRY:
Alliance Hospitality today released operating results for 2013. The Company’s results included
the following:
Alliance Hospitality RevPAR Growth 6.3%
Competitive Set RevPAR Growth* 2.5%
US Average RevPAR Growth* 5.4%
Alliance Same-Property EBITDA Growth 12.5%
Alliance Hospitality is an innovative next-generation hospitality management company,
headquartered in Raleigh, North Carolina. Alliance was founded in 2003 to manage lodging
assets for institutional investment groups, individual owners and lenders. Alliance Hospitality
provides value by developing the highest caliber hospitality professionals, and through
implementing proprietary tools and unique processes to create a comprehensive hospitality
management system.
TECHNOLOGICALDEVELOPMENT:
1. Cloud / Software as a Service (SaaS):
Software delivered as a service, rather than held on premise is already a mainstream
technology topic and despite being a new concept in the hospitality sector, it is already
big news. At Infor, I would estimate around 85% of the queries we see from hospitality

companies and hotels include a serious look at cloud computing. As well as the low
capital expenditure of the cloud and the cultural "fit", there is also the fact that
implementation timetables can shrink from months to days, resulting in immediate and
obvious benefits in obtaining time to value.
2. Mobility:
Mobile is the new face of computing as devices such as tablets and smartphones
revolutionise the way we interact with technology. Hospitality is no exception to this
revolution, in some cases leading the way.There has often been the expectation that
because hotels are, by their very nature, fixed entities, mobile technologies may have
minimal impact. However, this myth has been thoroughly laid to rest as tablets, mobile
phones, smartphones and laptops have become critical tools on both sides of the check-in
desk
3. Social:
Social media has had a profound impact upon the hospitality industry. Trip Advisor has
become one of the main sources of information for people researching holidays, hotels
and leisure facilities. Meanwhile, newer social tools like Facebook or Twitter are
quickly becoming just as influential. For any hotel to not at least monitor social media is
tantamount to willingly flying blind.
. 4. Personalised systems:
Customers expect their experience within a hotel to be totally personalised to them:
from the welcome message on the television screen and food preferences to additional
services such as personal training or flowers in the room.
This quickly creates a huge range of valuable customer preference data that needs to be
fed into the hotel management system in order to deliver a personalised, high quality
service for each return visit.
6. Globalisation
The last major trend currently in the hospitality industry is globalisation. In the 21st century,
hotel companies will need to adopt different management approaches to survive and develop
amidst high levels of economic uncertainty. As international trade and business expand, there is
no question that international links will become more important for the hotel industry. This
means that the technology systems in use - especially those in large chains - must account for
the global perspective.

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