Beruflich Dokumente
Kultur Dokumente
Name
Dabhi Yogendrasinh T
Raval Bhoomi S
Sojitra Ajay A.
Vaghela Hemantsang V
Vyas Mayur M
Zala Shaktisinh P.
Exam No.
13044311018
13044311121
13044311131
13044311142
13044311146
13044311148
Submitted To:
V. M. Patel Institute of Management,
Ganpat University,
Kherva.
(December, 2014)
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.
CANDIDATES STATEMENT
We hereby declare that the work incorporated in this report entitled Macro Analysis Of Inadian Hotel
Industry in partial fulfillment of the requirements for the award of Master of Business Administration
(Semester - III) is the outcome of original study undertaken by me and it has not been submitted
earlier to any other University or Institution for the award of any Degree or Diploma.
Date: 08/12/2014
Place: kherva ,Ganpat university
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 cooperation 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.
II
Candidates statement
III
Preface
IV
Acknowledgement
1.1
1.2
1.3
1.4
12
2.1
13
2.2
16
2.3
19
2.4
22
2.5
28
Strategic Analysis
33
3.1
Pest Analysis
34
3.2
Group Mapping
37
3.3
38
3.4
Efe Matrix
40
3.5
SWOT Analysis
41
3.6
Bcg Metrix
42
3.7
44
3.8
Space Matrix
49
Financial Analysis
51
4.1
Trade Analysis
52
4.2
Ratio Analysis
59
65
68
Bibliography
78
Annexure
79
CHAPTER-1
AN OVERVIEW OF THE HOTEL INDUSTRY
In the years following the abolition of princely rule, several members of the order have continued
to play a prominent role in various fields of enterprise. A few, like Rajmata Vijayaraje Scindia of
Gwalior and her son, Madhavrao, are still actively involved in politics. Some, like the late
Maharaja of Baroda set up and ran successful industries, while others like Divyabhanusinh of
Mansa and Pushpendra Sinh of Lunawada, distinguished themselves as managers in the
corporate world.
Many former Princes felt committed to reviving the arts and crafts formerly patronised in their
states. The Rajmata of Jaipur revitalised the renowned blue pottery of Jaipur whilst the late Raja
of Sawantwadi converted the Durbar Hall of his palace into a workshop to revive the dying art of
lacquerware furniture and traditional ganjifa playing cards for which his state was famous.
Richard and Sally Holkar set up a weavers' co-operative in the palace in Maheshwar to breathe
new life into the town's dormant textile industry, whereas the Nawabzada of Palanpur has run a
successful arts and crafts boutique in Bombay for several years. The Maharawal of Pratapgarh
motivates members of the one family that has had the monopoly in crafting exquisite theva
jewelry, which employs the technique of intricately patterned gold filigree on coloured glass.
Bapa Dhrangadhara is occupied in restoring rate, antique shawls while his brother. Sidhharaj
Sinhji, has established a crafts center in the palace at Dhrangadhara to revive the art of silver and
stone furniture. Schools of classical music known as gharanas, such as those established by the
royal courts of Jaipur, Gwalior, Patiala, Baroda, Kapurthala, Rampur, Maihar and Indore, still
flourish.
Other achievements include distinguished careers in the Civil and Foreign Services and in the
field of sports-particularly cricket, riding, polo and trap-shooting. Former royal hunting grounds
have become national sanctuaries and parks; these include Bharatpur, Siriska, Ranthambore,
Shivpuri, Gir, Periyar, Rangathittoo, Bandipur, Dachigam and Jaldapara. Royal menageries and
aviaries were set up as zoological parks as in Hyderabad, Baroda, Junagadh, Gwalior, Mysore,
Jaipur, Kotah, Jodhpur, Bikaner and Uadipur.
Many palaces are crumbling today but others like those in Suket, Bikaner, Rampur, Indore,
Jodhpur, Jaipur, Udaipur and Patiala have become repositories of culture in the form of museums
and libraries. Some palaces now function as Government offices, including those at Indore,
3
Patiala, Palanpur of Pratapgarh. A large number, like those in Udaipur, Jaipur, Jodhpur, Mysore,
Bikaner, Gwalior, Benares, Kotah, Bhavnagar, Wankaner and Jaisalmer, have been converted
into popular palaces hotels and guest houses.
Over the last decade business opportunities in India had intensified and elevated room rates
occupancy levels in India. Even budget hotels are charging USD 250 per day. 'Hotel Industry in
India' success story is only second to China in Asia Pacific. The World Travel and Tourism
Council, says that India ranks 18th in business travel and will be among the top 5 very soon.
India's big success stories includes the new model for development and growth; a model that is
uniquely made.
Indian Hotel Industry's room rates are most likely to rise 25% annually and occupancy to rise by
80%, over the next two years. 'Hotel Industry in India is gaining its competitiveness as a cost
effective destination. The 'Hotel Industry' is likely to add about 60,000 quality rooms, currently
in different stages of planning and development which would be ready by 2012.
MNC Hotel Industry giants are initiating for Joint Ventures to earn their share of pie in the race.
The Indian Government has approved 300 hotel projects, where half are for the luxury range.
Analysts says that the manpower required by the hotel industry has increased from 7 million in
2002 to 15 million in 2010. More and more IT Professionals are moving into the Metro cities as
the USD 23 billion software services sector pushing into the Indian economy. Indian Hotel
Industry is set up to grow by 15% a year. In 2010 as the Delhi capital city of India hosted the
Commonwealth Games there were more than 50 international budget hotel chains moving into
India. One of the major reasons for the increase in demand for hotel rooms in the country is due
to the boom of information technology, telecom, retail and real estate. India's increasing stock
market and new business opportunities are always been attractive foreign investors and corporate
travelers to look for business opportunities in the country. From 167 countries, today India has
finally made its mark on the world travel map.
http://en.wikipedia.org/wiki/History_of_hotel
www.setupmy hotel.com
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.
www.ibef.org/industry/tourism-hospitality-india.aspx
Market Size:
The tourism and hospitality sector is among the top 10 sectors in India to attract the highest
foreign direct investment (FDI). In the period April 2000 August 2014, this sector attracted
around US$ 7,441 million of FDI, according to the Department of Industrial Policy and
Promotion (DIPP).
A high and positive growth of 12.5 per cent was registered in foreign tourist visits (FTVs) to
north-eastern states of India during 2012 from 2011, which further rose by more than 100 per
cent to register a growth of 27.9 per cent during 2013 from 2012. Among these north-eastern
states, Manipur recorded the highest FTVs followed by Arunachal Pradesh and then Tripura.
FTAs in India witnessed a growth of 12.9 per cent in the period July 2013 July 2014, according
to data received from Ministry of Tourism, Government of India. The FTAs during the period
JanuaryJuly 2014 stood at 4.11 million as compared to 3.87 million during the corresponding
period of 2013, registering a growth of 4.4 per cent. USA contributed the highest number to
foreign arrivals in India followed by Bangladesh and the UK.
Foreign exchange earnings (FEE) during JanuaryJuly 2014 stood at US$ 11.055 billion as
compared to US$ 10.85 billion during the same period last year. FEE during July, 2014 stood at
Rs 10,336 crore (US$ 1.68 billion) compared to Rs 8,620 crore (US$ 1.41 billion) in July, 2013.
Investments:
With the rise in the number of global tourists and realising Indias potential, many companies
have invested in the tourism and hospitality sector. Some of the recent investments in this sector
are as follows:
MakeMyTrip Ltd plans to set up a US$ 15 million innovation fund to support early-stage
travel companies, with a special focus on mobile and IP-based companies. This is an
inorganic growth strategy by which they are pursuing M&A opportunities in the travel
technology space.
Peppermint Hospitality has aggregated close to 2,200 operational hotel rooms across the
country with the acquisition of Bengaluru-based Boutique Hotel Management & Marketing
Services Ltd, which has 60 hotels in its portfolio. Peppermint Hospitality has five operational
hotels and is present in overseas markets of Florence, Italy and the UK that are operated
through the management contract route.
IFC has invested US$ 21 million in SAMHI Hotels through compulsorily convertible
debentures. This is IFC's first investment in the hotel sector in India. SAMHI has seven
operational hotels in Greater Noida, Ahmedabad, Bengaluru, Hyderabad and Pune.
Bengaluru-based Embassy Group plans to invest Rs 1,500 crore (US$ 245.13 million) for the
expansion of its hospitality business in India. The Embassy Group is also in the process of
buying out the property on which the Four Seasons hotel is located, entailing an investment of
Rs 600 crore (US$ 98.06 million).
10
REFERENCE:
http://en.wikipedia.org/wiki/History_of_hotel
www.setupmy hotel.com
www.ibef.org/industry/tourism-hospitality-india.aspx
11
CHAPTER: 2
MAJOR PLAYERS OF THE HOTEL INDUSTRY
12
Lalit Suri
Sector
Incorporation Year
1981
Incorporation Date
Chairman
Jyotsna Suri
Managing Director
Jyotsna Suri
Company Secretary
Auditor
Registered Office
Barakhamba Lane,
Connaught Place,
New Delhi, 110001, New Delhi
Telephone
91-11-44447777
Fax
91-11-44441234
E- mail
corporate@thelalit.com
Website
http://www.thelalit.com
10
BSE Code
508984
BSE Group
NSE Code
BHARATHOT
Bloomberg
Reuters
BHTL.BO
ISIN Demat
INE466A01015
Market Lot
Listing
Not Listed
03
Aug/Sep
AGM Month
Sep
13
NIC Activity
NIC_CODE
55
Tot.Employees
Registrar's Name & Address
Bharat Hotels Limited was incorporated in 1981. It is known as Indias largest privately owned
hotel company and also the fastest growing hospitality group. Headquartered in New Delhi, the
company started its first hotel in 1988 - a 457 room 5-star deluxe hotel under the dynamic
leadership of Founder Chairman Mr Lalit Suri, who had spearheaded the Group's unprecedented
expansion plans.
