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“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.

V.

M. Patel Institute of Management.

Submitted To:

M. Patel Institute of Management,

Ganpat University,

Kherva.

Patel Institute of Management. Submitted To: M. Patel Institute of Management, Ganpat University, Kherva. (December, 2014)

(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.

Date :

Place :

Prof. (Dr.) Mahendra Sharma, Professor & Head, V. M. Patel Institute Of Management, Ganpat University. Kherva.

CANDIDATE’S 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:

Place: kherva ,Ganpat university

08/12/2014

Dabhi Yogendrasinh T

13044311018

Raval Bhoomi S

13044311121

Sojitra Ajay A.

13044311131

Vaghela Hemantsang V

13044311142

Vyas Mayur M

13044311146

Zala Shaktisinh P.

13044311148

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.

Dabhi Yogendrasinh T

13044311018

Raval Bhoomi S

13044311121

Sojitra Ajay A.

13044311131

Vaghela Hemantsang V

13044311142

Vyas Mayur M

13044311146

Zala Shaktisinh P.

13044311148

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.

Dabhi Yogendrasinh T

13044311018

Raval Bhoomi S

13044311121

Sojitra Ajay A.

13044311131

Vaghela Hemantsang V

13044311142

Vyas Mayur M

13044311146

Zala Shaktisinh P.

13044311148

CONTENTS

Sr. No

 

Particular

Page No.

   

Certificate by the guide

II

   

Candidate’s 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 India’s 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

Porter’s 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

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 sector’s contribution to the country’s gross domestic product (GDP) will grow at the rate of 7.8 per cent yearly in the period 2013–2023. 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.

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 Scind ia 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 t he 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 t he 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 flouris h.

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,

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. T he 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 finally made its mark on the world travel map. 1

1 http://en.wikipedia.org/wiki/History_of_hotel

1.3 MAJOR SECTORS OF HOTEL INDUSTRY OF INDIA:

The basic division in India according to the lo cation 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

1.4 ROLE IN INDIA’S 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.

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.”

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.

earnings from tourism grew to US$ 18.1 billion in 2013. Direct contribution of tourism and hospitality

Direct contribution of tourism and hospitality to GDP:

The tourism a nd hospitality sector’s direct contribution to GDP totalled US$ 37.3 billion in 2013.

3 www.ibef.org/industry/tourism-hospitality-india.aspx

Market Size: The tourism and hospitality sector is among the top 10 sectors in India

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

January–July 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 January–July 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.

Investments:

With the rise in the number of global tourists and realising India’s 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).

REFERENCE:

http://en.wikipedia.org/wiki/History_of_hotel

www.setupmy hotel.com

www.ibef.org/industry/tourism-hospitality-india.aspx

CHAPTER: 2 MAJOR PLAYERS OF THE HOTEL INDUSTRY

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

Website

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

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 Hote ls 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

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 Ba ngalore. 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 K erala in the lap of Arabian Sea. 4

2.2 ASIAN HOTELS (NORTH) LTD INDUSTRY:

Business Group

Jatia

Sector

Hotels & Restaurants

Incorporation Year

1980

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

Website

Face Value (Rs)

10

BSE Code

500023

BSE Group

B

NSE Code

ASIANHOTNR

Bloomberg

AHOT IN

Reuters

ASHT.BO

ISIN Demat

INE363A01022

Market Lot

1

Listing

Mumbai,NSE

Financial Year End

03

Book Closure Month

Sep

AGM Month

Sep

NIC Activity

Hotels and Restaurants

NIC_CODE

55101

Tot.Employees

769

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

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

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 hosp itality 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 to be over by March 31, 2012. 5

.

2.3 HOTEL LEELA VENTURE LTD INDUSTRY:

Business Group

Indian Private

Sector

Hotels & Restaurants

Incorporation Year

1981

Incorporation Date

20-Mar-1981

Chairman

Vivek Nair

Managing Director

Vivek Nair

Company Secretary

Dinesh Kalani

Auditor

Picardo & Co

Registered Office

The Leela, Sahar, Mumbai, 400059, Maharashtra

Telephone

91-22-66911234

Fax

91-22-66911212

E- mail

Website

Face Value (Rs)

2

BSE Code

500193

BSE Group

B

NSE Code

HOTELEELA

Bloomberg

LELA IN

Reuters

HTLE.BO

ISIN Demat

INE102A01024

Market Lot

1

Listing

MCX-SX,Mumbai,NSE,Singapore

Financial Year End

03

Book Closure Month

Sep

AGM Month

Sep

NIC Activity

Hotel & restaurant services

NIC_CODE

55

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

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 t ied up with ESPA of London, one of the leading SPA management companies in the world, to manage their SP As 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 construction 6 .

2.4 INDIAN HOTELS CO LTD INDUSTRY:

Business Group

Tata

Sector

Hotels & Restaurants

Incorporation Year

1902

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

Website

Face Value (Rs)

1

BSE Code

500850

BSE Group

A

NSE Code

INDHOTEL

Bloomberg

IH IN

Reuters

IHTL.BO

ISIN Demat

INE053A01029

Market Lot

1

Listing

London,MCX-SX,Mumbai,NSE

Financial Year End

03

Book Closure Month

Aug

AGM Month

Aug

NIC Activity

Hotels and Restaurants

NIC_CODE

55101

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) (Proprietar y) 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

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.

