Hotel Industry

MACRO ANALYSIS OF INADIAN HOTEL INDUSTRY
Management Research Project -I

Submitted
In the partial fulfillment of the Degree of
Master of Business Administration
Semester-III
By
Name Exam No.

Dabhi Yogendrasinh T 13044311018
Raval Bhoomi S 13044311121
Sojitra Ajay A. 13044311131
Vaghela Hemantsang V 13044311142
Vyas Mayur M 13044311146
Zala Shaktisinh P. 13044311148
Under the Guidance of:

Prof. (Dr.) Mahendra Sharma
Prof. & Head,
V. M. Patel Institute of Management.
&
Dr. Harsha Jariwala
Dr. Abhishek Parikh
Faculty Members
V. M. Patel Institute of Management.
Submitted To:
V. M. Patel Institute of Management,
Ganpat University,
Kherva.
(December, 2014)
CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled Macro Analysis Of Inadian Hotel Industry
by Dabhi Yogendrasinh, Raval Bhoomi, Sojitar Ajay, Vaghela Hemantsang, Vyas Mayur, Zala
shaktisinh submitted to V. M. Patel Institute of Management for the Award of Master of Business
Administration (MBA Semester -III) is original research work carried out by them under my
supervision.
This report has not been submitted either partly or fully to any other University or Institute for award
of any degree or diploma.
Prof. (Dr.) Mahendra Sharma,

Professor & Head,
V. M. Patel Institute Of Management,
Ganpat University.
Kherva.
Date :
Place :
CANDIDATES STATEMENT
We hereby declare that the work incorporated in this report entitled Macro Analysis Of Inadian Hotel
Industry in partial fulfillment of the requirements for the award of Master of Business Administration
(Semester - III) is the outcome of original study undertaken by me and it has not been submitted
earlier to any other University or Institution for the award of any Degree or Diploma.
Date: 08/12/2014
Place: kherva ,Ganpat university
PREFACE
Practical study plays a vital role in the field of education. It has been introduced for the student to get
practical knowledge along with theoretical knowledge only bookish knowledge is not right way of
learning anything especially for the management students. How management principals are
implemented in business can only be known through practical study, students can be very well aware
about industrial environment like problems, opportunity, different situation etc. this helps the student
to have better understanding and also give them a chance to show their skills and ability.
The principal concern of this report is to reveal my learning of practical business scenario. In writing
this report I have drawn vast amount of the information from various senior people and simultaneously
supplemented by various other people, annual reports, letters, journals etc.
Here, I am presenting a project on the different concept that I saw, fill and experience, while the work
on the project report. I have tried my level best to do the proper justification with my work in this
project.

ACKNOWLEDGEMENT
It was really difficult for me to complete the management research project without getting co-
operation of certain people. In other words there are so many external people who directly or indirectly
help me in my management research project.
First of all, I am very grateful to our collage H.O.D. Prof. MAHENRA SHARMA for his able
leadership and our project Report who providing their valuable time and guideline to me regarding the
management Research project report.
I am also thankful to Dr.HarshaJariwala and Dr. Abhishek Parikh who gives guideline our group to do
management research report in their college and helped me by giving all the required information for a
period . I am also thankful to my friends who help me and guide me.

CONTENTS
Sr. No Particular Page No.

Certificate by the guide II
Candidates statement III
Preface IV
Acknowledgement V
1 Introduction Of The Industry 1
1.1 Hotel/Hospitality Industry In India 2
1.2 History Of Hotel Industry 2
1.3 Major Sectors Of Hotel Industry Of India 5
1.4 Role In Indias Development 6
2 Major Players Of The Industry 12
2.1 Bharat Hotels Ltd Industry 13
2.2 Asian Hotels (North) Ltd Industry 16
2.3 Hotel Leela Venture Ltd Industry 19
2.4 Indian Hotels Co Ltd Industry 22
2.5 Eih Ltd Industry 28
3 Strategic Analysis 33
3.1 Pest Analysis 34
3.2 Group Mapping 37
3.3 Competitive Profile Matrix 38
3.4 Efe Matrix 40
3.5 SWOT Analysis 41
3.6 Bcg Metrix 42
3.7 Porters Five Force Analysis 44
3.8 Space Matrix 49
4 Financial Analysis 51
4.1 Trade Analysis 52
4.2 Ratio Analysis 59
5 Conclusion & Finding 65
6 B-Plan Of Hotel Industries 68
7 Bibliography 78
8 Annexure 79
CHAPTER-1
AN OVERVIEW OF THE HOTEL INDUSTRY
1
1.1 HOTEL/HOSPITALITY INDUSTRY IN INDIA:
Travel and tourism is the largest service industry in India. This industry provides heritage,
cultural, medical, business and sports tourism. It is expected that the tourism sectors
contribution to the countrys gross domestic product (GDP) will grow at the rate of 7.8 per cent
yearly in the period 20132023.
The Indian tourism sector has been flourishing in recent years due to the improved connectivity
to and from the country. Also, better lodging facilities at the tourist destinations has been a factor
which has contributed to increased Foreign Tourist Arrivals (FTA).
The policies and changes implemented by the Government of India has also been instrumental in
providing the necessary boost to the Indian tourism and hospitality industry and attracting more
and more foreign tourists every year.
1.2 HISTORY OF HOTEL INDUSTRY:
While successive dynasties of kings and kingdoms came and went the institution of Hindu
kingship itself remained constant, providing an autocratic, paternalistic but essentially
benevolent authority under which many varieties of Indian culture flourished throughout the
subcontinent.
The India Princes were the diamonds, emeralds, rubies and pearls that invested the imperial
crowns of both the Mughals and the British with glitter and sparkle. Proud guardians of an
ancient inheritance steeped in history, they gave India splendour and romance on a scale that was
unrivalled in the twentieth century and which will never reoccur.
The word Raja, with its original Sanskrit meaning of both 'one who rules' and 'one whose duty is
to please', was taken very seriously by the rulers.
Many of Kings represented the finest qualities of rulership and manhood-their impartiality, sense
of fair play, even- handed justice, truthfulness and high morals were exemplary. They were great
patrons of arts, music and learning. Many were fine horsemen, sportsmen and lovers of forests.
Some were deeply religious and god- fearing and the people adored and worshiped them.
2
In the years following the abolition of princely rule, several members of the order have continued
to play a prominent role in various fields of enterprise. A few, like Rajmata Vijayaraje Scindia of
Gwalior and her son, Madhavrao, are still actively involved in politics. Some, like the late
Maharaja of Baroda set up and ran successful industries, while others like Divyabhanusinh of
Mansa and Pushpendra Sinh of Lunawada, distinguished themselves as managers in the
corporate world.
Many former Princes felt committed to reviving the arts and crafts formerly patronised in their
states. The Rajmata of Jaipur revitalised the renowned blue pottery of Jaipur whilst the late Raja
of Sawantwadi converted the Durbar Hall of his palace into a workshop to revive the dying art of
lacquerware furniture and traditional ganjifa playing cards for which his state was famous.
Richard and Sally Holkar set up a weavers' co-operative in the palace in Maheshwar to breathe
new life into the town's dormant textile industry, whereas the Nawabzada of Palanpur has run a
successful arts and crafts boutique in Bombay for several years. The Maharawal of Pratapgarh
motivates members of the one family that has had the monopoly in crafting exquisite theva
jewelry, which employs the technique of intricately patterned gold filigree on coloured glass.
Bapa Dhrangadhara is occupied in restoring rate, antique shawls while his brother. Sidhharaj
Sinhji, has established a crafts center in the palace at Dhrangadhara to revive the art of silver and
stone furniture. Schools of classical music known as gharanas, such as those established by the
royal courts of Jaipur, Gwalior, Patiala, Baroda, Kapurthala, Rampur, Maihar and Indore, still
flourish.
Other achievements include distinguished careers in the Civil and Foreign Services and in the
field of sports-particularly cricket, riding, polo and trap-shooting. Former royal hunting grounds
have become national sanctuaries and parks; these include Bharatpur, Siriska, Ranthambore,
Shivpuri, Gir, Periyar, Rangathittoo, Bandipur, Dachigam and Jaldapara. Royal menageries and
aviaries were set up as zoological parks as in Hyderabad, Baroda, Junagadh, Gwalior, Mysore,
Jaipur, Kotah, Jodhpur, Bikaner and Uadipur.
Many palaces are crumbling today but others like those in Suket, Bikaner, Rampur, Indore,
Jodhpur, Jaipur, Udaipur and Patiala have become repositories of culture in the form of museums
and libraries. Some palaces now function as Government offices, including those at Indore,
3
Patiala, Palanpur of Pratapgarh. A large number, like those in Udaipur, Jaipur, Jodhpur, Mysore,
Bikaner, Gwalior, Benares, Kotah, Bhavnagar, Wankaner and Jaisalmer, have been converted
into popular palaces hotels and guest houses.
Over the last decade business opportunities in India had intensified and elevated room rates
occupancy levels in India. Even budget hotels are charging USD 250 per day. 'Hotel Industry in
India' success story is only second to China in Asia Pacific. The World Travel and Tourism
Council, says that India ranks 18th in business travel and will be among the top 5 very soon.
India's big success stories includes the new model for development and growth; a model that is
uniquely made.
Indian Hotel Industry's room rates are most likely to rise 25% annually and occupancy to rise by
80%, over the next two years. 'Hotel Industry in India is gaining its competitiveness as a cost
effective destination. The 'Hotel Industry' is likely to add about 60,000 quality rooms, currently
in different stages of planning and development which would be ready by 2012.
MNC Hotel Industry giants are initiating for Joint Ventures to earn their share of pie in the race.
The Indian Government has approved 300 hotel projects, where half are for the luxury range.
Analysts says that the manpower required by the hotel industry has increased from 7 million in
2002 to 15 million in 2010. More and more IT Professionals are moving into the Metro cities as
the USD 23 billion software services sector pushing into the Indian economy. Indian Hotel
Industry is set up to grow by 15% a year. In 2010 as the Delhi capital city of India hosted the
Commonwealth Games there were more than 50 international budget hotel chains moving into
India. One of the major reasons for the increase in demand for hotel rooms in the country is due
to the boom of information technology, telecom, retail and real estate. India's increasing stock
market and new business opportunities are always been attractive foreign investors and corporate
travelers to look for business opportunities in the country. From 167 countries, today India has
1
finally made its mark on the world travel map.
1
http://en.wikipedia.org/wiki/History_of_hotel
4
1.3 MAJOR SECTORS OF HOTEL INDUSTRY OF INDIA:
The basic division in India according to the location is as follows:
1.3.1 Heritage Hotels:
These types of hotels reflect the old glory and grandeur of India, they are mostly the old havelis
and mansions of ancient times which have been turned into Heritage Hotels, these provide
tourists with an opportunity to experience royal pleasure in traditional ambiance. They mostly
concentrate in the princely states of Rajasthan, Delhi, and Madhya Pradesh.
1.3.2 Luxury Hotels:
These Hotels are equipped with world class infrastructural amenities, they offer the tourists with
a fine lodging and dining experience. They extend a warm welcome to the customers catering
primarily to the upper class executives.
1.3.3 Budget Hotels:
These kinds of Hotels are like home away from home, they accommodate customers from upper
middle and middle class. Mostly named as Economy Class Hotel, Business Hotels and Discount
Hotels, the Budget Hotels supports the modern infrastructural facilities for a comfortable and
pleasant stay.
1.3.4 Resorts:
Resort hotels in India are mostly found in hill stations and sea side tourist destinations. These are
located amidst natural scenic beauty, they are the ideal place to enjoy some valuable time with
family and friends or in solitude. 2
2
www.setupmy hotel.com
5
1.4 ROLE IN INDIAS DEVELOPMENT:
Indian Hotel Industry holds a special place in the international world of hospitality. India is
culturally the country which would be very well having the most diverse places in the world. It
serves as the vivid kaleidoscope of landscapes, magnificent historical sites and royal cities, misty
mountain retreats, colorful people, rich cultures, and festivities. Luxurious, hot and cold, chaotic
and tranquil, ancient and modern - India's soothing extremes rarely fail to leave a lasting
impression. In India Hospitality is a long running tradition. Whether it might be the majestic
Himalayas and the stark deserts of Rajasthan, or the beautiful beaches and lush tropical forests,
to idyllic villages and bustling cities, Indian land offers unique opportunities for every individual
preference.
Today the accommodation options throughout India have become extremely diverse and unique
from home stays and tribal huts to stunning heritage mansions and maharaja palaces. It could be
From Kashmir to Kanyakumari, from Gujarat to Assam; there are different cultures, languages,
life styles, and cuisines. This variety has reflected and increased by the many forms of
accommodations, ranging from the simplicity of local guest houses to the government bungalows
to the opulent luxury of royal palaces and five star deluxe hotel suites.
In recent years the Indian government has taken several steps to boost travel & tourism which
have benefited the hotel industry in the country. The initiatives by the Government include the
abolishment of the inland air travel tax of 15% to 8%, reduction in excise duty on aviation
turbine fuel and removal of a number of restrictions on outbound chartered flights, including
those relating to frequency and size of aircraft.
Indian Hotel Industry has the best staff for hotels unlike employees in East Asian hotels who are
charming and gracious, Indian staff is also grooming themselves to take initiative and discretion
of decisions on the spot. Most are better educated and speak better English than their East Asian
counterparts. Indian hotel industry is to be proud of as it has much to be so. The real success
story of the Indian Hotel Industry was due to the fact that it took on the global chains on its own
terms and it won.
6
Indian Hotel Industry has been booming business and has also given a boast to tourism business
in the country. Radisson Hotels India, Taj Group of Hotels, Park Group of Hotels and ITC Hotels
are some of the known hotels in the hotel industry that are famous for unique amenities and
superb accommodation arrangements.
Tourism development, for obvious reasons, was not a priority area for independent India. For the
first few decades, agriculture, irrigation and industrialisation were high on the agenda for
planners and political leadership. In the absence of high tourist activity or inbound travellers,
guest accommodation in India comprised mainly of guest houses, way-side tourist retreats and
Government bungalows. The few luxury properties from the Taj, the Oberoi and the Ashok were
concentrated in metro cities like Delhi, Mumbai, Chennai and Kolkata. These hotels catered
primarily to Government guests or foreign dignitaries.
The first Taj hotel, Taj Mahal Hotel Mumbai, was established by Jamshetji Nusserwanji Tata in
1903, and Rai Bahadur Oberoi acquired his first property in Chennai in 1934. However, these
brands remained in isolated pockets of India for many years even after independence. According
to Rajindera Kumar, Director, Ambassador Hotel New Delhi and President, Hotel & Restaurant
Association of North India (HRANI), the Indian hotel business has been viewed as a trade in the
unorganised sector for decades after independence. Our sarais, inns, and dharamshalas were
run on primitive and old methods, says Kumar.
Expressing similar views, Virender S Dutta, Chairman, Hospitality Management Support