This complex has two prestigious commercial offerings, The World Trade Centre and World
Trade Tower. All hotels were operated under the brand of The Grand Hotels, Palaces & Resorts
till November 19, 2008, when the company re-branded as The LaLiT' for its top line hotels,
under The LaLiT Suri Hospitality Group. At Present, which has seventeen luxurious hotels, 3600
rooms in the five-star deluxe segment - Nine Operating hotels and eight under development.
The company has also been associated with internationally renowned hospitality groups like
Holiday Inn Hotels (opening Asia-Pacific's first Crowne Plaza Hotel), The Hilton Hotels and
InterContinental Hotels Group - IHG.
The experience gained from these international companies, has been consolidated into its unique
service offerings - which provide Limitless Hospitality' with a distinctive Indian feel. Today, not
only does Bharat Hotels have an enviable bouquet of destination properties in India but now
exports its expertise overseas (with projects under development in Dubai and Thailand).
The Growth of Bharat Hotels Ltd: Bharat Hotels second property started in 1998 with the
opening of the 115-room the Grand Palace' in Srinagar, which is a spectacular heritage hotel and
the former residence of the Maharajas. On November 30, 2001, the company signed a deal to
14
operate and manage the 186-room, Hotel Ashok in Bangalore on a management contract from
ITDC, under approval of the CCD (Cabinet Committee on Disinvestment, Government of India).
The hotel now wears a contemporary new look and is know as The LaLiT Ashok Bangalore. In
early 2002, Bharat Hotels successfully bid for two more ITDC properties - The 55-room Laxmi
Vilas Palace in Udaipur, which now operates as The LaLiT Laxmi Vilas Palace Udaipur, along
with the 47-room property in the temple town of Khajuraho, Madhya Pradesh - The LaLiT
Temple View Khajuraho, which has also been completely renovated as a top line boutique
hotel.
In 2003, two hotels were opened, as new builds - in Mumbai and Goa. The 255 all suites' super
luxury resort, with its very own golf course - The LaLiT Golf & Spa Resort Goa and the 368
room The LaLiT Mumbai, in India's commercial capital Mumbai, which boasts of Asia's largest
atrium lobby.In November 2005, the Company successfully bid for the prestigious 168-year-old
Great Eastern Kolkata'. Built in 1840, during the Britsh Era - is presently under careful
restoration and will re-open shortly as - The LaLiT Great Eastern Kolkata.
In April, 2007, work commenced on the company's properties in Jaipur and Bekal. The LaLiT
Resort & Spa Bekal is operational since May 2010, while projects Chandigarh, Ahmedabad and
Noida are developing on schedule. On May 02, 2007, Bharat Hotels announced its first overseas
project - The LaLiT Grand Fort Dubai, in collaboration with Nakheel of UAE; the ground
breaking ceremony for which has taken place on October 26, 2008. In early 2008 - an existing
resort was taken over in Koh Samui (Thailand). The resort is presently undergoing a complete
renovation, and expected to open for guests over the next year.
In September 2008 Bharat Hotels Limited also announced properties in Amritsar and
Dehradoon. Bharat Hotels added another feather in its cap in 2010 by being the first hotel
company to launch a 5 Star Deluxe hotel in God's Own Country - Kerala. The Group's eighth
hotel The LaLiT Spa and Resort Bekal is a 44 room property - a top of the line luxury beach
resort set up on 26 acres of virgin stretch of northern Kerala in the lap of Arabian Sea. 4
http://www.thelalit.com
15
Business Group
Jatia
Sector
Incorporation Year
1980
Incorporation Date
13-Nov-1980
Chairman
Managing Director
Company Secretary
Dinesh K Jain
Auditor
Registered Office
Telephone
91-11-66771225/66771226
Fax
91-11-26791033
E- mail
investorrelations@asianhotelsnorth.com
Website
http://www.asianhotelsnorth.com
10
BSE Code
500023
BSE Group
NSE Code
ASIANHOTNR
Bloomberg
AHOT IN
Reuters
ASHT.BO
ISIN Demat
INE363A01022
Market Lot
Listing
Mumbai,NSE
03
Sep
AGM Month
Sep
NIC Activity
NIC_CODE
55101
Tot.Employees
769
Address
Asian Hotels (North) Ltd is one of the leading player in the Indian hospitality industry operating
a chain of deluxe category hotels under the brand Hyatt Regency Hotels. The company presently
operates one five-star deluxe hotel in Delhi with the name Hyatt Regency Delhi. Hyatt Regency
New Delhi is located at Bhikaji Cama Place and is a 5-Star Deluxe Hotel. The hotel has 508
rooms and suites and is well equipped with High Speed Internet, Swimming Pool, Fitness
Centre, Business Centre, Boutiques, Salon and Restaurants offering a wide variety of dining
options.
Asian Hotels (North) Ltd was incorporated in the year 1980 as Asian Hotels Ltd and was
promoted by R S Saraf, R K Jatia, Chaman Lal Gupta, 3 Non-resident Indians together with
Sushil Gupta and Shiv Jatia, their Indian Associates. The company set up their first-grade room
facilities for guests during the Asian Games in the year 1982. The hotel started full- fledged
commercial operation in the year 1983. In December 9, 2002, the company incorporated a
subsidiary company, namely GJS Hotels Ltd. In order to have their presence in other
geographical location, they commissioned two new five star deluxe hotel category in the name
Hyatt Regency Kolkata and Hyatt Regency Mumbai.
The former commenced full fledged operations in January 1, 2003 and the later in April 1, 2003.
During the financial year 2007-08, the company acquired three wholly owned subsidiaries,
namely Chillwinds Hotels Ltd, Vardhman Hotels Ltd and Aria Hotels and Consultancy Services
Pvt Ltd. The company also entered into other business segment namely power generation and
installed two Wind Turbine Generators on March 27, 2008 and March 31, 2008 respectively.
During the year 2008-09, the company acquired additional interest in Regency Convention
Centre and Hotels Ltd, an erstwhile associate company, thus making the said company as a
subsidiary company.The promoters of the company are constituted in three major groups since
17
the inception of the company. They are the Jatia Group, the Gupta Group and the Saraf Group. In
due course of time, each of the three groups has acquired independent interests in the hospitality
industry. To avoid any potential conflict of interest amongst the three groups inter-se and the
other shareholders of the company, the promoters agreed on restructuring of the company by
way of scheme of arrangement. The company entered into a scheme of arrangement and demerger 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.
http://www.asianhotelsnorth.com
18
Business Group
Indian Private
Sector
Incorporation Year
1981
Incorporation Date
20-Mar-1981
Chairman
Vivek Nair
Managing Director
Vivek Nair
Company Secretary
Dinesh Kalani
Auditor
Picardo & Co
Registered Office
Telephone
91-22-66911234
Fax
91-22-66911212
E- mail
investor.service@theleela.com
Website
http://www.theleela.com
BSE Code
500193
BSE Group
NSE Code
HOTELEELA
Bloomberg
LELA IN
Reuters
HTLE.BO
ISIN Demat
INE102A01024
Market Lot
Listing
MCX-SX,Mumbai,NSE,Singapore
03
Sep
AGM Month
Sep
NIC Activity
NIC_CODE
55
19
Tot.Employees
3727
Sharepro Services India P Ltd, Samhita Complex, Plot
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 12hole golf course. The Leela Palace Kempinski in Bangalore is located near shopping, cultural,
and business centers. The Hotel has 358 rooms, a business center, a royal club, and a fitness and
pool center. The Leela Kovalam in Kerala is the biggest beach side resort in the state.
Hotel Leela Venture Ltd was incorporated in the year 1981. The company entered into
collaboration with Penta Hotels in UK to set up and operate 5-star hotels, which was
subsequently transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned
by Lufthansa, the German Airline. In the year 1986, the company set up their first 5-star deluxe
hotel namely Leela Penta, in Mumbai. The hotel was renamed as Leela Kempinski in the year
1988, following the change in their marketing and sales tie-up.
During the year 1993-94, the company commissioned 60 new rooms at the Leela Beach Resort
and set up a mini golf course of 6 holes. During the year 1995-96, the company entered into
management agreements with Four Seasons Hotel, Canada, for the management of the
company's hotels and resorts at Mumbai, Goa and Bangalore. The Leela Palace in Goa started
20
their operation in September 1998. During the year 1998-99, the company entered into sales and
marketing agreement with the Kempinski Group for The Leela Palace, Goa.
During the year 2002-03, Leela Hotels Ltd, a wholly owned subsidiary company merged with the
company and during the year 2004-05, another wholly owned subsidiary company, Vision Hotels
& resorts Ltd merged with the company. During the year 2005-06, the company acquired the
Kovalam Beach Resort Hotel located in the pristine and scenic Kovalam Beach with 194 rooms.
The Hotel after acquisition was renamed as The Leela Kovalam Beach, Kerala.
During the year 2006-07, the company sold Leela Business Park to their associate company
Rockfort Estate Developers Pvt Ltd for an aggregate amount of Rs 139.7 crore. Also, they
acquired land at Adyar Beach, Chennai, Banjara Hills, Hyderabad and Yerwada, Pune for setting
up new hotels. Kovalam Hotels Ltd, a subsidiary company was amalgamated with the company
with effect from December 4, 2007. During the year 2007-08, the company entered into strategic
relationship with Global Hotel Alliance to enhance the global reach of sales and marketing
network. Also, they made a tied up with ESPA of London, one of the leading SPA management
companies in the world, to manage their SPAs across all their properties.