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 ye ar 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

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 t he 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. A lso, 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 co ntracts 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 b y 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

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

2.5 EIH LTD INDUSTRY:

Business Group

 

Oberoi

Sector

Hotels & Restaurants

Incorporation Year

 

1949

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

Website

Face Value (Rs)

2

BSE Code

 

500840

BSE Group

B

NSE Code

EIHOTEL

Bloomberg

 

EIH IN

Reuters

EIHO.BO

ISIN Demat

INE230A01023

Market Lot

1

Listing

Kolkata,London,MCX-SX,Mumbai,NSE

Financial Year End

03

Book Closure Month

 

Jul/Aug

AGM Month

 

Aug

NIC Activity

Hotels and Restaurant services

NIC_CODE

 

55101

Tot.Employees

 

9851

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 ho tels under the bra nd 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.

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 Ra nthambhore 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.

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 qua rter of 2011. The company has commenced planning on the Oberoi hotels in Abu Dhabi and Oman and The Oberoi, Marrakech, Morocco. 8

CHAPTER: 3

STRATEGIC ANALYSIS OF INDUSTRY

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)

6) Government pressure to increase security level, add sewage treatment plant etc

7)

8) Government permission is no longer required for hiring foreign technicians

Foreign collaboration

Government promoting tourism

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.

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.

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 wa ter

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

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

1400

1200

1000

800

600

400

200

00

Asian Hotels
Asian Hotels
Hotel Leela Venture Ltd
Hotel Leela
Venture Ltd

1

2

3

4

Indian Hotels Co Ltd Eih Ltd Bharat Hotel 5 6 7 8 9 10 11
Indian Hotels Co Ltd
Eih Ltd
Bharat Hotel
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.

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 integration

0.08

4

0.32

3

0.24

1

0.08

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 channels

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

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 industry’s 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 wo uld 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).

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

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

country also plays its part in reducing tourist traffic and consequently affects business of the hospitality industry. The country’s 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.

own market share in a particular industry to the market share held by the largest rival

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 ha ve 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.

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 b asis 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

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

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 threa t of substitute products specific to a hotel’s 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 hotel’s 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 supplier’s product which will adversely affect the customer’s service. Suppliers have more bargaining power if their product is an important input in the industry success. The supplier’s input is crucial to the success of the customer’s product and service such as local tourist operators, thereby lowering the customer’s 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

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 industry’s 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 industry’s input is not crucial to the success of the buyer’s 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.

Where buyer groups become more concentrated, for example, tour groups, the prevalence of low profit margins will tend to raise the buyer group’s price-sensitivity. In this context a hotel’s 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 hotel’s 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.

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 industry

3

Customer Loyalty

-4

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

FS

6 5 CONSERVATIVE AGGRESSIVE 4 3 2 1 CA IS -8 -7 -6 -5 -4
6
5
CONSERVATIVE
AGGRESSIVE
4
3
2
1
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 .

CHAPTER-4

FINANCIAL ANALYSIS

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

         

Co Ltd

1,977.33

1,924.79

1,912.21

1,765.14

1,592.39

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
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.

[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

         

Venture Ltd

573.24

532.05

141.60

334.15

324.93

Eih Ltd

1,006.72

959.69

870.84

847.40

649.78

Indian Hotels

         

Co Ltd

2,277.15

1,904.36

1,420.28

1,276.44

1,093.98

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 TOTAL EXPENCE 400 300 200 100 0
TOTAL EXPENCE
1000
900
800
700
600
500
TOTAL EXPENCE
400
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.

[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

         

Venture Ltd

194.94

122.64

446.84

175.39

153.45

Eih Ltd

284.61

217.59

302.52

328.12

257.49

Indian Hotels

         

Co Ltd

-299.82

20.43

491.93

488.70

498.41

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
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.

[ 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

         

Venture Ltd

-306.69

-282.70

125.59

119.31

128.98

Eih Ltd

243.96

172.58

248.11

172.93

156.61

Indian Hotels

         

Co Ltd

-398.64

-84.77

343.82

329.85

321.39

Total

-418.85

-130.6

831.85

747.15

717.6

AVG

-83.77

-26.12

166.37

149.43

143.52

200

150

100

50

0

-50

-100

PBDT 2013-14 2012-13 2011-12 2010-11 2009-10
PBDT
2013-14
2012-13
2011-12
2010-11
2009-10

PBDT

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.

[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

         

Venture Ltd

90.32

83.73

77.57

77.56

75.56

Eih Ltd

114.31

114.31

114.31

114.31

78.59

Indian Hotels

         

Co Ltd

80.75

80.75

75.95

75.95

72.35

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 SHARE CAPITAL 66 64 62 60 58
SHARE CAPITAL
78
76
74
72
70
68
SHARE CAPITAL
66
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.

[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

         

Venture Ltd

5,816.15

5,923.20

5,797.89

5,999.29

4,932.80

Eih Ltd

2,947.38

3,028.90

2,933.96

3,447.57

2,676.63

Indian Hotels

         

Co Ltd

6,042.87

6,579.09

6,715.26

6,179.84

5,361.46

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
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.

[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

         

Venture Ltd

46.24

46.24

146.34

46.14

46.14

Eih Ltd

703.95

705.73

628.05

605.14

378.24

Indian Hotels

         

Co Ltd

2,761.64

3,369.14

3,622.19

3,026.78

3,458.44

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
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

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 3 2.5 2 1.5 Debt-Equity Ratio 1 0.5 0 2013-14 2012-13 2011-12 2010-11 2009-10
3.5
3
2.5
2
1.5
Debt-Equity Ratio
1
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.

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 0.2 0 2013-14 2012-13 2011-12 2010-11 2009-10
1
0.8
0.6
0.4
0.2
0
2013-14
2012-13
2011-12
2010-11
2009-10

CURRENT RATIO

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.

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