Service, a professional-turned-corporate leader in the industry, commented, When I joined the
industry in the early 60s, there were no significant hotel chains in India. All hotels were owned
and managed by individual entrepreneurs, with little or no professional training in hotel
management. The management team was either trained overseas or just young men from affluent
families with a flair for good living.
7
Milestones:
1903: Jamsetji Tata opens first hotel in Mumbai
1934: Rai Bahadur Oberoi acquires first property in Chennai
1965: International brand, Intercontinental hotel group forays into India in partnership with the
Oberoi group. Opens first hotel in Delhi, Oberoi Intercontinental
1966: Government of India sets up ITDC
1971: Hotel Corporation of India is established
1975: ITC enters the hotel business
2001: Government allows 100 per cent FDI in the hotel sector. 3
There are also the ITC Maurya Delhi, ITC Maratha Mumbai, and Fort Radisson of Radisson
Group in Kolkata, Radisson Jass Hotel Shimla, The Taj Westend, Bangalore, Taj Coromandel,
Chennai. The major cities like Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs
of Mumbai are the areas most attractive for the international investment and as expected these
are the cities with the largest development pipelines. Combined these cities account for 89 of the
161 projects in the pipeline and 16,734 guestrooms, which is 68% of the rooms in India's total
pipeline.
Foreign exchange earnings from tourism in India:

Total foreign exchange earnings from tourism grew to US$ 18.1 billion in 2013.
Direct contribution of touris m and hos pitality to GDP:

The tourism and hospitality sectors direct contribution to GDP totalled US$ 37.3 billion in 2013.
3
www.ibef.org/industry/tourism-hospitality-india.aspx
8
Market Size:
The tourism and hospitality sector is among the top 10 sectors in India to attract the highest
foreign direct investment (FDI). In the period April 2000 August 2014, this sector attracted
around US$ 7,441 million of FDI, according to the Department of Industrial Policy and
Promotion (DIPP).
A high and positive growth of 12.5 per cent was registered in foreign tourist visits (FTVs) to
north-eastern states of India during 2012 from 2011, which further rose by more than 100 per
cent to register a growth of 27.9 per cent during 2013 from 2012. Among these north-eastern
states, Manipur recorded the highest FTVs followed by Arunachal Pradesh and then Tripura.
FTAs in India witnessed a growth of 12.9 per cent in the period July 2013 July 2014, according
to data received from Ministry of Tourism, Government of India. The FTAs during the period
JanuaryJuly 2014 stood at 4.11 million as compared to 3.87 million during the corresponding
period of 2013, registering a growth of 4.4 per cent. USA contributed the highest number to
foreign arrivals in India followed by Bangladesh and the UK.
Foreign exchange earnings (FEE) during JanuaryJuly 2014 stood at US$ 11.055 billion as
compared to US$ 10.85 billion during the same period last year. FEE during July, 2014 stood at
Rs 10,336 crore (US$ 1.68 billion) compared to Rs 8,620 crore (US$ 1.41 billion) in July, 2013.
9
Investments:
With the rise in the number of global tourists and realising Indias potential, many companies
have invested in the tourism and hospitality sector. Some of the recent investments in this sector
are as follows:
MakeMyTrip Ltd plans to set up a US$ 15 million innovation fund to support early-stage
travel companies, with a special focus on mobile and IP-based companies. This is an
inorganic growth strategy by which they are pursuing M&A opportunities in the travel
technology space.
Peppermint Hospitality has aggregated close to 2,200 operational hotel rooms across the
country with the acquisition of Bengaluru-based Boutique Hotel Management & Marketing
Services Ltd, which has 60 hotels in its portfolio. Peppermint Hospitality has five operational
hotels and is present in overseas markets of Florence, Italy and the UK that are operated
through the management contract route.
IFC has invested US$ 21 million in SAMHI Hotels through compulsorily convertible
debentures. This is IFC's first investment in the hotel sector in India. SAMHI has seven
operational hotels in Greater Noida, Ahmedabad, Bengaluru, Hyderabad and Pune.
Bengaluru-based Embassy Group plans to invest Rs 1,500 crore (US$ 245.13 million) for the
expansion of its hospitality business in India. The Embassy Group is also in the process of
buying out the property on which the Four Seasons hotel is located, entailing an investment of
Rs 600 crore (US$ 98.06 million).
10
REFERENCE:
11
CHAPTER: 2
MAJOR PLAYERS OF THE HOTEL INDUSTRY
12
MAJOR PLAYERS OF HOTEL INDUSTRY:
2.1 BHARAT HOTELS LTD INDUSTRY:
Business Group Lalit Suri

Sector Hotels & Restaurants
Incorporation Year 1981
Incorporation Date -
Chairman Jyotsna Suri
Managing Director Jyotsna Suri
Company Secretary B Chandra Sekhara Reddy
Auditor S R Batliboi & Associates
Registered Office Barakhamba Lane,
Connaught Place,
New Delhi, 110001, New Delhi
Telephone 91-11-44447777
Fax 91-11-44441234
E- mail corporate@thelalit.com
Website http://www.thelalit.com
Face Value (Rs) 10
BSE Code 508984
BSE Group B
NSE Code BHARATHOT
Bloomberg -
Reuters BHTL.BO
ISIN Demat INE466A01015
Market Lot 1
Listing Not Listed
Financial Year End 03
Book Closure Month Aug/Sep
AGM Month Sep
13
NIC Activity Hotel & restaurant services
NIC_CODE 55
Tot.Employees
Registrar's Name & Address Karvy Computershare Pvt Ltd , Plot No 17-24 , Vittal
Rao Nagar , Madhapur , Hyderabad-500081 .
91-040-44655185/4465
91-040-23420814/2342
Bharat Hotels Limited was incorporated in 1981. It is known as Indias largest privately owned
hotel company and also the fastest growing hospitality group. Headquartered in New Delhi, the
company started its first hotel in 1988 - a 457 room 5-star deluxe hotel under the dynamic
leadership of Founder Chairman Mr Lalit Suri, who had spearheaded the Group's unprecedented
expansion plans.
This complex has two prestigious commercial offerings, The World Trade Centre and World
Trade Tower. All hotels were operated under the brand of The Grand Hotels, Palaces & Resorts
till November 19, 2008, when the company re-branded as The LaLiT' for its top line hotels,
under The LaLiT Suri Hospitality Group. At Present, which has seventeen luxurious hotels, 3600
rooms in the five-star deluxe segment - Nine Operating hotels and eight under development.
The company has also been associated with internationally renowned hospitality groups like
Holiday Inn Hotels (opening Asia-Pacific's first Crowne Plaza Hotel), The Hilton Hotels and
InterContinental Hotels Group - IHG.
The experience gained from these international companies, has been consolidated into its unique
service offerings - which provide Limitless Hospitality' with a distinctive Indian feel. Today, not
only does Bharat Hotels have an enviable bouquet of destination properties in India but now
exports its expertise overseas (with projects under development in Dubai and Thailand).
The Growth of Bharat Hotels Ltd: Bharat Hotels second property started in 1998 with the
opening of the 115-room the Grand Palace' in Srinagar, which is a spectacular heritage hotel and
the former residence of the Maharajas. On November 30, 2001, the company signed a deal to
14
operate and manage the 186-room, Hotel Ashok in Bangalore on a management contract from
ITDC, under approval of the CCD (Cabinet Committee on Disinvestment, Government of India).
The hotel now wears a contemporary new look and is know as The LaLiT Ashok Bangalore. In
early 2002, Bharat Hotels successfully bid for two more ITDC properties - The 55-room Laxmi
Vilas Palace in Udaipur, which now operates as The LaLiT Laxmi Vilas Palace Udaipur, along
with the 47-room property in the temple town of Khajuraho, Madhya Pradesh - The LaLiT
Temple View Khajuraho, which has also been completely renovated as a top line boutique
hotel.
In 2003, two hotels were opened, as new builds - in Mumbai and Goa. The 255 all suites' super
luxury resort, with its very own golf course - The LaLiT Golf & Spa Resort Goa and the 368
room The LaLiT Mumbai, in India's commercial capital Mumbai, which boasts of Asia's largest
atrium lobby.In November 2005, the Company successfully bid for the prestigious 168-year-old
Great Eastern Kolkata'. Built in 1840, during the Britsh Era - is presently under careful
restoration and will re-open shortly as - The LaLiT Great Eastern Kolkata.
In April, 2007, work commenced on the company's properties in Jaipur and Bekal. The LaLiT
Resort & Spa Bekal is operational since May 2010, while projects Chandigarh, Ahmedabad and
Noida are developing on schedule. On May 02, 2007, Bharat Hotels announced its first overseas
project - The LaLiT Grand Fort Dubai, in collaboration with Nakheel of UAE; the ground
breaking ceremony for which has taken place on October 26, 2008. In early 2008 - an existing
resort was taken over in Koh Samui (Thailand). The resort is presently undergoing a complete
renovation, and expected to open for guests over the next year.
In September 2008 Bharat Hotels Limited also announced properties in Amritsar and
Dehradoon. Bharat Hotels added another feather in its cap in 2010 by being the first hotel
company to launch a 5 Star Deluxe hotel in God's Own Country - Kerala. The Group's eighth
hotel The LaLiT Spa and Resort Bekal is a 44 room property - a top of the line luxury beach
resort set up on 26 acres of virgin stretch of northern Kerala in the lap of Arabian Sea. 4
4
http://www.thelalit.com
15
2.2 ASIAN HOTELS (NORTH) LTD INDUSTRY:
Business Group Jatia

Incorporation Date 13-Nov-1980
Chairman Shiv Kumar Jatia
Managing Director Shiv Kumar Jatia
Company Secretary Dinesh K Jain
Auditor Mohinder Puri & Company
Registered Office Bhikaji Cama Place,
Mahatma Gandhi Marg,
New Delhi, 110607, New Delhi
Telephone 91-11-66771225/66771226
Fax 91-11-26791033
E- mail investorrelations@asianhotelsnorth.com
Website http://www.asianhotelsnorth.com
Face Value (Rs) 10
BSE Code 500023
BSE Group B
NSE Code ASIANHOTNR
Bloomberg AHOT IN
Reuters ASHT.BO
Market Lot 1
Listing Mumbai,NSE
Book Closure Month Sep
AGM Month Sep
NIC Activity Hotels and Restaurants
16
NIC_CODE 55101
Tot.Employees 769
Registrar's Name & Karvy Computershare Pvt Ltd , Plot No 17-24 , Vittal Rao
Address Nagar , Madhapur , Hyderabad-500081 .
91-040-44655185/4465
91-040-23420814/2342
Asian Hotels (North) Ltd is one of the leading player in the Indian hospitality industry operating
a chain of deluxe category hotels under the brand Hyatt Regency Hotels. The company presently
operates one five-star deluxe hotel in Delhi with the name Hyatt Regency Delhi. Hyatt Regency
New Delhi is located at Bhikaji Cama Place and is a 5-Star Deluxe Hotel. The hotel has 508
rooms and suites and is well equipped with High Speed Internet, Swimming Pool, Fitness
Centre, Business Centre, Boutiques, Salon and Restaurants offering a wide variety of dining
options.
Asian Hotels (North) Ltd was incorporated in the year 1980 as Asian Hotels Ltd and was
promoted by R S Saraf, R K Jatia, Chaman Lal Gupta, 3 Non-resident Indians together with
Sushil Gupta and Shiv Jatia, their Indian Associates. The company set up their first-grade room
facilities for guests during the Asian Games in the year 1982. The hotel started full- fledged
commercial operation in the year 1983. In December 9, 2002, the company incorporated a
subsidiary company, namely GJS Hotels Ltd. In order to have their presence in other
geographical location, they commissioned two new five star deluxe hotel category in the name
Hyatt Regency Kolkata and Hyatt Regency Mumbai.
The former commenced full fledged operations in January 1, 2003 and the later in April 1, 2003.
During the financial year 2007-08, the company acquired three wholly owned subsidiaries,
namely Chillwinds Hotels Ltd, Vardhman Hotels Ltd and Aria Hotels and Consultancy Services
Pvt Ltd. The company also entered into other business segment namely power generation and
installed two Wind Turbine Generators on March 27, 2008 and March 31, 2008 respectively.
During the year 2008-09, the company acquired additional interest in Regency Convention
Centre and Hotels Ltd, an erstwhile associate company, thus making the said company as a
subsidiary company.The promoters of the company are constituted in three major groups since
17
the inception of the company. They are the Jatia Group, the Gupta Group and the Saraf Group. In
due course of time, each of the three groups has acquired independent interests in the hospitality
industry. To avoid any potential conflict of interest amongst the three groups inter-se and the
other shareholders of the company, the promoters agreed on restructuring of the company by
way of scheme of arrangement. The company entered into a scheme of arrangement and de-
merger with Vardhman Hotels Ltd (now known as Asian Hotels (East) Ltd) and Chillwinds
Hotels Ltd (now known as Asian Hotels (West) Ltd) which became effective on February 11,
2010.
Pursuant to the scheme of arrangement and de-merger, the assets and liabilities of Mumbai
Undertaking and Kolkata Undertaking respectively were de- merged, transferred and vested with
Chillwinds Hotels Ltd and Vardhman Hotels Ltd and the company retained the residual assets
which mainly consisted of Hyatt Regency Delhi Hotel. Also, the company changed their name
from Asian Hotels Ltd to Asian Hotels (North) Ltd with effect from February 16, 2010.
Pursuant to the scheme of arrangement and de- merger, each of the promoter groups, namely the
Jatia Group, the Gupta Group and the Saraf Group respectively acquired independent control of
Asian Hotels (North) Ltd, Asian Hotels (West) Ltd and Asian Hotels (East) Ltd. Consequently,
the Jatia Group controls over 59% shares in the company. The company plans of making a foray
into 'Serviced Apartments' and has commenced construction of a new building/ complex, which
is expected to be completed during the financial year 2011-12, with a built- up area of
approximately 14000 sq mtrs, housed in a separate stand-alone tower.
The company also plans to renew and expand their existing facilities at Hyatt Regency Delhi.
Such renovation and expansion shall be carried in two phases spanning over the years 2010 to
2013, for operational expediency and to avoid inconvenience to the guests during peak season.
The first phase includes expansion of existing facilities by adding 24 bays and a multi-cuisine
restaurant, and up-gradation of fitness center and renovation of existing suites, which is expected
5
to be over by March 31, 2012.
5
http://www.asianhotelsnorth.com
18
2.3 HOTEL LEELA VENTURE LTD INDUSTRY:
Business Group Indian Private