The company entered into an alliance with Preferred Hotels during the year. This will give the
company a greater recognition in USA and other parts of the world as Preferred Hotels are
renowned for up market and luxury hotels in the world.The project in Gurgaon, Delhi with 319
rooms and 9 service residences is under progress and the project is expected to de ready for
operation during the financial year 2008-09. The Leela Business Park, a world class Business
Park at MRC Nagar in Chennai is under construction and is expected to be operational during the
year financial year 2008-09.
The company is constructing The Leela Palace at Udaipur in order to enter the Rajasthan market
is at an advanced stage of completion. The resort is expected to open in January 2009. The Leela
Palace hotel at MRC Nagar in Chennai is under construction and is expected to have a soft
opening by September 2009. The Leela Palace at New Delhi, is located in the prestigious
diplomatic enclave of Chanakyapuri, New Delhi is under construction6 .
http://www.theleela.com
21
Tata
Sector
Incorporation Year
1902
Incorporation Date
1-Apr-1902
Chairman
Cyrus P Mistry
Managing Director
Rakesh K Sarna
Company Secretary
Beejal Desai
Auditor
Registered Office
Mandlik House,
Mandlik Road,
Mumbai, 400001, Maharashtra
Telephone
91-22-66395515
Fax
91-22-22027442
E- mail
investorrelations@tajhotels.com
Website
http://www.tajhotels.com
BSE Code
500850
BSE Group
NSE Code
INDHOTEL
Bloomberg
IH IN
Reuters
IHTL.BO
ISIN Demat
INE053A01029
Market Lot
Listing
London,MCX-SX,Mumbai,NSE
03
Aug
AGM Month
Aug
NIC Activity
NIC_CODE
55101
22
Tot.Employees
10018
Indian Hotels Company Ltd (IHCL) and their subsidiaries are collectively known as Taj Hotels
Resorts and Palaces and are recognized as one of Asia's largest and finest hotel company. The
company together with their subsidiaries and their jointly controlled entities is engaged in the
business of hoteliering with the exception of two jointly controlled entities, which are engaged in
the business of air catering. The other areas of business include ready to eat/ready to cook foods
business.
The company's subsidiaries include TIFCO Holdings Ltd, KTC Hotels Ltd, United Hotels Ltd,
Roots Corporation Ltd, Taj SATS Air Catering Ltd, Residency Foods & Beverages Ltd,
Innovative Foods Ltd, Taj International Hotels (H.K.) Ltd, Chieftain Corporation NV, IHOCO
BV, St. James Court Hotels Ltd, Taj International Hotels Ltd, International Hotel Management
Services Inc, IHMS (Australia) Pty Ltd and Apex Hotel Management Services (Pte) Ltd. The
company's jointly controlled entities include IHMS Hotels (SA) (Proprietary) Ltd, Taj Karnataka
Hotels & Resorts Ltd and Taj GVK Hotels & Resorts Ltd. Indian Hotels Company Ltd was
incorporated in the year 1902. In the year 1903, the company opened their first hotel, The Taj
Mahal Palace & Tower, Mumbai.
The company then undertook major expansion of The Taj Mahal Palace & Tower, Mumbai by
constructing an adjacent tower block and increasing the number of rooms from 225 to 565
rooms. With the completion of its initial public offering in the early 1970s, the company began a
long term programme of geographic expansion and development of new tourist destinations in
India which led to their emergence as a leading hotel chain in India. From the 1970s to the
present day, the Taj Group has played an important role in launching several of India's key
tourist destinations, working in close association with the Indian Government.
The company was active in converting former royal palaces in India into world class luxury
hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur and Umaid Bhawan
Palace in Jodhpur. In the year 1974, the Taj Group opened India's first international five star
23
deluxe beach resort, the Fort Aguada Beach Resort in Goa. Also, they opened five-star deluxe
hotel Taj Coromandel in Chennai. In the year 1977, they acquired an equity interest and
operating contract for the Taj President, a business hotel in Mumbai. In the year 1978, they
opened the Taj Mahal Hotel in Delhi. In the year 1980, the Taj Group took their first step
internationally by opening their first hotel outside India, the Taj Sheba Hotel in Sana'a, Yemen.
Also, they acquired interests in the Crown Plaza - James Court, London and 51 Buckingham
Gate Luxury Suites and Apartments in London.
In the year 1984, the Taj Group acquired under a license agreement each of The Taj West End,
Bangalore, Taj Connemara, Chennai and Savoy Hotel, Ooty. In the year 1989, the company
opened the five-star deluxe hotel, Taj Bengal in Kolkata. With this opening, the Taj Group
became the only hotel chain with a presence in the five major metropolitan cities of Mumbai,
Delhi, Kolkatta, Bangalore and Chennai. In the year 1990, the company set up Taj Kerala Hotels
& Resorts Ltd along with the Kerala Tourism Development Corporation. In the year 1998, they
opened the Taj Exotica Bentota which strengthened the Taj Group's market position in Sri
Lanka. In the year 2000, the company entered into a partnership with the GVK Reddy Group to
set up Taj GVK Hotels and Resorts Ltd and thereby obtained a prominent position in the market
in the southern business city of Hyderabad, holding three hotels and a major share of the market.
In the year 2001, the company took on the management contract of Taj Palace Hotel, Dubai, and
established themselves as an up- market hotel in the Middle East region. In September 2002, the
company acquired equity interest in the former Regent Hotel in Bandra which gave the Taj
Group access to the midtown and North Mumbai market. The hotel has since been renamed as
the Taj Lands End, Mumbai. In October 2002, the company obtained licenses to manage and
operate two leisure hotels, the Rawal-Kot, Jaisalmer and Usha Kiran Palace, Gwalior.
In the year 2003, the company celebrated the centenary of the opening of their Flagship hotel, the
Taj Mahal Palace & Tower, Mumbai. In the year 2004, they opened Wellington Mews, their first
luxury serviced apartment in Mumbai. Also, they launched the first of its 'value-for-money'
hotels in Bangalore branded 'Ginger', which has 11 hotels in various locations in India and is
owned through their wholly owned subsidiary.
24
In the year 2005, the company acquired on lease The Pierre, a renowned hotel in New York City,
to enter the luxury end of the developed hotel markets internationally. The company entered into
a management contract for Taj Exotica in Palm Island Jumeirah in Dubai to expand their existing
presence in the United Arab Emirates. The company enhanced their position as an operator of
converted palaces by entering into a management contract for Umaid Bhawan Palace, Jodhpur in
the princely state of Rajasthan in India.
In February 2006, the company, through a subsidiary, acquired the erstwhile 'W' hotel in Sydney,
Australia and renamed it as 'Blue, Woolloomooloo Bay'. In October 2006, as per the scheme of
arrangement, Indian Resorts Hotel Ltd, Gateway Hotels and Getaway Resorts Ltd, Kuteeram
Resorts Pvt Ltd, Asia Pacific Hotels Ltd and Taj Lands End Ltd were amalgamated with the
company. In the year 2007, the company acquired Ritz Carlton in Boston and Taj Campton Place
in San Francisco to expand their presence in the US market. They commenced operation of their
second wildlife lodge at Baghvan, Pench.
In the year 2008, the company partnered with Saraya Islands to Operate Taj Exotica Hotel in Ras
Al Khaimah, United Arab Emirates. They joined hands with Tashi Group to create the new
benchmark for premium hotels in Bhutan - Taj Tashi Bhutan. The company and ALDAR Hotels
and Hospitality entered an exclusive agreement involving a number of hotel projects. The first
hotel to be developed by ALDAR Hotels and Hospitality under the agreement is a five-star, 500
room luxury resort hotel which will be in a spectacular waterfront location on ALDAR's mega
entertainment destination, YAS Island. During the year, the company launched The Jiva Spa
Boat at Taj Lake Palace, Udaipur.
The Gateway Hotel Athwa Lines Surat added a new block of rooms to take up their inventory to
208 making it the largest hotel in Gujarat. It also launched three brand new restaurants - 'Flow'
the all day dining restaurant, 'Spice' an Indian specialty restaurant and 'T3' a Tea lounge and Deli.
They unveiled a new world-class premium hotel in Chennai - Taj Mount Road. In December 21,
2008, The Taj Mahal Palace & Tower reopened the rooms in the The Taj Mahal Tower.
During the year 2009-10, the company added seven new hotels in the Taj portfolio which
included Vivanta by Taj at Panaji, Goa and The Gateway Hotel, Jodhpur apart from the 5 Ginger
hotels at Durg, Guwahati, Pune, Jamshedpur and Surat. Vivanta by Taj Coral Reef, Maldives and
25
The Pierre, New York were also reopened during the year after extensive renovations. The
inventory of the Taj Group now stands at 103 hotels with 12243 rooms.
On the international front, Taj Cape Town, South Africa was soft opened in February, 2010 with
an inventory of 166 rooms. The company added another significant hotel to their Luxury
portfolio, with the opening of the TAJ Cape Town and Banjar Tola, Kanha. These hotels are
owned by the associate companies and are under a management contract with the company.
During the year, the company acquired the erstwhile 'Sea Rock' hotel at Bandra Bandstand,
Mumbai. The company acquired land on lease from the Government of Andaman & Nicobar
Islands to set up the first 5-Star Luxury resort on Havelock Island. Also, the company through
one of their associate companies entered into a lease agreement with the Punjab Government for
a land parcel in Amritsar to develop a Vivanta by Taj hotel. The company through their
subsidiary, invested into developing a 'Vivanta by Taj' resort at Coorg. The company also
entered into management contracts for several properties in India which will commence
operation over the next few years. New Management contracts have been signed for a Vivanta by
Taj resort in Srinagar and for Gateway hotels in Bhandup (Mumbai), Shirdi (Near Nashik) and
Ludhiana.
