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Hotel Industry - Comprehensive Study

Discuss Hotel Industry - Comprehensive Study within the Business Environment (B.E) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Executive Summary Indian Hotels Company Ltd (IHCL) operating under the Taj brand, is the largest hotel chain in the country. ...

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Hotel Industry - Comprehensive Study
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Hotel Industry - Comprehensive Study - June 15th, 2008

Executive Summary

Indian Hotels Company Ltd (IHCL) operating under the Taj brand, is the largest hotel chain in the country. EIH operating under the Oberoi brand is the second largest hotel chain followed by ITC Hotels (ITCH). Asian Hotels (AHL), Bharat Hotels (BHL), Oriental Hotels as well as Hotel Leela Venture (HLV) are other major hotels.

While the 5-star and 5-star deluxe and to some extent the 4-star hotels are the domain of renowned hotel companies, an unorganized market exists for hotels operating below these ratings. Hotel companies such as EIH and ITCH as well as international hotel chains are aggressively entering into the mid-budget hotel segment.

Average room rate (ARR) and occupancy are the two most critical factors that determine the profitability, since most of the marginal revenue gets added to the bottom-line. ARR in turn depends upon location, brand image, star rating, quality of facilities and services offered and the seasonal factor.

Land comprises 45-50% of the total project cost and is therefore the single largest cost item in the construction of a hotel in India. It is estimated that the construction cost for a 300 room hotel in Delhi works out to Rs20mn/room. Since fixed costs constitute 60-65% of the total operating cost, break-even levels are very high.

Demand for hotels in cities like Mumbai and Delhi are the highest. In fact at present, out of the total of 19,000 5-star and 5-star deluxe rooms in the country, 50% are accounted for by these two cites. These cities along with Bangalore and Chennai serve as gateway to important tourist destinations

Presently, the total 5 & 4-star room capacity in the four metro cities is close to 13,000rooms. Mumbai and Delhi account for the bulk of the total room availability. In Mumbai room availability is expected to increase by another 3,100 rooms in the next 2-3 years.
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Re: Hotel Industry - Comprehensive Study - March 9th, 2009

hii..useful stuff....but not more exhaustive data for our project............................
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