Incorporation Date 20-Mar-1981
Chairman Vivek Nair
Managing Director Vivek Nair
Company Secretary Dinesh Kalani
Auditor Picardo & Co
The Leela, Sahar,
Registered Office
Mumbai, 400059, Maharashtra
Telephone 91-22-66911234
Fax 91-22-66911212
E- mail investor.service@theleela.com
Website http://www.theleela.com
Face Value (Rs) 2
BSE Code 500193
BSE Group B
NSE Code HOTELEELA
Bloomberg LELA IN
Reuters HTLE.BO
Market Lot 1
Listing MCX-SX,Mumbai,NSE,Singapore
Book Closure Month Sep
AGM Month Sep
NIC Activity Hotel & restaurant services
NIC_CODE 55
19
Tot.Employees 3727
Sharepro Services India P Ltd, Samhita Complex, Plot
No 13 AB, Saki Naka Andheri(E), Mumbai-400072.
Registrar's Name & Address
91-22-67720300/400
91-22-28591568
Hotel Leela Venture Ltd is one of the leading players in the Indian hospitality industry. The
company operates in both, the leisure and business sectors. The Leela palaces and resorts include
a chain of five star luxury hotels and resorts. The company properties include The Leela
Kempinski in Mumbai, The Leela Palace in Goa, The Leela Palace Kempinski in Bangalore and
The Leela Kovalam in Kerala. The company became a popular name in the hospitality industry
in India due to their high quality of service to their customers.
The Leela Kempinski in Mumbai is one of the best deluxe hotels of 5-star rating in India. The
Hotel is spread over an area of 11 acres and has 396 rooms. The Leela Palace in Goa is a luxury
resort and has around 152 rooms. The Hotel is spread over an area of 75 acres and boasts of a 12-
hole golf course. The Leela Palace Kempinski in Bangalore is located near shopping, cultural,
and business centers. The Hotel has 358 rooms, a business center, a royal club, and a fitness and
pool center. The Leela Kovalam in Kerala is the biggest beach side resort in the state.
Hotel Leela Venture Ltd was incorporated in the year 1981. The company entered into
collaboration with Penta Hotels in UK to set up and operate 5-star hotels, which was
subsequently transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned
by Lufthansa, the German Airline. In the year 1986, the company set up their first 5-star deluxe
hotel namely Leela Penta, in Mumbai. The hotel was renamed as Leela Kempinski in the year
1988, following the change in their marketing and sales tie-up.
During the year 1993-94, the company commissioned 60 new rooms at the Leela Beach Resort
and set up a mini golf course of 6 holes. During the year 1995-96, the company entered into
management agreements with Four Seasons Hotel, Canada, for the management of the
company's hotels and resorts at Mumbai, Goa and Bangalore. The Leela Palace in Goa started
20
their operation in September 1998. During the year 1998-99, the company entered into sales and
marketing agreement with the Kempinski Group for The Leela Palace, Goa.
During the year 2002-03, Leela Hotels Ltd, a wholly owned subsidiary company merged with the
company and during the year 2004-05, another wholly owned subsidiary company, Vision Hotels
& resorts Ltd merged with the company. During the year 2005-06, the company acquired the
Kovalam Beach Resort Hotel located in the pristine and scenic Kovalam Beach with 194 rooms.
The Hotel after acquisition was renamed as The Leela Kovalam Beach, Kerala.
During the year 2006-07, the company sold Leela Business Park to their associate company
Rockfort Estate Developers Pvt Ltd for an aggregate amount of Rs 139.7 crore. Also, they
acquired land at Adyar Beach, Chennai, Banjara Hills, Hyderabad and Yerwada, Pune for setting
up new hotels. Kovalam Hotels Ltd, a subsidiary company was amalgamated with the company
with effect from December 4, 2007. During the year 2007-08, the company entered into strategic
relationship with Global Hotel Alliance to enhance the global reach of sales and marketing
network. Also, they made a tied up with ESPA of London, one of the leading SPA management
companies in the world, to manage their SPAs across all their properties.
The company entered into an alliance with Preferred Hotels during the year. This will give the
company a greater recognition in USA and other parts of the world as Preferred Hotels are
renowned for up market and luxury hotels in the world.The project in Gurgaon, Delhi with 319
rooms and 9 service residences is under progress and the project is expected to de ready for
operation during the financial year 2008-09. The Leela Business Park, a world class Business
Park at MRC Nagar in Chennai is under construction and is expected to be operational during the
year financial year 2008-09.
The company is constructing The Leela Palace at Udaipur in order to enter the Rajasthan market
is at an advanced stage of completion. The resort is expected to open in January 2009. The Leela
Palace hotel at MRC Nagar in Chennai is under construction and is expected to have a soft
opening by September 2009. The Leela Palace at New Delhi, is located in the prestigious
diplomatic enclave of Chanakyapuri, New Delhi is under construction6 .
6
http://www.theleela.com
21
2.4 INDIAN HOTELS CO LTD INDUSTRY:
Business Group Tata

Incorporation Date 1-Apr-1902
Chairman Cyrus P Mistry
Managing Director Rakesh K Sarna
Company Secretary Beejal Desai
Auditor Deloitte Haskins & Sells LLP/PKF Sridhar & Santhan
Registered Office Mandlik House,
Mandlik Road,
Mumbai, 400001, Maharashtra
Telephone 91-22-66395515
Fax 91-22-22027442
E- mail investorrelations@tajhotels.com
Website http://www.tajhotels.com
Face Value (Rs) 1
BSE Code 500850
BSE Group A
NSE Code INDHOTEL
Bloomberg IH IN
Reuters IHTL.BO
Market Lot 1
Listing London,MCX-SX,Mumbai,NSE
Book Closure Month Aug
AGM Month Aug
NIC Activity Hotels and Restaurants
NIC_CODE 55101
22
Tot.Employees 10018
Registrar's Name & Address Indian Hotels Ltd, Share Department, Mandlik
House, Mandlik Road, Mumbai 400001.
Indian Hotels Company Ltd (IHCL) and their subsidiaries are collectively known as Taj Hotels
Resorts and Palaces and are recognized as one of Asia's largest and finest hotel company. The
company together with their subsidiaries and their jointly controlled entities is engaged in the
business of hoteliering with the exception of two jointly controlled entities, which are engaged in
the business of air catering. The other areas of business include ready to eat/ready to cook foods
business.
The company's subsidiaries include TIFCO Holdings Ltd, KTC Hotels Ltd, United Hotels Ltd,
Roots Corporation Ltd, Taj SATS Air Catering Ltd, Residency Foods & Beverages Ltd,
Innovative Foods Ltd, Taj International Hotels (H.K.) Ltd, Chieftain Corporation NV, IHOCO
BV, St. James Court Hotels Ltd, Taj International Hotels Ltd, International Hotel Management
Services Inc, IHMS (Australia) Pty Ltd and Apex Hotel Management Services (Pte) Ltd. The
company's jointly controlled entities include IHMS Hotels (SA) (Proprietary) Ltd, Taj Karnataka
Hotels & Resorts Ltd and Taj GVK Hotels & Resorts Ltd. Indian Hotels Company Ltd was
incorporated in the year 1902. In the year 1903, the company opened their first hotel, The Taj
Mahal Palace & Tower, Mumbai.
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 their 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 company was 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 the year 1974, the Taj Group opened India's first international five star
23
deluxe beach resort, the Fort Aguada Beach Resort in Goa. Also, they opened five-star deluxe
hotel Taj Coromandel in Chennai. In the year 1977, they acquired an equity interest and
operating contract for the Taj President, a business hotel in Mumbai. In the year 1978, they
opened the Taj Mahal Hotel in Delhi. In the year 1980, the Taj Group took their first step
internationally by opening their first hotel outside India, the Taj Sheba Hotel in Sana'a, Yemen.
Also, they acquired interests in the Crown Plaza - James Court, London and 51 Buckingham
Gate Luxury Suites and Apartments in London.
In the year 1984, the Taj Group acquired under a license agreement each of The Taj West End,
Bangalore, Taj Connemara, Chennai and Savoy Hotel, Ooty. In the year 1989, the company
opened the five-star deluxe hotel, Taj Bengal in Kolkata. With this opening, the Taj Group
became the only hotel chain with a presence in the five major metropolitan cities of Mumbai,
Delhi, Kolkatta, Bangalore and Chennai. In the year 1990, the company set up Taj Kerala Hotels
& Resorts Ltd along with the Kerala Tourism Development Corporation. In the year 1998, they
opened the Taj Exotica Bentota which strengthened the Taj Group's market position in Sri
Lanka. In the year 2000, the company entered into a partnership with the GVK Reddy Group to
set up Taj GVK Hotels and Resorts Ltd 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 the year 2001, the company took on the management contract of Taj Palace Hotel, Dubai, and
established themselves as an up- market hotel in the Middle East region. In September 2002, the
company acquired 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 October 2002, the company obtained licenses to manage and
operate two leisure hotels, the Rawal-Kot, Jaisalmer and Usha Kiran Palace, Gwalior.
In the year 2003, the company celebrated the centenary of the opening of their Flagship hotel, the
Taj Mahal Palace & Tower, Mumbai. In the year 2004, they opened Wellington Mews, their first
luxury serviced apartment in Mumbai. Also, they launched the first of its 'value-for-money'
hotels in Bangalore branded 'Ginger', which has 11 hotels in various locations in India and is
owned through their wholly owned subsidiary.
24
In the year 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 their existing
presence in the United Arab Emirates. The company enhanced their 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.
In February 2006, the company, through a subsidiary, acquired the erstwhile 'W' hotel in Sydney,
Australia and renamed it as 'Blue, Woolloomooloo Bay'. In October 2006, as per the scheme of
arrangement, Indian Resorts Hotel Ltd, Gateway Hotels and Getaway Resorts Ltd, Kuteeram
Resorts Pvt Ltd, Asia Pacific Hotels Ltd and Taj Lands End Ltd were amalgamated with the
company. In the year 2007, the company acquired Ritz Carlton in Boston and Taj Campton Place
in San Francisco to expand their presence in the US market. They commenced operation of their
second wildlife lodge at Baghvan, Pench.
In the year 2008, the company partnered with Saraya Islands to Operate Taj Exotica Hotel in Ras
Al Khaimah, United Arab Emirates. They joined hands with Tashi Group to create the new
benchmark for premium hotels in Bhutan - Taj Tashi Bhutan. The company and ALDAR Hotels
and Hospitality entered an exclusive agreement involving a number of hotel projects. The first
hotel to be developed by ALDAR Hotels and Hospitality under the agreement is a five-star, 500
room luxury resort hotel which will be in a spectacular waterfront location on ALDAR's mega
entertainment destination, YAS Island. During the year, the company launched The Jiva Spa
Boat at Taj Lake Palace, Udaipur.
The Gateway Hotel Athwa Lines Surat added a new block of rooms to take up their inventory to
208 making it the largest hotel in Gujarat. It also launched three brand new restaurants - 'Flow'
the all day dining restaurant, 'Spice' an Indian specialty restaurant and 'T3' a Tea lounge and Deli.
They unveiled a new world-class premium hotel in Chennai - Taj Mount Road. In December 21,
2008, The Taj Mahal Palace & Tower reopened the rooms in the The Taj Mahal Tower.
During the year 2009-10, the company added seven new hotels in the Taj portfolio which
included Vivanta by Taj at Panaji, Goa and The Gateway Hotel, Jodhpur apart from the 5 Ginger
hotels at Durg, Guwahati, Pune, Jamshedpur and Surat. Vivanta by Taj Coral Reef, Maldives and
25
The Pierre, New York were also reopened during the year after extensive renovations. The
inventory of the Taj Group now stands at 103 hotels with 12243 rooms.
On the international front, Taj Cape Town, South Africa was soft opened in February, 2010 with
an inventory of 166 rooms. The company added another significant hotel to their Luxury
portfolio, with the opening of the TAJ Cape Town and Banjar Tola, Kanha. These hotels are
owned by the associate companies and are under a management contract with the company.
During the year, the company acquired the erstwhile 'Sea Rock' hotel at Bandra Bandstand,
Mumbai. The company acquired land on lease from the Government of Andaman & Nicobar
Islands to set up the first 5-Star Luxury resort on Havelock Island. Also, the company through
one of their associate companies entered into a lease agreement with the Punjab Government for
a land parcel in Amritsar to develop a Vivanta by Taj hotel. The company through their
subsidiary, invested into developing a 'Vivanta by Taj' resort at Coorg. The company also
entered into management contracts for several properties in India which will commence
operation over the next few years. New Management contracts have been signed for a Vivanta by
Taj resort in Srinagar and for Gateway hotels in Bhandup (Mumbai), Shirdi (Near Nashik) and
Ludhiana.
During the year 2010-11, the fully restored heritage block of the Taj Mahal Palace, Mumbai
reopened its doors to guests on August 15, 2010. The spectacular Falaknuma Palace, another
signifi cant addition to the company's Palaces portfolio was opened in November, 2010. Four
new Ginger hotels at Manesar, Chennai, East Delhi and Indore commenced operations during the
year. The company ventured into new geographies by entering into management contracts in
Mexico and British Virgin Islands for development of high end Luxury Resorts with 100 and 206
keys respectively. The company also signed a management contract for establishing a Taj
Luxury Hotel in Marrakech, Morocco, which is expected to open by the last quarter of 2011.
The company continued their thrust on flagging properties under the 'Gateway' brand in
prominent economic, commercial and industrial centres of India by signing management
contracts for hotels in Chandigarh, Ludhiana and Kolhapur. The company also signed
management contracts in leisure destinations such as Shimla and Rishikesh for a Gateway and
26
Vivanta by Taj resort respectively. Furthermore, the company entered into MOUs for Gateway
Hotels in Chiplun, Maharashtra and in Faridabad, NCR.
The company invested through one of their subsidiaries in 'Vivanta by Taj' resort at Coorg,
which is scheduled to open by end of 2011. The resort shall be operated by the company on a
management contract basis. Of the 64 room expansion of Vivanta by Taj Fisherman's Cove hotel
in Chennai, 48 rooms are currently operational and work on the balance 16 rooms is in progress.
Vivanta by Taj hotels in Coimbatore and Hyderabad being developed by the company's
associates are expected to open during the current financial year. 7
7
http://www.tajhotels.com
27
2.5 EIH LTD INDUSTRY:
Business Group Oberoi