During the year 2010-11, the fully restored heritage block of the Taj Mahal Palace, Mumbai
reopened its doors to guests on August 15, 2010. The spectacular Falaknuma Palace, another
signifi cant addition to the company's Palaces portfolio was opened in November, 2010. Four
new Ginger hotels at Manesar, Chennai, East Delhi and Indore commenced operations during the
year. The company ventured into new geographies by entering into management contracts in
Mexico and British Virgin Islands for development of high end Luxury Resorts with 100 and 206
keys respectively. The company also signed a management contract for establishing a Taj
Luxury Hotel in Marrakech, Morocco, which is expected to open by the last quarter of 2011.
The company continued their thrust on flagging properties under the 'Gateway' brand in
prominent economic, commercial and industrial centres of India by signing management
contracts for hotels in Chandigarh, Ludhiana and Kolhapur. The company also signed
management contracts in leisure destinations such as Shimla and Rishikesh for a Gateway and
26
Vivanta by Taj resort respectively. Furthermore, the company entered into MOUs for Gateway
Hotels in Chiplun, Maharashtra and in Faridabad, NCR.
The company invested through one of their subsidiaries in 'Vivanta by Taj' resort at Coorg,
which is scheduled to open by end of 2011. The resort shall be operated by the company on a
management contract basis. Of the 64 room expansion of Vivanta by Taj Fisherman's Cove hotel
in Chennai, 48 rooms are currently operational and work on the balance 16 rooms is in progress.
Vivanta by Taj hotels in Coimbatore and Hyderabad being developed by the company's
associates are expected to open during the current financial year. 7
http://www.tajhotels.com
27
Oberoi
Sector
Incorporation Year
1949
Incorporation Date
26-May-1949
Chairman
P R S Oberoi
Managing Director
Vikram Oberoi
Company Secretary
S N Sridhar
Auditor
Registered Office
4 Mangoe Lane,
Kolkata, 700001, West Bengal
Telephone
91-33-22486751
Fax
91-33-22486785
E- mail
isdho@oberoigroup.com/invcom@oberoigroup.com
Website
http://www.eihltd.com
BSE Code
500840
BSE Group
NSE Code
EIHOTEL
Bloomberg
EIH IN
Reuters
EIHO.BO
ISIN Demat
INE230A01023
Market Lot
Listing
Kolkata,London,MCX-SX,Mumbai,NSE
03
Jul/Aug
AGM Month
Aug
NIC Activity
NIC_CODE
55101
Tot.Employees
9851
28
EIH Ltd, the flagship company of Oberoi group is one of the largest chains of hotels in India.
The company is in the business of luxury hotels, restaurant, management contracts and travel and
tours. Their services include airline catering, management of restaurants and airport bars, travel
and tour services, car rentals, project management and corporate air charters. They operate hotels
under the brand name Oberoi and Trident. The hotels owned and managed by the company are
The Oberoi, Mumbai; The Oberoi Udaivilas, Udaipur;
The Oberoi, New Delhi; The Oberoi, Bangalore; The Oberoi Grand, Kolkata; The Oberoi
Vanyavilas, Ranthambhore; Trident, Nariman Point, Mumbai, and Trident, Bandra Kurla,
Mumbai. Other business units owned and managed by the company include Motor Vessel
Vrinda, Cochin (a luxury cruiser); Oberoi Airport Services, Mumbai, Delhi, Chennai, Kolkata,
Cochin, Bangalore; Business Aircraft Charters and luxury car hire.
EIH Ltd was incorporated on May 26, 1949 as a public limited company with the name East
India Hotels Ltd. Initially, the company was in the business of lessee and operator of The Oberoi
Palace Hotel in Srinagar, Kashmir. In the year 1956, the equity shares of the company were fist
listed on BSE. In the year 1965, they built their first hotel, The Oberoi Intercontinental, now
known as The Oberoi, New Delhi. In September 9, 1968, The Associated Hotels of India Ltd and
Hotels (1938) Pvt Ltd were amalgamated with the company pursuant to which the company
acquired five hotels including, The Oberoi Grand in Kolkata, The Maidens Hotel in Delhi and
The Oberoi Cecil, Shimla.
In 1973, the company commenced operations at the Oberoi Towers in Mumbai and subsequently
expanded their operations from the five star deluxe segment to 'Trident' branded hotels which
were targeted at business and leisure customers seeking high-quality service at more affordable
prices. In the year 1986, the company forayed into the airport services business by entering into a
ten year contract with the International Airport's Authority to operate all the snack bars and
restaurants at the domestic and international terminals in Mumbai.
29
In November 1996, the company changed their name from East India Hotels Ltd to EIH Ltd. In
January 1997, the company opened an international luxury resort namely, The Oberoi Lombok in
Indonesia. In April 1997, they opened the luxury resort hotel in the Himalayas.
During the year 2001-02, Mumtaz Hotel Ltd became the subsidiary company, which owns the 5Star luxury hotel 'Amarvilas', an Oberoi Resort at Agra. Also, the company opened Vanyavilas,
an Oberoi Resort at Ranthambhore during the year.
During the year 2002-03, the company commenced their flight catering operations in Chennai
after acquiring the business from EIH Associated Hotels Ltd. The hotel 'Udaivilas' in Udaipur
was opened on August 15, 2002. The company renamed 'Vilas' hotels as The Oberoi Rajvilas,
The Oberoi Amarvilas and The Oberoi Udaivilas with effect from October 1, 2003. Re-naming
was done in order to remove the misconception from mind of customers that the Vilas hotels
were separate from the Oberoi brand. In November 2003, the company launched Motor Vessel
Vrinda, a luxury Crusier in the backwaters of Kerala.
In March 2004, the company signed an agreement with Hilton International to co brand their
Trident hotels in India. The Oberoi Towers, Mumbai was re-branded Hilton Towers and the
Trident in Jaipur, Udaipur, Agra, Chennai, Cochin, Bhubaneshwar and Gurgaon were re-branded
as Trident Hilton with effect from April 1, 2004.
During the year 2004-05, the company opened two new restaurants namely, 'threesixty degree'
and 'Travertino' at The Oberoi, New Delhi. They also opened a new restaurant namely, 'Tiffin' at
The Oberoi, Mumbai. During the year 2005-06, they commenced their Flight Service Operations
at Bangalore to cater to increased flights to that city. The company transferred Oberoi Cecil in
Shimla and Trident Hilton in Bhubaneshwar to EIH Associated Hotels Ltd with effect from April
1, 2006.
During the year 2007-08, the company completed the process of amalgamation of the company's
wholly owned subsidiary, Rajgarh Palace Hotel and Resorts Ltd. Oberoi Hotels & Resorts was
rated the leading luxury hotel brand in Asia in a Travel agents' poll at the World Travel Awards,
2007. Trident Hotels was rated the best first class hotel brand in India at the Galileo-Express
Travel World Awards, 2007. The company terminated the strategic marketing and co-branding
alliance with leading global hotel chain Hilton International Co with effect form April 1, 2008.
30
The company signed Management Contracts through their foreign subsidiary for two The Oberoi
Luxury Hotels in Abu Dhabi and one in Oman.
During the year 2008-09, the company signed the Management Contracts for setting up and
operating Flight Kitchens at Cochin and Calicut Airports. Balamurie Island Resort Pvt Ltd has
ceased to be a joint venture company. In December 21, 2008, The Trident, Nariman Point was
restored and reopened for business. In December 1, 2009, the company opened the 440 key
Trident at Bandra Kurla, Mumbai, which has three speciality restaurants, each with their own
distinctive cuisine and ambience. The Oberoi, Mumbai which was closed after substantial
damage following the terror attacks on November 26, 2008 reopened on April 24, 2010.
In June 30, 2010, EIH International Ltd, a wholly owned subsidiary of the company, completed
the acquisition of the 45.85% equity interest of Amex Investment Ltd, in their international
hotels Joint Venture Company EIH Holdings Ltd, for USD 45 million. With this acquisition EIH
Holdings Ltd, became wholly owned subsidiary of EIH International Ltd. Also, EIH Holdings
Ltd signed a Management Contract for a hotel at Scorpio Bay, Greece and a second Oberoi hotel
in Mauritius. In August 30, 2010, some shareholders of the company, namely Oberoi Hotels Pvt
Ltd, Aravali Polymers LLP and Prithvi Raj Singh Oberoi sold 5,54,70,303 shares, representing
approximately 14.12% of the share capital of the company to Reliance Industries Investment and
Holding Pvt Ltd at a cost of Rs 1021 crore.
The company has completed the Oberoi Luxury Hotel at Gurgaon, which is scheduled to open
during the year 2011. The 103 key Trident Hotel at Dehradun is under construction and is
expected to open in the spring of 2012. The company's new flight kitchen at Mauritius, Delhi,
Cochin and Calicut are expected to be commissioned during the financial year 2010-11.
The company's 229 key Oberoi Hotel at Cyber City, Hyderabad and 323 key Trident Hotel are
under construction. The construction of the 252 key Oberoi hotel in Dubai located at Business
Bay is progressing and is expected to begin operations in the last quarter of 2011. The company
has commenced planning on the Oberoi hotels in Abu Dhabi and Oman and The Oberoi,
Marrakech, Morocco. 8
http://www.eihltd.com
31
REFERENCE
http://www.thelalit.com
http://www.asianhotelsnorth.com
http://www.theleela.com
http://www.tajhotels.com
http://www.eihltd.com
32
CHAPTER: 3
STRATEGIC ANALYSIS OF INDUSTRY
33
As hotels generally provide free food and lodging especially at the operational level, their
salaries are not that attractive compared with that of certain other industries. This may make it
difficult to attract employees for such positions.
