For the complete report, get in touch with us at : info@netscribes.com The hotel industry in India thrives largely due to the growth in tourism and travel. Due to the increase in tourism with rising foreign and domestic tourists, hotel sector is bound to grow as it will provide lodging and food to these tourists. Emergence of budget hotels in India to cater to the majority of the population who seek affordable stay has materialized into an effective driver for growth. This sector will benefit due to certain Government regulations that will steer this sector towards growth. The report begins with an overview of the travel and tourism industry in India providing the market size and growth as well as an indication about the foreign exchange earnings by the sector. This is followed by an overview of hotel industry. This provides an introduction to the hotel industry and covers the market size and growth of luxury hotels as well as the market segmentation of the hotel rooms operational in India. The various types of hotels in India based on services provided are also highlighted. Furthermore, it covers the primary consumer base for this space. Additionally, it highlights the occupancy rates prevalent in the market. An analysis of the drivers explains the factors for growth of the market and includes growth in tourism, opening of the aviation sector, emergence of budget hotels, shortage of hotel rooms and major events. India being a land of rich natural diversity has consistently been on the tourists’ radar and tourism has been on a growth trajectory. India is presently considered as a provider of low cost medical treatments which has led to the development of India as a destination for medical tourism. These factors have contributed to the growth of tourism which is a powerful driver for growth of the hotel sector. The opening up of the aviation sector has provided the needed thrust. Major players diversifying into the mid-market segment to develop budget hotels has also been an added driving force. Such hotels are constructed to tap prospective consumers who seek stay at affordable price. International companies are increasingly looking at setting up such hotels. Imbalance in increase in tourists both domestic and foreign not been supported with equal number of rooms is a latent source of opportunity for growth. Additionally, the rise in major events being organized in India has also posed as a chief driver for the sector. However, the sector is also facing certain challenges. Factors such as socio-political concerns, lack of infrastructure and increasing operating costs pose as barriers to the growth of this sector. The major trends indentified in the market include entry of foreign players, franchising model of operation and special services for female guests. This sector is also affected by certain Government regulations such as the setting up of Hospitality Development and Promotion Board, changes in the taxation system as well a

1. Hotel Industry – India
Hotel Industry India
November 2011

2. Executive Summary
 Travel and tourism sector in India is expected to grow at a rate of a% over 20‐‐ ‐ ‐‐
 Hotel industry is a major sector contributing ~b‐c% of the country’s GDP
Market
 Hotels can be classified into different segments based on the amenities provided and its
performance
f
Drivers Challenges
– Growth in tourism – Socio‐political concerns
–OOpening of aviation sector
i f i ti t –L k f i f t t
Lack of infrastructure
Drivers & – Emergence of budget hotels – Increasing operating costs
Challenges – Shortage of hotel rooms
– Major events
 Entry of foreign players
Trends  Franchising model of operation
 Female guests draw special services
Female guests draw special services
Major Players
Competition Company 1 Company 2 Company 3
Company 4 Company 5 Company 6
HOTEL INDUSTRY IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Drivers & Challenges
•Drivers & Challenges
•Trends
•Government Regulations
•Competition
C titi
•Strategic Recommendations
HOTEL INDUSTRY IN INDIA 2011.PPT 3

4. Hotel industry has been growing steadily and is expected to
grow with the development of the Indian economy
Hotel Industry ‐ Overview Market Size and Growth
• Hotel industry contributes to around a‐b% of the INR bn
country’s GDP 8 a%
C
• Hotel and tourism industry’s contribution, in terms of 6 A
B
FDI inflows, was pegged at INR R bn over the period
4
Apr 20‐‐ to Feb 20‐‐
2
• H t l i I di ff
Hotels in India offer a wide range of options including
id f ti i l di
0
luxury, upscale, leisure and mid‐market or economy
20-- 20-- 20--
• India has become a global destination with many
international brands making a foray into the country Hotel Rooms in India (Mar 2010)
as part of their expansion plans
Type 1
• Major international events like A and B will lead to a
Type 2
dynamically growing hotel industry p1%
Type 3
• Rising occupancy rate reflects the strong demand
Rising occupancy rate reflects the strong demand p6% Type
T pe 4
existing in this market Type 5
p2% Type 6
p5%
p4% p3%
Source:
HOTEL INDUSTRY IN INDIA 2011.PPT 4

5. Drivers & Challenges – Summary
Drivers
Challenges
Growth in tourism
Growth in tourism
Socio‐political concerns
Opening of aviation sector
Lack of infrastructure
Emergence of budget hotels
Increasing operating costs
Shortage of hotel rooms
Major Events
HOTEL INDUSTRY IN INDIA 2011.PPT 5

6. Trends – Summary
Entry of foreign players
Key
Trends
d
Female guests draw special Franchising model of
services
i operation
i
HOTEL INDUSTRY IN INDIA 2011.PPT 6

7. Government Regulations – Summary
Hospitality Development and
Government participation
Promotion Board
Key
Regulations
Tourism enhancement initiatives Taxation System
HOTEL INDUSTRY IN INDIA 2011.PPT 7

8. Domestic Players in the Market (1/10)
Company Snapshot: Player 1
Corporate Information Financial Performance
Revenue
Headquarters Place 1, Country 1
Profit / Loss
INR bn INR bn
Founded 19‐‐ Q T
1.0 P S 0.15
R 0.10
Services Service 1
0.5 0.05
Key People Person 1– Position 1 0.00
0.0 -0.05
20-- 20-- 20-- 20-- 20--
Business Highlights
Business Highlights
• Owns and operates a five star beach resort called b1
• It marked a gross income of INR b2 in 20‐‐‐‐‐ compared to INR b3 in 20‐‐‐‐‐
• It registered an average occupancy level of b4% in 20‐‐‐‐‐ and its REVPAR is b5% higher than its previous year of 20‐‐‐‐‐
• It is looking at developing Project 1 on its vacant land in p1
• It plans to infuse INR b6 in tranches to develop the project 2
• Has installed systems to generate power via b7 and b8 system for external lighting and illumination of landscape
Source:
HOTEL INDUSTRY IN INDIA 2011.PPT 8

9. Thank you for the attention
The Hotel Industry‐ India report is part of Travel and Tourism Industry Series.
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l
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HOTEL INDUSTRY IN INDIA 2011.PPT 9