Incorporation Date 26-May-1949
Chairman P R S Oberoi
Managing Director Vikram Oberoi
Company Secretary S N Sridhar
Auditor Ray & Ray
Registered Office 4 Mangoe Lane,
Kolkata, 700001, West Bengal
Telephone 91-33-22486751
Fax 91-33-22486785
E- mail isdho@oberoigroup.com/invcom@oberoigroup.com
Website http://www.eihltd.com
Face Value (Rs) 2
BSE Code 500840
BSE Group B
NSE Code EIHOTEL
Bloomberg EIH IN
Reuters EIHO.BO
Market Lot 1
Listing Kolkata,London,MCX-SX,Mumbai,NSE
Book Closure Month Jul/Aug
AGM Month Aug
NIC Activity Hotels and Restaurant services
NIC_CODE 55101
Tot.Employees 9851
28
Registrar's Name & Address EIH Ltd, 4 Mangoe Lane, Kolkata - 700001.
91-33-2486751/248675
91-33-2485300
EIH Ltd, the flagship company of Oberoi group is one of the largest chains of hotels in India.
The company is in the business of luxury hotels, restaurant, management contracts and travel and
tours. Their services include airline catering, management of restaurants and airport bars, travel
and tour services, car rentals, project management and corporate air charters. They operate hotels
under the brand name Oberoi and Trident. The hotels owned and managed by the company are
The Oberoi, Mumbai; The Oberoi Udaivilas, Udaipur;
The Oberoi, New Delhi; The Oberoi, Bangalore; The Oberoi Grand, Kolkata; The Oberoi
Vanyavilas, Ranthambhore; Trident, Nariman Point, Mumbai, and Trident, Bandra Kurla,
Mumbai. Other business units owned and managed by the company include Motor Vessel
Vrinda, Cochin (a luxury cruiser); Oberoi Airport Services, Mumbai, Delhi, Chennai, Kolkata,
Cochin, Bangalore; Business Aircraft Charters and luxury car hire.
EIH Ltd was incorporated on May 26, 1949 as a public limited company with the name East
India Hotels Ltd. Initially, the company was in the business of lessee and operator of The Oberoi
Palace Hotel in Srinagar, Kashmir. In the year 1956, the equity shares of the company were fist
listed on BSE. In the year 1965, they built their first hotel, The Oberoi Intercontinental, now
known as The Oberoi, New Delhi. In September 9, 1968, The Associated Hotels of India Ltd and
Hotels (1938) Pvt Ltd were amalgamated with the company pursuant to which the company
acquired five hotels including, The Oberoi Grand in Kolkata, The Maidens Hotel in Delhi and
The Oberoi Cecil, Shimla.
In 1973, the company commenced operations at the Oberoi Towers in Mumbai and subsequently
expanded their 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. In the year 1986, the company forayed into the airport services business by entering into a
ten year contract with the International Airport's Authority to operate all the snack bars and
restaurants at the domestic and international terminals in Mumbai.
29
In November 1996, the company changed their name from East India Hotels Ltd to EIH Ltd. In
January 1997, the company opened an international luxury resort namely, The Oberoi Lombok in
Indonesia. In April 1997, they opened the luxury resort hotel in the Himalayas.
During the year 2001-02, Mumtaz Hotel Ltd became the subsidiary company, which owns the 5-
Star luxury hotel 'Amarvilas', an Oberoi Resort at Agra. Also, the company opened Vanyavilas,
an Oberoi Resort at Ranthambhore during the year.
During the year 2002-03, the company commenced their flight catering operations in Chennai
after acquiring the business from EIH Associated Hotels Ltd. The hotel 'Udaivilas' in Udaipur
was opened on August 15, 2002. The company renamed 'Vilas' hotels as The Oberoi Rajvilas,
The Oberoi Amarvilas and The Oberoi Udaivilas with effect from October 1, 2003. Re-naming
was done in order to remove the misconception from mind of customers that the Vilas hotels
were separate from the Oberoi brand. In November 2003, the company launched Motor Vessel
Vrinda, a luxury Crusier in the backwaters of Kerala.
In March 2004, the company signed an agreement with Hilton International to co brand their
Trident hotels in India. The Oberoi Towers, Mumbai was re-branded Hilton Towers and the
Trident in Jaipur, Udaipur, Agra, Chennai, Cochin, Bhubaneshwar and Gurgaon were re-branded
as Trident Hilton with effect from April 1, 2004.
During the year 2004-05, the company opened two new restaurants namely, 'threesixty degree'
and 'Travertino' at The Oberoi, New Delhi. They also opened a new restaurant namely, 'Tiffin' at
The Oberoi, Mumbai. During the year 2005-06, they commenced their Flight Service Operations
at Bangalore to cater to increased flights to that city. The company transferred Oberoi Cecil in
Shimla and Trident Hilton in Bhubaneshwar to EIH Associated Hotels Ltd with effect from April
1, 2006.
During the year 2007-08, the company completed the process of amalgamation of the company's
wholly owned subsidiary, Rajgarh Palace Hotel and Resorts Ltd. Oberoi Hotels & Resorts was
rated the leading luxury hotel brand in Asia in a Travel agents' poll at the World Travel Awards,
2007. Trident Hotels was rated the best first class hotel brand in India at the Galileo-Express
Travel World Awards, 2007. The company terminated the strategic marketing and co-branding
alliance with leading global hotel chain Hilton International Co with effect form April 1, 2008.
30
The company signed Management Contracts through their foreign subsidiary for two The Oberoi
Luxury Hotels in Abu Dhabi and one in Oman.
During the year 2008-09, the company signed the Management Contracts for setting up and
operating Flight Kitchens at Cochin and Calicut Airports. Balamurie Island Resort Pvt Ltd has
ceased to be a joint venture company. In December 21, 2008, The Trident, Nariman Point was
restored and reopened for business. In December 1, 2009, the company opened the 440 key
Trident at Bandra Kurla, Mumbai, which has three speciality restaurants, each with their own
distinctive cuisine and ambience. The Oberoi, Mumbai which was closed after substantial
damage following the terror attacks on November 26, 2008 reopened on April 24, 2010.
In June 30, 2010, EIH International Ltd, a wholly owned subsidiary of the company, completed
the acquisition of the 45.85% equity interest of Amex Investment Ltd, in their international
hotels Joint Venture Company EIH Holdings Ltd, for USD 45 million. With this acquisition EIH
Holdings Ltd, became wholly owned subsidiary of EIH International Ltd. Also, EIH Holdings
Ltd signed a Management Contract for a hotel at Scorpio Bay, Greece and a second Oberoi hotel
in Mauritius. In August 30, 2010, some shareholders of the company, namely Oberoi Hotels Pvt
Ltd, Aravali Polymers LLP and Prithvi Raj Singh Oberoi sold 5,54,70,303 shares, representing
approximately 14.12% of the share capital of the company to Reliance Industries Investment and
Holding Pvt Ltd at a cost of Rs 1021 crore.
The company has completed the Oberoi Luxury Hotel at Gurgaon, which is scheduled to open
during the year 2011. The 103 key Trident Hotel at Dehradun is under construction and is
expected to open in the spring of 2012. The company's new flight kitchen at Mauritius, Delhi,
Cochin and Calicut are expected to be commissioned during the financial year 2010-11.
The company's 229 key Oberoi Hotel at Cyber City, Hyderabad and 323 key Trident Hotel are
under construction. The construction of the 252 key Oberoi hotel in Dubai located at Business
Bay is progressing and is expected to begin operations in the last quarter of 2011. The company
has commenced planning on the Oberoi hotels in Abu Dhabi and Oman and The Oberoi,
Marrakech, Morocco. 8
8
http://www.eihltd.com
31
REFERENCE
32
CHAPTER: 3
STRATEGIC ANALYSIS OF INDUSTRY
33
3.1 PEST ANALYSIS:
Political:- Due to the possible impacts on the Environment from the operations of a hotel, there
is a need to comply with Environment related regulations.
The political environment is an area that business organisations need to monitor constantly as
politics can be very unpredictable and influential at times. (Palmer, A. Hartley, B. 2006, P7-8)
This is because governments have the power to introduce legislation and regulations that may
have a profound effect on organisations. Whilst the UK is a relatively free market, the
government will still keep a close on what is going on in the private sector to ensure that
businesses are functioning within the best interests of the country.
1) Foreign direct investment 100%

2) Disinvestment
3) Taxes
4) Eco-tourism-thrust industry
5) Foreign collaboration
6) Government pressure to increase security level, add sewage treatment
plant etc
7) Government promoting tourism
8) Government permission is no longer required for hiring foreign
technicians
Economic:- Both hotel stays and spa treatments essentially appeal to one's discretionary income,
thus a growth in discretionary income would become favourable to an organization such as
Solberri.
The competition for an organization such as Solberri need not necessarily come from similar
hotels/spa facilities only, it could even arise from other sources such as other competing forms of
expenditure for one's discretionary income. Eg: a new suite of furniture
Due to the seasonal nature of demand, revenues and room occupancy can vary significantly
during peak and non-peak periods.
34
As hotels generally provide free food and lodging especially at the operational level, their
salaries are not that attractive compared with that of certain other industries. This may make it
difficult to attract employees for such positions.
Due to the non-essential nature of this type of service to a potential customer, this would be one
of the first areas that would be cut back at a time of recession or economic downturn.
The higher end of the hotels ( Eg: Premier' category at Solberri ) would essentially target the
higher end of the market which is a relatively smaller group where high margins can be earned.
The ownership models of hotels have witnessed some new realities in recent years.( Eg:
individuals/investors owning hotel rooms, sell and leaseback, moving towards managing the
hotel as opposed to owning them.
1) Recent economic slowdown effect

2) High growth in tourism industry
3) Export promotion goods scheme(EPCG)
4) Not given infrastructure industry status
5) Interest rates
6) Exchange rates
7) Inflation rates
Social:- The patronizing of spas can be seen as a lifestyle change which is growing among
certain sections of the middle class as well as the upper class.
As hotels benefit from holidaying the extent to which people take holidays and their ability to get
off from work for such holidays will have a direct bearing on the demand experienced by an
organization such as Solberri.
As hotels consume a large amount of resources such as water, soap, detergents as well as cause a
fair amount of pollution (from water, leftover food, use of strong detergents),there exists a fair
amount of pressure to be green' especially by Environmental pressure groups.
35
The supply of lower level staff is seen as being directly related to seasonal unemployment in the
region.
As traveling for a holiday is seen as non-essential travel. Some may opt not to engage in leisure
travel especially where air travel is involved.
1) Increased extremism
2) Increasing disposable income
3) Changing life style due to exposure to global environment
4) Urban middle class forms 40 per cent of total population
Technical:- The hotel industry is seen as utilizing an increasing amount of technology with a
view of achieving greater customer satisfaction. Eg: Ritz Carlton's customer information
management.(CRM)
It can be seen that customers, even potential customers extensively use online information
sources including reviews and comments by previous customers when making their own choice
about holidays and places to visit.
The use of technology and other advanced techniques can be useful in managing the
consumption of resources such as water and electricity which are resources that are extensively
used in this industry. Eg: Power Factor Corrections, recycling water
The increasing use of IT/IS can help in improving the information available for management
decision making which will also allow the organization to better plan its future activities and
events.
1) Computerization
2) Global distribution system (GDS)
3) Provide LCD, laptops and conference facilities
4) Real-time access to inventory, transparency across multiple channels
36
3.2 GROUP MAPING:
A strategic group consists of those industry members with similar competitive approaches and
positions in the market. Hotels in the same strategy group can resemble one another in any of
several ways. They may have comparable product- line breadth, sell in the same price quality
range, emphasize the same distribution channel, use essentially the same product attribute to
appeal to similar type of buyers, depend on identical technological approaches, or offer buyers
similar services and technical assistance.
1800
1600 Asian Hotels
1400
1200
Hotel Leela
1000 Venture Ltd
800
600 Indian Hotels Co Ltd
400 Eih Ltd

Bharat Hotel
200
00
1 2 3 4 5 6 7 8 9 10 11
PRODUCT RANG
The above graph showing the group maping of various company in paper industry. Eih Ltd and
Bharat Hotel are more competitor to each other the reason is company sales and product rang is
nearest. The Indian Hotels Co ltd company competitor is Eih Ltd. So the group maping helps to
identify the nearest competitor.
37
3.4 CPM (COMPETITIVE PROFILE MATRIX):
The Competitive Profile Matrix (CPM) is a tool that compares the firm and its rivals and
reveals their relative strengths and weaknesses.
Critical Success Factor EIH BHART INDIAN ltd