Due to the non-essential nature of this type of service to a potential customer, this would be one
of the first areas that would be cut back at a time of recession or economic downturn.
The higher end of the hotels ( Eg: Premier' category at Solberri ) would essentially target the
higher end of the market which is a relatively smaller group where high margins can be earned.
The ownership models of hotels have witnessed some new realities in recent years.( Eg:
individuals/investors owning hotel rooms, sell and leaseback, moving towards managing the
hotel as opposed to owning them.
1) Recent economic slowdown effect
2) High growth in tourism industry
3) Export promotion goods scheme(EPCG)
4) Not given infrastructure industry status
5) Interest rates
6) Exchange rates
7) Inflation rates
Social:- The patronizing of spas can be seen as a lifestyle change which is growing among
certain sections of the middle class as well as the upper class.
As hotels benefit from holidaying the extent to which people take holidays and their ability to get
off from work for such holidays will have a direct bearing on the demand experienced by an
organization such as Solberri.
As hotels consume a large amount of resources such as water, soap, detergents as well as cause a
fair amount of pollution (from water, leftover food, use of strong detergents),there exists a fair
amount of pressure to be green' especially by Environmental pressure groups.
35
The supply of lower level staff is seen as being directly related to seasonal unemployment in the
region.
As traveling for a holiday is seen as non-essential travel. Some may opt not to engage in leisure
travel especially where air travel is involved.
1) Increased extremism
2) Increasing disposable income
3) Changing life style due to exposure to global environment
4) Urban middle class forms 40 per cent of total population
Technical:- The hotel industry is seen as utilizing an increasing amount of technology with a
view of achieving greater customer satisfaction. Eg: Ritz Carlton's customer information
management.(CRM)
It can be seen that customers, even potential customers extensively use online information
sources including reviews and comments by previous customers when making their own choice
about holidays and places to visit.
The use of technology and other advanced techniques can be useful in managing the
consumption of resources such as water and electricity which are resources that are extensively
used in this industry. Eg: Power Factor Corrections, recycling water
The increasing use of IT/IS can help in improving the information available for management
decision making which will also allow the organization to better plan its future activities and
events.
1) Computerization
2) Global distribution system (GDS)
3) Provide LCD, laptops and conference facilities
4) Real-time access to inventory, transparency across multiple channels
36
1600
1400
1200
Hotel Leela
Venture Ltd
1000
800
600
400
Eih Ltd
Bharat Hotel
200
00
1
10
11
PRODUCT RANG
The above graph showing the group maping of various company in paper industry. Eih Ltd and
Bharat Hotel are more competitor to each other the reason is company sales and product rang is
nearest. The Indian Hotels Co ltd company competitor is Eih Ltd. So the group maping helps to
identify the nearest competitor.
37
EIH
Rating
Score
BHART
Rating
Score
Brand reputation
Level of product
integration
0.13
0.08
2
4
0.26
0.32
3
3
0.39
0.24
INDIAN ltd
Ratin Score
g
1
0.13
1
0.08
Range of products
Successful new
introductions
0.05
0.04
3
3
0.15
0.12
1
3
0.05
0.12
2
3
0.10
0.12
Market Share
0.14
0.28
0.56
0.56
0.08
0.05
1
1
0.08
0.05
2
3
0.16
0.15
3
4
0.24
0.20
Variety of distribution
channels
0.07
0.28
0.14
0.14
Customer retention
0.02
0.04
0.08
0.02
Superior IT capabilities
0.11
0.33
0.44
0.44
0.15
0.45
0.45
0.60
Successful promotions
0.08
0.08
0.16
0.08
Total
1.00
2.44
2.94
2.71
38
WEIGHT:
Each critical success factor should be assigned a weight ranging from 0.0 (low importance) to
1.0 (high importance). The number indicates how important the factor is in succeeding in the
industry. If there were no weights assigned, all factors would be equally important, which is an
impossible scenario in the real world. The sum of all the weights must equal 1.0. Separate factors
should not be given too much emphasis (assigning a weight of 0.3 or more) because the success
in an industry is rarely determined by one or few factors. In our first example, the most
significant factors are strong online presence (0.15), market share (0.14), brand reputation
(0.13).
RATING:
The ratings in CPM refer to how well hotels are doing in each area. They range from 4 to 1,
where 4 means a major strength, 3 minor strength, 2 minor weakness and 1 major
weakness. Ratings, as well as weights, are assigned subjectively to each hotel, but the process
can be done easier through benchmarking. Benchmarking reveals how well companies are doing
compared to each other or industrys average. Just remember that firms can be assigned equal
ratings for the same factor. For example, if EIH, BHARAT and INDIAN LTD, have the market
share of 25%, 27% & 28% accordingly, they would all receive the rating of 4 rather than
receiving ratings 2, 3 & 4.
SCORE & TOTAL SCORE:
The score is the result of weight multiplied by rating. Each hotel receives a score on each factor.
Total score is simply the sum of all individual score for the hotel. The firm that receives the
highest total score is relatively stronger than its competitors. In our example, the strongest
performer in the market should be Bharat hotels (2.94 points).
39
New Technology
THREATS
Bad Economy
Volatile Currencies
International competitors
Mature Markets
Intense Competition
Govt Regulations
TOTAL
Weight
Rate
Score
0.12
0.11
0.16
0.07
0.05
4
3
2
4
4
0.48
0.33
0.32
0.28
0.20
0.07
0.14
0.11
0.08
0.04
0.07
0.06
0.06
1.00
1
2
1
2
2
1
0.11
0.16
0.04
0.14
0.12
0.06
3.09
EFE Matrix Score of is 2.66 which is higher than the bench mark of 2.50
40
country also plays its part in reducing tourist traffic and consequently affects business of the
hospitality industry. The countrys economic condition has a direct impact on the earnings of
hotels. As a result, the staff might not be trained well enough to meet international standards.
3.5 BCG METRIX (The Boston Consulting Group):
The BCG Matrix graphically portrays differences among divisions in terms of relative market
share position and industry growth rate. The BCG Matrix allows a multidivisional organization
to manage its portfolio of businesses by examining the relative market share position and the
industry growth rate of each division relative to all other divisions in the organization. Relative
market share position is defined as the ratio of a division's own market share in a particular
industry to the market share held by the largest rival firm in that industry.
42
3.5.4 DOGS:
Quadrant IV divisions of the organization have a low relative market share position and compete
in a slow- or no- market-growth industry; they are Dogs in the firm's portfolio. Because of their
weak internal and external position, these businesses often are liquidated, divested, or trimmed
down through retrenchment. When a division first becomes a Dog, retrenchment can be the best
strategy to pursue because many Dogs have bounced back, after strenuous asset and cost
reduction, to become viable, profitable divisions.
43
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.
operator may not be able to rely solely on location to retain its market share in a situation of
oversupply and consequently intense rivalry.
There is no major threat of substitute products specific to a hotels product and service. A hotel
will be subject to powerful buyers only if its marketing strategy concentrates on attracting tour
groups, provided no oversupply for the hotels target market develops. A hotel may not appear to
be particularly vulnerable to intense rivalry because of the fragmented nature of the competition
in its strategic group and the potential growth rate of its target market. In the upper strategic
groups, for example, those particularly catering for business traveler, or the upper middle aged
and old aged bracket, there is little opportunity for substitute products. Substitute products are
not a major present or likely threat to Hotel Industry as a whole.
46
competitors in higher strategic groups, say in the four or even five star categories hotels, as well
as further differentiating itself within its own strategic group.
Where buyer groups become more concentrated, for example, tour groups, the prevalence of low
profit margins will tend to raise the buyer groups price-sensitivity. In this context a hotels
choice of buyer group becomes crucial and hotels which target tour groups or other categories of
concentrated buyers will be more subject to the bargaining power of buyers. Within that class its
strategic group is further defined by its target market, namely, medium-pocket in the upper age
bracket. Purchases of hotel rooms are important to certain categories of leisure traveler, and to
most categories of business traveler.
The bargaining power of buyers varies significantly within the industry, depending upon a
hotels target buyer group, but this factor becomes acute in a situation of oversupply or where
buyers of hotel rooms are concentrated.
48
Financial Strength
Rating
Return on Asset
Leverage/Debt
3
2
Net Income
Earnings Per Share
Net Profit Margin
Total
Industry Strength
3
4
2
14
Rating
Growth Potential
Financial Stability
Ease of Entry in the
industry
Resource Utilization
3
3
3
Profit Potential
Total
16
Environmental
Stability
Inflation Rate
Technological
Changes
Competitive Pressure
Barriers of Entry
SBP Policy
Total
Competitive
Advantage
Market Share
Service Quality
Customer Loyalty
Rating
Technological
Knowledge
Online
Network/ATMS
Total
-2
-4
-3
-4
-2
-3
-16
Rating
-1
-2
-4
-4
-13
49
FS
6
5
CONSERVATIVE
AGGRESSIVE
4
3
2
1
CA
-8
IS
-7
-6
-5
-4
-3
-2
-1
-2
-3
-4
DEFENCIVE
-5
COMPETITIVE
-6
ES
The directional vector may appear in the conservative quadrant (upper- left quadrant) of the
SPACE Matrix, which implies that staying close to the company's basic competencies and not
taking excessive risks should be the recommended strategy. Conservative strategies most often
include market penetration, market development, product development, and concentric
diversification for example. Defensive strategies include retrenchment, divestiture, liquidation,
and concentric diversification. Finally, the directional vector may be located in the lower-right or
competitive quadrant of the SPACE Matrix, indicating competitive strategies would be most
appropriate. Competitive strategies include backward, forward, and horizontal integration;
market penetration; market development; product development; and joint venture, to name but a
few. Understanding all of these potential options can be a complicated and time consuming
undertaking. If you need a SPACE Matrix produced for your organization or for a business
research project just contact China Doll Publishing or follow the link for more explanations
regarding custom writing services .
50
CHAPTER-4
FINANCIAL ANALYSIS
51
Year
Asian Hotels
Bharat Hotel
Hotel Leela
Eih Ltd
Indian Hotels
Co Ltd
Total
AVG
2013-14
293.22
487.80
768.17
1,291.34
2012-13
266.72
419.30
654.70
1,177.28
2011-12
276.66
403.12
588.44
1,173.36
2010-11
242.50
412.83
509.54
1,175.52
2009-10
145.65
413.96
478.38
907.27
1,977.33
1,924.79
1,912.21
1,765.14
1,592.39
4817.86
963.572
4442.79
888.558
4353.79
870.758
4105.53
821.106
3537.65
707.53
TOTAL INCOME
1200
1000
800
600
TOTAL INCOME
400
200
0
2013-14 2012-13 2011-12 2010-11 2009-10
The Industry has a fluctuating flow of income over the 5 years. The industry has been able to
improve its sell much but not able in 2012-13. After 2010-11 the income increase in Hotel Leela
Venture Ltd and Indian Hotels Co Ltd at decreasing rate. But Asian Hotels income continues
increase. This is a good sign for the industry having such a reputed name in the market. Also it
affects the earnings of shareholders.
52
[2] EXPENCES:Year
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
216.72
157.98
163.78
157.85
93.03
Bharat Hotel
353.79
328.93
285.98
288.32
311.72
573.24
532.05
141.60
334.15
324.93
1,006.72
959.69
870.84
847.40
649.78
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
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
TOTAL EXPENCE
1000
900
800
700
600
500
400
300
200
100
0
TOTAL EXPENCE
Above graph show the industry fluctuating of expenses over the 5 year. The industry has not able
to decrease their expenses. The expenses of last 5 years is continually increase. In 2011-12 Hotel
Leela Venture Ltd total expenses decrease and than after increase.
53
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
194.94
122.64
446.84
175.39
153.45
284.61
217.59
302.52
328.12
257.49
-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
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
OPRATING PROFIT
350
300
250
200
150
OPRATING PROFIT
100
50
0
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show the industry different year operating profit over the 5 year. The graph show
the first 3 year operating profit continually increase. The industry show, they have achieved good
market share over the first 3 year. But the year of the 2012-13 the industry operating profit was
decrease the reason is Asian Hotels, Hotel Leela Venture Ltd and Indian Hotels Co Ltd operating
profit is decrease.
54
[ 4 ] PBDT:
Year
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
3.08
56.41
65.98
54.68
41.10
Bharat Hotel
39.44
7.88
48.35
70.38
69.52
-306.69
-282.70
125.59
119.31
128.98
243.96
172.58
248.11
172.93
156.61
-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
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
PBDT
200
150
100
50
PBDT
0
2013-14
2012-13
2011-12
2010-11
2009-10
-50
-100
Above graph show the industry fluctuating of PBDT over the 5 year. The industry has able to
improve their PBDT in 2011-12 but than after PBDT not improve in 2012 and 2013 . The first 3
year industry has increase PBDT But suddenly in the year of 2011-12 the trend was downfall.
Because in the year 2011-12 and 2012-13 the two company Hotel Leela Venture Ltd, Indian
Hotels Co Ltd suddenly down their PBDT.
55
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
90.32
83.73
77.57
77.56
75.56
114.31
114.31
114.31
114.31
78.59
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
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
SHARE CAPITAL
78
76
74
72
70
68
66
64
62
60
58
SHARE CAPITAL
2013-14
2012-13
2011-12
2010-11
2009-10
Above graph show the industry fluctuating of Total share capital over the 5 year. In first three
year the total share capital of the industry is near to not equal, but in 2011-12 the share capital is
decrease the reason is Asian Hotels share capital is decrease. This is not a good sign for the
industry having such a reputed name in the market. Also it affects the industry volume and profit.
56
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
5,816.15
5,923.20
5,797.89
5,999.29
4,932.80
2,947.38
3,028.90
2,933.96
3,447.57
2,676.63
6,042.87
6,579.09
6,715.26
6,179.84
5,361.46
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
Total
18573.42
19084.71
18863.65
18797.96
15566.03
Avg
3714.684
3816.942
3772.73
3759.592
3113.206
total loability
4500
4000
3500
3000
2500
2000
total loability
1500
1000
500
0
2013-14 2012-13 2011-12 2010-11 2009-10
Above graph show that the industry total liability continually over the 5 year. The industry
liability is continues increase in all 5 year the reason is all four company increase the liability
but in a year 2010-11 Bharat Hotel and Seshasayee Paper & Hotel Leela Venture Ltd the total
liability is decrease.
57
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
46.24
46.24
146.34
46.14
46.14
703.95
705.73
628.05
605.14
378.24
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
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
total investment
960
940
920
900
880
860
840
820
800
780
760
740
total investment
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
www.capitalline.com
58
4.2 RATIO ANALYSIS:4.2.1 DEBT /EQUITY:A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
DEBT /EQUITY=
TOTAL LIABILITIES
SHAREHOLDERS EQUITY
Year
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
Bharat Hotel
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
1.28
1.14
1.06
1.08
0.98
0.92
0.61
0.82
0.26
0.69
13.63
0.14
6.31
0.14
4.51
0.23
3.89
0.59
3.28
0.97
0.87
16.19
3.238
0.78
8.59
1.718
0.76
6.64
1.328
0.85
5.91
1.182
0.78
5.2
1.04
Total
AVG
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
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 ASSETS
CURRENT LIABILITY
CURRENT RATIO =
Year
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
Bharat Hotel
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
0.19
0.61
0.17
0.51
0.16
0.52
0.3
1
0.76
1.59
0.13
0.41
0.15
0.43
0.27
0.86
0.56
1.07
0.93
1.1
0.4
1.34
0.268
0.39
1.26
0.252
0.31
1.81
0.362
0.58
2.93
0.586
1.13
4.38
0.876
Total
AVG
CURRENT RATIO
1
0.8
0.6
CURRENT RATIO
0.4
0.2
0
2013-14
2012-13
2011-12
2010-11
2009-10
The current ratio is a financial ratio that measures whether or not a industry has enough resources
to pay its debts over the next 12 months. It compares a firm's current assets to its current
liabilities. Above graph show the current ratio in the year of 2009-10 was 0.87 and suddenly next
four year falls down the reason is Bharat Hotel, Eih Ltd and Indian Hotels Co Ltd decrease the
ratio continues. It means the industry next four year current assets and current liability was
decrease.
60
4.2.3 FIXED ASSEST:A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a company's
ability to generate net sales from fixed-asset investments - specifically property, plant and
equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows that the
company has been more effective in using the investment in fixed assets to generate revenues.
Fixes Assest =
Total Sales
Total fixes assest
Year
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
Bharat Hotel
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
0.23
0.33
0.24
0.32
0.26
0.34
0.28
0.41
0.35
0.46
0.13
0.47
0.13
0.45
0.15
0.46
0.15
0.44
0.16
0.4
0.67
1.16
0.232
0.66
1.14
0.228
0.67
1.21
0.242
0.67
1.28
0.256
0.62
1.37
0.274
Total
AVG
FIXED ASSEST
0.3
0.25
0.2
0.15
FIXED ASSEST
0.1
0.05
0
2013-14
2012-13
2011-12
2010-11
2009-10
Financial analyst considers the fixed assets as an important measure of profitability. fixed assets
measures the profit available to the total assets holders on a per share basis. That is the amount
that they can get on every assets. The fixed assets has increase rapidly from 2009-10 to 2010-11.
In 2009-10 it was highest at 0.274 and it has decreased to in 2011-12 and 2012-13. This lower
ratio will not attract investors. This ratio shows that company fails to increase assets in 2011-12
and 2012-13.
61
4.2.4 INVENTORY:Inventory turnover is the ratio of cost of goods sold by a business to its average inventory during
a given accounting period. It is an activity ratio measuring the number of times per period, a
business sells and replaces its entire batch of inventory again.
INVENTORY TURNOVER RATIO =
Year
Asian Hotels
Bharat Hotel
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
Total
AVG
2013-14
36.64
30.32
2012-13
36.33
27.13
2011-12
35.99
24.72
2010-11
37.36
30.35
2009-10
39.35
36.31
49.13
33.33
48
33.72
50.51
33.44
53.06
32.25
42
25.62
49.13
149.42
29.884
48
145.18
29.036
50.51
144.66
28.932
53.06
153.02
30.604
42
143.28
28.656
INVENTORY
31
30.5
30
29.5
29
INVENTORY
28.5
28
27.5
2013-14
2012-13
2011-12
2010-11
2009-10
A ratio showing how many times a inventory is sold and replaced over a period. Here the graph
show the higher inventory turnover ratio is 30.64 in the year of the 2010-11 the reason is the all
four company inventory turnover ratio is increase. It means the industry inventory is more sold
and replaced over a period. But in 2011-12 and 2012-13 is decrease the reason is and Hotel Leela
Venture Ltd ratio is decrease.