Weight Rating Score Rating Score Ratin Score
g
Brand reputation 0.13 2 0.26 3 0.39 1 0.13
Level of product 0.08 4 0.32 3 0.24 1 0.08
integration
Range of products 0.05 3 0.15 1 0.05 2 0.10

Successful new 0.04 3 0.12 3 0.12 3 0.12
introductions
Market Share 0.14 2 0.28 4 0.56 4 0.56
Sales per employee 0.08 1 0.08 2 0.16 3 0.24

Low cost structure 0.05 1 0.05 3 0.15 4 0.20
Variety of distribution 0.07 4 0.28 2 0.14 2 0.14

channels
Customer retention 0.02 2 0.04 4 0.08 1 0.02
Superior IT capabilities 0.11 3 0.33 4 0.44 4 0.44
Strong online presence 0.15 3 0.45 3 0.45 4 0.60
Successful promotions 0.08 1 0.08 2 0.16 1 0.08
Total 1.00 - 2.44 - 2.94 - 2.71
38
WEIGHT:
Each critical success factor should be assigned a weight ranging from 0.0 (low importance) to
1.0 (high importance). The number indicates how important the factor is in succeeding in the
industry. If there were no weights assigned, all factors would be equally important, which is an
impossible scenario in the real world. The sum of all the weights must equal 1.0. Separate factors
should not be given too much emphasis (assigning a weight of 0.3 or more) because the success
in an industry is rarely determined by one or few factors. In our first example, the most
significant factors are strong online presence (0.15), market share (0.14), brand reputation
(0.13).
RATING:
The ratings in CPM refer to how well hotels are doing in each area. They range from 4 to 1,
where 4 means a major strength, 3 minor strength, 2 minor weakness and 1 major
weakness. Ratings, as well as weights, are assigned subjectively to each hotel, but the process
can be done easier through benchmarking. Benchmarking reveals how well companies are doing
compared to each other or industrys average. Just remember that firms can be assigned equal
ratings for the same factor. For example, if EIH, BHARAT and INDIAN LTD, have the market
share of 25%, 27% & 28% accordingly, they would all receive the rating of 4 rather than
receiving ratings 2, 3 & 4.
SCORE & TOTAL SCORE:
The score is the result of weight multiplied by rating. Each hotel receives a score on each factor.
Total score is simply the sum of all individual score for the hotel. The firm that receives the
highest total score is relatively stronger than its competitors. In our example, the strongest
performer in the market should be Bharat hotels (2.94 points).
39
3.3 EFE MATRIX (THE EXTERNAL FACTOR EVALUATION):-
Key Success Factors Weight Rate Score
OPPORTUNITIES
Fragmented Market 0.12 4 0.48
Financial Leverage 0.11 3 0.33
Online Market 0.16 2 0.32
Innovation 0.07 4 0.28
New Services 0.05 4 0.20
New Technology 0.07 2 0.14
THREATS
Bad Economy 0.11 1 0.11
Volatile Currencies 0.08 2 0.16
International competitors 0.04 1 0.04
Mature Markets 0.07 2 0.14
Intense Competition 0.06 2 0.12
Govt Regulations 0.06 1 0.06
TOTAL 1.00 3.09
EFE Matrix Score of is 2.66 which is higher than the bench mark of 2.50
40
3.4 SWOT ANALYSIS:
3.4.1 STRENGTHS:
The first step to a SWOT analysis of hotel industry in India will be identifying its strengths.
There are more than 1000 classified hotels with a room availability of around 97,000 rooms
which can easily cope with the demand of tourists. Furthermore, there are also a number of
international names in the market which meet the needs of international tourists on their visit to
India. In addition, there are many tourist attractions and the cost of labor is low in comparison
with the rest of the world, thus, providing better margins for hotel owners and higher growth
potential in the industry.
3.4.2 WEAKNESSES:
Next in line is assessing the weaknesses. One major restraint to the hotel industry of India is the
cost of land, which is as high as 50% of the total project cost, against a low 15% abroad. The
country also has a higher tax structure as compared to other countries which inflates the hotel
expense a great deal. Furthermore, the services offered by some hotels are limited and not
comparable to world standards.
3.4.3 OPPORTUNITIES:
The third strategic element to a SWOT analysis of hotel industry in India is the opportunities.
The country boasts a number of attractions and has unmatchable diverse topography making it an
ideal destination for tourists. As a result, the number of inbound tourists is expected to increase
at a quick rate, further pushing the demand for hotels. Additionally, the demand for both national
and inbound tourists can easily be managed as the peak season. For international tourists, arrival
is between September and March, while most national tourists prefer to wait until school
holidays, which are during the summer months.
3.4.4 THREATS:
Where there are opportunities, you will also find threats. Several hotels in India are being
replaced by guesthouses, thus, adversely affecting the hotel industry. Political unrest in the
41
country also plays its part in reducing tourist traffic and consequently affects business of the
hospitality industry. The countrys economic condition has a direct impact on the earnings of
hotels. As a result, the staff might not be trained well enough to meet international standards.
3.5 BCG METRIX (The Boston Consulting Group):
The BCG Matrix graphically portrays differences among divisions in terms of relative market
share position and industry growth rate. The BCG Matrix allows a multidivisional organization
to manage its portfolio of businesses by examining the relative market share position and the
industry growth rate of each division relative to all other divisions in the organization. Relative
market share position is defined as the ratio of a division's own market share in a particular
industry to the market share held by the largest rival firm in that industry.
42
3.5.1 QUESTION MARKS:
Divisions in Quadrant I have a low relative market share position, yet compete in a high- growth
industry. Generally these firms' cash needs are high and their cash generation is low. These
businesses are called Question Marks because the organization must decide whether to
strengthen them by pursuing an intensive strategy (market penetration, market development, or
product development) or to sell them.
3.5.2 STARS:
Quadrant businesses (often called Stars) represent the organization's best long-run opportunities
for growth and profitability. Divisions with a high relative market share and a high industry
growth rate should receive substantial investment to maintain or strengthen their dominant
positions. Forward, backward, and horizontal integration; market penetration; market
development; product development; and joint ventures are appropriate strategies for these
divisions to consider.
3.5.3 CASH COWS:

Divisions positioned in Quadrant III have a high relative market share position but compete in a
low- growth industry. Called Cash Cows because they generate cash in excess of their needs,
they often are milked. Many of today's Cash Cows were yesterday's Stars. Cash Cow divisions
should be managed to maintain their strong position for as long as possible. Product
development or concentric diversification may be attractive strategies for strong Cash Cows.
However, as a Cash Cow division becomes weak, retrenchment or divestiture can become more
appropriate.
3.5.4 DOGS:
Quadrant IV divisions of the organization have a low relative market share position and compete
in a slow- or no- market-growth industry; they are Dogs in the firm's portfolio. Because of their
weak internal and external position, these businesses often are liquidated, divested, or trimmed
down through retrenchment. When a division first becomes a Dog, retrenchment can be the best
strategy to pursue because many Dogs have bounced back, after strenuous asset and cost
reduction, to become viable, profitable divisions.
43
3.6 PORTER FIVE FORCES MODEL:
3.6.1 THREAT OF NEW ENTRANTS BARRIER TO ENTRY:

According to Michael Porter (1980), threat of new entrants are determined by barriers to entry
which include economies of scale which include size and scope of operations required to achieve
viable cost structure; product differentiation, switching costs and customer loyalty created by
quality, reliability and brand image; capital requirements which involve size of cash and
financial resources required to establish and run a business; cost disadvantages independent of
scale as opposed to advantages held by existing competitors such as location, patents and
experience; access to distribution channels which include means to reach customers; government
policy such as licensing, subsidies or tax incentives; and expected retaliation from existing
competitors which are determined by current rivalry, history of vigorous retaliation and strengths
of incumbents.
The Hotel Industry on a global basis is characterized by high capital costs and a high proportion
of fixed costs to total costs. There are considerable economies of scale in the local Hotel
Industry. The high capital costs require that from the outset the hotel project must be managed to
achieve the most costeffective use of resources applied to construction, furnishing and
equipment, pre-operational expenses and finance. The optimum size for a hotel in metropolitan
cities is around 500 rooms. It may also be a marketing advantage to belong to a chain of hotels
to benefit from brand image or loyalty.
Hotels must also aim to fill their rooms as profitably as possible, both through room occupancy
levels and the relative tariffs applied. The two crucial factors that enable hotels to differentiate
themselves are good location for the relative target market and quality of service. This latter
issue is dependent upon good management and trained and motivated staff. The Hotel Industry in
most metropolitan cities in the world provides considerable opportunity to cross-sell profitable
products such as Food and Beverage. Tariffs are determined according to the level of
differentiation achieved through location, management, staff and guest ratios and any other
miscellaneous factors such as the quality of architecture or decoration.
A hotel operator will need either to sell the hotel project before completion or to acquire hotel
management expertise by a management agreement or some form of acquisition. The industry
generally exhibits high product differentiation in this respect. Capital requirements for hotel
44
projects are high. Hotels cannot be easily traded, but must be retained on a long-term basis for
investment purposes. The industry is subject to considerable cost advantages or disadvantages
independent of size. The success of a hotel project is very sensitive to location, management and
the quality and experience of staff.
The growth of the Hotel Industry in most metropolitan cities is limited by the availability of
suitable locations. Access to distribution channels can be a problem, but this factor can be
mitigated by a connection with an international hotel chain. Government policy in most
metropolitan cities, in itself, is not hostile to new hotels. Likely reaction from existing
competitors is likely to be quite acute, but varies according to the particular market segment and
strategic group. The industry exhibits high entry barriers restricting new entrants, particularly
because of the combined factors of economies of scale and high capital cost of entry, together
with the limited supply of suitable locations.
3.6.2 THREATS OF SUBSTITUTE PRODUCTS:

Michael Porter (1980) indicated that substitute products can be existing or potential products and
services which are able to perform the same function. Substitute products can reduce costs,
and/or provide better quality performance and better value which very often the result of
technological innovation.
The Hotel Industry in all major cities is not threatened by substitute products except that in times
of recession domestic travel might replace international or overseas travel and certain
destinations replace more expensive ones on cost grounds. In theory, substitute products perform
same function, reduce costs, and/or provide higher quality performance with better service due to
technological advancement (Porter, 1980). In the lower strategic groups for tourist traffic,
hostels, motels and staying with relatives might replace cheaper hotels. This market is either low-
income or cost-conscious, but in any event, it is quite price-sensitive.
A hotel operator in anywhere can compete on a low cost basis in a niche segment. It can also
compete on the basis of a modern, comfortable but not luxurious hotel situated in a popular and
convenient location appearing to offer good value to the cost-conscious visitors. Whether this
strategy is sustainable in the long term is uncertain, given that in an area with good
communications and costconscious travelers may be prepared to suffer slight inconvenience for
cost savings. The importance of location to the target market may be over-rated. The hotel
45
operator may not be able to rely solely on location to retain its market share in a situation of
oversupply and consequently intense rivalry.
There is no major threat of substitute products specific to a hotels product and service. A hotel
will be subject to powerful buyers only if its marketing strategy concentrates on attracting tour
groups, provided no oversupply for the hotels target market develops. A hotel may not appear to
be particularly vulnerable to intense rivalry because of the fragmented nature of the competition
in its strategic group and the potential growth rate of its target market. In the upper strategic
groups, for example, those particularly catering for business traveler, or the upper middle aged
and old aged bracket, there is little opportunity for substitute products. Substitute products are
not a major present or likely threat to Hotel Industry as a whole.
3.6.3 BARGAINING POWER OF SUPPLIERS:

Porter (1980) emphasized that suppliers to an industry may be powerful if they are more
concentrated than their customers and their customers do not command a significant share of
their business because their customers do not represent a potential long-term or major
relationship, for example, one-off or small customers versus regular or bulk buyers. Or their
customers face differentiated products and services or high switching costs. A customer may be
reluctant to change a supplier if such change would face extra one-time switching expenditure.
Also if such change entails a perceived deterioration in the quality, image or quality of the
suppliers product which will adversely affect the customers service. Suppliers have more
bargaining power if their product is an important input in the industry success. The suppliers
input is crucial to the success of the customers product and service such as local tourist
operators, thereby lowering the customers price sensitivity.
There is a great demand for enhanced global information and booking capabilities in the
hospitality industry (Kotler et al., 1998, pp.761). However, the only supplier which might
exercise power over any company would be labor and experienced trained personnel, which is in
great demand in the Hotel Industry all over the world. In relation to other industries, hotels are
not significantly subject to the bargaining power of their suppliers and suffer low levels of
indirect pressure on their competitiveness from this source. For a sustainable business strategy
over the long term a hotel will have to maintain a permanent cost advantage over potential
46
competitors in higher strategic groups, say in the four or even five star categories hotels, as well
as further differentiating itself within its own strategic group.
3.6.4 BARGAINING POWER OF BUYERS:

Porter (1980) mentioned that the buyers of goods and services from an industry may be powerful
if they are more concentrated than the players in the industry and are able to force down prices as
well as reduce the industrys margin. They can purchase from the industry in large volumes, thus
forcing down prices, or increase costs through demand for higher quality products and services.
If the products and services purchased by buyers lack differentiation or switching costs, they can
easily find acceptable alternative sources of supply. Buyers can pose a threat of backward
integration as large group of buyers can acquire the supply source. If the industrys input is not
crucial to the success of the buyers product and service, price sensitivity thus increased. Buyers
have the incentive to be powerful if purchases from the industry represent a significant
proportion of their total costs. Buyers will earn low margins and are price sensitive if they cannot
pass on cost increases easily, or absorb them due to low profit margins. This can happen to a lot
of in-bound tour operators or travel agencies in most metropolitan cities.
Certain buyer groups exercise bargaining power as a result of their concentration or bulk
purchases of hotel rooms. These groups would include tour operators, domestic or international
airlines and large customers, such as convention organizers. This factor is more acute in the
lower tier strategic groups which cater more to travel groups than the independent leisure or
business traveler. Differentiation is a significant factor in respect of the business travelers and for
certain categories of independent leisure travelers, but it declines in importance in the strategic
groups catering to budget leisure travelers and groups.
Users of hotels are not likely to buy them, with the possible exception of airlines, because of the
high level of investment required. Even many international hotel chain companies themselves
function as operators or managers instead of owners. There is, therefore, only a minor threat of
backward integration. With regard to business travel, buyers will tend not to be price-sensitive if
the purchase of a hotel room represents only an insignificant item relative to the underlying
business transaction. Otherwise, large scale buyers of hotel rooms for business purposes will
tend to shop around for special rates. Buyers of hotel rooms are often, as a group, rather
fragmented on a worldwide basis.
47
Where buyer groups become more concentrated, for example, tour groups, the prevalence of low
profit margins will tend to raise the buyer groups price-sensitivity. In this context a hotels
choice of buyer group becomes crucial and hotels which target tour groups or other categories of
concentrated buyers will be more subject to the bargaining power of buyers. Within that class its
strategic group is further defined by its target market, namely, medium-pocket in the upper age
bracket. Purchases of hotel rooms are important to certain categories of leisure traveler, and to
most categories of business traveler.
The bargaining power of buyers varies significantly within the industry, depending upon a
hotels target buyer group, but this factor becomes acute in a situation of oversupply or where
buyers of hotel rooms are concentrated.
3.6.5 RELAVIRY AMONG EXISTING FIRMS:

Porter (1980) reiterated that intensity of rivalry is dependent on number and size of direct
competitors as numerous and/or equally balanced competitors may lead to intense competition.
This is because business growth sought is greater than rate of growth of the industry. The rivalry
for market share becomes intense when product differentiation and switching costs are low.
Rivalry becomes more intense in fixed costs particularly in high preservation/carrying cost
industries such as the Hotel Industry in most metropolitan cities. There are strong pressures to
sell capacity by price-cutting except weekends and holiday seasons. Capacity augmentation
exists as large additions to capacity can disrupt the demand and supply balance and leads to
intense rivalry. Exit barriers happen due to economic, strategic and economic factors which
retain competitors in an industry. Despite low or negative profitability and diversity, companies
and industries may have different origins, goals and strategies and an overlap in target customers.
48
3.7 SPACE MATRIX:-
Financial Strength Rating Environmental Rating

Stability
Return on Asset 3 Inflation Rate -4
Leverage/Debt 2 Technological -3
Changes
Net Income 3 Competitive Pressure -4
Earnings Per Share 4 Barriers of Entry -2
Net Profit Margin 2 SBP Policy -3
Total 14 Total -16
Industry Strength Rating Competitive Rating
Advantage
Growth Potential 3 Market Share -1
Financial Stability 3 Service Quality -2
Ease of Entry in the 3 Customer Loyalty -4
industry
Resource Utilization 5 Technological -2
Knowledge
Profit Potential 2 Online -4
Network/ATMS
Total 16 Total -13
ES Average is -16 5 = -3.20
IS Average is + 16 = 3.10
CA Average is -13 5=-2.6
FS Average is 14 4 = 2.8
Directional Vector Coordinates:-
x-axis: IS + CA = 3.10-2.60 = 0.50
y-axis: FS + ES = 2.8-3.20 = -0.40
49
FS
5
CONSERVATIVE 4 AGGRESSIVE
CA IS
-8 -7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7 8
-2
-3
-4
DEFENCIVE COMPETITIVE
-5
-6
ES
The directional vector may appear in the conservative quadrant (upper- left quadrant) of the
SPACE Matrix, which implies that staying close to the company's basic competencies and not
taking excessive risks should be the recommended strategy. Conservative strategies most often
include market penetration, market development, product development, and concentric
diversification for example. Defensive strategies include retrenchment, divestiture, liquidation,
and concentric diversification. Finally, the directional vector may be located in the lower-right or
competitive quadrant of the SPACE Matrix, indicating competitive strategies would be most
appropriate. Competitive strategies include backward, forward, and horizontal integration;
market penetration; market development; product development; and joint venture, to name but a
few. Understanding all of these potential options can be a complicated and time consuming
undertaking. If you need a SPACE Matrix produced for your organization or for a business
research project just contact China Doll Publishing or follow the link for more explanations
regarding custom writing services .
50
CHAPTER-4
FINANCIAL ANALYSIS
51
4.1 TRADE ANALYSIS:
[1] TOTAL INCOME:-
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 293.22 266.72 276.66 242.50 145.65
Bharat Hotel 487.80 419.30 403.12 412.83 413.96
Hotel Leela 768.17 654.70 588.44 509.54 478.38
Eih Ltd 1,291.34 1,177.28 1,173.36 1,175.52 907.27
Indian Hotels
1,977.33 1,924.79 1,912.21 1,765.14 1,592.39
Co Ltd
Total 4817.86 4442.79 4353.79 4105.53 3537.65
AVG 963.572 888.558 870.758 821.106 707.53
TOTAL INCOME
1200
1000
800
600
TOTAL INCOME
400
200
0
2013-14 2012-13 2011-12 2010-11 2009-10
The Industry has a fluctuating flow of income over the 5 years. The industry has been able to
improve its sell much but not able in 2012-13. After 2010-11 the income increase in Hotel Leela
Venture Ltd and Indian Hotels Co Ltd at decreasing rate. But Asian Hotels income continues
increase. This is a good sign for the industry having such a reputed name in the market. Also it
affects the earnings of shareholders.
52
[2] EXPENCES:-
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 216.72 157.98 163.78 157.85 93.03
Bharat Hotel 353.79 328.93 285.98 288.32 311.72
Hotel Leela
573.24 532.05 141.60 334.15 324.93
Venture Ltd
Eih Ltd 1,006.72 959.69 870.84 847.40 649.78
Indian Hotels
2,277.15 1,904.36 1,420.28 1,276.44 1,093.98
Co Ltd
Total 4427.62 3883.01 2882.48 2904.16 2473.44
AVG 885.524 776.602 576.496 580.832 494.688
TOTAL EXPENCE
1000
900
800
700
600
500
400 TOTAL EXPENCE
300
200
100
0
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show the industry fluctuating of expenses over the 5 year. The industry has not able
to decrease their expenses. The expenses of last 5 years is continually increase. In 2011-12 Hotel
Leela Venture Ltd total expenses decrease and than after increase.
53
[3] OPERATING PROFIT:
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 76.50 108.73 112.88 84.65 52.62
Bharat Hotel 134.01 90.37 117.15 124.51 102.24
Hotel Leela
194.94 122.64 446.84 175.39 153.45
Venture Ltd
Eih Ltd 284.61 217.59 302.52 328.12 257.49
Indian Hotels
-299.82 20.43 491.93 488.70 498.41
Co Ltd
Total 390.24 559.76 1471.32 1201.37 1064.21
AVG 78.048 111.952 294.264 240.274 212.842
OPRATING PROFIT
350
300
250
200
150 OPRATING PROFIT
100
50
0
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show the industry different year operating profit over the 5 year. The graph show
the first 3 year operating profit continually increase. The industry show, they have achieved good
market share over the first 3 year. But the year of the 2012-13 the industry operating profit was
decrease the reason is Asian Hotels, Hotel Leela Venture Ltd and Indian Hotels Co Ltd operating
profit is decrease.
54
[ 4 ] PBDT:
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 3.08 56.41 65.98 54.68 41.10
Bharat Hotel 39.44 7.88 48.35 70.38 69.52
Hotel Leela
-306.69 -282.70 125.59 119.31 128.98
Venture Ltd
Eih Ltd 243.96 172.58 248.11 172.93 156.61
Indian Hotels
-398.64 -84.77 343.82 329.85 321.39
Co Ltd
Total -418.85 -130.6 831.85 747.15 717.6
AVG -83.77 -26.12 166.37 149.43 143.52
PBDT
200
150
100
50 PBDT
0
2013-14 2012-13 2011-12 2010-11 2009-10
-50
-100
Above graph show the industry fluctuating of PBDT over the 5 year. The industry has able to
improve their PBDT in 2011-12 but than after PBDT not improve in 2012 and 2013 . The first 3
year industry has increase PBDT But suddenly in the year of 2011-12 the trend was downfall.
Because in the year 2011-12 and 2012-13 the two company Hotel Leela Venture Ltd, Indian
Hotels Co Ltd suddenly down their PBDT.
55
[5] TOTAL SHARE CAPITAL:-
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 19.45 24.35 24.35 24.35 22.61
Bharat Hotel 75.99 75.99 75.99 75.99 75.99
Hotel Leela
90.32 83.73 77.57 77.56 75.56
Venture Ltd
Eih Ltd 114.31 114.31 114.31 114.31 78.59
Indian Hotels
80.75 80.75 75.95 75.95 72.35
Co Ltd
Total 380.82 379.13 368.17 368.16 325.1
AVG 76.164 75.826 73.634 73.632 65.02
SHARE CAPITAL
78
76
74
72
70
68
66 SHARE CAPITAL
64
62
60
58
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show the industry fluctuating of Total share capital over the 5 year. In first three
year the total share capital of the industry is near to not equal, but in 2011-12 the share capital is
decrease the reason is Asian Hotels share capital is decrease. This is not a good sign for the
industry having such a reputed name in the market. Also it affects the industry volume and profit.
56
[6] TOTAL LIABILITY:
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 1,709.57 1,658.06 1,544.81 1,414.90 950.35
Bharat Hotel 2,057.45 1,895.46 1,871.73 1,756.36 1,644.79
Hotel Leela
5,816.15 5,923.20 5,797.89 5,999.29 4,932.80
Venture Ltd
Eih Ltd 2,947.38 3,028.90 2,933.96 3,447.57 2,676.63
Indian Hotels
6,042.87 6,579.09 6,715.26 6,179.84 5,361.46
Co Ltd
Total 18573.42 19084.71 18863.65 18797.96 15566.03
Avg 3714.684 3816.942 3772.73 3759.592 3113.206
total loability
4500
4000
3500
3000
2500
2000 total loability
1500
1000
500
0
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show that the industry total liability continually over the 5 year. The industry
liability is continues increase in all 5 year the reason is all four company increase the liability
but in a year 2010-11 Bharat Hotel and Seshasayee Paper & Hotel Leela Venture Ltd the total
liability is decrease.
57
[7] TOTAL INVESTMENT:
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 556.61 107.96 104.66 391.06 0.00
Bharat Hotel 126.06 206.30 206.30 206.30 206.29
Hotel Leela
46.24 46.24 146.34 46.14 46.14
Venture Ltd
Eih Ltd 703.95 705.73 628.05 605.14 378.24
Indian Hotels
2,761.64 3,369.14 3,622.19 3,026.78 3,458.44
Co Ltd
total 4194.5 4435.37 4707.54 4275.42 4089.11
AVG 838.9 887.074 941.508 855.084 817.822
total investment
960
940
920
900
880
860
840 total investment
820
800
780
760
740
2013-14 2012-13 2011-12 2010-11 2009-10
At the initial level the industry is very poor in making investments at the year 2011 -12 industry
sold its investments but in 2013-14 and 2009-10 industry had done good business And the year
2011-12 and 2012-13 industry had decrease their investment the reason is Hotel Leela Venture
Ltd and Asian Hotels sold his investment. 9
9
www.capitalline.com
58
4.2 RATIO ANALYSIS:-
4.2.1 DEBT /EQUITY:-
A measure of a company's financial leverage calculated by dividing its total liabilities by

stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
DEBT /EQUITY= TOTAL LIABILITIES

SHAREHOLDERS EQUITY
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 1.28 1.06 0.98 0.61 0.26
Bharat Hotel 1.14 1.08 0.92 0.82 0.69
Hotel Leela
Venture Ltd 13.63 6.31 4.51 3.89 3.28
Eih Ltd 0.14 0.14 0.23 0.59 0.97
Indian Hotels
Co Ltd 0.87 0.78 0.76 0.85 0.78
Total 16.19 8.59 6.64 5.91 5.2
AVG 3.238 1.718 1.328 1.182 1.04
Debt-Equity Ratio
3.5
2.5
1.5 Debt-Equity Ratio
0.5
0
2013-14 2012-13 2011-12 2010-11 2009-10
A measure of an industry financial leverage calculated by dividing its total liabilities by

stockholders' equity. It indicates what proportion of equity and debt the industry is using to
finance its assets. Above graph show the industry debt equity ratio was increase in the year of the
2013-14 and the decrease in year 2009-10 and 2010-11 the reaso1n is Eih Ltd & Indian Hotels
Co Ltd the ratio is decrease. it is good position in the market.
59
4.2.2 CURRENT RATIO:-
It is a measure of general liquidity and is most widely used to make the analysis for short term
financial position or liquidity of a firm. It is calculated by dividing the total of the current assets
by total of the current liabilities.
CURRENT RATIO = CURRENT ASSETS

CURRENT LIABILITY
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 0.19 0.17 0.16 0.3 0.76
Bharat Hotel 0.61 0.51 0.52 1 1.59
Hotel Leela
Venture Ltd 0.13 0.15 0.27 0.56 0.93
Eih Ltd 0.41 0.43 0.86 1.07 1.1
Indian Hotels
Co Ltd 0.4 0.39 0.31 0.58 1.13
Total 1.34 1.26 1.81 2.93 4.38
AVG 0.268 0.252 0.362 0.586 0.876
CURRENT RATIO
1
0.8
0.6
0.4 CURRENT RATIO
0.2
0
2013-14 2012-13 2011-12 2010-11 2009-10
The current ratio is a financial ratio that measures whether or not a industry has enough resources
to pay its debts over the next 12 months. It compares a firm's current assets to its current
liabilities. Above graph show the current ratio in the year of 2009-10 was 0.87 and suddenly next
four year falls down the reason is Bharat Hotel, Eih Ltd and Indian Hotels Co Ltd decrease the
ratio continues. It means the industry next four year current assets and current liability was
decrease.
60
4.2.3 FIXED ASSEST:-
A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's
ability to generate net sales from fixed-asset investments - specifically property, plant and
equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the
company has been more effective in using the investment in fixed assets to generate revenues.
Fixes Assest = Total Sales