62
2013-14
2012-13
2011-12
2010-11
2009-10
Asian Hotels
Bharat Hotel
Hotel Leela
Venture Ltd
Eih Ltd
Indian Hotels
Co Ltd
21.56
13.49
18.94
14.47
20.18
14.61
23.52
17.03
19.42
20.56
11.02
7.16
11.45
7.2
11.41
8.37
11
9.14
12.94
8.09
15.46
53.23
10.646
15
52.06
10.412
15.81
54.57
10.914
14.84
60.69
12.138
13.19
61.01
12.202
Total
AVG
DEBTORS
12.5
12
11.5
11
DEBTORS
10.5
10
9.5
2013-14
2012-13
2011-12
2010-11
2009-10
Debtor turnover ratio or accounts receivable turnover ratio indicates the velocity of debt
collection of an industry. In simple words it indicates the number of times average debtors
(receivable) are turned over during a year. The graph show debtor turnover ratio in the year
2012-13 is decrease the reason is Bharat Hotel ratio is decrease. It is the benefit of the industry.
63
But in 2009-10 the ratio is increase the reason is all four company debtor turnover ratio is
increase. 10
10
www.capitalline.com
64
CHAPTER-5
FINDING & CONCLUSION
65
FINDING:Only three hotel resorts incorporated environmentally friendly operations into their strategy
Environmentally friendly practices such as energy saving water consumption and waste
management were incorporate to a certain degree where economics saving were present.
Main challenges in operating environmentally friendly where lack of knowledge, investment,
needed and time consuming.
Main advantage in operating environmentally friendly where cost saving in certain areas and
benefits to destination.
Only one hotel resort covered many areas of environmentally friendly operations, including
training.
Environmentally friendly operations were used minimal in marketing.
68.1 percent of tourist indicated preference of eco- labeled hotel resort howre, it was least
importance factor when choosing accommodation, the contractions show the importance of
matching other attributes such as location, appearance, service and facilities.
56.2 percent of tourist indicated willingness to pay premium for eco- labeled hotel resort.
People with higher level of education indicated more interest in eco- labeled hotel resorts.
66
CONCLUSION
Service to man is service to God. As the proverb says the hotel owners and the managers
provide good service to their customers, which in turn will increase the profitability of the hotels.
In the hotel industry, service quality, as an extremely subjective category, is crucial to the
satisfaction of the customers. If they increase the quality of service it will attract more customers
at the same time they can expand the business, and it will lead to more employment
opportunities.
To sum- up, this thesis attempts to clarify the SERVQUAL model and not only provides the
managers with a clear picture of the quality of the services provided, but also helps the hotel
owners to discover the needs, tastes, preferences and expectations of the guests. It also lists out
various facilities provided by the hotels to their customers and also various services mixes
provided. We can say that it helps managers in setting the standards for the provision of services
in the hospitality industry.
67
CHAPTER-6
B-PLAN
68
6.1 INTRODUCTION
Royal Rajputana Hotel & Resort offers luxury accommodation and associated amenities to local,
regional, national and international tourists and travelers. For business travelers we offer a wide
range of facilities such as conference and meeting rooms and exhibition space, including all
necessary conferencing equipment and security.
6.2 OBJECTIVE:The objectives of the Royal Rajputana Hotel & Resort for the first three years of operation
include:
6.3 VISION
The planned hotel can look forward to a promising future, because of the experienced staff, our
careful planning, the potential of the targeted market segments, and skills training program. Our
pre-market research has shown the intended market to have plenty of room for a hotel such as
Foundations intends to run. The management style is flexible, progressive and energetic.
Enthusiasm of the management as well as the employees will greatly stimulate the envisioned
growth
6.4 MISSION
Royal Rajputana Hotel & Resort offer high quality and high value products and services to the
customers and also tries to improve consumer life.
6.5 PERSONNEL PLAN
The personnel needed for Royal Rajputana Hotel & Resort are the following:
Manager.
Assistant manager.
Lodge staff (7).
Food store staff (3).
Ski rental/clothing store (3).
Maintenance staff (3).
Cleaning staff (4).
69
COMPANYS ADDRESS
Vaghela Hemant
(20% Share)
Zala shaktisinh
(20% Share)
Dabhi Yogendrasinh
(15% Share)
SojitrabAjay
(15% Share)
Vyas Mayur
(15% Share)
Raval Bhoomi
(15% Share
TOTAL INVESTMENT
10,000,000
Luxury Facilities
TYPES OF INDUSTRY
Hotel industry
Food store
Ski rental/clothing shop
Front desk service
Skiers. Royal Rajputana Hotel & Resort area is quickly becoming one of the best ski
resorts in the Mount Abu. The resort is located 36 miles is easily accessible.
Summe r Visitors. During the summer months, Royal Rajputana Hotel & Resort area is a
beautiful wilderness retreat with over 50 hiking trails and other outdoor recreational
activities.
In addition, Royal Rajputana Hotel & Resort will be highlighted in a promotional in the
December issue of Ski Magazine.
6.13 COST OF PROJECT
The estimated project cost under various heads has been worked out for New Project like
furniture & fixture, various electric items like machinery, etc
SR.NO
PARTICULARS
AMOUNT
Site on Rent
300,000
Computer
72,000
Furniture
800,000
45,15,000
12,83,000
200,000
Promotion Expenses
7
Staff Salary
600,000
Other Expenses
300,000
TOTAL
8,070,000
CASH ON HAND
1,930,000
COST OF PROJECT
10,000,000
AMOUNT
Promoters Contribution
Vaghela Hemantsang
20,00,000
Zala Shaktisinh
20,00,000
Dabhi Yogendrasinh
10,50,000
Sojitra Ajay
10,50,000
Vyas Mayur
10,50,000
Raval Bhoomi
10,50,00
TOTAL
1,00,00,000
72
Year 2
Year 3
Sales
430,000
560,000
600,000
Rooms
121,000
140,000
180,000
Food
132,000
145,000
160,000
Ski Rentals
58,000
70,000
82,000
Clothing
430,000
560,000
600,000
TOTAL
741,000
915,000
1,022,000
Year 2
Year 3
Sales
741,000
915,000
1,022,000
83,200
101,000
128,000
83,200
101,000
128,000
Gross Margin
657,800
814,000
894,000
Gross Margin %
88.77%
88.96%
87.48%
382,000
414,000
438,000
60,000
80,000
100,000
Depreciation
14,280
14,280
14,280
Leased Equipment
Utilities
26,000
26,000
26,000
Insurance
24,000
24,000
24,000
Lease
Payroll Taxes
57,300
62,100
65,700
Other Production
Expenses
Expenses
Payroll
Sales and Marketing
and Other Expenses
73
Other
563,580
620,380
667,980
94,220
193,620
226,020
EBITDA
108,500
207,900
240,300
Interest Expense
33,375
30,500
27,500
Taxes Incurred
18,254
48,936
59,556
Net Profit
42,592
114,184
138,964
Net Profit/Sales
5.75%
12.48%
13.60%
Total Operating
Expenses
Profit Before Interest
and Taxes
Year 2
Year 3
Assets
Cash
31,437
118,555
165,584
14,000
32,000
53,000
45,437
150,555
218,584
Long-term Assets
350,000
370,000
430,000
14,280
28,560
42,840
335,720
341,440
387,160
381,157
491,995
605,744
Accounts Payable
3,965
30,619
35,405
Current Borrowing
Accumulated
Depreciation
Total Long-term
Assets
Total Assets
Liabilities and
Capital
Other Current
Liabilities
74
Subtotal Current
3,965
30,619
35,405
Long-term Liabilities
320,000
290,000
260,000
Total Liabilities
323,965
320,619
295,405
Paid- in Capital
200,000
200,000
200,000
Retained Earnings
(185,400)
(142,809)
(28,625)
Earnings
42,592
114,184
138,964
Total Capital
57,192
171,376
310,340
381,157
491,995
605,744
57,192
171,376
310,340
Liabilities
Year 2
Year 3
Cash Received
Cash from
Operations
Cash Sales
Subtotal Cash from
Operations
741,000
915,000
1,022,000
741,000
915,000
1,022,000
Additional Cash
Received
Sales Tax, VAT,
HST/GST Received
New Current
Borrowing
New Other
Liabilities (interestfree)
New Long-term
75
Liabilities
Sales of Other
Current Assets
Sales of Long-term
Assets
New Investment
Received
Subtotal Cash
Received
741,000
915,000
1,022,000
Expenditures
Year 1
Year 2
Year 3
Expenditures from
Operations
Cash Spending
382,000
414,000
438,000
Bill Payments
298,163
345,882
425,971
680,163
759,882
863,971
30,000
30,000
30,000
14,000
18,000
21,000
20,000
60,000
Subtotal Spent on
Operations
Additional Cash
Spent
Sales Tax, VAT,
HST/GST Paid Out
Principal Repayment
of Current
Borrowing
Other Liabilities
Principal Repayment
Long-term Liabilities
Principal Repayment
Purchase Other
Current Assets
Purchase Long-term
76
Assets
Dividends
724,163
827,882
974,971
16,837
87,118
47,029
Cash Balance
31,437
118,555
165,584
Cash Received
741,000
915,000
1,022,000
Year 2
Year 3
Industry Profile
11.92%
30.60%
36.09%
32.00%
85.00%
65.17%
48.77%
54.00%
12.72%
21.16%
22.12%
2.50%
$41,472
$119,936
$183,180
NA
88.77%
88.96%
87.48%
0.00%
Profit Before
Interest and
Taxes
Net Working
Capital
Gross Margin
77
CHAPTER :7 BIBLIOGRAPHY
LINK
http://en.wikipedia.org/wiki/History_of_hotel
www.setupmy hotel.com
www.ibef.org/industry/tourism-hospitality-india.aspx
WEB SITE.
www.capitaline.com
www.moneycontrol.com
http://www.thelalit.com
http://www.asianhotelsnorth.com
http://www.theleela.com
http://www.tajhotels.com
http://www.eihltd.com
BOOKS NAME
Arthur A. Thompson, A. J. Strickland, John E Gamble, Arun K. Jain (2009). Crafting
And Executing Strategy. New Dehli: Prentice Tata McGraw-Hill Publishing Company
Limited.
Aswathapa 9th Edition.Business environment.New Dehli: Prentice- McGraw-Hill
Publication.
78
CHAPTER-8 ANNEXURY
Mar 13
Mar 12
Mar 11
Mar 10
Share Capital +
19.45
24.35
24.35
24.35
22.61
Reserves Total +
783.26
848.94
822.37
790.70
770.59
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
802.71
873.29
846.72
815.05
793.20
Secured Loans +
848.39
738.35
655.56
560.44
151.33
Unsecured Loans +
51.50
17.04
7.00
28.75
0.00
0.00
0.00
0.00
0.00
5.82
Total Debt
899.89
755.39
662.56
589.19
157.15
Other Liabilities
6.97
29.38
35.53
10.66
0.00
Total Liabilities
SOURCES OF FUNDS :
APPLICATION OF FUNDS :
Gross Block +
108.52
102.58
91.21
81.37
72.96
Less:Impairment of Assets
0.00
0.00
0.00
0.00
0.00
Net Block +
1,185.81 983.43
983.23
977.23
979.55
Lease Adjustment
0.00
0.00
0.00
0.00
0.00
67.11
269.69
200.20
133.75
9.90
Investments +
556.61
107.96
104.66
391.06
0.00
79
Inventories +
6.11
6.34
5.56
7.00
5.88
Sundry Debtors +
9.97
11.19
11.63
10.77
9.69
35.51
2.89
3.37
3.30
7.23
17.07
38.66
8.93
17.67
27.65
68.66
59.08
29.49
38.74
50.45
Current Liabilities +
220.09
243.57
201.35
130.00
68.85
Provisions +
7.91
6.51
12.35
7.05
13.71
228.00
250.08
213.70
137.05
82.56
-159.34
-191.00
-184.21
-98.31
-32.11
0.00
0.00
0.00
0.00
9.25
10.57
10.79
11.12
11.72
32.85
19.94
18.84
18.67
18.71
-23.60
-9.37
-8.05
-7.55
-6.99
Other Assets
82.99
497.36
448.98
18.72
0.00
Total Assets
Contingent Liabilities+
4.96
4.90
5.00
5.30
5.08
80
Mar 13
Mar 12
Mar 11
Mar 10
Share Capital +
75.99
75.99
75.99
75.99
75.99
Reserves Total +
1,034.85 941.21
991.49
990.44
982.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Secured Loans +
735.22
633.81
578.62
568.87
462.73
Unsecured Loans +
150.09
185.37
164.60
55.46
123.93
0.00
0.00
0.00
0.00
0.00
Total Debt
885.31
819.18
743.22
624.33
586.66
Other Liabilities
61.30
59.08
61.03
65.60
0.00
Total Liabilities
SOURCES OF FUNDS :
APPLICATION OF FUNDS :
Gross Block +
291.94
280.91
240.49
203.67
170.42
Less:Impairment of Assets
0.00
0.00
0.00
0.00
0.00
Net Block +
Lease Adjustment
0.00
0.00
0.00
0.00
0.00
138.97
104.87
253.50
152.05
228.34
Investments +
126.06
206.30
206.30
206.30
206.29
Inventories +
14.77
13.39
14.22
13.45
11.18
Sundry Debtors +
35.18
28.13
23.62
23.19
20.70
61.91
61.85
72.42
104.15
173.55
81
118.68
98.31
29.80
32.40
193.76
230.54
201.68
140.07
173.19
399.19
Current Liabilities +
100.77
103.15
70.54
61.85
90.28
Provisions +
12.44
12.71
11.86
14.65
19.16
113.21
115.86
82.39
76.50
109.44
117.33
85.81
57.68
96.69
289.75
0.00
0.00
0.00
4.74
63.54
73.18
36.99
34.62
5.64
139.37
160.96
118.58
114.13
69.78
-75.83
-87.78
-81.59
-79.51
-64.14
Other Assets
429.93
272.21
327.11
263.95
0.00
Total Assets
Contingent Liabilities+
495.97
340.66
169.58
209.21
211.00
82
Mar 13
Mar 12
Mar 11
Mar 10
Share Capital +
90.32
83.73
77.57
77.56
75.56
Reserves Total +
744.71
0.00
0.00
0.00
0.00
0.00
35.00
0.00
0.00
0.00
0.00
870.03
Secured Loans +
Unsecured Loans +
0.00
55.00
412.83
485.74
525.18
0.00
0.00
0.00
0.00
0.00
Total Debt
Other Liabilities
41.10
Total Liabilities
SOURCES OF FUNDS :
41.29
31.62
93.28
0.00
APPLICATION OF FUNDS :
Gross Block +
813.11
683.25
566.04
519.58
476.86
Less:Impairment of Assets
0.00
0.00
0.00
0.00
0.00
Net Block +
Lease Adjustment
0.00
0.00
0.00
158.17
166.03
Investments +
46.24
46.24
146.34
46.14
46.14
Inventories +
64.00
71.34
59.85
54.38
43.43
Sundry Debtors +
71.59
58.84
53.78
46.44
37.90
27.68
35.43
16.41
56.26
13.48
0.00
0.00
83
35.72
52.21
59.02
66.24
264.48
199.00
217.82
189.06
223.32
359.29
Current Liabilities +
391.37
300.73
203.83
129.31
144.50
Provisions +
5.15
5.14
102.71
21.06
128.64
396.52
305.87
306.54
150.37
273.14
-197.52
-88.05
-117.48
72.95
86.15
0.00
0.00
0.00
0.00
189.14
100.31
34.88
12.91
13.44
261.57
222.84
180.51
160.87
146.16
-72.43
-122.53
-145.63
-147.96
-132.72
Other Assets
348.56
322.14
337.65
407.47
0.00
Total Assets
Contingent Liabilities+
88.53
111.07
104.69
129.82
27.06
84
Mar 13
Mar 12
Mar 11
Mar 10
Share Capital +
114.31
114.31
114.31
114.31
78.59
Reserves Total +
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Secured Loans +
192.65
347.86
200.41
534.86
1,174.54
Unsecured Loans +
90.00
40.00
78.70
300.00
85.00
0.00
0.00
0.00
0.00
0.00
Total Debt
282.65
387.86
279.11
834.86
1,259.54
Other Liabilities
17.15
16.12
19.70
24.92
0.00
Total Liabilities
SOURCES OF FUNDS :
APPLICATION OF FUNDS :
Gross Block +
796.36
709.15
631.18
563.38
488.05
Less:Impairment of Assets
0.00
0.00
0.00
0.00
0.00
Net Block +
Lease Adjustment
0.00
0.00
0.00
0.00
0.00
45.68
39.98
159.46
101.15
174.46
Investments +
703.95
705.73
628.05
605.14
378.24
Inventories +
39.75
34.12
33.12
33.67
30.06
Sundry Debtors +
170.12
173.56
141.17
125.65
99.22
16.46
20.36
11.96
594.28
13.77
85
37.51
28.95
26.87
36.02
369.64
263.84
257.00
213.12
789.62
512.69
Current Liabilities +
200.67
176.36
156.46
175.52
187.02
Provisions +
72.23
61.73
75.69
63.77
66.94
272.90
238.09
232.15
239.29
253.96
-9.05
18.91
-19.03
550.33
258.73
0.00
0.00
0.00
0.00
15.10
16.66
12.37
13.39
15.27
207.56
190.54
175.54
163.29
148.11
-192.46
-173.88
-163.17
-149.90
-132.84
Other Assets
331.19
321.49
313.41
279.90
0.00
Total Assets
Contingent Liabilities+
291.33
242.35
291.61
327.82
353.10
86
Mar 13
Mar 12
Mar 11
Mar 10
Share Capital +
80.75
80.75
75.95
75.95
72.35
Reserves Total +
0.00
0.00
124.37
124.37
0.00
0.00
0.00
0.00
0.00
0.00
Secured Loans +
859.34
Unsecured Loans +
0.00
Total Debt
Other Liabilities
658.43
Total Liabilities
SOURCES OF FUNDS :
910.00
0.00
749.17
971.18
0.00
658.86
461.24
0.00
589.45
1,752.77
21.69
0.00
APPLICATION OF FUNDS :
Gross Block +
872.83
837.81
Less:Impairment of Assets
0.00
6.61
9.25
Net Block +
Lease Adjustment
0.00
0.00
0.00
0.00
0.00
431.88
309.23
229.61
336.06
370.12
Investments +
0.00
6.61
40.18
38.37
39.79
31.83
31.25
Sundry Debtors +
124.41
125.22
124.83
103.96
121.62
43.17
48.96
22.93
90.41
447.12
87
108.26
124.63
111.37
140.10
438.12
316.02
337.18
298.92
366.30
1,038.11
Current Liabilities +
431.08
406.50
421.57
370.63
396.99
Provisions +
185.26
144.30
131.22
141.99
700.74
616.34
550.80
552.79
512.62
1,097.73
-300.32
-213.62
-253.87
-146.32
-59.62
0.00
0.00
0.00
0.47
162.90
179.99
172.81
192.27
202.24
270.06
275.49
268.74
220.05
171.45
-107.16
-95.50
-95.93
-27.78
30.79
Other Assets
Total Assets
Contingent Liabilities+
1,072.13 957.42
910.56
698.03
552.94
88