Total fixes assest
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 0.23 0.24 0.26 0.28 0.35
Bharat Hotel 0.33 0.32 0.34 0.41 0.46
Hotel Leela
Venture Ltd 0.13 0.13 0.15 0.15 0.16
Eih Ltd 0.47 0.45 0.46 0.44 0.4
Indian Hotels
Co Ltd 0.67 0.66 0.67 0.67 0.62
Total 1.16 1.14 1.21 1.28 1.37
AVG 0.232 0.228 0.242 0.256 0.274
FIXED ASSEST
0.3
0.25
0.2
0.15
FIXED ASSEST
0.1
0.05
0
2013-14 2012-13 2011-12 2010-11 2009-10
Financial analyst considers the fixed assets as an important measure of profitability. fixed assets
measures the profit available to the total assets holders on a per share basis. That is the amount
that they can get on every assets. The fixed assets has increase rapidly from 2009-10 to 2010-11.
In 2009-10 it was highest at 0.274 and it has decreased to in 2011-12 and 2012-13. This lower
ratio will not attract investors. This ratio shows that company fails to increase assets in 2011-12
and 2012-13.
61
4.2.4 INVENTORY:-
Inventory turnover is the ratio of cost of goods sold by a business to its average inventory during
a given accounting period. It is an activity ratio measuring the number of times per period, a
business sells and replaces its entire batch of inventory again.
INVENTORY TURNOVER RATIO = COST OF GOODS SOLD

AVERAGE INVENTORY
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 36.64 36.33 35.99 37.36 39.35
Bharat Hotel 30.32 27.13 24.72 30.35 36.31
Hotel Leela
Venture Ltd 49.13 48 50.51 53.06 42
Eih Ltd 33.33 33.72 33.44 32.25 25.62
Indian Hotels
Co Ltd 49.13 48 50.51 53.06 42
Total 149.42 145.18 144.66 153.02 143.28
AVG 29.884 29.036 28.932 30.604 28.656
INVENTORY
31
30.5
30
29.5
29 INVENTORY
28.5
28
27.5
2013-14 2012-13 2011-12 2010-11 2009-10
A ratio showing how many times a inventory is sold and replaced over a period. Here the graph
show the higher inventory turnover ratio is 30.64 in the year of the 2010-11 the reason is the all
four company inventory turnover ratio is increase. It means the industry inventory is more sold
and replaced over a period. But in 2011-12 and 2012-13 is decrease the reason is and Hotel Leela
Venture Ltd ratio is decrease.
62
4.2.5 DEBTOR TURNOVER RATIO
Debtors Turnover ratio is a test of the liquidity of the firm. This ratio establishes the relationship
between net credit sales and accounts receivables. The objective of this ratio is to determine the
efficiency with which the debtors are being managed. It suggests the number of time the amount
of credit sale is collected during the year.
DEBTOR TURNOVER RATIO = NET SALES
DEBTOR
Year 2013-14 2012-13 2011-12 2010-11 2009-10

Asian Hotels 21.56 18.94 20.18 23.52 19.42
Bharat Hotel 13.49 14.47 14.61 17.03 20.56
Hotel Leela
Venture Ltd 11.02 11.45 11.41 11 12.94
Eih Ltd 7.16 7.2 8.37 9.14 8.09
Indian Hotels
Co Ltd 15.46 15 15.81 14.84 13.19
Total 53.23 52.06 54.57 60.69 61.01
AVG 10.646 10.412 10.914 12.138 12.202
DEBTORS
12.5
12
11.5
11
DEBTORS
10.5
10
9.5
2013-14 2012-13 2011-12 2010-11 2009-10
Debtor turnover ratio or accounts receivable turnover ratio indicates the velocity of debt
collection of an industry. In simple words it indicates the number of times average debtors
(receivable) are turned over during a year. The graph show debtor turnover ratio in the year
2012-13 is decrease the reason is Bharat Hotel ratio is decrease. It is the benefit of the industry.
63
But in 2009-10 the ratio is increase the reason is all four company debtor turnover ratio is
increase. 10
10
www.capitalline.com
64
CHAPTER-5
FINDING & CONCLUSION
65
FINDING:-
Only three hotel resorts incorporated environmentally friendly operations into their strategy
Environmentally friendly practices such as energy saving water consumption and waste
management were incorporate to a certain degree where economics saving were present.
Main challenges in operating environmentally friendly where lack of knowledge, investment,

needed and time consuming.
Main advantage in operating environmentally friendly where cost saving in certain areas and
benefits to destination.
Only one hotel resort covered many areas of environmentally friendly operations, including
training.
Environmentally friendly operations were used minimal in marketing.
68.1 percent of tourist indicated preference of eco- labeled hotel resort howre, it was least
importance factor when choosing accommodation, the contractions show the importance of
matching other attributes such as location, appearance, service and facilities.
56.2 percent of tourist indicated willingness to pay premium for eco- labeled hotel resort.
People with higher level of education indicated more interest in eco- labeled hotel resorts.
66
CONCLUSION
Service to man is service to God. As the proverb says the hotel owners and the managers
provide good service to their customers, which in turn will increase the profitability of the hotels.
In the hotel industry, service quality, as an extremely subjective category, is crucial to the
satisfaction of the customers. If they increase the quality of service it will attract more customers
at the same time they can expand the business, and it will lead to more employment
opportunities.
To sum- up, this thesis attempts to clarify the SERVQUAL model and not only provides the
managers with a clear picture of the quality of the services provided, but also helps the hotel
owners to discover the needs, tastes, preferences and expectations of the guests. It also lists out
various facilities provided by the hotels to their customers and also various services mixes
provided. We can say that it helps managers in setting the standards for the provision of services
in the hospitality industry.
67
CHAPTER-6
B-PLAN
68
6.1 INTRODUCTION
Royal Rajputana Hotel & Resort offers luxury accommodation and associated amenities to local,
regional, national and international tourists and travelers. For business travelers we offer a wide
range of facilities such as conference and meeting rooms and exhibition space, including all
necessary conferencing equipment and security.
6.2 OBJECTIVE:-
The objectives of the Royal Rajputana Hotel & Resort for the first three years of operation
include:
Exceeding customer's expectations for luxury apres ski accommodations.

Maintaining an 90% occupancy rate during the peak periods.
Assembling an experienced and effective staff.
6.3 VISION
The planned hotel can look forward to a promising future, because of the experienced staff, our
careful planning, the potential of the targeted market segments, and skills training program. Our
pre-market research has shown the intended market to have plenty of room for a hotel such as
Foundations intends to run. The management style is flexible, progressive and energetic.
Enthusiasm of the management as well as the employees will greatly stimulate the envisioned
growth
6.4 MISSION
Royal Rajputana Hotel & Resort offer high quality and high value products and services to the
customers and also tries to improve consumer life.
6.5 PERSONNEL PLAN
The personnel needed for Royal Rajputana Hotel & Resort are the following:
Manager.
Assistant manager.
Lodge staff (7).
Food store staff (3).
Ski rental/clothing store (3).
Maintenance staff (3).
Cleaning staff (4).
69
6.6 COMPANY PROFILE:
COMPANY NAME Royal Rajputana Hotel & Resort

COMPANYS ADDRESS Head office at Maunt Abu
Near Nakki Talav
Rajsthan. 362-001
OWNERS OF THE COMPAN Vaghela Hemant (20% Share)
Zala shaktisinh (20% Share)
Dabhi Yogendrasinh (15% Share)
SojitrabAjay (15% Share)
Vyas Mayur (15% Share)
Raval Bhoomi (15% Share
THERE BASIC QUALIFICATION All partners having MBA degree with
specialization on (Marketing, Finance, and
H.R.)
TOTAL INVESTMENT 10,000,000
MAIN PRODUCT OFFERED Luxury Facilities
TYPES OF INDUSTRY Hotel industry
6.7 PROCESS/STEPS FOR STARTING BUSINESS
To check our market potentiality.

Location selection
Physical set up (office/furniture etc.)
Purchasing of materials.
Applying local govt. (municipal) for registration.
Starting Business
6.8 LIST OF DOCUMENTS/FORMALITIES REQUIRED TO DO BUSINESS
Partnership deed (MoA / AoA ).

License from Govt. (shop registered under municipality).
70
PAN number for business.
Gumasta-dhara certificate.
Opening of bank account.
Telephone/Fax connection (land line)
6.9 PRODUCTS
Royal Rajputana Hotel & Resort will offer customers 12 two-bedroom units, fully-equipped
kitchens, laundry facilities and stone fireplaces. Royal Rajputana Hotel & Resort will offer a
common-area outdoor hot tub as well as the following services on-site:
Food store
Ski rental/clothing shop
Front desk service
6.10 MARKET SEGMENTATION
Our customers can be broadly divided into two groups:
Skiers. Royal Rajputana Hotel & Resort area is quickly becoming one of the best ski
resorts in the Mount Abu. The resort is located 36 miles is easily accessible.
Summe r Visitors. During the summer months, Royal Rajputana Hotel & Resort area is a
beautiful wilderness retreat with over 50 hiking trails and other outdoor recreational
activities.
6.11 SALES STRATEGY
Royal Rajputana Hotel & Resort sales strategy is to harness the existing booking system that has
been critical to the success of all of the area's lodges and inns. Room rates will range from
Rs1000-1200 per night in peak season. In the off season prices will range from Rs600-800 per
night.
6.12 MARKETING STRATEGY
Royal Rajputana Hotel & Resort area has its own website and advertising/promotion program
that promotes the area's lodging. Currently, 70% of the area's visitors use the website to identify
lodging and service options.
Royal Rajputana Hotel & Resort is positioned as a new upscale facility that is focused on the
high- income visitors to Resort. The area's lodges and inns receive approximately 80% of their
guests from the Royal Rajputana Hotel & Resort booking system. Since the total number of room
units are few with the area's lodges and inns, these lodging units fill up quickly.
71
In addition, Royal Rajputana Hotel & Resort will be highlighted in a promotional in the
December issue of Ski Magazine.
6.13 COST OF PROJECT
The estimated project cost under various heads has been worked out for New Project like
furniture & fixture, various electric items like machinery, etc
SR.NO PARTICULARS AMOUNT

1 Site on Rent 300,000
2 Computer 72,000
3 Furniture 800,000
4 Machinery & Equipments 45,15,000
5 Raw material expenses 12,83,000
6 Marketing and Sales 200,000
Promotion Expenses
7 Staff Salary 600,000
8 Other Expenses 300,000
TOTAL 8,070,000
CASH ON HAND 1,930,000
COST OF PROJECT 10,000,000
6.14 SOURCE OF FINANCE
PARTICULARS AMOUNT
Promoters Contribution
Vaghela Hemantsang 20,00,000
Zala Shaktisinh 20,00,000
Dabhi Yogendrasinh 10,50,000
Sojitra Ajay 10,50,000
Vyas Mayur 10,50,000
Raval Bhoomi 10,50,00
TOTAL 1,00,00,000
72
6.15 PROJECTED SALES:
Year 1 Year 2 Year 3

Sales 430,000 560,000 600,000
Rooms 121,000 140,000 180,000
Food 132,000 145,000 160,000
Ski Rentals 58,000 70,000 82,000
Clothing 430,000 560,000 600,000
TOTAL 741,000 915,000 1,022,000
6.16 PROFIT AND LOSS:

Sales 741,000 915,000 1,022,000
Direct Cost of Sales 83,200 101,000 128,000
Other Production
0 0 0
Expenses
Total Cost of Sales 83,200 101,000 128,000
Gross Margin 657,800 814,000 894,000
Gross Margin % 88.77% 88.96% 87.48%
Expenses
Payroll 382,000 414,000 438,000
Sales and Marketing
60,000 80,000 100,000
and Other Expenses
Depreciation 14,280 14,280 14,280
Leased Equipment 0 0 0
Utilities 26,000 26,000 26,000
Insurance 24,000 24,000 24,000
Lease 0 0 0
Payroll Taxes 57,300 62,100 65,700
73
Other 0 0 0
Total Operating
563,580 620,380 667,980
Expenses
Profit Before Interest
94,220 193,620 226,020
and Taxes
EBITDA 108,500 207,900 240,300
Interest Expense 33,375 30,500 27,500
Taxes Incurred 18,254 48,936 59,556
Net Profit 42,592 114,184 138,964
Net Profit/Sales 5.75% 12.48% 13.60%
6.17 PROJECTED BALANCE SHEET

Assets
Cash 31,437 118,555 165,584
Other Current Assets 14,000 32,000 53,000
Total Current Assets 45,437 150,555 218,584
Long-term Assets 350,000 370,000 430,000
Accumulated
14,280 28,560 42,840
Depreciation
Total Long-term
335,720 341,440 387,160
Assets
Total Assets 381,157 491,995 605,744
Liabilities and
Capital
Accounts Payable 3,965 30,619 35,405
Current Borrowing 0 0 0
Other Current
0 0 0
Liabilities
74
Subtotal Current
3,965 30,619 35,405
Liabilities
Long-term Liabilities 320,000 290,000 260,000
Total Liabilities 323,965 320,619 295,405
Paid- in Capital 200,000 200,000 200,000
Retained Earnings (185,400) (142,809) (28,625)
Earnings 42,592 114,184 138,964
Total Capital 57,192 171,376 310,340
Total Liabilities and
381,157 491,995 605,744
Capital
Net Worth 57,192 171,376 310,340
6.18 PROJECTED CASH FLOW:

Cash Received
Cash from
Operations
Cash Sales 741,000 915,000 1,022,000
Subtotal Cash from
741,000 915,000 1,022,000
Operations
Additional Cash
Received
Sales Tax, VAT,
0 0 0
HST/GST Received
New Current
0 0 0
Borrowing
New Other
Liabilities (interest- 0 0 0
free)
New Long-term 0 0 0
75
Liabilities
Sales of Other
0 0 0
Current Assets
Sales of Long-term
0 0 0
Assets
New Investment
0 0 0
Received
Subtotal Cash
741,000 915,000 1,022,000
Received
Expenditures Year 1 Year 2 Year 3
Expenditures from
Operations
Cash Spending 382,000 414,000 438,000
Bill Payments 298,163 345,882 425,971
Subtotal Spent on
680,163 759,882 863,971
Operations
Additional Cash
Spent
Sales Tax, VAT,
0 0 0
HST/GST Paid Out
Principal Repayment
of Current 0 0 0
Borrowing
Other Liabilities
0 0 0
Principal Repayment
Long-term Liabilities
30,000 30,000 30,000
Principal Repayment
Purchase Other
14,000 18,000 21,000
Current Assets
Purchase Long-term 0 20,000 60,000
76
Assets
Dividends 0 0 0
Subtotal Cash Spent 724,163 827,882 974,971
Net Cash Flow 16,837 87,118 47,029
Cash Balance 31,437 118,555 165,584
Cash Received 741,000 915,000 1,022,000
6.19 BUSINESS RATIOS:

Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7011, Hotels and Motels, are shown for
comparison.
Year 1 Year 2 Year 3 Industry Profile

Total Current
11.92% 30.60% 36.09% 32.00%
Assets
Total Liabilities 85.00% 65.17% 48.77% 54.00%
Profit Before
Interest and 12.72% 21.16% 22.12% 2.50%
Taxes
Net Working
$41,472 $119,936 $183,180 NA
Capital
Gross Margin 88.77% 88.96% 87.48% 0.00%
77
CHAPTER :7 BIBLIOGRAPHY
LINK
WEB SITE.
www.capitaline.com
www.moneycontrol.com
BOOKS NAME
Arthur A. Thompson, A. J. Strickland, John E Gamble, Arun K. Jain (2009). Crafting

And Executing Strategy. New Dehli: Prentice Tata McGraw-Hill Publishing Company
Limited.
Aswathapa 9th Edition.Business environment.New Dehli: Prentice- McGraw-Hill
Publication.
78
CHAPTER-8 ANNEXURY
(1) ASIAN HOTELS (NORTH) LTD INDUSTRY:
Mar 14 Mar 13 Mar 12 Mar 11 Mar 10
SOURCES OF FUNDS :
Share Capital + 19.45 24.35 24.35 24.35 22.61
Reserves Total + 783.26 848.94 822.37 790.70 770.59
Equity Share Warrants 0.00 0.00 0.00 0.00 0.00
Equity Application Money 0.00 0.00 0.00 0.00 0.00
Total Shareholders Funds 802.71 873.29 846.72 815.05 793.20
Secured Loans + 848.39 738.35 655.56 560.44 151.33
Unsecured Loans + 51.50 17.04 7.00 28.75 0.00
Shop Security Deposits 0.00 0.00 0.00 0.00 5.82
Total Debt 899.89 755.39 662.56 589.19 157.15
Other Liabilities 6.97 29.38 35.53 10.66 0.00
Total Liabilities 1,709.57 1,658.06 1,544.81 1,414.90 950.35
APPLICATION OF FUNDS :
Gross Block + 1,294.33 1,086.01 1,074.44 1,058.60 1,052.51
Less: Accumulated Depreciation + 108.52 102.58 91.21 81.37 72.96
Less:Impairment of Assets 0.00 0.00 0.00 0.00 0.00
Net Block + 1,185.81 983.43 983.23 977.23 979.55
Lease Adjustment 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress+ 67.11 269.69 200.20 133.75 9.90
Investments + 556.61 107.96 104.66 391.06 0.00
Current Assets, Loans & Advances
79
Inventories + 6.11 6.34 5.56 7.00 5.88
Sundry Debtors + 9.97 11.19 11.63 10.77 9.69
Cash and Bank+ 35.51 2.89 3.37 3.30 7.23
Loans and Advances + 17.07 38.66 8.93 17.67 27.65
Total Current Assets 68.66 59.08 29.49 38.74 50.45
Less : Current Liabilities and Provisions
Current Liabilities + 220.09 243.57 201.35 130.00 68.85
Provisions + 7.91 6.51 12.35 7.05 13.71
Total Current Liabilities 228.00 250.08 213.70 137.05 82.56
Net Current Assets -159.34 -191.00 -184.21 -98.31 -32.11
Miscellaneous Expenses not written off + 0.00 0.00 0.00 0.00 0.00
Deferred Tax Assets 9.25 10.57 10.79 11.12 11.72
Deferred Tax Liability 32.85 19.94 18.84 18.67 18.71
Net Deferred Tax -23.60 -9.37 -8.05 -7.55 -6.99
Other Assets 82.99 497.36 448.98 18.72 0.00
Total Assets 1,709.57 1,658.07 1,544.81 1,414.90 950.35
Contingent Liabilities+ 4.96 4.90 5.00 5.30 5.08
80
(2) BHARAT HOTELS LTD INDUSTRY:
SOURCES OF FUNDS :
Share Capital + 75.99 75.99 75.99 75.99 75.99
Reserves Total + 1,034.85 941.21 991.49 990.44 982.14
Total Shareholders Funds 1,110.84 1,017.20 1,067.48 1,066.43 1,058.13
Secured Loans + 735.22 633.81 578.62 568.87 462.73
Unsecured Loans + 150.09 185.37 164.60 55.46 123.93
Total Debt 885.31 819.18 743.22 624.33 586.66
Total Liabilities 2,057.45 1,895.46 1,871.73 1,756.36 1,644.79
Gross Block + 1,612.91 1,594.96 1,349.22 1,320.55 1,150.23
Net Block + 1,320.97 1,314.05 1,108.73 1,116.88 979.81
Investments + 126.06 206.30 206.30 206.30 206.29
Inventories + 14.77 13.39 14.22 13.45 11.18
Sundry Debtors + 35.18 28.13 23.62 23.19 20.70
Cash and Bank+ 61.91 61.85 72.42 104.15 173.55
81
Provisions + 12.44 12.71 11.86 14.65 19.16
Net Current Assets 117.33 85.81 57.68 96.69 289.75
Net Deferred Tax -75.83 -87.78 -81.59 -79.51 -64.14
Other Assets 429.93 272.21 327.11 263.95 0.00
Total Assets 2,057.44 1,895.45 1,871.73 1,756.36 1,644.79
82
(3) HOTEL LEELA VENTURE LTD INDUSTRY:
SOURCES OF FUNDS :
Share Capital + 90.32 83.73 77.57 77.56 75.56
Reserves Total + 744.71 1,138.88 1,513.07 2,025.31 1,978.58
Total Shareholders Funds 870.03 1,222.61 1,590.64 2,102.87 2,054.14
Secured Loans + 4,905.02 4,604.30 3,762.80 3,317.40 2,353.48
Unsecured Loans + 0.00 55.00 412.83 485.74 525.18
Total Debt 4,905.02 4,659.30 4,175.63 3,803.14 2,878.66
Gross Block + 6,346.24 6,282.61 5,039.08 4,588.61 4,145.53
Net Block + 5,533.13 5,599.36 4,473.04 4,069.03 3,668.67
Capital Work in Progress+ 158.17 166.03 1,103.97 1,551.66 1,264.56
Investments + 46.24 46.24 146.34 46.14 46.14
Inventories + 64.00 71.34 59.85 54.38 43.43
Sundry Debtors + 71.59 58.84 53.78 46.44 37.90
Cash and Bank+ 27.68 35.43 16.41 56.26 13.48
83
Provisions + 5.15 5.14 102.71 21.06 128.64
Net Current Assets -197.52 -88.05 -117.48 72.95 86.15
Net Deferred Tax -72.43 -122.53 -145.63 -147.96 -132.72
Other Assets 348.56 322.14 337.65 407.47 0.00
Total Assets 5,816.15 5,923.19 5,797.89 5,999.29 4,932.80
84
(4) EIH LTD INDUSTRY:
SOURCES OF FUNDS :
Share Capital + 114.31 114.31 114.31 114.31 78.59
Reserves Total + 2,533.27 2,510.61 2,520.84 2,473.48 1,338.50
Secured Loans + 192.65 347.86 200.41 534.86 1,174.54
Unsecured Loans + 90.00 40.00 78.70 300.00 85.00
Total Debt 282.65 387.86 279.11 834.86 1,259.54
Gross Block + 2,864.44 2,825.83 2,646.42 2,624.33 2,486.09
Net Block + 2,068.08 2,116.68 2,015.24 2,060.95 1,998.04
Investments + 703.95 705.73 628.05 605.14 378.24
Inventories + 39.75 34.12 33.12 33.67 30.06
Sundry Debtors + 170.12 173.56 141.17 125.65 99.22
Cash and Bank+ 16.46 20.36 11.96 594.28 13.77
85
Provisions + 72.23 61.73 75.69 63.77 66.94
Net Current Assets -9.05 18.91 -19.03 550.33 258.73
Net Deferred Tax -192.46 -173.88 -163.17 -149.90 -132.84
Other Assets 331.19 321.49 313.41 279.90 0.00
Total Assets 2,947.39 3,028.91 2,933.96 3,447.57 2,676.63
86
(5) INDIAN HOTELS CO LTD INDUSTRY:
SOURCES OF FUNDS :
Share Capital + 80.75 80.75 75.95 75.95 72.35
Reserves Total + 2,613.09 3,226.90 3,176.70 3,028.59 2,616.87
Secured Loans + 859.34 910.00 971.18 461.24 1,752.77
Unsecured Loans + 1,831.26 1,612.27 1,708.20 1,900.24 897.78
Total Debt 2,690.60 2,522.27 2,679.38 2,361.48 2,672.24
Gross Block + 2,910.27 2,861.65 2,830.66 2,605.18 2,408.32
Less: Accumulated Depreciation + 1,212.86 1,105.19 985.30 872.83 837.81
Net Block + 1,697.41 1,756.46 1,838.75 1,725.74 1,561.26
Investments + 2,761.64 3,369.14 3,622.19 3,026.78 3,458.44
Inventories + 40.18 38.37 39.79 31.83 31.25
Sundry Debtors + 124.41 125.22 124.83 103.96 121.62
Cash and Bank+ 43.17 48.96 22.93 90.41 447.12
87
Total Current Assets 316.02 337.18 298.92 366.30 1,038.11
Provisions + 185.26 144.30 131.22 141.99 700.74
Total Current Liabilities 616.34 550.80 552.79 512.62 1,097.73
Net Current Assets -300.32 -213.62 -253.87 -146.32 -59.62
Net Deferred Tax -107.16 -95.50 -95.93 -27.78 30.79
Other Assets 1,559.42 1,453.38 1,374.51 1,265.36 0.00
Total Assets 6,042.87 6,579.09 6,715.26 6,179.84 5,361.46
Contingent Liabilities+ 1,072.13 957.42 910.56 698.03 552.94
88

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MACRO ANALYSIS OF INADIAN HOTEL INDUSTRY

Management Research Project -I

Name Exam No.

Under the Guidance of:

Prof. (Dr.) Mahendra Sharma,

Dabhi Yogendrasinh T 13044311018

Raval Bhoomi S 13044311121

Sojitra Ajay A. 13044311131

Vaghela Hemantsang V 13044311142

Vyas Mayur M 13044311146

Zala Shaktisinh P. 13044311148

Dabhi Yogendrasinh T 13044311018

Raval Bhoomi S 13044311121

Sojitra Ajay A. 13044311131

Vaghela Hemantsang V 13044311142

Vyas Mayur M 13044311146

Zala Shaktisinh P. 13044311148

Dabhi Yogendrasinh T 13044311018

Raval Bhoomi S 13044311121

Sojitra Ajay A. 13044311131

Vaghela Hemantsang V 13044311142

Vyas Mayur M 13044311146

Zala Shaktisinh P. 13044311148

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AN OVERVIEW OF THE HOTEL INDUSTRY

1.2 HISTORY OF HOTEL INDUSTRY:

1.3.1 Heritage Hotels:

1.3.2 Luxury Hotels:

1.3.3 Budget Hotels:

Expressing similar views, Virender S Dutta, Chairman, Hospitality Management Support

Foreign exchange earnings from tourism in India:

Direct contribution of touris m and hos pitality to GDP:

MAJOR PLAYERS OF THE HOTEL INDUSTRY

2.1 BHARAT HOTELS LTD INDUSTRY:

Business Group Lalit Suri

Business Group Jatia

Business Group Indian Private

Business Group Tata

Business Group Oberoi

STRATEGIC ANALYSIS OF INDUSTRY

1) Foreign direct investment 100%

1) Recent economic slowdown effect

1600 Asian Hotels

600 Indian Hotels Co Ltd

400 Eih Ltd

Critical Success Factor EIH BHART INDIAN ltd

Range of products 0.05 3 0.15 1 0.05 2 0.10

Market Share 0.14 2 0.28 4 0.56 4 0.56

Sales per employee 0.08 1 0.08 2 0.16 3 0.24

Variety of distribution 0.07 4 0.28 2 0.14 2 0.14

Customer retention 0.02 2 0.04 4 0.08 1 0.02

Superior IT capabilities 0.11 3 0.33 4 0.44 4 0.44

Strong online presence 0.15 3 0.45 3 0.45 4 0.60

Successful promotions 0.08 1 0.08 2 0.16 1 0.08

Total 1.00 - 2.44 - 2.94 - 2.71

SCORE & TOTAL SCORE:

Key Success Factors Weight Rate Score

3.5 BCG METRIX (The Boston Consulting Group):

3.5.3 CASH COWS:

3.6.1 THREAT OF NEW ENTRANTS BARRIER TO ENTRY:

3.6.2 THREATS OF SUBSTITUTE PRODUCTS:

3.6.3 BARGAINING POWER OF SUPPLIERS:

3.6.4 BARGAINING POWER OF BUYERS:

3.6.5 RELAVIRY AMONG EXISTING FIRMS: