hvs - indian hotel industry survey 2001-2002

DIANIFH&RA

HVSI N T E R N A T I O N A L

Indian Hotel Industry Survey

2001-2002

For more information, or additional copies of this document, please contact:

Secretary GeneralThe Federation of Hotel & Restaurant Associations of India (FHRAI)B-82, Himalaya House, 23 Kasturba Gandhi Marg,New Delhi 110001INDIA

Tel: (91) (11) 2331 8781, 2331 8782, 2332 2634, 2332 2647, 2332 3770Fax: (91) (11) 2332 2645Email: [email protected]: www.fhrai.com

Price: FHRAI Members: Rs400 (per additional copy)Domestic Non-Members: Rs600International: US$50

© The Federation of Hotel & Restaurant Associations of India, 2002

Reproduction of data from within this publication is permitted provided that full

credit is given to the FHRAI and HVS International.

Foreword from the President, FHRAI

Message from Indian Airlines

Message from HVS International

Introduction & Key Highlights of the Survey

Trends & Opportunities in the Indian Hotel Industry

1. Indian Hotel Industry - by Star Category

2. Indian Hotel Industry - by Hotel Size & Chain Affiliated vs. Independent

3. Indian Hotel Industry - Seven Major Cities

4. Indian Hotel Industry - Twelve Other Cities

Hotel Analysis Worksheet

HVS International

1

2

3

5

11

19

28

37

48

59

60

Indian Airlines 61

HVS International FHRAI

DIANIFH&RA

FOREWORD

HVS International FHRAIPage 1

The Federation of Hotel & Restaurant Associations of India is pleased to present the fifth

annual edition of the Indian Hotel Industry Survey 2001-2002 in co-operation with HVS

International and our sponsor Indian Airlines. We started this research project in 1998 with

operational and financial figures of the Indian Hotel Industry based on the responses received

from our members for the financial year 1997-98. We have endeavoured to improve upon the

presentation in subsequent years providing additional information for the benefit of the users

of the Report.

We are grateful for the co-operation extended by a large number of FHRAI hotel members

who have supplied detailed information for this survey report. The figures in this report are,

therefore, based on authentic data from hotels across the country and help give a true picture

of the performance and trends in the Indian hotel industry in the year 2001-2002. The

document is unique as it covers a number of areas in terms of facilities, manpower,

occupancies, marketing trends and operational performance, integrating all aspects of the

hotel industry. We are aware that a large number of hotel professionals, investors, bankers,

consultants, researchers, government officers in tourism departments, media persons and

others value this document for reference and for research purposes. Professionals based

abroad also use this document for a study of the Indian hotel industry. As always, we have included an updated analysis of 7 major cities from where we have

received detailed information on a number of hotels in different star categories. In addition,

we have included information from 12 other cities where information was available with us

for some hotels, though not in sufficient numbers for all the star categories. We would like to

include information on additional cities, provided we get sufficient number of responses from

our member hotels through the Hotel Fact Sheet (HFS) sent to them every year in April. We

also urge upon them to try and send us their full financial / operational data as per the HFS, as

many members are not including full data on these parameters. The result is that while we

have some basic data for 1,038 members (out of about 1,700 active hotel members at the

relevant time), we have the financial data only for 424 hotels. It is your research document,

being produced for you; please therefore, do co-operate and send us the full data in future.

We again assure you that all the data is used only for averages and no data on individual

hotels are released by HVS International or us to anyone under any circumstances.

We continue to strive for improvements in the content and presentation of the annual editions

of the Indian Hotel Industry Survey. We will be happy to receive any comments and

suggestions from the users of this Report.

We are thankful to HVS International for their continued support for this project for the past 5

years. Our sincere thanks also go to the management of Indian Airlines, who have sponsored

this current edition.

S.K. Khullar President, FHRAI

Indian Airlines, the national airline has a vast network of 65 domestic and 16

international destinations and a large fleet of 56 aircraft, coupled with choice of flights

at convenient timings. On the international front, if Singapore, Thailand and Kuala

Lumpur form the focus of its international operations in South East Asia, it is United

Arab Emirates, Qatar, Oman, Bahrain and Kuwait in the West Asia to which Indian

Airlines provides connection from various points in India. Nepal, Sri Lanka, Maldives,

Bangladesh and Myanmar are other important destinations within Indian Airlines’

operational span.

This year Indian Airlines has expanded both its domestic and international network,

increased the number of flights particularly between major metros and offered its

esteemed customers, a virtually unending chain of value-added offers- ‘Bid & Fly’ on

the net, Desh Videsh, Bharat Darshan, Wings of Freedom, Executive Class Bonanza, the

Taj offer, the Food Festival and Advance Purchase Excursion (APEX) fares. IA also

achieved an unprecedented and consistent on-time performance of 90% between metros

and over 80% on the network as a whole throughout the year.

Indian Airlines has also very recently revamped its Frequent Flyer Programme, the

Flying Returns. The FFP now offers accrual of mileage points, far better than accrual

miles offered by the other carriers for travel between select metros. This facilitates

members to redeem their free tickets faster. Other benefits that accrue to a FFP member

include extra baggage allowance, priority waitlist confirmation, accrual and redemption

on combined networks of Indian Airlines, Air India and Air France, gifting award ticket

to a person of choice, tele check-in, even while travelling in economy class etc.

Catering to the niche leisure travel segment, Indian Airlines has put together many

holiday packages in the market, branded as ‘Flyaways’. IA has tied up with more than

44 hotels at various exotic locales and is currently offering packages to Goa, Kerala,

Rajasthan, Jammu & Kashmir and Himachal Pradesh. These packages offer convenience

of booking air tickets, hotel, sight seeing and air transport. IA’s website

www.indianairlinespackages.com gives information on Flyaway packages to various

holiday destinations. Under Sleepovers scheme, IA has tied up with leading hotels at

various metros giving business travellers special rates for overnight stay.

Indian Airlines has also forged agreements with various State Tourism Authorities like

Rajasthan Tourism Development Corporation, Department of Tourism, Govt. of Kerala

and Maharsahtra Tourism Development Corporation for promoting tourism to

respective states through joint marketing efforts and has signed MOUs to this effect.

Check out our website www.indian-airlines.com for details about flight schedules, fares,

seat availability, reservation status, on-line booking, e-auctions and special short term

promotional offers.

FHRAI HVS InternationalPage 2

Indian Airlines had tied up with select hotels at various tourist destinations to provide

memorable holidays experiences for the passengers.

We have holiday packages for Goa, Kerala, Rajasthan, Jammu & Kashmir, Himachal

Pradesh and for international destinations like Kathmandu and Yangon. The hotels are

mainly in three, four and five star category to suit the pocket of different category of

passengers.

These packages offer all the convenience of a hassle free travel and stay at a good price.

The packages take care of air ticket, airport transfers, hotel stay, meals and sight seeing.

For more information log onto our web site www.indianairlinespackages.com

Indian Airlines - Sleepovers

Indian Airlines offers a value add on for the passenger by way of Sleepovers. At a very

special rate the passenger can stay at select hotels overnight by presenting the Indian

Airlines Boarding Card of same day travel. The hotels offer this reduced for the Indian

Airlines passenger. This offer can be availed currently at 12 cities for 17 select

properties.

In case your hotel/ resort is interested in tying up with Indian Airlines for the

Sleepovers for the forthcoming season (1st April 2003 to 31st October 2003), please fill

up the form given in the next page and mail/ fax it at the following address:

General Manager- Sales

Indian Airlines Ltd.

Airlines House

113, Gurudwara Rakab Ganj Road,

New Delhi- 110001

Fax No. 011-23730626

Indian Airlines Flyaways

Hotel rack rates (Twin share/ person) Rs.

(Single Person rate) Rs.

Percentage Discount on the rack rates (Twin share/ person) Rs.


Special rates for passenger (Twin share/ person) Rs.


Whether you have any tie-up for sleepover with any other Indian Domestic carrier

Extent of discount offered for other car rier passenger %

Rates offered to passengers (Twin Share/ Person and Single Person)

Class of hotel, any background details about the hotel locality

Facilities available at the hotel

Any add-ons provided free of charge

Any other offers available on % discount

Reservation contact numbers and the hotel address

E-mail address/ Hotel web-site

Whether a link to IC web-site can be provided through your web site YES / NO

The brochures and transparencies and logos of hotel can be provided YES / NO

Would you share promotional costs (advertising in newspapers, magazines, web-site) in

cash (YES / NO) OR Barter for equal number of room nights YES / NO

Availability of your data base of guests for Indian Airlines so that Indian Airlines may

provide value-add ons directly to them on the ongoing offers YES / NO

Whether you would like to tie-up with Indian Airlines on joint promotions for 500 of

Indian Airlines Corporate clients YES / NO

Sleepovers (1st April 2003 - 31st October 2003)

HVS International is the world's leading full-service consulting and valuation firm devoted

exclusively to the hotel industry. When HVS International was founded in 1980, we

endeavoured to satisfy the growing demand for reliable and well-documented hotel market

studies and feasibility reports. Our firm provides the hospitality industry with a full range

of consulting services, including valuations, market and feasibility studies, executive search,

hotel acquisitions, strategic analyses, development support, environmental consulting

(ECOTEL), operator search & selection, operational and management strategy development,

timeshare consulting, marketing communications, and technology strategies. Today, our

company also has offices in London, New York, San Francisco, Miami, Denver, Dallas,

Chicago, Weston CT, Vancouver, Toronto, São Paulo, Buenos Aires, Hong Kong and

Singapore.

Since 1980, we have worked on over 10,000 hotels in over 60 different countries worldwide

involving many hotel projects in Asia, including 22 cities in India. With over 175

professionals worldwide and 9 in India, we are able to offer global services, which are locally

delivered. We have been in India since 1997 and have now completed over 60 consulting

assignments in the South Asian region.

HVS International's New Delhi office has also been active on the advisory front for hotel

acquisitions and exclusive sales mandate of hotel assets across India. Some of the key

transactions where HVS has been involved included the successful acquisition for our clients

for the Lodhi and Qutab hotels in New Delhi. We have also been indirectly involved in the

valuation of two assets which recently changed ownership hands. We expect this trend to

grow with the recently passed Non Performance Act (NPA) by the Government of India, and

the potential sale of remaining ITDC hotels and some private sector deals.

We also opened our Executive Search division in May 2001. The Indian division, which is

HVS Executive Search's second office after the United States, caters exclusively to the

hospitality market. Our core competencies include: retained executive search, compensation

design, and employee assessment. Our practice is governed by the Association of Executive

Search Consultants (AESC) and our objective is to set up new benchmarks within the

recruitment process in the hotel sector in this part of the world. Recently we also extended

our executive search activities to Hong Kong and London.

Indian Hotel Industry Survey, 2001-2002 brings together the industry's key statistics in one

easy reference volume. The publication continues to emphasise the scale and importance of

the hospitality, tourism and leisure industry in the Indian economy, by providing readers

key information about this vast and growing industry. We are truly grateful to all those who

have kindly contributed their hotel's operating results and we look forward to receiving an

increased number of contributing hotels' data in the years to come. As always, we would

welcome any suggestions for improvement.

For further clarification on this report and any of HVS International's existing or new

services, please contact us in our New Delhi office.

Manav ThadaniManaging Director

Moni BiradarResearch Analyst

FHRAIHVS International Page 3

Introduction to the FHRAI Indian Hotel Industry Survey

The 2001-2002 edition of the Indian Hotel Industry Survey covers data from 1,038 hotels

encompassing 54,414 rooms across various cities in India, thereby providing an in-depth

view of trends prevailing in the Indian hotel sector. Statistics are presented by star category,

by size (according to number of rooms), by chain affiliated and independent hotels. Also,

separate operating indicators are included for the following 19 cities:

Introduction & Key Highlights of Survey

Agra Cochin Jaipur Pune Udaipur

Ahmedabad Goa Kolkata Shimla Varanasi

Bangalore Hyderabad Mumbai Thiruvananthapuram Vishakapatnam

Chennai Indore New Delhi Udagamandalam (Ooty)

We have included a Hotel Analysis Worksheet at the end of the report for the hoteliers to

analyse their financial data and compare with their competitors, which will help them in

budgeting and in developing their strategies.

To ensure confidentiality and to give a meaningful picture, data for each star category and

city has been presented only in cases where the sample consisted of at least four hotels. In

addition, all India trends for the past five years are also presented.

As in the previous years, a unique feature of this report is that it presents the number of

hotels participating in each segment of the analysis. This allows the reader to judge the

validity of the results, based on the number of participants. 'ID' indicates insufficient data

received.

To enable the data to be more comparable, we have presented the financial tables up to net

income, before any deduction of depreciation and interest which are too hotel/owner

specific to render their comparison to be meaningful.

All amounts presented in this report have been rounded off and are in Indian rupees (Rs)

for fiscal year 2001-2002 (April-March). In the financial statements, Rupee amounts are

shown as amounts per available room (PAR) and per occupied room (POR) in order to

eliminate differences in the size of hotels surveyed. Market mixes, ratios of various sales and

appropriate departmental expenses have also been presented. In addition, we have

provided highlights throughout the document to reflect certain key aspects of our findings.


Market data has been presented as an average of the respective segments and as a percentage. Financial data has been presented according to the most common measures of industry performance: as a percentage of revenue, and as amounts PAR and POR. The amounts and ratios presented should not be considered a standard for any type of property, region, city, star category or price category, but only as a guideline for comparison with the operating results of a specific category. This report may be read with one caution - Some of the more volatile changes in figures may be partly on account of different mix among the respondents, affecting the average figure, rather than an actual year-to-year change. This may be quite relevant for some of the unusual figures in the city trends also.

Key Highlights of the FHRAI Indian Hotel Industry Survey

This fifth edition of the Indian Hotel Industry Survey covers 1,038 hotels (54,414 rooms) across various cities in India compared to 1,103 hotels (59,330 rooms) last year. Mumbai had the highest number of respondents to this survey (115 in all categories) followed by Kolkata (56 in all categories), Pune (44 in all categories), Bangalore (38 in all categories) and New Delhi (37 in all categories). Despite the decrease in number of responses overall, some key cities including Bangalore (38 in all categories) and Goa (26 in all categories) have shown higher number of responses as compared to last year.

However, it is important to note that responses for the financial data were not as complete when compared to the general questions. This factor, combined with our stringent criteria to accept only validated (by HVS) financial data from each respondent, resulted in fewer responses resulting in a total of 424 useable responses.

As in the past, we have highlighted the key operational characteristics of the survey results for all India and 30 cities along with a brief commentary in the paragraphs that follow.


City 1998-1999 1999-2000 2000-2001 2001-2002 1998-1999 1999-2000 2000-2001 2001-2002

All India 52.4% 51.7% 55.6% 53.2% Rs2,530 Rs2,123 Rs2,046 Rs2,058

Agra 40.1% 46.0% 55.4% 42.9% Rs2,233 Rs1,535 Rs1,615 Rs1,269

Ahmedabad 63.8% 51.9% 57.7% 59.9% Rs1,742 Rs2,227 Rs1,921 Rs1,749

Aurangabad 45.8% 36.4% 44.8% ID Rs1,199 Rs1,024 Rs1,378 ID

Bangalore 52.0% 57.1% 72.1% 62.8% Rs3,081 Rs1,349 Rs2,570 Rs1,921

Bhopal 54.1% 51.3% 53.9% ID Rs1,185 Rs1,251 Rs1,288 ID

Kolkata 51.4% 52.9% 66.7% 61.7% Rs2,829 Rs2,400 Rs2,465 Rs1,417

Chennai 64.7% 58.7% 75.1% 65.0% Rs1,932 Rs2,229 Rs2,118 Rs1,936

Cochin 59.0% 68.5% 68.2% 58.7% Rs1,166 Rs961 Rs816 Rs1,306

Coimbatore 58.4% 55.7% 56.4% ID Rs1,261 Rs1,581 Rs1,366 ID

Darjeeling ID ID 26.3% 28.2% ID ID Rs671 Rs1,630

Goa 49.9% 49.6% 57.1% 56.1% Rs1,803 Rs2,097 Rs2,174 Rs1,756

Hyderabad 54.3% 62.1% 71.4% 67.2% Rs1,207 Rs1,553 Rs1,842 Rs1,131

Indore 72.3% 53.6% 65.1% 77.5% Rs845 Rs748 Rs874 Rs850

Jaipur 45.6% 49.2% 52.3% 56.2% Rs2,006 Rs1,526 Rs2,051 Rs1,543

Jodhpur 59.0% 44.5% 34.7% 32.5% Rs783 Rs1,861 Rs2,117 Rs1,290

Kullu-Manali 33.9% 33.3% 44.4% 39.8% Rs1,115 Rs808 Rs760 Rs1,498

Lucknow 52.9% ID 52.8% 56.5% Rs1,261 ID Rs1,607 Rs999

Mount Abu ID ID ID 42.1% ID ID ID Rs980

Mumbai 62.0% 59.5% 66.1% 63.8% Rs4,306 Rs3,872 Rs3,591 Rs2,075

Mussourie 36.8% 44.9% 52.9% ID Rs1,475 Rs1,215 Rs1,766 ID

Mysore 55.9% 55.9% 52.5% ID Rs1,039 Rs1,029 Rs660 ID

New Delhi 54.7% 60.1% 59.3% 55.9% Rs5,506 Rs4,616 Rs3,911 Rs3,434

Patna 56.2% 67.5% ID ID Rs887 Rs712 ID ID

Pune 61.6% 58.3% 58.1% 58.0% Rs1,809 Rs1,357 Rs2,036 Rs1,044

Shimla 45.2% 28.4% 48.1% 43.6% Rs832 Rs1,578 Rs1,062 Rs1,578

Thiruvananthapuram 40.2% 41.1% 57.0% 55.4% Rs1,599 Rs1,459 Rs1,153 Rs966

Udagamandalam (Ooty) ID ID ID 38.0% ID ID ID Rs947

Udaipur 41.8% 41.2% 44.0% 44.3% Rs2,872 Rs1,526 Rs3,402 Rs1,924

Varanasi 43.8% 39.3% 46.9% ID Rs1,352 Rs1,576 Rs1,585 ID

Vishakapatnam 57.8% 63.8% 65.6% 56.6% Rs823 Rs933 Rs877 Rs1,184

ID - Insufficient Data

Average Occupancy Average Rate


Indore was the market occupancy leader with occupancy of 77.5%. Most southern cities like Hyderabad (67.2%), Chennai (65%) and Bangalore (62.8%) also achieved high occupancies. New Delhi, similar to last year, maintained its position at the top with an average room rate (ARR) of Rs 3,434. Mumbai was the second highest at Rs 2,075.

Despite the global effects of September 11, 2001, room occupancy in India (at 53.2%) was only 2.4% occupancy points below the previous year's level. This is due to the fact that India is a vast country, with a large majority of hotels depending on domestic business / corporate travellers and only a small percentage of hotels depend on foreign tourists.

Occupancies have been in the 50% - 60% range across most hotels. Average rates show a much greater spread, from Rs 3,991 for five-star deluxe hotels to Rs 599 for one-star hotels.

The all India average revenue per available room (RevPAR) decreased from Rs 1,137 in 2000-2001 to Rs 1,094 in 2001-2002 reflecting a decline of 3.8%.

House profit (Gross Operating Profit after deducting franchise and management fees) decreased from 31.7% in 2000-2001 of total revenue to 25.9% in 2001-2002.

Rooms revenue, generally considered being the most important source of a hotel's overall profitability, represented 53.2% (decreased from 56.4% last year) of total revenue across all hotels. Our analysis indicates that despite more independent food & beverage outlets opening, food & beverage revenue represented 30.9% (an increase from 28.5% last year) of total revenue across all hotels.

Rooms revenue for five-star deluxe, five-star, and four-star hotels represented 54.4%, 54.5%, and 52.9% of total revenue respectively.

Payroll and Related Expenses have a significant impact on the bottom line as is indicated by the table shown below where they are shown as a percentage of revenue.

The all India average for Payroll & Related Expenses as a percentage of total revenue was 19.6%. Compared to the previous year, there was an increase in the all India

COMPOSITION

Five-Star

Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others

2001-2002

All India

Average

Number of respons es: 28 32 31 138 86 42 23 44 424

Average Total Rooms Per Hotel: 188 129 85 58 38 27 36 37 63

Average Occupied Rooms Per Hotel: 35,921 23,190 15,830 10,680 7,162 5,860 4,230 6,832 11,727

Average Occupancy Per Hotel: 55.7% 52.6% 52.7% 53.1% 55.6% 59.1% 32.0% 53.6% 53.2%

Average Rate Per Hotel: Rs3,991 Rs2,950 Rs2,131 Rs1,257 Rs832 Rs599 Rs2,295 Rs820 Rs2,058

Average Revenue Per Available Room (RevPAR): Rs2,223 Rs1,552 Rs1,123 Rs667 Rs462 Rs354 Rs733 Rs440 Rs1,094

Net Income (After Operating & Overhead Expenses, before Deprecia tion, Interest Paymen ts & Taxes)

- As a Percentage of Revenue 22.4% 20.1% 26.2% 19.1% 18.3% 24.1% 10.6% 21.6% 21.4%

- Per A vail able R oom Rs320,103 Rs195,803 Rs195,734 Rs91,777 Rs54,953 Rs49,520 Rs54,640 Rs53,528 Rs153,104

Key Operating Characterstics

Payroll & Related Expenses

COMPOSITION

Five-Star


All India

Average

Rooms 9.2% 11.3% 10.3% 11.3% 15.9% 16.5% 13.5% 15.7% 10.8%

Food & Beverage 20.1 21.3 14.8 13.7 11.6 13.9 18.9 23.1 17.9

Telephone 9.7 12.4 12.7 17.3 28.3 20.3 14.0 20.3 12.1

Minor Operated Depa rtments* 25.0 16.2 23.7 26.8 32.4 ID 36.0 13.9 23.7

Administrative & G eneral 4.5 4.8 5.3 4.1 4.2 6.4 6.2 8.3 4.6

Marketing 1.0 0.6 1.0 1.0 2.1 3.6 1.5 1.6 1.0

Property Operations & Maintenance 1.5 2.5 2.5 2.3 3.8 5.7 3.2 5.1 2.1

Total Payroll & Related Expenses 19.9 21.5 17.5 17.6 18.8 22.2 22.0 20.9 19.6

* Minor Operated Department includes laundry, gift shop, business centre, health club, garage, parking and so forth

Expense ratios to sales for departmental expenses are based on their respective departmental revenues.

All other expenses are based on total revenue.


average Payroll & Related Expenses by 7.7%. Interestingly, in United States total payroll

costs is 33.0% for Full Service hotels and 25.0% for Limited Service hotels as reported by

Smith Travel Research.

Minor Operated Department (23.7%) followed by Food & Beverage (17.9%) had the

highest Payroll & Related expenses as percentage of department revenue.

Surprisingly, one-star hotels had the highest total payroll cost (22.2%). This is due to the

fact that total payroll cost is as a percentage of total revenue and one-star hotels have

very low ARR, while they have to pay market related wages. Heritage properties

represented the second highest total payroll costs (22%).

Minor Operated Department payroll expense as percentage of Minor Operated

Department revenue at 36% was the highest for heritage properties.

Rooms revenue was the highest contributor of revenue at 53.2% during 2001-2002.

Food and beverage expenses as the highest source of departmental expenses at 62.2% of

total revenue.

Technology in hotels appears to be improving day-by-day. Accounting systems and

Internet e-mail have been widely used by hotels at 91% and 78% respectively during

2001-2002, as compared to 90% and 71% respectively during 2000-2001.

The months of December and January were the busiest in 2001-2002 with highest

average occupancies of 61.8% and 58.1% respectively. July through September was the

slowest period with July (49.1%) recording the lowest occupancy.

Breakdown of Revenue - 2001-2002

Food & Beverage30.9%

Banquet &Conferences

6.8%

Telephone & Other3.1 %

Minor Operated2.7 %

Rental & Other Income3.4%

Rooms53.2%

Departmental Expenses as a Percentage of Revenue -2001 - 2002

Rooms Food &Beverage

Telephone &Other

Minor Operated

Rental & OtherIncome

70.0%

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

20.6

62.2

57.751.8

10.1

Technology in Hotels - Percentage of Hotels Using Each Technology

Percentage of Hotels

0

Other

Yield Management System

Property Management System

Point of Sale System for Food and Beverage

Management Information System (MIS)

Local Area Network (LAN)

Intranet System

Internet / Website

Internet / E-mail

Energy Management System

Electronic Keycard

Central Reservation System (CRS)

Call Accounting System

Accounting System

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90

91

7

12

34

54

45

52

62

78

12

14

23

50


The domestic traveller continues to be of importance across all hotels in India accounting for 76.8% of all guests. Domestic business travellers represented the largest percentage of hotel guests at 38.4%.

Foreign guests prefer luxury and heritage hotels. Foreign leisure travellers and tour groups comprised 34.0% and 17.2% of the heritage market respectively against last year's figures of 28.6% and 32.3% respectively. Foreign business travellers in the five-star deluxe market reflected an increase from 20.6% in 2000-2001 to 21.6% in 2001-2002.

Of the foreign guests, the UK provided the largest demand, at 16.6%, followed by USA, at 14.1%, and Germany at 7.7%.

Percentage of foreign guests has decreased slightly to 23.2% in 2001-2002 as compared to 25.4% in 2000-2001.

Domestic tourist/leisure has reflected an increase from 19.0% during 2000-2001 to 21.3% during 2001-2002.

Percentage of repeat guests (all India) has reflected an increase from 44.1% last year to 46.3% during 2001-2002. Five-star deluxe hotels reflected the highest percentage of repeat guests at 49.8% during 2001-2002, against 36.6% last year.

Direct enquiry (56.7%) continues to be the major source of advance reservations at Indian hotels followed by travel agents and tour operators (19.1%).

Cash sales (including cheques/demand drafts), remain the most popular method of settling bills in India at 48.9%. In the luxury segment of five-star deluxe, credit cards remained the most popular method at 35.8%.

With more international transactions taking place, electronic fund transfer has increased from 0.5% (all India average) last year to 0.7% this year.

Hotels with training department have increased in all star categories with all India average showing 19.5% as compared to 16.9% last year. This reflects a growing importance of employee retention and HR related issues.

Visa (39.7%) was the most widely used credit card by guests followed by Mastercard (35.8%). American Express has the highest commission rate.

Marketing expenses on per occupied room basis have increased from Rs 100 during 2000-2001 to Rs 134 during 2001-2002 reflecting more marketing efforts due to the slowdown in the industry.

Energy expenses on per occupied room basis have steadily increased from Rs 268 in 1997-1998 to Rs 482 in 2001-2002 reflecting a compounded annual growth of 16% since 1997-1998. This increase is of high concern for hoteliers.

Credit Card Analysis - Market Share

American Express Diners Club Mastercard / Eurocard Visa Other

10.0

0

20.0 13.8

30.0

40.0

50.0

14.2 13.29.6 8.6 6.8

36.6 35.4 35.832.9

37.039.7

7.14.8 4.5

1999-2000 2000-2001 2001-2002

The table above compares results of the survey in 2001-2002 with the previous year. In

2001-2002, revenue per available room (RevPAR) for one-star hotels and five-star deluxe

hotels in the sample registered the highest decrease at 42.3% and 16.5% respectively

over the previous year.

Average occupancy per hotel has decreased in all hotels except for heritage hotels,

which reflected an increase of 0.8%.

While print advertising continues to be the most popular marketing medium used by

hotels (89.5%) across India, we notice that 93.1% and 87.5% of five-star deluxe and five-

star hotels, respectively, also use their hotel websites as effective marketing media.

Similarly, 84.4% of heritage hotels use their hotel web sites. Direct mail is also the

preferred marketing media for five-star deluxe (96.6%) and five-star (97.5%) hotels.

Interestingly, radio advertisement has also been used as marketing media during 2001-

2002. Five-star hotels used this mode of marketing the most (17.5%).

The luxury hotels monitor environmental issues most closely. Solid waste production is

being monitored by 21.7% of the hotels, which is an increase over the previous year

(18.2%).

In a similar trend, as witnessed last year, hotels monitor energy consumption (electricity)

at their hotels (95%) most closely. This is followed by energy consumption (Gas) at

85.2% and water consumption at 84.1%. This is because energy expenses accounted for

12.5% of total revenue as compared to 11.3% last year. This continues to be much higher

in India, when compared to other parts of the world like the United States (3.5%).


Change in Performance Ratios: 2001-2002 over 2000-2001

Five-Star


All India

Average

Average Occupancy Per Hotel: -7.1% -3.2% -0.9% -1.7% -2.1% -4.0% 0.8% -5.1% -2.4%Average Rate Per Hotel: -5.9% 3.7% -3.8% 6.3% 0.9% -38.4% 2.2% 21.4% 0.5%

RevPAR -16.5% -2.1% -5.5% 3.1% -2.8% -42.3% 4.8% 10.8% -3.8%

* Some changes may have occurred due to the change in the hotels participating in our survey

Air (E

xtern

al Em

ission

s)

Air (In

door

Air

Quality

)

Comm

unity

Inte

racti

on

Energ

y Con

sum

ption

(Elec

tricit

y)

Energ

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sum

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(Gas

)

Energ

y Con

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(Oil)

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lity)

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Environmental Issues - Percentage of Hotels Monitoring Quantitative Performance100.0

90.0

80.0

70.0

60.0

50.0

40.0

30.0

20.0

10.0

Wat

er C

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ure/

Gar

dens

)

Introduction

This is the fifth edition of this report published by HVS International on behalf of the FHRAI

on data obtained by them from their members. We are therefore in a position to analyse our

survey results produced over the last five years and provide a historical trend for the users

of this report.

Apart from some general and financial trends over the five years, we have attempted to

individually cover 19 cities under our trend analysis. The city analysis includes a brief

mention on the market perception of each city by HVS International, as well as the potential

performance for the current year (2002-2003).

Indian Hotel Industry-Size and Category

The Indian hotel industry has two main types of hotels, approved and unapproved. Hotels

get approval from the Department of Tourism, Government of India at project stage and get

classified in one of the star categories. It is voluntary for a hotel to get approved status from

the Government, but all income tax incentives, import licenses and other approvals to be

given by Government agencies are confined to approved hotels. The number of approved

hotel rooms and their growth over the last five years are given in the following table.

Majority of hotels and hotel rooms in India fall in the unapproved type, as many hotels

specially those equivalent to lower star category hotels, do not go through the Government

classification scheme. FHRAI itself has currently 455 hotel members with 17,925 rooms under

the unapproved category, out of a total of 1,769 hotels with 97,241 rooms.

Trends & Opportunities in the Indian HotelIndustry


Rooms Growth %

Category Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms (1997-2001)

Five-Star Deluxe 39 10,063 41 10,574 57 12,556 65 14,959 68 15,672 12%

Five-Star 54 7,704 59 8,028 73 9,051 72 8,513 72 8,662 3%

Four-Star 71 5,264 77 5,586 92 7,232 99 7,791 100 7,614 10%

Three-Star 233 11,780 256 13,231 379 19,785 402 20,691 413 21,387 16%

Two-Star 192 7,412 208 8,023 244 9,135 263 9,958 234 9,278 6%

One-Star 47 2,452 49 2,472 46 2,253 50 2,428 48 1,696 -9%

Heritage 31 912 34 965 66 2,372 73 2,551 71 2,492 29%

Approved (Unclassified) 90 4,953 112 6,009 263 10,560 303 12,318 308 12,515 26%

Un-approved 811 30,986 836 31,486 493 18,350 472 17,757 455 17,925 -13%

Total 1,568 81,526 1,672 86,374 1,713 91,294 1,799 96,966 1,769 97,241 4%

Source: FHRAI, as per the details of thei r member hotels

2001 data is as of 29 November 2002

1997 2001200019991998

Indian Hotel Industry-Revenue and Profitability-Average Per Hotel


Revenue (in crores) Net Income (in crores) House Profit (in %)

8.00

6.00

4.00

2.00

0.00

3.24

1.07

36.8%

5.94

37.3%

1.88

4.49

32.3%

1.25

4.59

31.7%

1.25

1997-1998All India Average




20.0%

25.0%

30.0%

45.0%

40.0%

45.0%

25.9%

0.97

4.54


House profit (Gross Operating Profit after deducting franchise and management fees) as

a percentage of revenue has steadily decreased over the last five years and was 25.9%

during 2001-2002. This can be attributed due to rising cost of operations. As a result, the

all India average Net Income (Net Income is before depreciation, interest payments and

taxes) per hotel also decreased from Rs 1.25 crores in the previous year to Rs 0.97 crores

in 2001-2002.

All India average revenue has marginally decreased from Rs 4.59 crores during 2000-2001

to Rs 4.54 crores during 2001-2002.

Rooms Revenue - expectedly at Rs 380,562 on per available room basis, was the largest

source of revenue during 2001-2002 followed by Food and Beverage Revenue at Rs

220,976.

Trends in Rooms and F&B Revenue on Per Available Room(PAR)

600,000

500,000

400,000

300,000

200,000

100,000

0






Rooms Food & Beverage

340,517

157,688

483,552

217,533

400,721

199,655

416,158

210,327

380,562

220,976

In R

up

ees

Trends in other Departmental Revenue on Per Occupied Room(POR)

Banquet & Conferences Telephone & Other Minor Operated Rental & Other Income

300

250

200

150

100

50

0

In R

up

ees






178

148

275

202

133

227

159

116117

236

131

80101

261

119105

132

11970 79

Country of Origin of Guests






Per

cen

tag

e o

f G

ues

ts

60%

14%

49%

3%

21%

12%

16%

45%

3%

23%

14%17%

43%

3%

23%

14%

18%

42%

4%

24%

12%

18%

41%

3%

24%

14%

50%

40%

30%

20%

10%

0%

North America

Europe

Middle East

Asia

Other

January February March April May June July August September October November December

1997-1998 1998-1999 1999-2000 2000-2001 2000-2001

48

50

52

54

56

58

60

62

64

66

Trends in Monthly Occupancy (All India Average)


FH

RA

IH

VS

Intern

ational

Pag

e 14

Trends in Key Operating Statistics

COMPOSITION

1997-1998

All India

Average

1998-1999

All India

Average

1999-2000

All India

Average

2000-2001

All India

Average

2001-2002

All India

Average

1997-1998

All India

Average

1998-1999

All India

Average

1999-2000

All India

Average

2000-2001

All India

Average

2001-2002

All India

Average

1997-1998

All India

Average

1998-1999

All India

Average

1999-2000

All India

Average

2000-2001

All India

Average

2001-2002

All India

Average

Number of respons es: 538 437 559 443 424 538 437 559 443 424 538 437 559 443 424

Average Total Rooms Per Hotel: 55 71 63 62 63 55 71 63 62 63 55 71 63 62 63Average Occupied Rooms Per Hotel: 10,802 13,509 11,829 12,659 11,727 10,802 13,509 11,829 12,659 11,727 10,802 13,509 11,829 12,659 11,727Average Occupancy Per Hotel: 54.0% 52.4% 51.7% 55.6% 53.2% 54.0% 52.4% 51.7% 55.6% 53.2% 54.0% 52.4% 51.7% 55.6% 53.2%Average Rate Per Hotel: Rs1,729 Rs2,530 Rs2,123 Rs2,046 Rs2,058 Rs1,729 Rs2,530 Rs2,123 Rs2,046 Rs2,058 Rs1,729 Rs2,530 Rs2,123 Rs2,046 Rs2,058

REVENUERooms 57.6% 57.5% 55.9% 56.4% 53.2% Rs340,517 Rs483,552 Rs400,721 Rs416,158 Rs380,562 Rs1,729 Rs2,530 Rs2,123 Rs2,046 Rs2,058Food & Beverage 26.7 25.9 27.8 28.5 30.9 157,688 217,533 199,655 210,327 220,976 801 1,138 1,058 1,034 1,195Banquet & Conferences 5.9 6.2 6.0 6.5 6.8 35,004 52,500 42,851 48,016 48,324 178 275 227 236 261Telephone & Other 4.9 4.6 4.2 3.6 3.1 29,076 38,650 29,982 26,622 22,063 148 202 159 131 119Minor Operated* 2.3 2.7 3.1 2.2 2.7 13,781 22,691 21,957 16,341 19,336 70 119 116 80 105Rental & Other Income 2.6 3.0 3.1 2.8 3.4 15,519 25,329 22,178 20,538 24,338 79 133 117 101 132 Total 100.0 100.0 100.1 100.0 100.0 591,584 840,255 717,344 738,003 715,599 3,004 4,397 3,800 3,629 3,869

DEPARTMENTAL EXPENSESRooms 16.1 16.1 17.1 19.4 20.6 54,879 77,614 68,650 80,534 78,234 279 406 364 396 423Food & Beverage 61.0 62.3 62.4 61.7 62.2 117,522 168,338 151,340 159,268 167,450 597 881 802 783 905Telephone & Other 50.1 55.6 57.5 56.8 57.7 14,564 21,476 17,237 15,124 12,732 74 112 91 74 69Minor Operated* 81.7 52.2 59.1 50.5 51.8 11,259 11,855 12,981 8,256 10,016 57 62 69 41 54Rental & Other Income 15.9 17.7 12.8 7.3 10.1 2,463 4,473 2,834 1,502 2,466 13 23 15 7 13 Total 33.9 33.8 35.3 35.9 37.9 200,686 283,756 253,041 264,685 270,898 1,019 1,485 1,340 1,302 1,465

DEPARTMENTAL INCOME 66.1 66.1 64.8 64.1 62.1 390,898 556,499 464,303 473,318 444,701 1,985 2,912 2,459 2,328 2,405

OPERATING EXPENSESAdministrative & General 8.6 10.9 9.4 8.9 10.3 51,066 91,811 67,592 65,596 73,323 259 480 358 323 396Management Fee 2.3 1.6 2.0 2.0 2.4 13,355 13,357 14,541 14,525 16,944 68 70 77 71 92Marketing 0.7 0.5 2.8 2.8 3.5 3,895 3,832 20,154 20,409 24,718 20 20 107 100 134Franchise Fees 1.0 0.3 0.4 0.4 0.4 5,994 2,674 2,725 3,301 2,796 30 14 14 16 15Property Operations & Maintenance 7.8 6.7 7.2 7.1 7.3 46,382 56,177 51,296 52,644 52,179 235 294 272 259 282Energy 8.9 8.9 10.7 11.3 12.5 52,759 74,537 76,502 83,005 89,228 268 390 405 408 482 Total 29.3 28.8 32.5 32.5 36.2 173,451 242,389 232,809 239,480 259,188 881 1,268 1,233 1,178 1,401

HOUSE PROFIT 36.8 37.3 32.3 31.7 25.9 217,447 314,110 231,494 233,839 185,512 1,104 1,644 1,226 1,150 1,003

FIXED EXPENSESProperty Taxes 0.8 0.7 0.9 1.0 1.1 4,716 5,684 6,658 7,584 7,831 24 30 35 37 42Insurance 0.5 0.6 0.8 0.6 0.7 3,176 5,152 5,874 4,236 4,992 16 27 31 21 27Other Fixed Expenses 1.4 2.7 1.9 2.1 1.8 8,190 22,302 13,957 15,253 13,104 42 117 74 75 71Rent 1.0 1.7 0.7 0.8 0.9 5,892 14,518 5,016 5,650 6,482 30 76 27 28 35 Total 3.7 5.7 4.3 4.4 4.5 21,974 47,656 31,505 32,723 32,408 112 249 167 161 175

NET INCOME** 33.1% 31.6% 28.0% 27.2% 21.4% Rs195,473 Rs266,454 Rs199,989 Rs201,116 Rs153,104 Rs992 Rs1,394 Rs1,059 Rs989 Rs828

* Minor operated departments include: laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth

** Net Income is before depreciation, i nterest payments a nd taxes

Percentage of Revenue Amount Per Available Room Amount Per Occupied Room

City Trends

2001-2002 was impacted by the global events of September 11, 2001, and also the terrorist

attacks in December 2001 on the Indian parliament. Practically all cities saw their occupancy

and average rates levels decline in line with global trends. The following analysis also gives

comments on the expected new supply and expected performance levels in these cities as

per research forecast of HVS International.

New Delhi:

Occupancy declined in 2001-2002 by 5.7%. Average rate continued to come under pressure

for the fourth consecutive year, registering a decline of 12.0%. While no new hotels are

under development in Delhi itself, the National Capital Region is expected to see the

emergence of at least 3 hotels over the next 3-4 years. However, room inventories for these

hotels are small and we do not anticipate any major impact on the supply side. Overall, we

remain optimistic about the city, and can expect occupancies to grow in the immediate

future and average rates to follow shortly thereafter.

Mumbai:

Despite the huge increase in new room supply in the Mumbai market, occupancy levels have

comparatively declined only by 3.5%. This indicates a large surge in demand for hotel

rooms. HVS estimates that this demand increase has consistently grown at 25-30% over the

past 2-3 years. New room supply has, however, had a detrimental effect on average rates,

which declined by 40.0%. With additional new hotels at different stages of development in

the Mumbai area, we foresee a fairly volatile scenario for the city over the next 3-4 years.

Kolkata:

Kolkata remains a weak hotel market among the four major metropolitan cities. Occupancy

levels declined by 7.5% in 2001-2002. Average rate were severely hampered with a huge

decline of 42.0% over the previous year. The Kolkata area is likely to witness at least 3 new

openings in the next few months. This is likely to adversely affect occupancy and reduce

room rates further. Pune:

In Pune, overall occupancies in luxury and mid-market hotels have remained steady.

Average rates, however, have decreased dramatically across the board at nearly 49.0%. The

city is witnessing a lot of hotel activity and we expect at least 2-3 hotels to change hands in

the next few months. We expect the overall market to improve in 2002-2003.

Chennai:

Chennai witnessed an occupancy decline of 13.5%, despite being the third best market in

terms of occupancy (65%). Average rates also declined by 8.6%. We expect the new hotel

development being planned for Chennai to have a dampening effect on occupancy and

average rates in the medium term. Prospects for the long term however remain good.


Bangalore:

Bangalore's hotel market declined by 12.9% in terms of occupancy in 2001-2002. Average

rates also declined steeply at 25.2% during the same period. Most of this was on account of

lower business interest from Europe and US following the September 2001 crises. We expect

the Bangalore market to bounce back sharply, as there are no new hotels which are expected

to enter the market in the immediate short term. Long term prospect for this market remain

very good.

Goa:

In Goa, overall occupancy declined marginally by 1.7%. Average rates however dropped by

19.2%. After the September 2001 crises, Goa has turned its attention to the domestic market

and the MICE segment. Although this helped them maintain occupancy levels, this was

achieved at the cost of average rates. The proposed opening of three new luxury hotels with

international affiliation is likely to boost Goa's image as an upcoming leisure destination.

Although there may be some short-term impact with the new openings, we remain bullish in

the long term.

Ahmedabad:

The Ahmedabad market achieved an increase in occupancy levels by 3.8% to 59.9%, but a

decrease in average rates by 8.9%. At present, we are aware of only one new hotel

development taking place. Overall, we remain optimistic about the market over the next 2-3

years.

Cochin:

The overall occupancy in Cochin declined by 13.9% in 2001-2002. Average rates on the other

hand registered an impressive 60% growth to Rs 1,306. Quite possibly we believe that the

response sample may have changed and that more luxury hotels may have responded to our

survey. We are aware that at least 1-2 hotels are likely to enter the mid-market segment.

Jaipur:

Although occupancy levels have increased in 2001-2002 by 7.5%, average rates continued to

fall, and declined by 24.8% over the previous year. We expect the Jaipur market to register an

improvement in 2002-2003 in terms of performance, with further improvements in the

medium to long term.

Hyderabad:

Hyderabad has been among the star performers during the last few years. However, in 2001-

2002 occupancies declined by 5.9% to 67.2%. Average rates also declined steeply at 38.6%. We

expect this city to rebound strongly in the coming year.

Vishakapatnam:

Occupancy levels in Vishakapatnam decreased to 56.6% in 2001-02, a decline of 13.7%.

Average rates however increased by 35% during the same period. We are not aware of any

new hotel development projects under construction in the city.


Varanasi:

We are unable to track the trend in this city, as we were unable to get adequate responses

(from FHRAI's Hotel Fact Sheet) from the hotels in the city. Thiruvananthapuram:

Earlier known as Trivandrum, this city has witnessed a decrease in terms of room occupancy

(2.8%), and also a decline in average room rates (16.2%). The city will however gain from

efforts of the State Governments to promote tourism in the State. Kerela is currently among

the fastest growing tourist destinations in the world according to WTTC.

Udagamandalam (Ooty):

This resort hill station is fairly seasonal. We are unable to track the trend in this hill station,

as we were unable to get adequate responses (from FHRAI's Hotel Fact Sheet) from the hotels

in the city. We are unaware of any new branded hotel activity in this hill station.

Udaipur:

Despite an overall decline in tourist arrivals, occupancy levels have remained steady in

Udaipur. However, this has only been possible due to the huge decline of 43.4% in average

rates. Only one new luxury hotel is expected to open in 2002-2003. We anticipate that both

occupancy and rates will rebound back sharply in 2002-2003.

Agra:

After three years of growth, Agra witnessed a decline of 22.6% in terms of occupancy. This

coupled with the fact that average rates also declined by 21.4, makes this amongst the

weakest markets in India. The city is likely to become a popular conference destination in the

future due to its proximity to Delhi and a good hotel infrastructure for such events.

Indore:

Surprisingly, Indore has been the best performer amongst the various cities in this survey at

occupancy of 77.5%, reflecting an overall growth of 19%. The city has more or less held

average rates at Rs 850, a decline of 2.7%. Shimla:

Shimla has witnessed a decline of 9.4% in terms of occupancy levels in 2002-2003. However,

in terms of average rate growth the market appears to have grown by 48.6%. HVS believes

that this is due to the fact that one of the luxury hotels became operational and has reported

the figures.

New Supply of Hotels

Since 1997, HVS International has maintained its own database of new supply entering the

major cities. The following graph highlights the 80 hotels under active development, which

HVS International is currently aware of in various Indian cities. It is important to note that

most of this new supply represents branded properties.


Number of New Hotel Developments

0

No. of hotelsSource: HVS International Research

2

46

8

10

12

1416

1820

Agra

Ahmed

abad

Banga

lore

Chand

igarh

Chenn

aiDelh

i (NCR)

GoaHyd

erab

adJa

ipur

Jalan

dhar

Jodh

pur

Kolkat

aLu

ckno

wLu

dhian

a

Mum

bai

Pune

Puri

Udaipu

rVa

rana

siOth

ers

Mad

urai

Shimla

HVS International is of the opinion that demand for hotels has risen across many cities

including the major metros in the current financial year (April 2002 March 2003). Leading

these demand growths are cities like Mumbai, Bangalore, Goa, Delhi and Hyderabad.

However, some cities are also witnessing over supply, which is at various stages of

development. Bangalore is going to gain the most from this growth, as there is no real new

supply entering the market and we expect that Hyderabad and Delhi will follow behind

Bangalore. Mumbai and Goa will see growth, which will however be suppressed by the new

supply entering these markets.

What the Future Holds?

The Indian hotel market, as it stands today, reflects a substantial growth in hotel demand,

which, in turn, has been keeping pace with new supply in most cities. In 2002-2003, we

expect occupancies to rebound in most markets as a result of the recovery after the events of

September 11 2001. This recovery would have been even stronger had it not been for the

travel advisories due to the Indo-Pak tensions, and the effects of the drought facing many

parts of the country which has slowed the overall economy.

In terms of average rates the loss of business in the weak months of May to August is likely

to be compensated by the good months expected during the winter season. Average rates in

most cities are likely to hold steady or go down marginally. Further, the Indian Tourism

Development Corporation (ITDC) and the Hotel Corporation of India (HCI) disinvestments

are expected to be completed by the end of the fiscal year. Some of these hotels have been

shut down for a year or more depending on whether they are being rebuilt or refurbished.

This is likely to have a positive impact on New Delhi's occupancy and average rate. A silver

lining for potential companies is the possibility of finding good value to acquire new

properties. We, therefore, expect consolidation to take place and more transactions over the

next year or so.

It is our continuous belief that, with increasing payroll costs and new competition as a result

of an increase in the number of free standing restaurants, there may be a decline in the

number of food and beverage outlet in hotels and an emerging trend towards outsourcing

and leasing hotel restaurants to independent operators.


1. Indian Hotel Industry by Star Category


In this section, we have analysed the performances of the hotels by star classification. An

overall total of 1,038 hotels participated in the survey. In Tables 1-1 to 1-10, we have

analysed the responses into the 8 star categories available in India. In order to increase the

sample representation to higher levels, we have combined hotels, which are Government-

approved and expected to receive a star grading with those with existing star categories.

“Unapproved” hotels have been put under the "Others" category.

In order to provide further interesting comparisons, we have included a column for all India

totals across all star categories. Each section includes the total number of respondents for

each component of the survey, allowing the reader to judge the validity of the data received. The layout has been standardized in each section to enable consistency throughout the

entire document. All figures are annual for fiscal year 2001-2002 and in Indian Rupees.

Table 1-1: presents a typical facilities analysis including rooms configuration, F&B

outlets, a breakdown of trained and total employees;

Table 1-2: presents financial statements as a percentage of revenue;

Table 1-3: presents financial statements on a PAR (per available room) basis;

Table 1-4: presents financial statements on a POR (per occupied room) basis;

Table 1-5: presents market data including market segmentation, guest analysis and the

country of origin of guests;

Table 1-6: presents a monthly and daily occupancy analysis;

Table 1-7: presents the sources of reservations of hotel rooms;

Table 1-8: presents the marketing media most widely used by hotels;

Table 1-9: presents an analysis of payment methods and the use of credit cards;

Table 1-10: presents the technology used and environmental issues measured by hotels.


TABLE 1-1: Indian Hotel Industry by Star Category - Facilities Analysis and Staffing

Typical Room Profile of an Average Hotel

Average Number of Total Employees Per Hotel (Permanent / Contract / Full Time / Part Time)

Average Number of Food & Beverage Outlets Per Hotel

Average Percentage of Trained Employees Per Hotel

COMPOSITION

Five-Star


2001-2002

All India

Average

Number of respons es: 31 43 61 296 188 65 38 316 1,038

Air-Conditioned Single 31.9 17.3 5.8 4.2 2.3 1.5 0.2 1.5 4.2Double 131.8 109.3 63.5 35.5 18.7 10.9 21.3 13.6 31.3Suites 17.2 10.6 6.1 5.1 2.5 1.4 6.0 2.7 4.3

Non-Air-Conditi oned Single 0.0 0.0 0.4 1.0 2.2 3.5 0.5 3.0 1.9Double 0.0 2.0 3.3 7.1 12.1 11.3 4.2 14.7 9.8Suites 0.0 0.2 0.4 0.4 1.4 0.9 1.2 1.5 1.0

Total Average Rooms 180.9 139.4 79.6 53.2 39.3 29.4 33.3 36.9 52.4

COMPOSITION

Five-Star


2001-2002

All India

Average


Restaurant 3.4 2.5 1.8 1.6 1.4 1.2 1.4 1.3 1.5Bar 1.6 1.2 1.1 0.8 0.6 0.4 0.8 0.5 0.7Others 1.1 1.4 1.0 0.7 0.5 0.3 0.6 0.3 0.6Total 6.1 5.0 3.8 3.1 2.4 1.9 2.7 2.0 2.9

COMPOSITION

Five-Star


2001-2002

All India

Average


Managers Male 33.6 21.8 10.5 5.1 2.2 1.7 4.0 2.2 5.4Female 8.5 4.5 2.0 0.7 0.3 0.2 0.4 0.3 0.9

Supervisors Male 52.8 29.9 14.4 9.0 4.2 3.3 5.3 3.5 8.5Female 10.4 4.8 2.5 1.2 0.5 0.3 0.5 0.6 1.3

Staff Male 246.3 183.1 101.2 60.1 33.1 23.3 39.4 25.4 55.0Female 21.2 14.4 8.4 4.6 2.6 1.4 4.2 2.0 4.4

Total 372.7 258.4 139.0 80.7 42.9 30.2 53.9 34.0 75.6

2.1 1.9 1.7 1.5 1.1 1.0 1.6 0.9 1.4Average Number of Employees Per Room

COMPOSITION

Five-Star


2001-2002

All India

Average


Managers FT 88.1% 78.0% 75.4% 70.8% 70.0% 51.2% 74.0% 58.5% 68.3%

ST 4.4 12.0 13.6 20.1 17.2 43.8 17.3 29.0 21.4Total Avg. Trained Managers 92.5 90.0 89.0 90.9 87.3 94.9 91.2 87.6 89.7

Supervisors FT 73.5 63.5 65.4 56.8 49.5 28.7 58.2 44.7 52.6ST 17.0 27.6 15.1 27.8 33.7 46.4 20.5 35.2 30.1

Total Avg. Trained Supe rvisors 90.5 91.0 80.5 84.6 83.2 75.1 78.7 79.9 82.7

Staff FT 54.0 40.0 36.7 31.3 33.5 14.5 39.8 28.1 32.0ST 32.2 40.1 32.5 37.8 35.7 42.3 25.8 29.6 35.0

Total Avg. Trained Staff 86.2 80.1 69.2 69.1 69.1 56.8 65.7 57.7 67.0

Total Avg. Trained Employ ees 89.7 87.0 79.6 81.5 79.9 75.6 78.5 75.0 79.8Total Avg. Un-Trained Em ployees 10.3 13.0 20.4 18.5 20.2 24.4 21.5 25.0 20.2

Hotels with Training De partment 87.1% 67.4% 37.7% 21.3% 14.9% 4.6% 34.2% 5.1% 19.5%

FT: Formal training - mi nimum one year's cer tificate/diploma ST: Short-term trainin g

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TABLE 1-2: Indian Hotel Industry by Star Category - Financial Report - Percentage of Revenue

COMPOSITION Five-Star Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others

2001-2002

All India

Average

Number of responses: 28 32 31 138 86 42 23 44 424

Average Total Rooms Per Hotel: 188 129 85 58 38 27 36 37 63Average Occupied Rooms Per Hotel: 35,921 23,190 15,830 10,680 7,162 5,860 4,230 6,832 11,727Average Occupancy Per Hotel: 55.7% 52.6% 52.7% 53.1% 55.6% 59.1% 32.0% 53.6% 53.2%Average Rate Per Hotel: Rs3,991 Rs2,950 Rs2,131 Rs1,257 Rs832 Rs599 Rs2,295 Rs820 Rs2,058

REVENUERooms 54.4 % 54.5 % 52.9 % 48.0 % 53.6 % 62.6 % 52.2 % 62.2 % 53.2 %Food & Beverage 29.5 26.1 32.0 37.5 34.4 26.0 33.9 25.5 30.9Banquet & Conferences 6.4 7.7 7.4 6.9 4.3 4.7 6.7 5.2 6.8Telephone & Other 3.7 3.2 3.0 2.4 2.0 2.1 2.5 2.1 3.1Minor Operated* 3.5 3.0 2.2 1.8 1.3 0.3 2.0 2.0 2.7Rental & Other Income 2.5 5.4 2.5 3.3 4.5 4.3 2.7 3.0 3.4 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

DEPARTMENTAL EXPENSESRooms 19.2 20.7 16.8 21.9 29.2 23.4 23.6 26.2 20.6Food & Beverage 62.1 62.1 59.3 62.2 68.6 55.4 58.5 73.9 62.2Telephone & Other 46.6 55.0 58.9 74.5 108.1 116.1 64.4 103.4 57.7Minor Operated* 46.1 46.5 31.8 74.1 110.0 268.8 98.7 63.0 51.8Rental & Other Income 6.2 3.4 18.4 20.6 11.4 32.2 8.3 26.0 10.1 Total 36.2 35.6 35.2 42.0 46.2 36.4 39.9 43.2 37.9

63.8 64.4 64.8 58.0 53.8 63.6 60.1 56.8 62.1

OPERATING EXPENSESAdministrative & General 9.2 12.7 9.9 10.3 7.9 10.2 13.1 8.9 10.3Management Fee 2.4 4.0 1.5 1.3 1.4 1.0 4.2 0.8 2.4Marketing 4.1 3.7 2.6 2.6 2.3 2.8 5.8 2.2 3.5Franchise Fees 0.6 0.3 0.2 0.2 0.1 0.1 0.2 0.4 0.4Property Operations & Maintenance 7.1 7.8 7.6 7.2 6.8 6.7 7.5 7.6 7.3Energy 13.1 10.8 12.5 13.9 13.2 13.2 13.2 12.1 12.5 Total 36.4 39.3 34.3 35.5 31.5 33.9 44.1 32.0 36.2

HOUSE PROFIT 27.4 25.1 30.5 22.6 22.3 29.7 16.0 24.9 25.9

FIXED EXPENSESProperty Taxes 1.3 1.3 0.7 0.8 1.0 1.8 0.5 0.8 1.1Insurance 0.9 0.7 0.4 0.5 0.4 0.5 0.9 0.3 0.7Other Fixed Expenses 2.0 2.1 1.7 1.4 1.8 1.6 1.7 0.8 1.8Rent 0.8 0.8 1.5 0.8 0.9 1.8 2.3 1.3 0.9 Total 5.0 4.9 4.4 3.4 4.0 5.6 5.4 3.2 4.5

NET INCOME** 22.4 % 20.1 % 26.2 % 19.1 % 18.3 % 24.1 % 10.6 % 21.6 % 21.4 %


** Net Income is before depreciation, interest payments and taxes

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TABLE 1-3: Indian Hotel Industry by Star Category - Financial Report - Amount Per Available Room

COMPOSITION

Five-Star


2001-2002

All India

Average



REVENUERooms Rs761,910 Rs530,653 Rs395,137 Rs230,523 Rs158,766 Rs128,641 Rs269,069 Rs151,952 Rs380,562Food & Beverage 413,444 254,296 238,863 179,857 101,743 53,475 175,126 62,251 220,976Banquet & Conferences 90,178 74,853 55,540 33,275 12,635 9,720 34,289 12,641 48,324Telephone & Other 51,332 30,625 22,545 11,667 5,810 4,273 13,070 5,208 22,063Minor Operated* 48,504 29,410 16,149 8,823 3,782 721 10,307 4,764 19,336Rental & Other Income 34,838 52,898 18,795 15,684 13,364 8,773 14,094 7,332 24,338 Total 1,400,206 972,735 747,029 479,828 296,100 205,603 515,954 244,148 715,599

DEPARTMENTAL EXPENSESRooms 145,970 109,741 66,231 50,368 46,327 30,120 63,601 39,849 78,234Food & Beverage 312,640 204,303 174,601 132,502 78,501 34,990 122,574 55,331 167,450Telephone & Other 23,938 16,854 13,271 8,693 6,281 4,961 8,413 5,383 12,732Minor Operated* 22,351 13,673 5,134 6,541 4,159 1,938 10,176 3,002 10,016Rental & Other Income 2,166 1,811 3,461 3,239 1,526 2,826 1,173 1,904 2,466 Total 507,066 346,380 262,698 201,342 136,794 74,835 205,936 105,470 270,898

DEPARTMENTAL INCOME 893,141 626,355 484,331 278,486 159,306 130,768 310,018 138,678 444,701

OPERATING EXPENSESAdministrative & General 128,273 123,675 74,084 49,559 23,323 20,930 67,831 21,793 73,323Management Fee 34,185 38,616 11,289 6,189 4,041 1,989 21,603 2,020 16,944Marketing 57,077 36,024 19,565 12,636 6,775 5,669 30,124 5,245 24,718Franchise Fees 8,807 3,341 1,320 1,032 138 266 1,228 884 2,796Property Operations & Maintenance 98,787 76,183 56,526 34,316 20,046 13,827 38,578 18,587 52,179Energy 176,284 104,705 93,228 66,482 38,071 27,057 68,105 28,809 89,228 Total 503,414 382,545 256,012 170,214 92,394 69,738 227,469 77,339 259,188

HOUSE PROFIT 389,727 243,810 228,319 108,272 66,912 61,030 82,549 61,340 185,512

FIXED EXPENSESProperty Taxes 17,901 12,906 5,518 3,663 2,949 3,606 2,733 1,859 7,831Insurance 12,973 6,948 3,167 2,344 1,224 963 4,601 677 4,992Other Fixed Expenses 28,112 20,616 13,010 6,669 5,258 3,277 8,572 2,017 13,104Rent 10,639 7,537 10,890 3,819 2,528 3,663 12,002 3,259 6,482 Total 69,624 48,007 32,585 16,495 11,959 11,510 27,909 7,812 32,408

NET INCOME** Rs320,103 Rs195,803 Rs195,734 Rs91,777 Rs54,953 Rs49,520 Rs54,640 Rs53,528 Rs153,104



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TABLE 1-4: Indian Hotel Industry by Star Category - Financial Report - Amount Per Occupied Room

COMPOSITION

Five-Star


2001-2002

All India

Average



REVENUERooms Rs3,991 Rs2,950 Rs2,131 Rs1,257 Rs832 Rs599 Rs2,295 Rs820 Rs2,058Food & Beverage 2,166 1,414 1,288 981 533 249 1,494 336 1,195Banquet & Conferences 472 416 300 181 66 45 293 68 261Telephone & Other 269 170 122 64 30 20 111 28 119Minor Operated* 254 163 87 48 20 3 88 26 105Rental & Other Income 183 294 101 86 70 41 120 40 132 Total 7,335 5,407 4,029 2,616 1,551 958 4,401 1,317 3,869

DEPARTMENTAL EXPENSESRooms 765 610 357 275 243 140 543 215 423Food & Beverage 1,638 1,136 942 723 411 163 1,046 299 905Telephone & Other 125 94 72 47 33 23 72 29 69Minor Operated* 117 76 28 36 22 9 87 16 54Rental & Other Income 11 10 19 18 8 13 10 10 13 Total 2,656 1,925 1,417 1,098 717 349 1,757 569 1,465

DEPARTMENTAL INCOME 4,679 3,482 2,612 1,519 835 609 2,645 748 2,405

OPERATING EXPENSESAdministrative & General 672 687 400 270 122 98 579 118 396Management Fee 179 215 61 34 21 9 184 11 92Marketing 299 200 106 69 35 26 257 28 134Franchise Fees 46 19 7 6 1 1 10 5 15Property Operations & Maintenance 518 423 305 187 105 64 329 100 282Energy 923 582 503 363 199 126 581 155 482 Total 2,637 2,126 1,381 928 484 325 1,940 417 1,401

HOUSE PROFIT 2,042 1,355 1,232 590 351 284 704 331 1,003

FIXED EXPENSESProperty Taxes 94 72 30 20 15 17 23 10 42Insurance 68 39 17 13 6 4 39 4 27Other Fixed Expenses 147 115 70 36 28 15 73 11 71Rent 56 42 59 21 13 17 102 18 35 Total 365 267 176 90 63 54 238 42 175

NET INCOME** Rs1,677 Rs1,088 Rs1,056 Rs500 Rs288 Rs231 Rs466 Rs289 Rs828




TABLE 1-5: Indian Hotel Industry by Star Category - Market Data

Market Segmentation


Guest Analysis

COMPOSITION

Five-Star

Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Other

2001-2002

All India

Average


Airline Crew 7.5% 6.8% 1.4% 0.9% 0.5% 0.1% 0.3% 0.4% 1.2%

Business Traveller - Domestic 18.0 27.8 41.1 39.9 40.6 48.1 8.4 41.8 38.4

Business Traveller - Foreign 21.6 15.6 8.8 6.4 6.6 5.1 6.6 4.6 7.2

Complimentary Rooms 2.2 1.8 2.9 1.6 1.9 1.2 2.4 1.5 1.8

Domestic - Tourists/Leisure FIT 9.8 10.1 14.1 20.1 22.7 24.0 18.6 28.5 21.3

Foreign - Tourists/Leisure FIT 10.2 5.4 7.6 6.8 7.7 7.9 34.0 5.8 8.1

Meeting Participants (Less than 100 Attendees) 5.8 9.2 5.4 6.0 3.6 1.7 4.0 3.7 4.7

Meeting Participants (Over 100 Attendees) 5.9 4.7 2.2 2.4 1.2 0.5 0.9 0.8 1.8

Tour Groups - Domesti c 3.2 3.7 4.3 6.8 6.5 4.7 5.8 6.9 6.1

Tour Groups - Foreign 10.2 11.0 6.9 5.5 5.5 3.2 17.2 2.2 5.7

Other 5.8 4.0 5.5 3.7 3.3 3.6 1.8 3.7 3.8

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

COMPOSITION

Five-Star


2001-2002

All India

Average


ASEAN* 6.7% 3.7% 5.6% 6.7% 5.5% 4.6% 0.9% 7.2% 5.8%

Australia 3.0 3.6 3.5 3.4 4.4 4.8 4.0 3.8 3.8

Canada 2.4 1.9 3.6 3.3 3.7 2.0 1.6 3.9 3.2

Caribbean 0.3 0.4 0.2 0.5 0.3 0.1 0.1 0.1 0.3

China 1.2 2.7 2.1 1.9 1.1 1.9 0.2 1.4 1.6

France 6.5 5.1 7.8 7.1 5.9 3.6 17.1 4.2 6.7

Germany 7.9 7.5 10.0 8.0 6.2 5.9 13.3 6.3 7.7

Japan 7.1 11.1 7.7 5.8 4.4 2.4 2.5 4.8 5.6

Middle East 3.1 3.8 2.2 2.9 5.4 4.5 1.1 2.8 3.4

Other European 8.8 10.7 6.8 10.6 11.2 13.1 11.5 8.0 10.2

Russia 1.0 1.7 5.6 1.9 1.2 1.0 1.1 2.5 2.0

SAARC** 4.1 2.0 5.5 10.0 11.7 17.5 0.5 11.6 9.3

South Africa 0.9 1.3 1.2 2.2 1.6 2.6 1.0 1.8 1.8

UK 18.8 18.0 16.3 15.1 16.2 14.3 26.6 16.6 16.6

USA 14.6 11.5 13.3 14.0 13.8 14.2 10.2 17.5 14.1

Other 13.8 14.8 8.5 6.7 7.5 7.5 8.3 7.4 8.1

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

* ASEAN: Association of Sou th East Asian Nations

** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

COMPOSITION

Five-Star


2001-2002

All India

Average


Domestic Guests 48.7% 64.3% 69.3% 79.2% 78.5% 82.6% 42.7% 86.9% 76.8%Foreign Guests 51.3 35.7 30.7 20.8 21.5 17.4 57.3 13.1 23.2

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total Business Guests* 63.5% 67.5% 63.8% 58.7% 55.5% 58.3% 21.8% 54.5% 56.6%

Total Leisure Guests 36.5 32.5 36.2 41.3 44.5 41.7 78.2 45.5 43.4

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Avg. Stay of Domestic Guests (Days) 2.1 2.1 2.4 2.9 3.3 2.9 2.2 2.8 2.8

Avg. Stay of Foreign Guests (Days) 3.5 2.2 3.1 3.0 3.6 3.2 2.6 2.5 3.0

Percentage of Repeat Guests 49.8% 38.3% 48.0% 46.2% 47.9% 55.7% 11.9% 47.8% 46.3%

* Total Business Guests include Airline Crew which was shown separately in previous editions


TABLE 1-6: Indian Hotel Industry by Star Category - Monthly & Daily Occupancy

Average Monthly Occupancy

Average Daily Occupancy

TABLE 1-7: Indian Hotel Industry by Star Category - Sources of Reservations

Source of Advance Reservations

COMPOSITION

Five-Star


2001-2002

All India

Average


January 64.0% 56.3% 58.4% 58.7% 60.0% 62.2% 43.0% 56.0% 58.1%

February 68.8 62.1 60.5 57.4 58.6 60.5 46.0 53.9 57.6

March 59.3 52.8 52.6 52.3 54.8 56.9 39.6 50.8 52.7

April 58.4 52.3 54.3 53.4 55.8 61.7 32.8 54.8 54.2

May 48.8 48.7 53.2 54.2 58.5 64.6 24.6 61.1 55.6

June 48.7 46.8 51.6 50.7 55.4 60.7 22.6 58.3 52.6

July 50.7 44.8 46.9 48.8 51.8 54.6 23.0 51.2 49.1

August 53.4 45.2 48.2 49.8 52.3 54.3 30.7 50.1 49.8

September 51.9 48.1 49.2 50.4 52.7 57.3 25.4 50.9 50.4

October 48.5 45.7 50.1 52.8 56.6 59.2 35.7 55.3 53.2

November 57.6 50.6 57.5 57.2 60.3 62.1 42.8 58.0 57.5

December 59.7 54.4 60.4 62.6 64.4 69.3 46.3 61.0 61.8

COMPOSITION

Five-Star


2001-2002

All India

Average


Monday 55.6% 54.3% 53.5% 52.7% 54.5% 59.5% 43.0% 53.5% 53.8%

Tuesday 56.4 58.1 57.6 55.0 57.7 60.2 40.9 54.5 56.0

Wednesday 57.6 59.2 59.4 56.2 58.5 62.5 44.0 56.2 57.4

Thursday 57.4 57.7 60.1 56.1 60.2 61.8 41.9 56.7 57.6

Friday 56.8 54.3 56.7 56.9 58.6 61.6 51.8 57.1 57.4

Saturday 55.6 51.5 51.7 51.7 55.2 55.5 57.4 55.3 53.7

Sunday 55.1 48.7 47.0 45.8 48.8 47.2 50.1 50.2 48.2

COMPOSITION

Five-Star


2001-2002

All India

Average


Chain CRS (Central Reservation System) 18.0% 12.3% 7.4% 5.9% 2.5% 0.9% 17.0% 2.1% 5.4%

Direct Enquiry/ Hotel Representative 42.2 45.7 55.4 57.0 57.2 70.4 28.2 62.5 56.7

Global Distribution Sy stem (GDS) 3.7 2.4 1.8 1.6 2.0 0.6 1.4 0.6 1.5

Hotel/Chain Web Site 3.4 4.1 6.4 4.8 5.1 3.3 5.1 4.7 4.8

Travel Agent & Tour Operator 23.2 20.4 18.0 17.6 20.4 13.4 39.3 17.4 19.1

Other online reservation systems 2.4 2.2 2.2 1.6 0.6 0.1 1.1 2.7 1.6

Other websites 1.4 0.4 1.3 1.9 1.9 0.9 2.0 1.1 1.6

Others 5.8 12.5 7.6 9.5 10.3 10.5 5.9 8.7 9.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


TABLE 1-8: Indian Hotel Industry by Star Category - Marketing Media

Marketing Media - Percentage of Hotels Using Each Media

TABLE 1-9: Indian Hotel Industry by Star Category - Payment Methods

Payment Methods Used

Average Credit Card Commission

Credit Cards Used

COMPOSITION

Five-Star


2001-2002

All India

Average


Direct Mail 96.6% 97.5% 84.3% 83.3% 75.5% 73.1% 78.1% 71.6% 79.9%

Hotel web site 93.1 87.5 86.3 67.1 58.3 40.4 84.4 46.6 63.6

Loyalty card program 86.2 65.0 35.3 25.0 14.6 19.2 34.4 11.5 25.4

Merchandising 44.8 35.0 17.7 22.2 11.9 11.5 21.9 10.8 18.4

Other Internet site 62.1 45.0 62.8 47.6 45.0 38.5 71.9 29.7 45.4

Outdoor Advertising 72.4 75.0 68.6 65.5 59.6 63.5 59.4 55.4 62.9

Print Advertising 100.0 100.0 90.2 89.3 91.4 82.7 93.8 84.5 89.5

Promotions 100.0 95.0 76.5 67.9 51.7 40.4 75.0 57.4 64.2

Radio Advertising 13.8 17.5 13.7 6.4 1.3 5.8 3.1 6.8 6.6

Telemarketing 72.4 60.0 58.8 40.1 31.8 15.4 40.6 32.4 38.8

TV Advertising 31.0 47.5 25.5 25.0 18.5 17.3 28.1 19.6 23.7

COMPOSITION

Five-Star


2001-2002

All India

Average


Cash Sales 18.7% 23.7% 32.4% 42.6% 56.0% 66.2% 32.3% 65.7% 48.9%

Credit Card Sales 42.0 37.2 34.8 31.0 24.7 18.9 27.1 21.0 27.6

Credit Sales (Other than Cards) 38.0 39.0 32.4 25.6 18.6 14.0 40.3 12.8 22.8

Electronic Fund Transfer 1.3 0.2 0.5 0.9 0.7 1.0 0.3 0.4 0.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

COMPOSITION

Five-Star


2001-2002

All India

Average


American Express 27.7% 22.0% 17.2% 11.1% 9.3% 6.0% 14.2% 15.3% 13.2%

Diners Club 10.0 11.1 9.1 7.0 6.4 4.9 4.8 5.0 6.8

Mastercard/Eurocard 26.3 31.5 33.8 36.2 38.3 42.6 29.7 36.3 35.8

Visa 35.0 33.2 36.3 41.4 40.4 42.1 49.2 37.0 39.7

Other 1.0 2.2 3.5 4.4 5.7 4.5 2.0 6.3 4.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

COMPOSITION

Five-Star


2001-2002

All India

Average


American Express* 3.2% 3.5% 3.5% 2.9% 2.8% 2.3% 3.5% 2.5% 2.9%

Diners Club 2.5 2.5 2.0 1.8 1.5 1.3 1.6 1.3 1.7

Mastercard/Eurocard 1.9 1.9 2.1 2.5 2.6 2.6 2.6 2.4 2.4

Visa 1.8 2.1 2.0 2.5 2.6 2.5 2.5 2.3 2.4

Other 0.8 1.0 0.8 0.9 1.2 1.0 0.4 1.0 1.0

* HVS Research indicates that the average commission charged by American Express is 3.75%.


TABLE 1-10: Indian Hotel Industry by Star Category - Technology & Environmental Issues


Environmental Issues - Percentage of Hotels Monitoring Quantitative Performance

COMPOSITION

Five-Star


2001-2002

All India

Average


Accounting System 96.7% 92.5% 91.8% 90.3% 92.7% 87.2% 96.4% 87.9% 90.9%

Call Accounting System 80.0 72.5 67.4 49.6 39.4 38.3 57.1 43.6 49.9

Central Reservation System (CRS) 66.7 47.5 34.7 22.0 16.1 2.1 42.9 12.1 22.9

Electronic Key card 63.3 45.0 8.2 13.6 5.1 6.4 17.9 4.8 13.6

Energy Management System 30.0 32.5 14.3 11.4 9.5 0.0 17.9 4.8 11.6

Internet/E-Mai l 100.0 87.5 91.8 83.1 70.1 61.7 92.9 67.7 78.3

Internet/Website 100.0 77.5 83.7 64.8 56.2 38.3 82.1 46.0 62.2

Intranet System 46.7 42.5 26.5 22.0 22.6 4.3 42.9 14.5 23.0

Local Area Network (LAN) 93.3 87.5 69.4 60.2 38.0 21.3 60.7 30.7 51.5

Management Informati on System (MIS) 96.7 77.5 61.2 48.7 29.9 12.8 67.9 31.5 44.9

Point of Sale System for Food an d Beverage 100.0 85.0 71.4 64.4 40.9 19.2 64.3 31.5 54.0

Property Management System 83.3 75.0 55.1 38.1 19.0 8.5 50.0 13.7 33.7

Yield Management System 36.7 22.5 18.4 14.0 6.6 0.0 21.4 7.3 12.5

Other 20.0 15.0 4.1 8.9 2.2 4.3 3.6 4.8 6.8

COMPOSITION

Five-Star


2001-2002

All India

Average


Air (External Emissions) 83.3% 63.4% 46.9% 36.4% 24.4% 10.4% 40.0% 30.4% 35.8%

Air (Indoor Air Quality ) 83.3 58.5 42.9 41.5 31.9 25.0 40.0 23.5 38.2

Community Interaction 73.3 48.8 40.8 32.7 25.9 22.9 52.0 21.7 32.9

Energy Consumption (Electricity) 96.7 95.1 98.0 96.8 89.6 95.8 100.0 94.8 95.0

Energy Consumption (Gas) 93.3 92.7 91.8 88.9 81.5 68.8 92.0 80.0 85.2

Energy Consumption (Oil) 86.7 85.4 81.6 82.0 61.5 56.3 76.0 52.2 70.9

Fresh Water Quality 100.0 92.7 85.7 77.4 62.2 56.3 76.0 58.3 72.0

Noise (External) 73.3 58.5 42.9 37.3 28.2 20.8 44.0 33.0 37.1

Noise (In House) 76.7 63.4 44.9 43.3 37.8 35.4 52.0 39.1 44.1

Solid Waste Disposal 56.7 39.0 44.9 38.7 29.6 18.8 40.0 19.1 33.3

Solid Waste Production (Qua lity) 60.0 43.9 32.7 21.2 17.0 6.3 28.0 10.4 21.7

Solid Waste Production (Se gregation) 80.0 56.1 44.9 29.0 20.7 12.5 44.0 19.1 30.2

Solid Waste Production (Volu me) 73.3 46.3 49.0 32.7 21.5 18.8 28.0 15.7 30.2

Staff Training in Environmental Issues 90.0 61.0 61.2 45.6 30.4 20.8 64.0 32.2 43.2

Use of Chemicals (House Keeping) 86.7 70.7 77.6 78.3 68.9 56.3 68.0 70.4 72.9

Use of Chemicals (Maintenance) 96.7 78.1 67.4 70.1 62.2 52.1 68.0 58.3 66.5

Use of Pesticides and Herbicides (Dry Rations) 70.0 39.0 24.5 32.3 20.7 10.4 44.0 20.0 28.2

Use of Pesticides and Herbicides (Green Groceries) 66.7 34.2 26.5 36.9 19.3 14.6 40.0 22.6 29.7

Use of Pesticides and Herbicides (Horticulture / Gardens) 83.3 58.5 51.0 49.3 36.3 16.7 64.0 24.4 42.7

Use of Pesticides and Herbicides (Inside Building) 83.3 56.1 53.1 55.8 51.9 35.4 64.0 47.0 53.3

Use of Pesticides and Herbicides (Pest Control) 90.0 68.3 73.5 80.2 74.1 64.6 80.0 67.0 74.7

Use of Pesticides and Herbicides (Public Area) 86.7 61.0 57.1 62.2 54.1 29.2 60.0 41.7 55.2

Waste Water Quality 86.7 75.6 53.1 37.3 22.2 12.5 44.0 15.7 34.7

Waste Water Volume 86.7 68.3 57.1 45.2 32.6 14.6 56.0 23.5 41.2

Water Consumption 96.7 90.2 95.9 84.3 80.7 83.3 88.0 76.5 84.1

2. Indian Hotel Industry - Hotel Size & ChainAffiliated vs. Independent


In this section, we have analysed the hotels according to their number of rooms and have

shown a comparison between Chain Affiliated hotels and Independent hotels. The three

sizes covered are those hotels with less than 50 rooms, those with between 50 and 150

rooms, and those with over 150 rooms.

Table 2-1: presents a typical facilities analysis including rooms configuration, F&B

outlets, and a breakdown of trained and total employees;

Table 2-2: presents financial information of chain affiliated hotels vs. independent

hotels;

Table 2-3: presents financial information of hotels according to hotel size;

Table 2-4: presents market data including market segmentation, guest analysis and the

country of origin of guests;

Table 2-5: presents a monthly and daily occupancy analysis;

Table 2-6: presents the sources of reservations of hotel rooms;

Table 2-7: presents the marketing media most widely used by hotels;

Table 2-8: presents an analysis of payment methods and the use of credit cards;

Table 2-9: presents the technology used and environmental issues measured by hotels.

Section Highlights

As in the four previous years, majority of responses to the current survey were from smaller

properties with 669 hotels in the less than 50 rooms category. This was followed by 328

hotels in the 50 to 150 rooms category and 41 hotels in the more than 150 room category.

Number of responses have increased in more than 150 room category from 37 responses last

year to 41 responses in 2001-2002. Out of the 1,038 useable responses, 127 hotels had chain

affiliations and 911 hotels were independent hotels. Chain affiliations include hotels

belonging to international as well as domestic chains.

Some key highlights of the survey when analyzed by room size and chain affiliation are as

follows:

Average occupancy for hotels with more than 150 rooms was 54.9%; 50 to 150 rooms was

54.7% and less than 50 rooms was 51.9%. There has been a decrease in occupancy levels

in all sizes of hotels. This decrease is due to the post September 11, 2001 events in

United States and other factors related to India.

Chain affiliated hotels which constituted 12.0% of the respondents had a lower

occupancy (48.6%) and a higher average room rate (Rs 2,962) as compared to the

independent hotels which had a higher occupancy (54.4%) with a lower average rate (Rs

1,577). This is partly because most chain affiliated hotels are in the higher star category

with higher rack rates.

Chain affiliated hotels achieved a RevPAR of Rs 1,440 as opposed to a RevPAR of Rs 858

for the independent hotels.

Average rate for hotels with more than 150 rooms was Rs 3,724; 50 to 150 rooms was

Rs 1,740 and less than 50 rooms was Rs 1,063. Hotels with more than 150 rooms achieved

lower average rate, which saw a decrease of Rs 458. These figures in the previous year

were Rs 4,182, Rs 1,652 and Rs 1,042 respectively for the three categories.

The average number of rooms per hotel in the larger properties was 230, while hotels in

the 50 to 150 rooms segment had an average of 76 rooms per hotel. Hotels in the less

than 50 room segment had an average of 30 rooms per hotel.

The average number of rooms per hotel in the chain affiliated properties were 97, while

hotels in the independent segment had an average of 46 rooms per hotel.

As expected, the domestic business traveller comprised 40.1% of the independent hotel

market. Foreign guests comprised 36.6% of the chain affiliated hotel market as against

20.7% of the independent hotel market.

Large hotels enjoy economy of scale and thus are better positioned to post higher

profits. Net income on a percentage of total revenue basis, was highest for hotels with

more than 150 rooms at 24.4%. For hotels with 50 to 150 rooms, it was at 19.4% and those

with less than 50 rooms, it was at 16.7%.

House profit (Gross Profit after deducting franchising/management fees) for chain

affiliated hotels was slightly higher at 26% as compared to 25.8% for independent hotels.



TABLE 2-1: Indian Hotel Industry - Hotel Size & Chain Affiliation: Facilities Analysis & Staffing




Average Number of Trained Employees Per Hotel

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain

Affiliated Independent

Number of respon ses: 669 328 41 127 911

Air-Conditioned Single 1.9 4.2 41.3 13.0 3.0Double 14.9 49.1 156.2 71.5 25.7Suites 2.8 5.8 17.2 7.8 3.9

Non-Air-Condi tioned Single 1.3 2.8 3.7 0.1 2.1Double 8.3 12.8 10.6 3.7 10.6Suites 0.7 1.4 0.9 0.5 1.0

Total Average Rooms 30.0 76.1 229.8 96.6 46.3

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Restaurant 1.3 1.7 3.5 2.1 1.5Bar 0.6 0.8 1.5 1.0 0.7Others 0.4 0.9 1.1 0.7 0.6

Total 2.3 3.4 6.0 3.8 2.7

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Managers Male 2.4 8.1 31.1 13.9 4.1Female 0.3 1.3 8.1 2.7 0.7

Supervisors Male 3.7 12.5 55.3 19.3 7.0

Female 0.5 1.9 10.7 3.4 1.0Staff Male 28.1 83.0 268.5 121.6 45.3

Female 2.0 6.6 25.8 8.2 3.8Total 37.0 113.4 399.5 169.1 61.9

Average Number of Employees Per Room 1.2 1.5 1.7 1.8 1.3

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Managers FT 66.7% 69.0% 82.9% 81.1% 65.6%ST 23.1 20.5 6.6 14.0 22.9

Total Avg. Trained Managers 89.7 89.5 89.5 95.1 88.5

Supervisors FT 48.4 58.4 67.5 68.6 49.2ST 32.9 26.6 18.7 22.5 31.7

Total Avg. Trained Supervisors 81.3 85.0 86.1 91.1 81.0

Staff FT 29.4 34.7 46.5 41.2 30.1ST 35.4 35.4 28.5 36.3 34.8

Total Avg. Trained Staf f 64.8 70.1 74.9 77.6 64.8

Total Average Trained Employees 78.6 81.5 83.5 87.9 78.1Total Average Un-Trained Employees 21.4 18.5 16.5 12.1 21.9

Hotels with Trainin g Department 12.3% 28.4% 65.9% 52.8% 14.8%

FT: Formal training - minimum one yea r's certificate/ diplomaST: Short term trainin g

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TABLE 2-2: Indian Hotel Industry - Chain Affiliated vs. Independent: Financial Report (2001-2002)

Number of respon ses:

Average Total Rooms Per Hotel:

Average Occupied Rooms Per Hotel:

Average Occupancy Per Hotel:

Average Rate Per Hotel:

COMPOSITION

Percentage of

Revenue

Amount Per

Available Room

Amount Per

Occupied Room

Percentage of

Revenue

Amount Per

Available Room

Amount Per

Occupied Room

Percentage of

Revenue

Amount Per

Available Room

Amount Per

Occupied Room

REVENUERooms 53.0% Rs530,311 Rs2,962 53.4% Rs296,908 Rs1,577 53.2% Rs380,562 Rs2,058Food & Beverage 30.0 300,649 1,679 31.8 176,470 937 30.9 220,976 1,195Banquet & Conferences 6.8 67,725 378 6.7 37,486 199 6.8 48,324 261Telephone & Other 3.4 33,943 190 2.8 15,426 82 3.1 22,063 119Minor Operated* 3.2 32,126 179 2.2 12,190 65 2.7 19,336 105Rental & Other Income 3.7 36,845 206 3.1 17,351 92 3.4 24,338 132 Total 100.0 1,001,599 5,594 100.0 555,832 2,953 100.0 715,599 3,869

DEPARTMENTAL EXPENSESRooms 20.7 109,565 612 20.5 60,731 323 20.6 78,234 423Food & Beverage 59.5 219,024 1,223 64.8 138,642 736 62.2 167,450 905Telephone & Other 50.2 17,043 95 66.9 10,324 55 57.7 12,732 69Minor Operated* 40.7 13,074 73 68.2 8,308 44 51.8 10,016 54Rental & Other Income 5.8 2,157 12 15.2 2,639 14 10.1 2,466 13 Total 36.0 360,863 2,015 39.7 220,644 1,172 37.9 270,898 1,465

DEPARTMENTAL INCOME 64.0 640,736 3,578 60.3 335,188 1,781 62.1 444,701 2,405

OPERATING EXPENSESAdministrative & General 10.8 107,663 601 9.7 54,139 288 10.3 73,323 396Management Fee 3.8 37,615 210 1.0 5,395 29 2.4 16,944 92Marketing 3.4 33,788 189 3.5 19,651 104 3.5 24,718 134Franchise Fees 0.7 7,025 39 0.1 433 2 0.4 2,796 15Property Operations & Maintenance 7.0 70,001 391 7.6 42,224 224 7.3 52,179 282Energy 12.4 124,016 693 12.6 69,795 371 12.5 89,228 482 Total 38.0 380,108 2,123 34.5 191,638 1,018 36.2 259,188 1,401

HOUSE PROFIT 26.0 260,628 1,456 25.8 143,550 763 25.9 185,512 1,003

FIXED EXPENSESProperty Taxes 1.2 11,753 66 1.0 5,640 30 1.1 7,831 42Insurance 0.9 9,311 52 0.5 2,579 14 0.7 4,992 27Other Fixed Expenses 2.5 25,377 142 1.1 6,247 33 1.8 13,104 71Rent 1.0 10,333 58 0.8 4,330 23 0.9 6,482 35 Total 5.7 56,774 317 3.4 18,796 100 4.5 32,408 175

NET INCOME** 20.4% Rs203,855 Rs1,139 22.4% Rs124,754 Rs663 21.4% Rs153,104 Rs828



Chain Affiliated Independent All India Average 2001-2002

90 334 424

107

19,173

48.6%

Rs2,962

52

9,721

54.4%

Rs1,577

63

11,727

53.2%

Rs2,058

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TABLE 2-3: Indian Hotel Industry - Hotel Size: Financial Report (2001-2002)

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

2001-2002

All India

Average

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

2001-2002

All India

Average

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

2001-2002

All India

Average

Number of respons es: 233 163 28 424 233 163 28 424 233 163 28 424

Average Total Rooms Per Hotel: 30 82 234 63 30 82 234 63 30 82 234 63Average Occupied Rooms Per Hotel: 5,324 15,413 43,558 11,727 5,324 15,413 43,558 11,727 5,324 15,413 43,558 11,727Average Occupancy Per Hotel: 51.9% 54.7% 54.9% 53.2% 51.9% 54.7% 54.9% 53.2% 51.9% 54.7% 54.9% 53.2%Average Rate Per Hotel: Rs1,063 Rs1,740 Rs3,724 Rs2,058 Rs1,063 Rs1,740 Rs3,724 Rs2,058 Rs1,063 Rs1,740 Rs3,724 Rs2,058

REVENUERooms 51.8% 52.4% 54.4% 53.2% Rs188,007 Rs328,556 Rs692,061 Rs380,562 Rs1,063 Rs1,740 Rs3,724 Rs2,058Food & Beverage 37.0 32.4 27.5 30.9 134,461 202,996 350,057 220,976 760 1,075 1,884 1,195Banquet & Conferences 3.5 7.7 6.8 6.8 12,855 48,087 86,747 48,324 73 255 467 261Telephone & Other 2.0 2.7 3.8 3.1 7,153 17,102 48,070 22,063 40 91 259 119Minor Operated* 1.5 2.3 3.5 2.7 5,459 14,155 44,682 19,336 31 75 240 105Rental & Other Income 4.2 2.6 4.0 3.4 15,247 16,341 50,284 24,338 86 87 271 132 Total 100.0 100.0 100.0 100.0 363,183 627,236 1,271,900 715,599 2,053 3,322 6,844 3,869

DEPARTMENTAL EXPENSESRooms 27.8 19.3 19.7 20.6 52,227 63,431 136,095 78,234 295 336 732 423Food & Beverage 66.7 60.2 62.9 62.2 98,211 151,108 274,706 167,450 555 800 1,478 905Telephone & Other 91.1 64.5 47.5 57.7 6,513 11,033 22,832 12,732 37 58 123 69Minor Operated* 86.7 67.1 37.4 51.8 4,730 9,497 16,725 10,016 27 50 90 54Rental & Other Income 18.2 18.9 1.7 10.1 2,781 3,092 862 2,466 16 16 5 13 Total 45.3 38.0 35.5 37.9 164,463 238,161 451,221 270,898 930 1,261 2,428 1,465

DEPARTMENTAL INCOME 54.7 62.0 64.5 62.1 198,720 389,075 820,679 444,701 1,123 2,060 4,416 2,405

OPERATING EXPENSESAdministrative & General 9.7 10.5 10.1 10.3 35,380 66,116 128,539 73,323 200 350 692 396Management Fee 2.1 2.2 3.1 2.4 6,745 12,648 36,568 16,944 38 67 197 92Marketing 2.8 3.4 3.7 3.5 10,296 21,199 47,282 24,718 58 112 254 134Franchise Fees 0.1 0.2 0.6 0.4 321 1,379 8,316 2,796 2 7 45 15Property Operations & Maintenance 6.8 7.3 7.4 7.3 24,837 45,648 94,681 52,179 140 242 510 282Energy 12.0 13.8 11.2 12.5 43,649 86,787 142,956 89,228 247 460 769 482 Total 33.6 37.4 36.3 36.2 121,227 233,776 458,341 259,188 685 1,238 2,466 1,401

HOUSE PROFIT 21.1 24.6 28.3 25.9 77,493 155,299 362,338 185,512 438 822 1,950 1,003

FIXED EXPENSESProperty Taxes 0.8 0.9 1.3 1.1 3,046 5,912 16,842 7,831 17 31 91 42Insurance 0.5 0.6 0.9 0.7 1,718 3,644 11,227 4,992 10 19 60 27Other Fixed Expenses 1.8 2.5 1.2 1.8 6,432 15,386 15,618 13,104 36 81 84 71Rent 1.3 1.3 0.4 0.9 4,828 8,200 4,770 6,482 27 43 26 35 Total 4.4 5.3 3.8 4.5 16,024 33,141 48,457 32,408 91 176 261 175

NET INCOME** 16.7% 19.4% 24.4% 21.4% Rs61,469 Rs122,158 Rs313,881 Rs153,104 Rs348 Rs647 Rs1,689 Rs828



Percentage of Revenue Amount Per Available Room Amount Per Occupied Room


TABLE 2-4: Indian Hotel Industry - Hotel Size & Chain Affiliation: Market Data

Market Segmentation

Guest Analysis

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain


Number of responses: 408 214 27 99 550

Airline Crew 0.5% 1.5% 9.1% 4.3% 0.7%

Business Traveller - Domestic 38.5 40.1 22.8 28.9 40.1

Business Traveller - Foreign 6.1 8.0 17.4 9.9 6.7

Complimentary Rooms 1.8 1.8 1.6 1.3 1.9

Domestic - Tourists/Leisure FIT 24.7 16.5 8.4 19.1 21.7

Foreign - Tourists/Leisure FIT 8.9 6.9 5.8 9.7 7.8

Meeting Participants (Less than 100 3.9 6.1 5.8 6.2 4.5

Meeting Participants (Over 100 Attendees) 1.2 2.6 5.9 2.6 1.7

Tour Groups - Domes tic 6.5 5.7 3.0 4.1 6.4

Tour Groups - Foreign 4.4 6.8 15.9 9.7 4.9

Other 3.7 3.9 4.2 4.3 3.6

Total 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Domestic Guests 79.2% 75.6% 56.0% 63.4% 79.3%Foreign Guests 20.8 24.4 44.0 36.6 20.7

Total 100.0 100.0 100.0 100.0 100.0

Total Business Guests* 53.4% 61.7% 64.4% 55.2% 56.9%

Total Leisure Guests 46.6 38.3 35.6 44.8 43.1

Total 100.0 100.0 100.0 100.0 100.0

Avg. Stay of Domestic Guests (Days) 2.9 2.8 2.3 2.2 2.9

Avg. Stay of Foreign Guests (Days) 2.9 3.0 3.9 2.6 3.1

Percentage of Repeat Guests 45.9% 46.7% 49.2% 39.2% 47.3%


COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



ASEAN* 5.4% 6.5% 5.1% 5.1% 5.9%Australia 4.1 3.3 2.8 3.2 3.9Canada 3.8 2.3 1.7 2.6 3.3Caribbean 0.3 0.4 0.4 0.3 0.3China 1.5 1.9 0.9 2.1 1.5France 6.2 7.9 5.0 8.4 6.4Germany 8.1 7.2 6.4 9.3 7.4Japan 4.2 7.4 8.4 8.3 5.0Middle East 3.9 2.6 2.5 2.2 3.6Other European 10.2 10.2 9.2 9.8 10.2Russia 2.0 2.1 1.6 2.2 2.0SAARC** 10.1 8.8 4.1 4.7 10.3South Africa 1.6 2.1 1.0 1.4 1.8UK 16.6 15.7 22.9 17.0 16.5USA 14.3 13.9 12.3 11.0 14.7Other 7.5 7.8 15.8 12.5 7.1

Total 100.0 100.0 100.0 100.0 100.0

* ASEAN: Association of South East Asian Nations

** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives





TABLE 2-5: Indian Hotel Industry - Hotel Size & Chain Affiliation: Monthly & Daily Occupancy

TABLE 2-6: Indian Hotel Industry - Hotel Size & Chain Affiliation: Sources of Reservation

COMPOSITIONLess Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



January 56.8% 59.8% 62.5% 54.8% 58.7%February 54.9 61.0 67.0 58.4 57.5March 51.7 53.7 57.4 50.1 53.1April 53.4 55.0 58.6 49.9 55.0May 56.5 54.8 48.8 46.3 57.3June 53.7 51.5 47.8 44.0 54.3July 48.9 49.6 47.7 43.1 50.2August 49.2 50.9 48.5 45.8 50.5September 49.5 51.8 50.3 44.7 51.4October 54.1 52.5 47.4 46.1 54.5November 57.5 58.0 54.0 52.8 58.4December 61.8 62.3 57.3 56.9 62.7

COMPOSITIONLess Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Monday 53.0% 55.3% 53.4% 53.5% 53.9%

Tuesday 54.4 58.6 56.4 54.2 56.3

Wednesday 55.7 60.1 58.4 56.0 57.6

Thursday 56.5 59.4 58.6 55.3 58.0

Friday 57.7 57.2 54.5 56.0 57.6

Saturday 54.8 52.1 52.1 54.9 53.5

Sunday 48.1 47.8 51.2 52.2 47.5

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Chain CRS (Central Reservation System) 4.0% 7.8% 7.6% 16.3% 3.4%Direct Enquiry/ Hotel Representative 59.0 53.5 49.5 42.8 59.2Global Distributi on System (GDS) 1.4 1.5 3.0 1.9 1.5Hotel/Chain Web Site 5.0 4.2 6.7 5.8 4.6Travel Agent & Tour Operator 18.8 19.7 20.1 21.8 18.6Other Online Reservation Systems 1.4 2.0 1.7 4.1 1.1Other Websites 1.7 1.3 1.3 0.9 1.7Others 8.9 10.1 10.1 6.4 9.9Total 100.0 100.0 100.0 100.0 100.0


TABLE 2-7: Indian Hotel Industry - Hotel Size & Chain Affiliation: Marketing Media

TABLE 2-8: Indian Hotel Industry - Hotel Size & Chain Affiliation: Payment Methods


Payment Methods Used

Credit Cards Used


COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Direct Mail 75.7% 85.9% 91.7% 90.0% 78.0%Hotel Website 59.1 67.8 91.7 83.3 59.8Loyalty Card Program 17.9 32.2 75.0 54.2 20.0Merchandising 15.3 21.6 36.1 28.3 16.5Other Internet Si te 42.9 49.8 47.2 50.0 44.6Outdoor Advertisi ng 60.8 67.1 61.1 74.2 60.8Print Advertising 88.2 90.6 100.0 94.2 88.7Promotions 57.3 73.3 88.9 89.2 59.5Radio Advertising 5.2 7.1 22.2 19.2 4.3Telemarketing 33.6 45.1 61.1 46.7 37.3TV Advertising 21.1 27.5 30.6 35.8 21.4

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Cash Sales 56.3% 39.4% 17.6% 28.9% 52.3%Credit Card Sale s 24.5 31.4 41.9 32.5 26.7Credit Sales (Other than Cards) 18.7 28.3 39.7 37.6 20.3Electronic Fund Transfer 0.5 1.0 0.8 1.0 0.6

Total 100.0 100.0 100.0 100.0 100.0

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



American Express 11.6% 14.2% 23.8% 21.9% 11.4%Diners Club 6.1 7.5 10.1 8.9 6.4Mastercard/Eurocard 37.1 35.1 26.3 30.6 36.8Visa 40.1 39.7 35.6 35.5 40.6Other 5.2 3.5 4.2 3.1 4.8

Total 100.0 100.0 100.0 100.0 100.0

COMPOSITION

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



American Express* 2.8% 3.1% 3.3% 3.3% 2.8%Diners Club 1.5 2.0 2.3 2.1 1.6Mastercard/Eurocard 2.6 2.2 1.9 2.1 2.5Visa 2.6 2.1 1.9 2.1 2.4Other 1.0 0.9 1.1 1.0 0.9



TABLE 2-9: Indian Hotel Industry - Hotel Size & Chain Affiliation: Technology & Environmental Issues



Room Size

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Accounting System 90.0% 91.5% 97.1% 90.1% 91.0%

Call Ac cou nting System 42.7 58.1 77.1 64.0 47.2

Central Reservatio n System (C RS) 15.6 31.3 48.6 55.0 16.7

Electronic Keycard 8.1 16.7 57.1 28.8 10.7

Energy M anagemen t System 7.8 15.9 25.7 21.6 9.7

Internet/E-Mail 72.7 85.4 94.3 93.7 75.3

Internet/Website 54.9 71.1 85.7 82.0 58.5

Intranet System 18.8 28.1 37.1 32.4 21.2

Loc al Area Netw ork (LAN) 38.8 69.5 74.3 70.3 47.9

Management Information System (MIS) 32.0 62.2 74.3 66.7 40.7

Point of Sale System for Food and Beverage 39.8 73.2 85.7 80.2 49.0

Property Management System 18.8 52.9 74.3 60.4 28.6

Yield Manag ement System 8.3 18.3 20.0 17.1 11.6

Other 4.6 7.7 25.7 13.5 5.5

Room Size

Less Than

50 Rooms

50 to 150

Rooms

More Than

150 Rooms

Chain



Air (External Emissions) 25.7% 46.2% 73.0% 55.1% 32.0%

Air (Indoor Air Qua lity) 29.1 48.7 64.9 57.9 34.4

Community Interaction 27.0 39.9 48.7 51.4 29.3

Energy Consumption (Electricity) 94.0 96.2 97.3 96.3 94.8

Energy Consumption (Gas) 82.9 87.4 94.6 95.3 83.2

Energy Consumption (Oil) 61.3 83.2 91.9 88.8 67.5

Fresh Water Quality 64.7 79.8 97.3 87.9 68.9

Noise (External) 29.4 45.4 64.9 52.3 34.2

Noise (In House) 37.1 51.7 67.6 56.1 41.8

Solid Waste Disposa l 27.0 41.2 48.7 48.6 30.4

Solid Waste Production ( Quality) 13.0 31.9 46.0 43.0 17.5

Solid Waste Production ( Segregation) 20.8 40.8 59.5 48.6 26.6

Solid Waste Production ( Volume) 21.3 40.8 54.1 46.7 26.9

Staff Training in Environmental Issues 33.5 53.4 78.4 69.2 38.2

Use of Chemicals (House Keeping) 70.1 79.0 62.2 79.4 71.6

Use of Chemicals (Maintenance) 61.8 72.3 78.4 80.4 63.8

Use of Pesticides and Herbicides (Dry Rations) 21.3 37.4 40.5 39.3 26.0

Use of Pesticides and Herbicides (Green Groceries) 22.9 39.1 40.5 37.4 28.2

Use of Pesticides and Herbicides (Horticulture / Gardens) 42.3 66.3 63.6 57.9 39.8

Use of Pesticides and Herbicides (Inside Building) 52.4 67.3 68.6 65.4 51.0

Use of Pesticides and Herbicides (Pest Control) 72.0 79.8 70.3 83.2 73.1

Use of Pesticides and Herbicides (Public Area) 47.0 66.4 67.6 71.0 52.1

Waste Water Quality 20.8 50.4 78.4 63.6 29.1

Waste Water Volume 28.8 55.5 78.4 63.6 36.9

Water Consumption 80.5 87.8 97.3 92.5 82.5

3. Indian Hotel Industry - Seven Major Cities

In this section, we have highlighted the hotels in seven major cities: New Delhi, Mumbai,

Kolkata, Pune, Chennai, Bangalore and Goa. In certain cities and for certain star categories,

we were unable to show the minimum data requirement of at least four hotels in each

representation and have reflected this as 'ID' (insufficient data). With the exception of very

few, most cities had insufficient data in individual star categories; therefore, we have

combined star categories to enable the information to be summarised. However, in doing so

we have been careful to combine star categories which are broadly similar.

Due to better responses from Chennai, we could cover two groups for this city.

In terms of occupancy, three-star and two-star properties in Chennai (69.1%) and five-

star deluxe, four-star and three-star properties in Kolkata (66.7%) were market leaders.

Five-star deluxe and five-star properties in Delhi achieved the highest average rate of

Rs 5,537. Chennai’s three-star and two-star properties enjoyed the highest net income

(33.7%), followed by three-star & two-star hotels in Goa (31%).

Bangalore's five-star deluxe, five-star and four-star properties had the highest average

number of employees per room at 2.5. Mumbai's five-star deluxe, five-star and four-star

hotels had the second highest average number of employees at 2.2.

Direct enquiry / hotel representatives and travel agents / tour operators are the most

important sources of reservation for all hotels. Budget hotels, in particular, showed very

high levels of dependency on direct enquiry.

Energy consumption is the most closely monitored environmental issue, essentially due

to its high cost and effect on the bottom-line.

Five-star deluxe and five-star hotels in Delhi had the highest percentage of foreign

guests (61.6%), followed by five-star deluxe, five-star and four-star hotels in Chennai

(48.6%).


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TABLE 3-1: Indian Hotel Industry - Seven Major Cities: Facilities and Guest Analysis

Guest Analysis

New Delhi Mumbai Kolkata Pune Chennai Bangalore Goa

COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three- Star

& Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-Star

& Two-Star

Number of response s: 8 10 9 11 28 40 8 20 5 17 5 18 10 18 8 16

Air-Conditioned Single 70.9 20.2 2.7 54.1 9.1 3.9 29.6 2.1 0.4 1.0 0.0 6.3 9.4 9.3 16.3 0.3Double 178.8 52.0 20.2 117.6 40.1 22.8 64.8 19.1 85.2 10.2 129.6 49.1 119.9 22.9 129.8 54.2Suites 28.5 3.8 1.0 20.3 5.2 2.3 10.1 3.3 5.6 2.2 12.0 8.4 11.1 6.4 16.3 4.1

Non-Air-Conditioned Single 0.0 0.0 4.0 0.0 0.1 0.6 0.0 5.0 0.0 2.6 0.0 3.7 0.0 7.5 0.0 0.0Double 0.0 0.0 4.9 0.0 0.2 0.8 0.0 10.9 0.0 16.2 0.0 5.7 0.0 18.4 0.0 8.1Suites 0.0 0.0 0.7 0.0 0.0 0.3 0.0 0.1 0.0 1.7 0.0 0.0 0.0 1.2 0.0 0.1

Total Average Rooms 278.1 76.0 33.4 191.9 54.8 30.6 104.5 40.4 91.2 33.9 141.6 73.1 140.4 65.8 162.3 66.8


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three- Star

& Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-Star

& Two-Star


Restaurant 3.6 2.0 1.0 3.0 1.5 1.0 2.3 1.2 1.8 1.2 3.4 1.5 2.7 1.6 3.8 1.5Bar 1.4 1.3 0.0 1.3 1.2 0.8 1.3 0.3 1.0 0.4 1.4 0.9 1.2 0.8 2.6 1.6Others 1.1 0.7 0.5 0.5 1.1 0.4 0.3 0.5 0.8 0.0 1.6 0.7 1.8 0.8 0.6 0.2Total 6.1 4.0 1.5 4.8 3.8 2.2 3.8 1.9 3.6 1.6 6.4 3.2 5.7 3.1 7.0 3.3


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three- Star

& Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-Star

& Two-Star


Domestic Guests 38.4% 68.6% 75.8% 52.9% 66.3% 72.6% 77.6% 79.3% 53.5% 89.8% 51.4% 77.2% 61.4% 84.9% 52.3% 59.5%

Foreign Guests 61.6 31.4 24.2 47.1 33.7 27.4 22.4 20.6 46.5 10.2 48.6 22.8 38.6 15.1 47.7 40.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total Business Guests* 81.4% 48.4% 71.6% 86.1% 65.5% 66.0% 79.0% 68.0% ID 65.1% 74.2% 72.5% 87.5% 73.6% 36.3% 30.3%

18.6 51.6 28.4 13.9 34.5 34.0 21.0 32.0 34.9 25.8 27.5 12.5 26.4 63.7 69.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1.8 3.5 3.7 1.8 3.4 4.6 4.8 2.8 1.6 2.9 2.8 2.6 2.4 3.1 3.0 2.9

1.5 2.0 2.7 2.3 3.2 4.0 7.3 3.1 3.6 3.8 2.8 4.7 2.1 2.8 10.6 8.4

51.0% 49.3% 38.0% 40.4% 48.4% 56.5% 72.7% 58.7% 79.5% 69.7% 37.5% 51.3% 43.6% 52.2% 21.0% 25.7%


Avg. Stay of Domestic Guests (Days)

Avg. Stay of Foreign Guests (Days)

Percentage of Repeat Guests

Total Leisure Guests

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TABLE 3-2: Indian Hotel Industry - Seven Major Cities: Staffing




COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 8 9 9 11 27 40 7 18 5 17 5 16 10 18 8 16

Managers Male 54.5 8.4 1.3 32.6 7.0 1.6 21.6 2.1 18.8 1.8 15.6 7.0 26.4 5.6 24.8 6.6Female 15.1 1.4 0.2 8.4 1.6 0.3 7.1 0.3 4.8 0.3 3.6 1.1 8.0 1.3 6.6 1.3

Supervisors Male 83.4 6.2 1.8 61.5 10.4 3.0 41.9 3.6 15.8 3.0 36.0 14.7 34.9 9.6 42.5 6.3Female 16.0 1.2 0.1 12.4 1.5 0.5 6.9 0.7 2.4 1.1 7.0 1.4 9.6 1.2 8.8 3.1

Staff Male 351.8 94.9 16.2 277.2 77.9 27.2 129.7 21.6 93.6 16.5 184.0 88.5 214.5 80.1 196.8 63.9Female 39.8 6.7 0.4 25.3 4.9 1.3 10.0 1.3 9.6 1.4 5.6 7.2 16.0 4.7 43.8 9.3

Total 560.5 118.9 20.1 417.3 103.3 33.7 217.1 29.6 145.0 23.9 251.8 119.9 309.4 102.6 323.1 90.4

2.1 1.7 0.7 2.2 1.8 1.3 1.8 0.8 1.3 0.8 1.8 1.5 2.5 1.8 2.1 1.3Average Number of Employees Per Room


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 4 ID ID 5 14 16 4 12 ID 11 ID 7 8 10 4 8

Managers FT 98.8% 51.3% 71.4% 79.7% 72.5% 66.7% 47.0% 78.9% 78.9% 51.2% 80.3% 70.4%ST 1.2 17.9 12.9 13.5 19.1 25.0 45.5 14.3 4.8 30.9 19.7 29.6

Avg. Trained Managers 100.0 69.2 84.3 93.2 91.7 91.7 92.4 93.2 83.7 82.2 100.0 100.0

Supervisors FT 92.3 41.6 42.2 29.0 68.6 52.8 36.4 69.1 69.6 58.2 48.1 44.1ST 3.5 27.1 26.4 49.3 23.9 25.9 31.8 23.9 14.6 18.5 51.9 38.5

Avg. Trained Supervisors 95.8 68.7 68.6 78.3 92.5 78.7 68.2 93.0 84.1 76.7 100.0 82.6

Staff FT 75.6 16.3 31.2 27.7 31.0 24.8 20.5 41.8 49.4 47.0 40.8 33.2ST 19.3 24.2 20.5 42.0 32.2 30.0 48.8 28.1 26.6 24.8 59.2 44.1

Avg. Trained Staff 94.9 40.6 51.6 69.6 63.2 54.8 69.3 69.9 75.9 71.8 100.0 77.3

Total Avg. Trained Em ployees 96.9 59.5 68.2 80.4 82.5 75.1 76.6 85.4 81.3 76.9 100.0 86.6Total Avg. Un-Trained Em ployees 3.1 40.5 31.8 19.6 17.5 24.9 23.4 14.6 18.8 23.1 0.0 13.4

Hotels with Training Department 75.0% 72.7% 25.0% 10.0% 50.0% 10.0% 23.5% 33.3% 100.0% 11.1% 75.0% 12.5%

FT: Formal training - mi nimum one year's certificate/di ploma ST: Short-term traini ng

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TABLE 3-3: Indian Hotel Industry - Seven Major Cities: Financial Report - Percentage of Revenue


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe,

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, &

Four Star

Three-

Star, Two-

Star &

One-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three- Star

& Two-Star

Five-Star

Deluxe,

Five-Star

& Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe,

Five-Star

& Four-

Star

Three-Star

& Two-Star

Number of r esponses: 5 4 ID 9 13 24 6 9 ID 10 4 7 6 9 7 5

Average Total Rooms: 301 51 195 67 30 120 33 29 141 78 165 57 166 57

Average Occupied Rooms: 58,088 10,355 34,690 15,767 6,494 26,582 6,909 6,136 30,246 17,262 34,469 12,164 32,930 11,355

Average Occupancy: 55.7% 61.8% 61.4% 65.6% 64.4% 66.7% 57.5% 59.0% 59.7% 69.1% 57.3% 64.3% 57.4% 54.2%

Average Rate: Rs5,537 Rs2,061 Rs4,352 Rs2,591 Rs1,406 Rs3,126 Rs686 Rs658 Rs4,051 Rs1,517 Rs3,526 Rs1,544 Rs2,142 Rs975

REVENUE

Rooms 55.4% 41.9% 59.5% 68.4% 70.3% 54.1% 72.6% 67.1% 54.8% 45.9% 54.9% 49.2% 46.9% 39.8%

Food & Beverage 26.0 50.5 29.9 25.2 21.0 29.3 16.2 17.3 27.2 34.6 26.1 42.5 30.4 48.5

Banquet & Conferences 7.4 0.9 2.7 2.3 3.4 8.8 5.2 2.7 9.4 12.8 7.3 3.2 5.1 1.2

Telephone & Other 4.1 1.2 2.9 2.2 1.6 2.8 3.6 1.8 5.2 4.1 5.5 2.1 1.4 0.9

Minor Operated* 5.0 0.2 2.4 1.0 0.5 2.5 0.8 2.0 2.0 1.2 1.2 1.4 5.6 5.3

Rental & Other Inc ome 2.0 5.3 2.7 0.9 3.2 2.5 1.5 9.0 1.5 1.3 4.9 1.5 10.8 4.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

DEPARTMENTAL EXPENSES

Rooms 23.9 14.8 14.2 19.6 24.6 21.8 27.2 33.9 15.0 24.5 15.2 14.9 24.7 20.4

Food & Beverage 66.5 57.2 62.0 73.5 71.9 62.4 91.1 132.0 51.1 47.3 61.2 61.8 62.3 51.8

Telephone & Other 44.6 102.3 62.9 85.5 125.7 70.8 100.7 99.8 41.3 61.3 38.5 55.3 65.3 83.1

Minor Operated* 34.0 190.8 57.3 80.8 117.4 64.3 118.2 23.7 45.1 68.8 78.2 50.2 40.2 58.6

Rental & Other Inc ome 1.5 124.0 13.9 29.2 20.3 10.8 196.4 0.5 0.0 5.7 1.5 5.2 0.0 0.0

Total 39.1 43.8 32.2 36.6 38.1 39.4 46.8 51.6 29.9 37.1 32.0 37.5 36.8 37.7

DEPARTMENTAL INCOME 60.9 56.2 67.8 63.4 61.9 60.6 53.2 48.4 70.1 62.9 68.0 62.5 63.2 62.3

OPERATING EXPENSES

Administrative & General 6.2 9.7 13.7 10.1 11.5 9.4 14.8 6.4 7.7 6.9 8.5 17.4 14.6 6.3

Management Fee 3.2 0.2 2.0 0.8 1.2 0.6 4.5 2.5 4.2 0.6 6.4 0.8 1.0 0.0

Marketing 3.4 1.6 3.3 2.1 2.1 4.9 3.2 2.1 3.7 2.2 3.8 2.4 7.4 4.5

Franchise Fees 0.4 0.0 0.5 0.0 0.0 0.0 0.0 0.0 1.0 0.4 1.2 0.0 0.6 0.0

Property Operations & Maintenance 7.4 5.5 7.0 9.9 9.1 6.8 5.8 3.1 5.7 5.1 8.2 10.5 9.8 10.0

Energy 10.3 12.6 11.1 13.4 16.1 13.1 11.5 7.8 11.9 12.4 9.0 12.4 15.3 8.9

Total 31.0 29.5 37.5 36.3 39.9 34.8 39.8 21.8 34.2 27.7 37.2 43.4 48.7 29.7

HOUSE PROFIT 30.0 26.7 30.3 27.1 22.0 25.7 13.3 26.6 35.8 35.2 30.9 19.1 14.5 32.5

FIXED EXPENSES

Property Taxes 1.1 0.4 2.6 0.7 1.3 1.8 0.4 0.9 0.5 1.0 1.1 1.1 0.6 0.3

Insurance 0.7 0.3 0.8 0.4 0.3 0.7 0.1 0.9 2.1 0.3 0.8 0.2 0.6 0.5

Other Fixed Expens es 0.0 0.8 0.3 0.5 0.4 2.7 0.7 1.1 2.3 0.0 5.0 0.2 1.5 0.5

Rent 0.3 1.3 0.1 0.1 0.3 1.2 2.6 1.6 4.2 0.2 0.1 1.0 0.4 0.1

Total 2.0 2.8 3.8 1.8 2.2 6.4 3.8 4.5 9.1 1.5 7.0 2.4 3.2 1.5

NET INCOME** 28.0% 23.9% 26.4% 25.4% 19.7% 19.3% 9.6% 22.0% 26.7% 33.7% 23.9% 16.7% 11.4% 31.0%



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TABLE 3-4: Indian Hotel Industry - Seven Major Cities: Financial Report Amount Per Available Room


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star &

Three-Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star &

Three-Star

Two-Star &

One-Star

Five-Star

Deluxe,

Four-Star &

Three- Star

Two-Star

& One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three- Star

& Two-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three- Star

& Two-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three-Star

& Two-Star






REVENUE

Rooms Rs1,068,606 Rs418,519 Rs774,138 Rs607,591 Rs301,340 Rs695,342 Rs143,520 Rs141,111 Rs869,002 Rs335,103 Rs737,275 Rs330,778 Rs424,536 Rs194,852

Food & Beverage 502,691 504,966 388,879 223,977 90,120 375,971 32,103 36,448 432,259 252,823 351,245 285,740 275,169 237,669

Banquet & Conferences 143,546 9,020 35,359 20,832 14,708 113,476 10,215 5,762 149,981 93,354 98,153 21,723 45,829 5,831

Telephone & Other 79,389 12,346 37,612 19,581 6,787 35,625 7,136 3,840 82,023 30,009 74,298 14,261 12,384 4,546

Minor Operated* 96,653 1,969 30,909 8,802 2,112 31,628 1,652 4,255 30,924 8,972 16,604 9,398 50,397 26,141

Rental & Other Inco me 38,687 52,653 35,350 7,518 13,595 32,257 3,003 18,880 23,012 9,693 66,087 10,322 97,337 20,972

Total 1,929,573 999,472 1,302,247 888,302 428,661 1,284,297 197,628 210,296 1,587,200 729,955 1,343,662 672,221 905,651 490,011


Rooms 255,048 62,020 109,986 119,241 74,160 151,614 39,003 47,877 130,082 82,155 111,996 49,266 104,973 39,697

Food & Beverage 429,987 294,021 263,167 179,907 75,349 305,566 38,538 55,699 297,330 163,629 274,896 189,911 199,977 126,123

Telephone & Other 35,440 12,626 23,668 16,751 8,528 25,225 7,185 3,831 33,837 18,400 28,641 7,891 8,087 3,778

Minor Operated* 32,912 3,757 17,696 7,111 2,479 20,351 1,951 1,007 13,954 6,176 12,985 4,716 20,263 15,324

Rental & Other Inco me 598 65,273 4,924 2,195 2,764 3,487 5,899 87 0 549 1,011 532 0 0

Total 753,984 437,697 419,441 325,204 163,280 506,243 92,577 108,502 475,202 270,908 429,529 252,315 333,300 184,923

DEPARTMENTAL INCOME 1,175,589 561,776 882,806 563,098 265,382 778,054 105,051 101,794 1,111,998 459,047 914,133 419,906 572,351 305,088

OPERATING EXPENSES

Administrative & General 120,465 96,928 177,838 89,519 49,349 120,319 29,212 13,573 122,848 50,073 114,183 116,884 132,245 30,954

Management Fee 61,728 1,716 25,426 7,151 5,083 7,462 8,897 5,245 66,844 4,680 86,456 5,258 9,043 0

Marketing 65,721 16,294 43,124 18,682 8,929 63,278 6,323 4,353 58,027 16,264 51,421 16,013 66,999 21,961

Franchise Fees 8,159 0 6,178 0 138 0 34 0 16,667 3,108 15,572 23 5,722 0

Property Operations & Maintenance 142,284 54,809 91,142 87,723 38,825 87,660 11,503 6,478 89,629 36,941 110,226 70,454 88,762 49,151

Energy 198,985 125,410 145,152 118,856 68,907 168,679 22,762 16,302 188,848 90,809 121,375 83,198 138,132 43,440

Total 597,342 295,156 488,859 321,930 171,230 447,398 78,731 45,951 542,862 201,875 499,232 291,832 440,903 145,507

HOUSE PROFIT 578,247 266,619 393,946 241,167 94,152 330,657 26,320 55,843 569,137 257,173 414,901 128,074 131,448 159,581

FIXED EXPENSES

Property Taxes 20,465 4,309 34,051 6,600 5,347 23,264 707 1,986 8,505 6,918 14,736 7,138 5,639 1,644

Insurance 13,290 3,005 10,177 3,122 1,168 8,630 152 1,906 32,645 2,389 10,270 1,454 5,322 2,419

Other Fixed Expenses 0 7,721 4,436 4,668 1,747 35,216 1,364 2,224 37,135 117 67,037 1,176 13,869 2,630

Rent 4,989 12,706 1,288 1,253 1,286 15,086 5,223 3,402 66,324 1,687 1,892 6,446 3,844 704

Total 38,745 27,740 49,953 15,643 9,548 82,197 7,445 9,517 144,610 11,112 93,935 16,213 28,674 7,398

NET INCOME** Rs539,502 Rs238,879 Rs343,994 Rs225,524 Rs84,604 Rs248,460 Rs18,875 Rs46,325 Rs424,527 Rs246,061 Rs320,966 Rs111,861 Rs102,774 Rs152,183



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TABLE 3-5: Indian Hotel Industry - Seven Major Cities: Financial Report: Amount Per Occupied Room


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star &

Three-Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star &

Three-Star

Two-Star &

One-Star

Five-Star

Deluxe,

Four-Star &

Three- Star

Two-Star

& One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three- Star

& Two-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three- Star

& Two-Star

Five-Star

Deluxe,

Five-Star &

Four-Star

Three-Star

& Two-Star






REVENUE

Rooms Rs5,537 Rs2,061 Rs4,352 Rs2,591 Rs1,406 Rs3,126 Rs686 Rs658 Rs4,051 Rs1,517 Rs3,526 Rs1,544 Rs2,142 Rs975

Food & Beverage 2,605 2,487 2,186 955 420 1,690 153 170 2,015 1,144 1,680 1,334 1,388 1,189

Banquet & Conferences 744 44 199 89 69 510 49 27 699 423 469 101 231 29

Telephone & Other 411 61 211 84 32 160 34 18 382 136 355 67 62 23

Minor Operated* 501 10 174 38 10 142 8 20 144 41 79 44 254 131

Rental & Other Inco me 200 259 199 32 63 145 14 88 107 44 316 48 491 105

Total 9,999 4,922 7,320 3,788 1,999 5,774 944 980 7,399 3,304 6,425 3,138 4,569 2,451


Rooms 1,322 305 618 508 346 682 186 223 606 372 536 230 530 199

Food & Beverage 2,228 1,448 1,479 767 351 1,374 184 260 1,386 741 1,315 887 1,009 631

Telephone & Other 184 62 133 71 40 113 34 18 158 83 137 37 41 19

Minor Operated* 171 19 99 30 12 91 9 5 65 28 62 22 102 77

Rental & Other Inco me 3 321 28 9 13 16 28 0 0 2 5 2 0 0

Total 3,907 2,156 2,358 1,387 762 2,276 442 506 2,215 1,226 2,054 1,178 1,682 925

DEPARTMENTAL INCOME 6,092 2,767 4,962 2,401 1,238 3,498 502 475 5,184 2,078 4,371 1,960 2,888 1,526

OPERATING EXPENSES

Administrative & General 624 477 1,000 382 230 541 140 63 573 227 546 546 667 155

Management Fee 320 8 143 30 24 34 43 24 312 21 413 25 46 0

Marketing 341 80 242 80 42 284 30 20 271 74 246 75 338 110

Franchise Fees 42 0 35 0 1 0 0 0 78 14 74 0 29 0

Property Operations & Maintenance 737 270 512 374 181 394 55 30 418 167 527 329 448 246

Energy 1,031 618 816 507 321 758 109 76 880 411 580 388 697 217

Total 3,095 1,454 2,748 1,373 799 2,011 376 214 2,531 914 2,387 1,362 2,224 728

HOUSE PROFIT 2,996 1,313 2,214 1,028 439 1,486 126 260 2,653 1,164 1,984 598 663 798

FIXED EXPENSES

Property Taxes 106 21 191 28 25 105 3 9 40 31 70 33 28 8

Insurance 69 15 57 13 5 39 1 9 152 11 49 7 27 12

Other Fixed Expens es 0 38 25 20 8 158 7 10 173 1 321 5 70 13

Rent 26 63 7 5 6 68 25 16 309 8 9 30 19 4

Total 201 137 281 67 45 370 36 44 674 50 449 76 145 37

NET INCOME** Rs2,796 Rs1,177 Rs1,934 Rs962 Rs395 Rs1,117 Rs90 Rs216 Rs1,979 Rs1,114 Rs1,535 Rs522 Rs519 Rs761



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Market Segmentation


TABLE 3-6: Indian Hotel Industry - Seven Major Cities: Market Data


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Number of respons es: 5 5 5 9 19 35 7 13 ID 13 5 8 9 10 7 13

Airline Crew 8.8% 0.9% 0.4% 10.4% 0.9% 0.5% 3.9% 0.2% 0.4% 8.6% 1.9% 7.1% 0.1% 2.7% 0.8%

Business Traveller - Domestic 24.0 36.8 61.4 29.2 39.1 47.8 54.5 56.5 50.0 24.4 49.1 39.7 61.1 6.9 19.3Business Traveller - Foreign 37.4 7.3 8.0 33.0 14.1 12.5 10.9 6.5 7.2 25.0 12.3 29.0 8.4 3.4 3.9Complimentary Rooms 1.8 1.1 1.0 1.6 0.8 1.1 1.3 0.2 0.3 3.6 2.3 1.1 0.6 3.4 1.2Domestic - Tourists/Leisure FIT 1.3 21.2 5.6 7.2 15.3 18.8 9.2 13.0 22.7 6.2 14.8 4.4 18.0 9.3 25.5Foreign - Tourists/Leisure FIT 8.5 17.3 14.0 2.5 9.4 8.9 6.4 12.9 3.4 9.6 5.1 2.9 3.1 10.2 15.4

Meeting Participants (Less than 100 Attendees) 2.7 0.6 0.0 6.8 5.8 1.1 5.3 3.9 3.6 6.8 2.9 4.6 0.6 9.5 2.4

Meeting Participants (Over 100 Attendees) 1.7 0.4 0.0 4.1 0.6 0.5 1.2 0.1 0.3 4.4 1.5 3.5 0.5 9.0 2.3Tour Groups - Domesti c 0.5 2.3 7.0 1.6 3.0 2.7 1.1 4.5 5.5 2.4 2.4 1.0 2.8 8.4 6.3Tour Groups - Foreign 3.8 9.2 0.6 0.9 3.4 1.3 2.2 0.9 0.9 4.2 2.0 1.8 0.6 28.5 20.2Other 9.5 3.0 2.0 2.7 7.6 5.1 4.0 1.2 5.6 4.8 5.9 4.8 4.2 8.8 2.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Number of respons es: 5 7 ID 8 18 25 4 11 ID 7 ID 9 8 9 7 13

ASEAN* 7.8% 5.7% 4.4% 7.3% 7.0% 4.0% 0.6% 2.3% 20.3% 7.6% 13.0% 2.3% 1.8%

Australia 2.8 3.0 3.5 3.6 3.0 5.0 0.6 7.1 4.1 4.0 2.4 0.8 2.4Canada 2.2 2.9 2.6 2.9 5.2 1.4 0.6 3.1 2.5 1.2 3.3 0.8 2.4Caribbean 0.5 0.8 0.0 1.1 0.6 0.2 0.0 0.0 0.0 0.1 0.6 0.0 0.0China 0.9 1.0 1.0 1.3 1.8 5.3 1.3 4.0 1.5 3.0 2.4 0.0 0.1France 6.3 5.7 5.2 4.2 2.6 1.4 0.9 1.9 7.9 4.6 3.6 0.8 3.6Germany 4.1 7.0 10.2 5.3 4.2 7.2 4.1 6.0 6.1 8.9 5.7 6.2 5.1Japan 8.4 10.0 8.2 4.0 1.8 8.1 2.0 4.0 2.0 8.9 6.7 0.8 1.1Middle East 2.3 1.9 3.3 9.4 15.4 1.8 1.7 7.9 2.3 3.6 3.1 1.5 1.4Other European 3.5 13.3 8.1 9.2 8.8 5.9 12.4 6.3 5.6 9.4 6.1 9.1 16.7Russia 2.5 10.1 0.4 7.4 0.9 4.2 0.6 0.3 0.0 3.5 1.6 1.7 4.2SAARC** 9.0 9.1 2.7 6.0 10.6 34.7 62.3 6.7 12.7 1.7 19.8 1.0 1.3South Africa 1.4 0.6 1.1 5.3 3.2 0.8 0.1 3.6 1.4 1.0 2.6 0.3 1.3UK 13.8 14.4 18.0 13.7 14.8 10.2 3.5 5.1 11.8 10.4 9.4 67.6 47.6USA 13.0 10.4 15.7 14.5 10.0 6.5 5.1 31.6 14.0 20.6 16.7 0.8 5.3Other 21.5 4.3 15.5 4.8 10.3 3.3 4.3 10.1 7.6 11.6 3.2 6.5 5.7

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

* ASEAN: Association of So uth East Asian Nation s ** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

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TABLE 3-7: Indian Hotel Industry - Seven Major Cities: Monthly & Daily Occupancy


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three- Star

& Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-Star

& Two-Star


January 66.2% 59.7% 50.5% 69.0% 79.5% 73.3% 69.7% 72.1% 52.9% 57.7% 65.0% 74.7% 53.5% 68.5% 79.7% 72.2%February 79.4 66.2 51.7 71.0 77.6 69.4 66.1 67.4 58.0 51.5 68.5 72.5 66.4 65.4 78.8 72.3March 66.6 56.3 47.7 62.1 71.3 61.8 57.2 60.7 50.8 49.8 56.8 62.5 56.2 59.2 71.5 65.8April 67.4 54.1 59.0 61.0 71.2 64.4 56.1 57.0 52.3 54.2 58.8 60.0 59.7 62.7 71.4 58.3May 61.4 51.7 47.9 58.8 68.5 65.8 58.0 53.0 52.2 59.6 51.0 57.1 62.5 71.2 42.3 46.1June 60.6 52.5 42.9 57.0 67.3 60.6 57.4 51.1 51.1 58.5 50.5 58.6 59.9 68.9 49.3 34.0July 55.2 49.9 45.7 55.1 65.3 61.6 58.4 54.2 49.0 58.1 53.8 61.2 63.0 67.2 40.9 31.9August 54.5 50.1 51.4 54.2 60.7 59.8 58.2 54.0 46.2 55.4 52.0 62.1 60.2 63.4 45.3 34.1September 54.5 49.6 55.0 55.0 61.4 60.0 54.2 55.2 49.3 56.3 48.8 66.4 56.6 67.9 54.4 45.8October 52.8 55.1 52.4 52.1 60.9 62.5 44.9 56.0 49.9 56.5 43.3 66.3 51.1 65.8 55.7 52.9November 56.8 57.7 54.2 56.5 64.8 66.8 56.2 62.5 54.5 54.8 50.5 67.8 56.6 70.1 68.4 68.1December 55.7 57.8 55.2 63.3 76.3 73.9 60.0 69.1 53.8 61.3 51.8 70.1 57.2 72.6 73.9 78.8


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three- Star

& Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-Star

& Two-Star


Monday 61.3% 76.0% 50.0% 59.9% 71.4% 61.0% 70.8% 70.0% 52.0% 55.7% 52.5% 65.2% 60.8% 63.5% 56.7% 50.4%Tuesday 67.2 77.1 53.2 62.2 71.7 66.0 77.6 69.2 58.4 51.9 51.5 69.4 67.1 68.2 55.7 50.4Wednesday 67.9 76.8 54.0 64.8 73.1 66.2 77.6 67.1 59.6 53.8 50.0 66.6 68.7 69.2 56.5 51.6Thursday 65.3 76.4 54.0 62.5 72.6 65.9 75.4 62.1 62.4 54.7 49.0 66.6 66.3 69.0 57.3 54.8Friday 55.0 73.6 45.0 57.3 69.8 61.4 67.8 60.4 56.4 55.1 48.0 57.9 55.9 63.0 69.8 59.6Saturday 49.1 51.8 34.0 51.9 57.0 52.4 52.2 60.0 49.6 54.7 50.5 45.8 44.6 53.9 74.2 60.6Sunday 57.4 52.3 23.6 52.3 56.9 46.6 53.2 50.0 47.2 53.6 56.3 46.7 46.4 47.8 70.2 61.3

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TABLE 3-8: Indian Hotel Industry - Seven Major Cities: Sources of Reservation

TABLE 3-9: Indian Hotel Industry - Seven Major Cities: Marketing Media


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Chain CRS (Central Reservation System) 9.9% 1.5% 1.7% 2.8% 3.0% 0.3% 9.8% 1.8% 6.6% 0.2% 15.5% 3.3% 11.4% 0.8% 6.6% 1.2%Direct Enquiry/ Hotel Representative 59.8 51.5 64.2 71.1 54.6 61.4 53.4 73.8 72.6 79.9 31.3 59.5 61.3 73.7 26.2 44.5Global Distribution System (GDS) 3.2 8.1 0.0 1.0 1.0 2.7 1.0 1.8 1.5 0.6 8.8 4.2 5.9 0.6 0.9 0.0Hotel/Chain Web Site 2.7 3.1 0.0 1.6 5.9 4.2 5.0 3.8 7.5 0.6 12.5 5.2 3.4 4.5 12.3 2.8Travel Agent & Tour Operator 15.9 23.3 15.3 11.6 16.4 12.8 15.7 11.9 5.0 8.4 19.8 11.3 4.1 10.0 39.5 41.0Other Online Reservation Systems 0.3 0.0 0.0 0.4 0.7 0.3 2.9 0.0 2.8 0.0 5.0 4.3 5.0 1.3 1.9 0.4Other Websites 0.4 1.3 0.0 0.4 3.5 2.1 9.0 0.1 0.4 0.3 3.3 0.2 0.3 2.2 0.4 2.9Others 7.7 11.3 18.8 11.0 14.8 16.3 3.2 6.9 3.6 10.0 4.0 11.9 8.5 7.1 12.4 7.3Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Direct Mail 100.0% 100.0% 60.0% 90.9% 84.0% 71.0% 100.0% 78.9% 80.0% 53.8% 100.0% 68.8% 100.0% 81.3% 100.0% 92.9%Hotel Website 100.0 85.7 40.0 81.8 76.0 64.5 100.0 42.1 80.0 15.4 100.0 62.5 90.0 56.3 100.0 92.9Loyalty Card Program 100.0 14.3 0.0 63.6 32.0 16.1 28.6 26.3 40.0 7.7 60.0 18.8 60.0 12.5 62.5 14.3Merchandising 83.3 28.6 0.0 18.2 8.0 9.7 42.9 5.3 20.0 7.7 20.0 12.5 10.0 18.8 62.5 21.4Other Internet Site 50.0 42.9 80.0 45.5 76.0 38.7 85.7 15.8 40.0 23.1 60.0 18.8 50.0 43.8 75.0 85.7Outdoor Advertisin g 33.3 57.1 40.0 72.7 48.0 35.5 85.7 47.4 80.0 53.8 60.0 75.0 80.0 37.5 75.0 78.6Print Advertising 100.0 85.7 80.0 100.0 72.0 87.1 100.0 78.9 100.0 100.0 100.0 93.8 100.0 81.3 100.0 100.0Promotions 83.3 71.4 40.0 100.0 60.0 35.5 85.7 52.6 80.0 38.5 100.0 62.5 90.0 56.3 100.0 50.0Radio Advertising 33.3 14.3 0.0 18.2 16.0 0.0 0.0 0.0 0.0 7.7 20.0 0.0 70.0 12.5 12.5 7.1Telemarketing 100.0 28.6 0.0 81.8 52.0 29.0 71.4 52.6 60.0 38.5 80.0 56.3 40.0 50.0 25.0 28.6TV Advertising 16.7 14.3 0.0 18.2 24.0 16.1 42.9 15.8 0.0 15.4 40.0 18.8 20.0 12.5 37.5 21.4

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TABLE 3-10: Indian Hotel Industry - Seven Major Cities: Payment Methods

Payment Methods

Credit Cards Used



COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Cash Sales 17.9% 40.8% 67.8% 17.6% 29.2% 54.4% 24.2% 60.7% 26.0% 64.1% 13.3% 31.9% 13.0% 41.6% 22.7% 36.6%Credit Card Sales 59.5 38.3 25.0 40.0 33.8 26.9 44.8 22.7 41.8 23.8 50.3 37.8 61.9 36.6 24.9 23.1Credit Sales (Other than Cards) 22.3 21.0 7.2 42.3 35.6 18.6 30.8 16.6 31.2 12.1 35.3 28.1 24.7 21.4 48.0 40.0Electronic Fund Transfer 0.4 0.0 0.0 0.1 1.3 0.0 0.2 0.0 1.0 0.0 1.3 2.2 0.4 0.4 4.3 0.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 6 8 ID 11 23 29 7 12 4 10 4 15 10 15 8 12

American Express 33.3% 14.1% 22.5% 13.9% 10.3% 18.4% 7.3% 25.2% 5.9% 25.1% 15.7% 23.8% 9.8% 21.9% 10.0%Diners Club 9.7 17.0 13.6 12.0 7.3 7.2 4.4 13.3 1.8 11.5 9.3 7.5 7.7 5.6 3.8Mastercard/Eurocard 22.7 28.1 33.1 34.6 37.1 33.8 39.3 27.9 45.0 27.6 34.3 27.1 32.8 31.5 43.7Visa 33.3 35.0 29.7 34.3 42.2 39.7 40.7 29.9 31.4 34.0 34.7 40.9 48.0 40.3 41.0Other 1.0 5.8 1.1 5.2 3.0 0.9 8.2 3.8 15.9 1.8 6.1 0.6 1.7 0.6 1.6

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star

& One-

Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 5 6 ID 11 24 28 7 10 5 12 4 14 10 15 8 12

American Express* 3.3% 3.0% 3.4% 3.7% 3.3% 3.5% 2.5% 3.0% 2.5% 3.2% 3.5% 3.3% 3.3% 2.8% 2.8%Diners Club 2.6 3.3 2.2 2.2 1.9 2.3 1.0 1.8 1.0 2.4 1.9 2.3 1.6 1.9 1.1Mastercard/Eurocard 1.8 2.0 1.9 2.1 2.2 1.9 2.5 1.8 5.6 1.8 2.0 1.8 2.0 2.2 2.7Visa 1.8 2.0 1.8 2.0 2.1 1.9 2.5 1.4 5.4 1.8 2.0 1.8 2.1 2.0 2.7Other 1.5 1.4 1.4 1.1 0.7 1.0 0.6 0.0 2.1 1.3 0.8 1.1 0.6 0.5 0.7


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TABLE 3-11: Indian Hotel Industry - Seven Major Cities: Technology & Environmental Issues



COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

No. of res ponses: 6 7 ID 11 23 31 6 15 5 13 4 14 10 13 8 14

Accounting System 100.0% 100.0% 100.0% 95.7% 93.6% 83.3% 80.0% 100.0% 84.6% 100.0% 78.6% 90.0% 100.0% 87.5% 100.0%

Call Accounting System 83.3 71.4 72.7 60.9 45.2 66.7 46.7 80.0 38.5 100.0 57.1 90.0 46.2 75.0 35.7

Central Reservation System (CRS) 83.3 14.3 27.3 21.7 12.9 33.3 6.7 60.0 7.7 75.0 28.6 50.0 7.7 50.0 0.0

Electronic Keycard 83.3 0.0 81.8 26.1 12.9 50.0 0.0 40.0 7.7 75.0 21.4 40.0 15.4 37.5 7.1

Energy Management System 66.7 0.0 27.3 8.7 6.4 16.7 6.7 0.0 0.0 50.0 7.1 20.0 15.4 0.0 14.3

Internet/E-Mail 100.0 85.7 100.0 87.0 74.2 100.0 73.3 80.0 23.1 100.0 78.6 100.0 84.6 100.0 78.6

Internet/Website 100.0 42.9 90.9 56.5 61.3 100.0 53.3 80.0 15.4 100.0 78.6 100.0 61.5 100.0 71.4

Intranet System 50.0 28.6 45.5 26.1 16.1 33.3 6.7 20.0 0.0 75.0 50.0 20.0 15.4 50.0 7.1

Local Area Network (LAN) 100.0 71.4 100.0 56.5 45.2 83.3 20.0 80.0 23.1 75.0 85.7 100.0 61.5 87.5 71.4

Management Information System (MIS) 100.0 85.7 81.8 52.2 29.0 83.3 26.7 60.0 23.1 100.0 64.3 80.0 69.2 75.0 42.9

Point of Sale System for Food and Beve rage 100.0 71.4 90.9 60.9 45.2 83.3 20.0 80.0 15.4 100.0 78.6 100.0 61.5 87.5 78.6

Property Management System 100.0 28.6 72.7 43.5 16.1 83.3 13.3 80.0 7.7 50.0 64.3 90.0 76.9 75.0 57.1

Yield Management System 50.0 28.6 27.3 21.7 3.2 16.7 0.0 0.0 0.0 25.0 28.6 20.0 0.0 25.0 7.1

Other 0.0 28.6 36.4 8.7 3.2 33.3 6.7 20.0 7.7 0.0 7.1 20.0 0.0 12.5 21.4


COMPOSITION

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe &

Five-Star

Four-Star

& Three-

Star

Two-Star &

One-Star

Five-Star

Deluxe, Four-

Star & Three-

Star

Two-

Star &

One-

Star

Five-Star

Deluxe, &

Four Star

Three-Star,

Two-Star &

One-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Five-Star

Deluxe, Five-

Star & Four-

Star

Three-

Star &

Two-Star

No. of res ponses: 7 7 5 11 21 31 5 15 5 13 4 15 10 13 8 11

Air (External Emissions) 71.4% 14.3% 20.0% 72.7% 66.7% 22.6% 80.0% 26.7% 40.0% 15.4% 100.0% 53.3% 90.0% 15.4% 37.5% 45.5%

Air (Indoor Air Quality) 71.4 14.3 40.0 63.6 57.1 25.8 80.0 26.7 60.0 30.8 100.0 60.0 90.0 15.4 37.5 45.5

Community Interaction 71.4 42.9 0.0 27.3 28.6 12.9 80.0 33.3 60.0 23.1 75.0 66.7 70.0 23.1 25.0 45.5

Energy Consumption (Electricity) 100.0 100.0 40.0 81.8 95.2 90.3 100.0 80.0 100.0 100.0 100.0 100.0 100.0 92.3 100.0 100.0

Energy Consumption (Gas) 100.0 71.4 20.0 81.8 90.5 77.4 100.0 66.7 100.0 84.6 100.0 100.0 90.0 53.8 100.0 90.9

Energy Consumption (Oil) 100.0 85.7 40.0 63.6 71.4 45.2 100.0 40.0 60.0 69.2 100.0 86.7 80.0 84.6 100.0 90.9

Fresh Water Quality 100.0 71.4 80.0 100.0 85.7 54.8 100.0 60.0 100.0 69.2 100.0 86.7 100.0 76.9 100.0 90.9

Noise (External) 71.4 42.9 40.0 72.7 61.9 22.6 60.0 13.3 40.0 23.1 75.0 66.7 80.0 38.5 37.5 45.5

Noise (In House) 71.4 28.6 40.0 72.7 66.7 25.8 80.0 26.7 60.0 30.8 75.0 60.0 80.0 38.5 50.0 63.6

Solid Waste Disposal 28.6 42.9 20.0 45.5 33.3 19.4 60.0 46.7 20.0 23.1 75.0 46.7 70.0 46.2 37.5 90.9

Solid Waste Production (Quality) 85.7 0.0 0.0 27.3 33.3 9.7 80.0 13.3 40.0 15.4 100.0 33.3 40.0 23.1 37.5 36.4

Solid Waste Production (Segregation) 100.0 28.6 20.0 54.5 42.9 16.1 80.0 13.3 40.0 23.1 100.0 26.7 50.0 23.1 50.0 54.5

Solid Waste Production (Volume) 85.7 42.9 0.0 45.5 38.1 12.9 100.0 33.3 40.0 30.8 100.0 60.0 50.0 30.8 50.0 63.6

Staff Training in Environmental Issues 85.7 57.1 20.0 63.6 42.9 6.4 80.0 13.3 80.0 30.8 75.0 73.3 80.0 30.8 62.5 45.5

Use of Chemicals (House Keeping) 85.7 57.1 40.0 63.6 90.5 64.5 100.0 53.3 60.0 53.8 100.0 86.7 80.0 76.9 62.5 81.8

Use of Chemicals (Maintenance) 100.0 42.9 40.0 72.7 76.2 58.1 100.0 46.7 40.0 53.8 100.0 80.0 80.0 61.5 87.5 100.0

Use of Pesticides and Herbicides (Dry Rations) 57.1 28.6 0.0 45.5 42.9 16.1 60.0 13.3 20.0 7.7 50.0 40.0 50.0 23.1 37.5 18.2

Use of Pesticides and Herbicides (Green Groceries) 42.9 28.6 0.0 27.3 42.9 19.4 60.0 13.3 20.0 7.7 50.0 46.7 40.0 23.1 50.0 27.3

Use of Pesticides and Herbicides (Horticulture/Gardens) 85.7 28.6 20.0 54.5 42.9 32.3 40.0 26.7 40.0 23.1 75.0 53.3 70.0 46.2 50.0 54.5

Use of Pesticides and Herbicides (Inside Building) 85.7 42.9 40.0 45.5 66.7 51.6 80.0 46.7 60.0 38.5 75.0 60.0 70.0 46.2 50.0 63.6

Use of Pesticides and Herbicides (Pest Control) 85.7 85.7 80.0 63.6 85.7 71.0 100.0 86.7 80.0 84.6 100.0 93.3 70.0 76.9 75.0 100.0

Use of Pesticides and Herbicides (Public Area) 85.7 28.6 20.0 63.6 71.4 45.2 100.0 40.0 80.0 69.2 75.0 66.7 80.0 53.8 62.5 63.6

Waste Water Quality 100.0 42.9 20.0 90.9 38.1 9.7 100.0 20.0 20.0 23.1 100.0 86.7 80.0 30.8 87.5 36.4

Waste Water Volume 100.0 14.3 20.0 63.6 47.6 22.6 80.0 26.7 40.0 30.8 100.0 86.7 90.0 46.2 87.5 63.6

Water Consumption 100.0 85.7 60.0 90.9 85.7 87.1 100.0 60.0 100.0 92.3 100.0 100.0 100.0 92.3 100.0 90.9

4. Indian Hotel Industry - Twelve Other Cities

In this section, we continue to highlight the hotels by 12 cities, covering Ahmedabad,

Cochin, Jaipur, Hyderabad, Vishakapatnam, Varanasi, Indore, Thiruvanathapuram, Shimla,

Udagamandalam (Ooty), Udaipur, and Agra. Due to inadequate responses from Nagpur

and Kullu-Manali we could not cover these markets. However, we have covered Indore and

Udagamandalam. Also, due to better responses from Cochin, we could cover two groups for

this city.

As in Section 3, in certain cities and for certain star categories, we are unable to show the

minimum data requirement of at least four hotels in each representation and have reflected

this as 'ID'.

With the exception of very few, most cities had insufficient data in individual star

categories; therefore, we have combined star categories to enable the information to be

summarised. However, in doing so, we have been careful to combine star categories which

are broadly similar.

Domestic guests dominate cities like Indore (96%), Shimla (91.5%) and Ahmedabad

(89%). Ahmedabad hotels had the highest percentage of repeat guest at 70%.

Jaipur's five-star deluxe, five-star & heritage had the highest percentage of foreign

guests at 58.5%, followed by Cochin's five-star, four-star & heritage at 55%.

Vishakapatnam's five-star, four-star & three-star hotels had the highest average number

of food and beverage outlets per hotel at 6.2.

December & January appear to be the busiest months for most hotels across all cities

with the exception of Shimla & Ooty, where May & June are the busiest months.

Three-star, two-star & one-star hotels in Indore achieved the highest occupancy among

the twelve cities at 76.9%. Five-star, four-star and heritage hotels in Cochin registered

highest net income (27.4%) as a percentage of revenue.

Four-star, three-star & two-star hotels in Shimla achieved the lowest (among the twelve

cities) average rate (at Rs 725) and five-star, four-star & heritage hotels in Cochin

achieved the highest (among the twelve cities) average rate (at Rs 2,023).


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TABLE 4-1: Indian Hotel Industry - Twelve Other Cities: Facilities and Guest Analysis

Guest Analysis

Ahm'bad Cochin Jaipur Hyderabad Vishak'patnam Varanasi Indore Thiruv'puram Shimla Ooty Udaipur Agra

COMPOSITION

Three-

Star &

Two-

Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of response s: 10 7 16 8 8 10 5 6 6 10 8 7 8 6 6

Air-Conditioned Single 4.2 0.0 2.5 6.3 1.5 1.2 8.2 0.8 0.0 1.4 0.0 0.0 2.3 0.0 0.7

Double 32.7 46.4 25.3 62.4 44.3 73.5 91.2 63.5 41.2 25.8 5.4 17.0 34.1 182.5 51.2Suites 6.9 6.0 6.6 6.5 2.8 8.9 8.0 3.7 3.7 5.3 0.8 1.4 1.8 3.8 0.8

Non-Air-Conditioned Single 0.0 0.0 1.3 0.0 2.3 0.6 0.0 0.8 0.8 0.4 2.1 4.6 0.0 0.0 0.0Double 3.2 0.0 7.8 0.0 7.5 11.4 0.0 0.8 2.5 10.3 22.8 36.0 6.0 0.0 7.7Suites 0.0 0.0 0.0 0.0 0.4 0.0 0.0 0.8 0.0 2.2 4.3 1.9 0.1 0.0 0.0

Total Average Rooms 47.0 52.4 43.4 75.1 58.6 95.6 107.4 70.5 48.2 45.4 35.3 60.9 44.3 186.3 60.3


COMPOSITION

Three-

Star &

Two-

Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Restaurant 1.4 1.9 1.6 1.3 1.6 1.7 2.8 1.8 2.3 1.9 1.3 1.4 1.5 2.8 1.2Bar 0.0 0.9 0.5 1.0 0.7 0.9 1.0 0.8 0.7 0.6 0.6 0.6 0.8 1.3 0.5Others 0.2 0.9 0.9 0.7 1.0 0.6 2.4 1.5 1.2 1.1 0.7 0.1 0.0 1.2 1.0Total 1.6 3.6 3.0 3.0 3.3 3.2 6.2 4.2 4.2 3.6 2.6 2.1 2.3 5.3 2.7


COMPOSITION

Three-

Star &

Two-

Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Domestic Guests 89.0% 45.0% 81.6% 41.5% 73.2% 88.8% 83.0% 45.0% 96.0% 76.4% 91.5% 77.9% 50.9% 48.5% 60.0%

Foreign Guests 11.0 55.0 18.4 58.5 26.8 11.2 17.0 55.0 4.0 23.6 8.5 22.1 49.1 51.5 40.0

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total Business Guests* 80.3% 50.8% 58.4% 32.1% 61.6% 81.4% ID 33.4% 67.1% 31.4% 12.3% 45.3% 23.9% 36.8% 26.5%

Total Leisure Guests 19.7 49.2 41.6 67.8 38.4 18.6 66.6 32.9 68.6 87.7 54.7 76.1 63.2 73.5

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Avg. Stay of Domestic Guests (Days) 2.0 2.0 2.6 1.9 2.2 2.5 2.3 2.3 5.8 2.0 2.6 2.5 2.2 2.0 2.0

Avg. Stay of Foreign Guests (Days) 2.0 2.8 1.9 1.9 1.8 2.2 2.0 1.8 4.5 3.0 2.0 1.7 1.8 1.4 2.0

Percentage of Repeat Guests 70.0% 34.3% 42.3% 20.0% 33.0% 54.4% 65.0% 30.0% 61.0% 51.6% 27.7% 29.1% 23.0% 30.0% 22.8%


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TABLE 4-2: Indian Hotel Industry - Twelve Other Cities: Staffing


COMPOSITION

Three-

Star &

Two-

Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star


Managers Male 3.9 8.4 4.2 10.0 7.1 12.7 13.0 8.2 5.5 3.3 1.6 5.6 2.5 18.8 4.0Female 1.3 1.3 0.6 0.8 0.8 2.0 1.4 0.8 1.3 0.3 0.5 0.7 0.1 1.5 0.0

Supervisors Male 6.7 9.3 7.9 9.9 6.9 15.5 18.6 11.2 21.2 3.3 2.5 7.0 2.8 26.3 6.7Female 1.3 1.9 1.5 1.1 0.5 4.8 2.0 1.0 3.5 0.5 0.1 0.3 0.3 0.7 1.2

Staff Male 58.1 83.0 51.4 75.9 60.5 113.9 184.8 70.5 114.8 53.9 27.0 59.3 22.0 173.8 38.7Female 2.4 7.7 7.8 7.5 0.9 15.9 14.4 2.7 0.8 9.2 0.6 5.6 0.9 4.8 0.5

Total 73.7 111.6 73.3 105.1 76.6 164.8 234.2 94.3 147.2 70.5 32.4 78.4 28.5 226.0 51.0

1.5 2.3 1.8 1.4 1.3 1.6 2.1 1.2 2.7 1.7 1.2 1.4 0.7 1.3 1.0Average Number of Employees Per Room


COMPOSITION

Three-

Star &

Two-

Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: ID 4 14 4 5 4 ID ID ID 8 6 6 7 4 5

Managers FT 95.8% 70.7% 78.6% 79.1% 66.5% 91.3% 63.9% 91.9% 89.3% 94.2% 50.7%ST 4.2 17.7 17.9 9.5 23.7 0.0 27.8 8.1 3.6 0.0 49.3

Avg. Trained Managers 100.0 88.4 96.4 88.6 90.2 91.3 91.7 100.0 92.9 94.2 100.0

Supervisors FT 96.4 64.4 72.9 65.0 60.9 91.3 75.0 57.0 47.9 83.2 50.3ST 3.6 21.3 27.1 20.7 32.0 6.3 25.0 26.4 41.4 6.8 36.4

Avg. Trained Supervisors 100.0 85.7 100.0 85.7 92.9 97.5 100.0 83.3 89.3 90.0 86.7

Staff FT 38.4 49.5 56.8 39.2 35.5 39.2 50.0 33.9 36.4 48.7 44.9ST 34.0 21.7 30.7 20.2 49.9 53.5 27.9 37.5 47.2 27.2 50.8

Avg. Trained Staff 72.4 71.1 87.5 59.4 85.4 92.7 77.9 71.4 83.5 75.9 95.7

Total Avg. Trained Emplo yees 90.8 81.8 94.6 77.9 89.5 93.8 89.9 84.9 88.6 86.7 94.1Total Avg. Un-Trained Em ployees 9.2 18.3 5.4 22.1 10.5 6.2 10.2 15.1 11.5 13.3 5.9

Hotels with Training D epartment 28.6% 18.8% 50.0% 12.5% 30.0% ID ID 42.9% 25.0% 66.7% IDFT: Formal training - minimum one year's certificate/diploma ST: Short-term training

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TABLE 4-3: Indian Hotel Industry - Twelve Other Cities: Financial Report - Percentage of Revenue

Cochin Jaipur Hyderabad Vishak'patnam Indore Thiruv'puram Shimla Ooty Agra

COMPOSITION

Five-Star,

Four-Star &

Heritag e

Three-Star

& Two-Star

Five-Star

Dlx, Five-

Star &

Heritag e

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star &

Two-Star

Three-Star

& Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-Star

& Two-Star

Number of responses: 4 8 ID 6 5 4 4 8 4 4 5 4

Average Total Rooms: 56 45 59 104 103 50 49 48 83 204 65Average Occupied Rooms: 12,105 9,642 13,340 25,739 20,412 12,467 8,179 8,155 10,912 23,783 10,918Average Occupancy: 49.7% 61.5% 59.3% 70.0% 56.6% 76.9% 53.3% 46.5% 38.0% 35.2% 51.1%Average Rate: Rs2,023 Rs966 Rs905 Rs1,799 Rs1,121 Rs1,057 Rs848 Rs725 Rs964 Rs1,806 Rs1,478

REVENUERooms 46.8% 44.3% 54.8% 47.8% 38.5% 34.7% 40.0% 71.8% 49.5% 48.2% 51.0%Food & Beverage 33.4 35.5 25.6 33.2 40.4 31.0 49.0 25.6 37.6 34.8 40.8Banquet & Conferences 11.1 12.0 8.1 12.3 10.1 27.4 3.3 1.5 5.7 5.6 2.3Telepho ne & Other 5.5 1.6 3.3 3.3 3.7 2.6 2.8 0.7 1.9 2.0 2.9Minor Operated* 1.4 0.9 1.3 2.0 6.5 0.6 0.8 0.0 2.6 6.1 0.7Rental & Other Income 1.8 5.7 7.0 1.4 0.8 3.8 4.2 0.4 2.6 3.1 2.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

DEPARTMENTAL EXPENSESRooms 15.2 28.8 21.4 14.4 15.0 37.0 21.8 31.9 28.5 30.7 18.0Food & Beverage 60.9 72.2 54.9 54.8 73.3 47.2 67.2 62.0 65.3 77.5 43.2Telepho ne & Other 35.7 76.2 71.2 47.9 38.8 74.8 97.1 248.0 45.7 47.4 54.8Minor Operated* 34.9 193.8 75.7 41.7 24.7 131.8 135.5 0.0 35.8 37.7 94.9Rental & Other Income 24.3 1.4 0.0 1.1 52.8 62.6 6.2 0.0 11.1 0.0 2.6 Total 37.1 50.1 33.5 34.2 46.3 45.4 47.9 42.0 44.5 49.4 30.1

DEPARTMENTAL INCOME 62.9 49.9 66.5 65.8 53.7 54.6 52.1 58.0 55.5 50.6 69.9

OPERATING EXPENSESAdmin istrative & General 13.2 8.9 4.3 10.3 11.6 4.6 10.9 6.6 9.1 14.7 10.3Managemen t Fee 2.8 0.4 0.7 7.3 1.0 0.6 0.5 0.0 2.8 0.4 5.1Marketing 2.3 1.7 2.3 1.6 2.8 4.1 0.8 1.9 2.7 3.0 4.0Franch ise Fees 0.0 0.1 0.9 0.2 0.0 1.3 0.0 0.0 0.0 0.0 0.0Property Operations & Maintenance 5.0 6.3 4.3 6.4 6.9 2.8 10.8 3.9 5.4 10.6 9.5Energy 10.7 13.7 15.4 11.3 19.7 13.6 11.3 12.3 17.0 20.0 13.6 Total 33.9 31.3 28.0 37.1 42.0 27.0 34.4 24.8 36.9 48.7 42.4

HOUSE PROFIT 29.0 18.6 38.5 28.7 11.7 27.5 17.7 33.3 18.6 1.8 27.5

FIXED EXPENSESPropert y Taxes 0.4 0.5 1.2 0.8 0.3 1.1 0.6 1.2 2.5 0.9 0.1Insurance 0.7 0.3 0.4 0.5 0.4 0.7 0.4 1.1 0.9 1.8 0.1Other Fixed Expen ses 0.1 0.5 10.2 2.1 2.9 1.4 1.8 4.3 0.2 1.0 0.4Rent 0.3 2.2 5.5 0.8 0.1 0.7 0.1 0.3 0.9 3.5 0.0 Total 1.5 3.4 17.3 4.2 3.7 3.9 2.9 6.8 4.5 7.3 0.6

NET INCOME** 27.4% 15.3% 21.3% 24.5% 8.0% 23.7% 14.8% 26.5% 14.1% -5.4% 26.9%

* Minor operate d department s include: la undry, gift s hop, business ce ntre, ne ws stand, s ports, hea lth club, gara ge, parking a nd so forth


NB: Inadequate financial data was available for Ahmedabad, Varanasi and Udaipur, therefore they were omitted from the table.

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TABLE 4-4: Indian Hotel Industry - Twelve Other Cities: Financial Report Per Available Room


COMPOSITION

Five-Star,

Four-Star &

Heritage

Three-Star

& Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star &

Two-Star

Three-Star

& Two-Star

Five-Star Dlx,

Five-Star &

Four-Star

Three-Star

& Two-Star

Number of respon ses: 4 8 ID 6 5 4 4 8 4 4 5 4


REVENUERooms Rs435,329 Rs206,330 Rs203,550 Rs446,048 Rs222,599 Rs266,091 Rs142,964 Rs122,605 Rs127,445 Rs210,959 Rs248,250Food & Beverage 310,444 165,486 95,232 309,938 233,725 237,455 175,144 43,662 96,606 152,411 198,842Banquet & Conferences 102,933 55,923 29,922 114,882 58,535 209,606 11,675 2,591 14,742 24,557 11,231Telephone & Other 51,542 7,278 12,070 30,703 21,253 20,040 10,094 1,157 4,964 8,862 14,073Minor Operated* 13,053 4,300 4,861 18,644 37,328 4,192 2,802 0 6,658 26,802 3,208Rental & Other Income 16,333 26,734 26,092 12,636 4,569 29,061 14,986 720 6,776 13,681 11,104 Total 929,636 466,052 371,727 932,852 578,010 766,444 357,664 170,734 257,191 437,271 486,708

DEPARTMENTAL EXPENSESRooms 66,156 59,367 43,617 64,039 33,416 98,369 31,201 39,133 36,391 64,721 44,804Food & Beverage 251,849 159,824 68,669 232,684 214,170 211,096 125,510 28,653 72,745 137,161 90,777Telephone & Other 18,391 5,546 8,595 14,707 8,238 14,985 9,797 2,868 2,270 4,198 7,717Minor Operated* 4,551 8,331 3,681 7,775 9,216 5,525 3,796 987 2,382 10,091 3,044Rental & Other Income 3,964 366 0 145 2,414 18,182 936 0 755 0 288 Total 344,911 233,433 124,562 319,349 267,454 348,157 171,240 71,641 114,542 216,172 146,630

DEPARTMENTAL INCOME 584,724 232,619 247,166 613,503 310,556 418,288 186,424 99,093 142,648 221,099 340,077

OPERATING EXPENSESAdministrative & General 122,578 41,714 16,157 96,329 67,145 35,490 39,049 11,311 23,324 64,331 50,165Management Fee 25,886 1,973 2,719 67,863 5,664 4,758 1,864 0 7,182 1,965 24,742Marketing 21,013 8,123 8,730 15,345 16,027 31,692 2,877 3,303 6,803 12,953 19,246Franchise Fees 0 310 3,371 1,541 0 10,101 0 0 36 0 0Property Operations & Maintenance 46,884 29,607 15,876 59,505 40,105 21,328 38,653 6,675 13,794 46,540 46,091Energy 99,196 64,002 57,043 105,316 114,025 103,965 40,476 20,996 43,685 87,260 66,135 Total 315,557 145,728 103,896 345,900 242,966 207,333 122,920 42,285 94,824 213,049 206,380

HOUSE PROFIT 269,168 86,891 143,270 267,603 67,590 210,955 63,504 56,808 47,824 8,050 133,698

FIXED EXPENSESProperty Taxes 4,036 2,383 4,370 7,430 1,991 8,232 2,204 1,957 6,467 3,970 227Insurance 6,386 1,208 1,548 4,328 2,365 5,530 1,292 1,806 2,191 7,993 608Other Fixed Expenses 1,120 2,083 37,867 19,769 16,791 10,657 6,443 7,254 442 4,535 2,038Rent 2,484 10,079 20,282 7,403 263 5,126 485 518 2,424 15,235 138 Total 14,027 15,752 64,066 38,929 21,409 29,545 10,424 11,536 11,524 31,733 3,012

NET INCOME** Rs255,141 Rs71,138 Rs79,204 Rs228,674 Rs46,181 Rs181,409 Rs53,080 Rs45,272 Rs36,300 -Rs23,683 Rs130,686




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TABLE 4-5: Indian Hotel Industry - Twelve Other Cities: Financial Report Per Occupied Room


COMPOSITION

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star Dlx,

Five-Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star Dlx,

Five-Star &

Four-Star

Three-Star

& Two-Star

No. of re sponses: 4 8 ID 6 5 4 4 8 4 4 5 4


REVENUERooms Rs2,023 Rs966 Rs905 Rs1,799 Rs1,121 Rs1,057 Rs848 Rs725 Rs964 Rs1,806 Rs1,478Food & Beverage 1,443 774 424 1,250 1,177 943 1,039 258 730 1,305 1,184Banquet & Conferences 478 262 133 463 295 832 69 15 111 210 67Telephone & Other 240 34 54 124 107 80 60 7 38 76 84Minor Operated* 61 20 22 75 188 17 17 0 50 229 19Rental & Other Income 76 125 116 51 23 115 89 4 51 117 66 Total 4,320 2,181 1,653 3,762 2,910 3,043 2,121 1,010 1,944 3,743 2,898

DEPARTMENTAL EXPENSESRooms 307 278 194 258 168 391 185 232 275 554 267Food & Beverage 1,170 748 305 938 1,078 838 744 170 550 1,174 540Telephone & Other 85 26 38 59 41 60 58 17 17 36 46Minor Operated* 21 39 16 31 46 22 23 6 18 86 18Rental & Other Income 18 2 0 1 12 72 6 0 6 0 2 Total 1,603 1,092 554 1,288 1,346 1,382 1,015 424 866 1,851 873

DEPARTMENTAL INCOME 2,717 1,089 1,099 2,474 1,563 1,661 1,106 586 1,078 1,893 2,025

OPERATING EXPENSESAdministrative & General 570 195 72 388 338 141 232 67 176 551 299Management Fee 120 9 12 274 29 19 11 0 54 17 147Marketing 98 38 39 62 81 126 17 20 51 111 115Franchise Fees 0 1 15 6 0 40 0 0 0 0 0Property Operations & Maintenance 218 139 71 240 202 85 229 39 104 398 274Energy 461 300 254 425 574 413 240 124 330 747 394 Total 1,466 682 462 1,395 1,223 823 729 250 717 1,824 1,229

HOUSE PROFIT 1,251 407 637 1,079 340 838 377 336 362 69 796

FIXED EXPENSESProperty Taxes 19 11 19 30 10 33 13 12 49 34 1Insurance 30 6 7 17 12 22 8 11 17 68 4Other Fixed Expenses 5 10 168 80 85 42 38 43 3 39 12Rent 12 47 90 30 1 20 3 3 18 130 1 Total 65 74 285 157 108 117 62 68 87 272 18

NET INCOME** Rs1,186 Rs333 Rs352 Rs922 Rs232 Rs720 Rs315 Rs268 Rs274 -Rs203 Rs778




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Market Segmentation

TABLE 4-6: Indian Hotel Industry - Twelve Other Cities: Market Data


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 7 5 13 7 5 8 ID 5 5 9 5 6 7 4 4

Airline Crew 2.9% 10.2% 0.1% 0.3% 0.0% 2.3% 1.9% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 1.9%Business Traveller - Domestic 54.1 28.9 42.3 3.7 43.2 59.7 10.4 58.4 17.6 8.4 13.5 10.9 11.9 11.4Business Traveller - Foreign 4.8 4.3 3.8 11.8 3.6 6.1 4.6 3.4 5.7 0.4 6.7 1.6 2.1 8.3Complimentary Rooms 2.6 1.6 1.4 1.4 5.6 1.9 2.8 5.2 1.3 1.8 0.9 3.7 4.8 1.9Domestic - Tourists/Leisure FIT 6.8 9.6 19.1 20.4 8.6 7.2 11.0 23.4 31.6 64.0 27.0 33.9 11.5 19.1Foreign - Tourists/Leisure FIT 4.1 26.0 6.4 22.5 9.2 2.3 19.0 1.4 7.2 8.8 2.8 18.7 10.7 14.6Meeting Participants (Less than 100 Attendees) 8.2 4.9 6.6 9.9 10.3 5.9 6.5 2.2 4.0 2.0 10.7 8.1 11.1 3.4Meeting Participants (Over 100 Attendees) 4.3 1.0 3.2 4.7 2.0 4.9 6.0 0.0 0.9 0.0 10.3 1.4 8.3 0.0Tour Groups - Domesti c 4.1 3.2 10.8 3.7 8.2 6.2 8.0 4.0 16.8 12.0 14.0 5.4 3.8 12.8Tour Groups - Foreign 0.7 9.4 3.8 18.7 8.6 1.3 26.0 2.0 11.1 0.6 4.8 15.4 32.3 24.6Other 7.4 0.8 2.5 2.9 0.7 2.1 3.8 0.0 3.6 2.0 9.4 0.7 3.5 1.9Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 5 6 13 7 ID 5 ID 5 ID 9 8 ID 7 5 4

ASEAN* 6.6% 2.2% 8.2% 1.4% 1.5% 6.6% 6.8% 10.0% 0.2% 2.6% 7.0%Australia 2.2 2.5 5.6 2.7 4.8 8.0 2.0 1.6 2.2 3.8 8.3Canada 4.2 1.2 3.3 1.8 4.6 3.0 3.0 3.8 2.3 1.5 2.3Caribbean 0.0 0.0 0.4 0.0 0.2 0.2 0.0 2.4 0.0 2.6 0.3China 2.2 1.0 1.2 8.8 2.8 0.0 0.3 2.1 0.6 1.1 1.8France 2.6 13.3 8.9 13.1 3.3 8.2 4.2 7.8 21.2 11.3 11.8Germany 4.8 8.8 7.8 9.3 4.6 11.0 6.4 8.1 11.9 5.9 9.3Japan 3.6 5.4 2.4 5.7 2.4 19.6 2.4 6.7 3.4 10.4 10.0Middle East 3.0 3.8 7.0 2.0 3.8 0.4 3.2 3.8 1.0 1.8 2.8Other European 2.8 9.3 10.3 4.5 12.8 3.4 10.4 2.5 17.0 11.2 11.3Russia 0.0 0.9 1.0 3.9 1.1 0.0 0.8 3.4 0.0 1.1 1.0SAARC** 32.8 3.7 4.9 1.3 2.0 5.8 13.3 9.0 1.4 1.0 7.0South Africa 1.2 1.6 2.5 0.3 1.1 1.6 1.0 1.9 9.8 3.3 2.5UK 9.0 18.8 18.3 19.8 12.5 12.0 28.2 19.2 13.2 11.6 14.5USA 23.2 9.3 13.0 9.7 24.8 8.2 12.4 15.0 10.0 11.4 5.5Other 1.8 18.4 5.3 15.8 17.7 12.0 5.3 2.9 5.7 19.2 5.0Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

* ASEAN: Association of S outh East Asian Natio ns ** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

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TABLE 4-7: Indian Hotel Industry - Twelve Other Cities: Monthly & Daily Occupancy


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star

& Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star

& Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star

& Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of responses: 6 5 14 8 5 7 5 5 6 10 8 6 7 6 ID

January 74.8% 74.8% 68.5% 51.9% 70.3% 66.0% 58.0% 49.5% 67.9% 62.0% 36.6% 32.0% 43.6% 52.4%February 64.1 78.0 58.0 59.0 74.2 67.2 60.7 51.2 70.1 57.8 37.1 31.6 42.5 62.4March 59.7 64.4 53.7 49.0 59.5 63.8 53.1 41.6 73.3 51.1 43.4 32.5 29.5 49.4April 57.3 52.2 53.6 43.8 63.0 69.0 61.1 32.2 71.2 47.3 54.6 50.6 26.4 43.5May 57.8 50.2 58.8 23.8 47.5 67.1 64.9 25.7 72.1 48.3 83.1 69.3 24.9 28.0June 57.7 47.6 50.0 21.2 45.1 75.2 57.3 21.0 70.2 40.0 90.0 42.2 23.0 21.4July 65.2 48.4 46.7 32.5 51.3 70.1 54.9 25.4 68.5 37.1 55.3 28.1 27.9 32.6August 67.4 54.4 50.6 42.5 63.6 70.9 56.0 34.8 71.1 43.5 44.3 28.4 34.8 39.7September 62.4 52.5 54.1 39.8 60.9 68.6 65.7 32.8 70.3 44.8 43.1 30.7 28.5 43.6October 58.7 56.4 58.4 48.4 67.0 66.4 56.3 42.0 67.9 53.2 57.9 37.8 44.3 42.1November 69.0 63.2 64.9 51.2 69.8 71.0 53.3 47.7 69.1 61.8 49.3 40.4 55.8 43.9December 79.2 70.4 71.4 56.6 76.9 73.4 60.1 46.2 74.5 67.7 65.1 45.8 55.6 48.4


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-

Star

Number of respons es: 5 5 13 5 ID 7 4 4 6 6 7 4 ID 5 ID

Monday 54.8% 63.0% 53.1% 36.2% 74.3% 59.3% 26.8% 68.2% 49.7% 44.3% 40.0% 40.0%Tuesday 67.6 65.0 54.8 36.4 74.9 64.8 30.4 74.2 44.7 38.7 40.3 46.8Wednesday 69.8 64.0 54.8 35.8 77.9 66.8 32.3 77.8 52.8 40.4 41.5 48.6Thursday 68.8 59.0 58.2 42.8 76.1 64.8 33.6 75.3 45.8 40.0 40.0 47.0Friday 61.8 55.0 56.4 62.4 70.1 64.5 22.0 72.7 51.3 57.9 44.3 57.0Saturday 45.2 53.0 48.2 64.8 55.9 46.8 20.4 49.2 53.7 75.7 68.0 63.0Sunday 36.4 50.0 50.7 56.0 53.3 42.3 17.6 42.8 41.3 64.7 55.0 55.8

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TABLE 4-8: Indian Hotel Industry - Twelve Other Cities: Sources of Reservation

TABLE 4-9: Indian Hotel Industry - Twelve Other Cities: Marketing Media


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star


Chain Central Resvn. Sys. 4.3% 28.0% 7.2% 6.4% 9.3% 3.4% 3.0% 7.0% 0.0% 4.0% 7.4% 6.3% 0.0% 28.2% 12.5%Direct Enquiry/ Hotel Rep. 70.9 27.6 43.3 24.1 44.7 77.7 53.8 23.0 79.5 33.9 32.4 32.2 40.0 17.8 25.5Global Distribution Sys. (GDS) 3.3 0.1 0.0 1.9 2.3 1.4 0.2 4.0 0.0 0.5 0.0 0.0 4.3 5.4 20.5Hotel/Chain Web Site 7.1 2.2 6.2 5.3 11.9 2.7 7.0 4.2 0.5 8.5 6.9 9.3 7.9 3.4 3.8Travel Agent & Tour Operator 7.6 29.0 29.3 50.6 15.4 7.8 9.6 37.0 6.5 32.0 33.5 37.0 30.7 33.8 19.5Other Online Resvn. Sys. 0.0 5.0 1.6 0.0 0.1 0.7 1.0 0.2 0.8 4.5 0.0 6.7 0.7 5.4 5.3Other Websites 0.7 3.0 2.3 1.9 0.3 0.7 0.0 3.0 1.8 2.1 5.5 2.7 4.7 1.2 1.8Others 6.1 5.1 10.3 9.9 16.0 5.5 25.4 21.6 10.8 14.5 14.4 5.8 11.7 4.8 11.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star


Direct Mail 100.0% 83.3% 81.3% 85.7% 85.7% 85.7% 80.0% 100.0% 83.3% 88.9% 75.0% 85.7% 100.0% 100.0% 100.0%Hotel Website 57.1 100.0 93.8 100.0 85.7 71.4 80.0 80.0 50.0 77.8 75.0 71.4 71.4 83.3 100.0Loyalty Card Program 28.6 50.0 31.3 57.1 42.9 42.9 60.0 40.0 50.0 11.1 12.5 28.6 0.0 83.3 75.0Merchandising 14.3 16.7 43.8 42.9 14.3 14.3 40.0 20.0 16.7 11.1 12.5 28.6 14.3 33.3 75.0Other Internet Site 57.1 66.7 75.0 71.4 28.6 14.3 20.0 60.0 50.0 88.9 62.5 57.1 71.4 33.3 75.0Outdoor Advertising 57.1 66.7 81.3 71.4 71.4 42.9 100.0 60.0 66.7 55.6 75.0 85.7 57.1 83.3 100.0Print Advertising 100.0 83.3 100.0 100.0 85.7 85.7 100.0 80.0 100.0 100.0 100.0 85.7 85.7 100.0 100.0Promotions 71.4 100.0 75.0 85.7 57.1 100.0 60.0 100.0 50.0 55.6 62.5 100.0 85.7 100.0 100.0Radio Advertising 14.3 0.0 0.0 28.6 0.0 0.0 0.0 0.0 33.3 0.0 0.0 0.0 0.0 0.0 25.0Telemarketing 57.1 50.0 50.0 42.9 42.9 71.4 40.0 100.0 33.3 33.3 25.0 42.9 14.3 66.7 75.0TV Advertising 42.9 33.3 18.8 57.1 28.6 0.0 40.0 40.0 33.3 33.3 25.0 0.0 0.0 83.3 50.0

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TABLE 4-10: Indian Hotel Industry - Twelve Other Cities: Payment Methods

Payment Methods

Credit Cards Used



COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star


Cash Sales 24.3% 21.6% 48.9% 26.4% 44.0% 47.4% 39.6% 37.9% 54.0% 42.8% 67.8% 44.0% 39.3% 23.2% 45.3%Credit Card Sales 34.0 45.4 28.1 23.4 22.5 29.4 36.4 24.0 24.8 34.9 16.8 26.2 28.8 21.5 23.7Credit Sales (Other than Cards) 41.7 31.3 22.0 50.2 33.5 23.3 23.6 38.1 18.7 19.2 14.3 29.5 32.0 55.3 31.0Electronic Fund Transfer 0.0 1.7 1.1 0.0 0.0 0.0 0.4 0.0 2.5 3.1 1.3 0.3 0.0 0.0 0.0

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star


American Express* 3.8% 3.6% 2.0% 3.6% 3.6% 3.8% 3.3% 3.1% 3.0% 2.7% 3.7% 2.8% 3.9% 3.3% 3.7%Diners Club 2.2 1.8 1.6 2.1 2.5 2.0 2.8 2.7 2.3 1.1 1.1 1.8 1.5 2.7 2.4Mastercard/Eurocard 1.9 1.9 2.5 2.2 2.2 2.0 2.0 2.8 2.2 2.7 3.0 2.2 2.5 2.0 2.6Visa 1.9 1.9 2.4 2.2 2.0 2.0 2.5 2.3 2.2 2.7 3.0 2.2 2.1 2.0 2.6Other 0.7 0.9 1.4 0.0 1.7 1.3 1.4 0.0 0.5 1.4 0.5 0.8 0.0 0.0 1.5



COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, Four-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star

& Two-Star

Four-Star,

Three-Star

& Two-Star

Three-Star &

Two-Star

Three-Star &

Two-Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star


American Express 8.4% 13.9% 5.4% 20.9% 14.0% 15.2% 13.3% 16.6% 7.8% 10.0% 17.0% 12.6% 13.3% 24.4% 11.8%Diners Club 25.4 9.5 5.0 7.3 3.5 10.1 5.8 3.9 16.6 14.4 2.0 9.0 4.6 3.3 2.2Mastercard/Eurocard 32.5 31.2 37.8 29.0 30.0 31.0 34.1 35.5 36.4 32.5 42.0 33.8 40.8 30.0 39.0Visa 30.5 43.6 47.3 41.4 49.8 36.9 42.6 43.0 36.8 40.6 35.0 40.2 38.5 40.6 45.8Other 3.2 1.8 4.4 1.4 2.7 6.8 4.3 1.0 2.4 2.5 4.0 4.4 2.9 1.7 1.3

Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

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TABLE 4-11: Indian Hotel Industry - Twelve Other Cities: Technology Issues


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, F our-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Number of responses : 7 6 15 5 7 8 ID 4 6 9 8 7 7 6 4

Accounting System 100.0% 83.3% 86.7% 100.0% 100.0% 100.0% 100.0% 100.0% 77.8% 100.0% 85.7% 71.4% 83.3% 100.0%Call Accounting System 85.7 50.0 66.7 100.0 42.9 37.5 75.0 33.3 33.3 37.5 42.9 28.6 50.0 50.0Central Reservation System (CRS) 71.4 50.0 46.7 80.0 42.9 25.0 25.0 0.0 0.0 50.0 28.6 14.3 50.0 25.0Electronic Keycard 28.6 33.3 13.3 60.0 42.9 12.5 0.0 0.0 0.0 0.0 0.0 0.0 50.0 0.0Energy Management System 14.3 50.0 13.3 40.0 14.3 12.5 50.0 0.0 11.1 0.0 0.0 0.0 50.0 0.0Internet/E-Mail 100.0 100.0 93.3 80.0 85.7 87.5 100.0 66.7 77.8 87.5 100.0 85.7 83.3 100.0Internet/Website 85.7 100.0 80.0 60.0 85.7 62.5 100.0 50.0 77.8 75.0 85.7 71.4 66.7 75.0Intranet Sys tem 28.6 50.0 20.0 40.0 42.9 12.5 50.0 33.3 55.6 37.5 0.0 28.6 50.0 50.0Local Area Network (LAN) 85.7 66.7 73.3 80.0 85.7 87.5 100.0 33.3 44.4 37.5 14.3 42.9 83.3 50.0Management Information System (MIS) 71.4 66.7 53.3 80.0 71.4 50.0 75.0 16.7 33.3 25.0 14.3 14.3 83.3 50.0Point of Sale System for F&B 71.4 100.0 53.3 100.0 85.7 87.5 75.0 50.0 66.7 37.5 71.4 28.6 83.3 75.0Property Management System 28.6 83.3 20.0 100.0 71.4 62.5 50.0 0.0 22.2 0.0 57.1 14.3 83.3 25.0Yield Management System 14.3 66.7 33.3 40.0 42.9 12.5 25.0 0.0 11.1 0.0 0.0 0.0 50.0 0.0Other 14.3 0.0 20.0 0.0 14.3 12.5 0.0 0.0 0.0 0.0 14.3 0.0 16.7 25.0


COMPOSITION

Three-

Star &

Two-Star

Five-Star,

Four-Star &

Heritage

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star &

Heritage

Four-Star,

Three-Star &

Two-Star

Five-Star, F our-

Star & Three-

Star

Five-Star,

Four-Star &

Three-Star

Five-Star

Dlx, Four-

Star & Three-

Star

Three-Star,

Two-Star &

One-Star

Three-Star &

Two-Star

Four-Star,

Three-Star

& Two-Star

Three-

Star &

Two-

Star

Three-

Star &

Two-

Star

Five-Star

Dlx, Five-

Star & Four-

Star

Three-

Star &

Two-Star

Number of responses : 6 5 13 6 6 8 4 4 5 8 8 7 6 6 4

Air (External Emission s) 33.3% 60.0% 23.1% 66.7% 50.0% 25.0% 25.0% 50.0% 0.0% 25.0% 25.0% 57.1% 50.0% 66.7% 50.0%Air (Indoor Air Quality) 50.0 60.0 38.5 50.0 66.7 50.0 0.0 100.0 40.0 25.0 0.0 57.1 66.7 50.0 75.0Community Interaction 16.7 60.0 38.5 50.0 50.0 25.0 25.0 75.0 20.0 50.0 12.5 28.6 33.3 50.0 50.0Energy Consumption (Electric) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.5 87.5 100.0 66.7 100.0 100.0Energy Consumption (Gas) 83.3 100.0 92.3 100.0 83.3 87.5 100.0 100.0 80.0 75.0 87.5 100.0 66.7 100.0 100.0Energy Consumption (Oil) 66.7 100.0 92.3 100.0 66.7 50.0 100.0 100.0 60.0 87.5 37.5 100.0 66.7 100.0 100.0Fresh Water Quality 83.3 80.0 69.2 66.7 83.3 87.5 100.0 100.0 40.0 62.5 75.0 71.4 66.7 100.0 100.0Noise (External) 33.3 60.0 23.1 50.0 50.0 62.5 25.0 75.0 0.0 25.0 12.5 71.4 50.0 33.3 75.0Noise (In House) 50.0 60.0 30.8 50.0 66.7 37.5 25.0 75.0 40.0 50.0 12.5 71.4 33.3 33.3 75.0Solid Waste Disposal 16.7 40.0 46.2 16.7 66.7 62.5 0.0 25.0 80.0 25.0 25.0 28.6 16.7 50.0 25.0Solid Waste Production (Quality) 33.3 40.0 30.8 50.0 33.3 25.0 25.0 75.0 20.0 37.5 12.5 28.6 0.0 0.0 50.0Solid Waste Production (Segregation) 33.3 40.0 53.8 50.0 33.3 25.0 50.0 75.0 40.0 37.5 25.0 42.9 16.7 33.3 50.0Solid Waste Production(Volume) 33.3 40.0 38.5 50.0 50.0 37.5 50.0 100.0 20.0 37.5 37.5 14.3 33.3 16.7 75.0Staff Training in Environmental Issues 33.3 60.0 38.5 66.7 66.7 37.5 25.0 75.0 0.0 62.5 25.0 85.7 66.7 66.7 75.0Use of Chemicals (House Keeping) 100.0 100.0 69.2 50.0 100.0 62.5 50.0 100.0 80.0 100.0 62.5 85.7 83.3 83.3 100.0Use of Chemicals (Maintenance) 100.0 80.0 61.5 50.0 100.0 75.0 75.0 75.0 40.0 75.0 50.0 71.4 66.7 100.0 100.0Use of Pesticides and Herbicides (Dry Rations) 66.7 40.0 15.4 50.0 50.0 12.5 0.0 0.0 0.0 12.5 12.5 42.9 33.3 33.3 50.0Use of Pesticides and Herbicides (Green Groceries) 66.7 40.0 30.8 50.0 50.0 12.5 0.0 25.0 20.0 12.5 12.5 42.9 50.0 33.3 75.0Use of Pesticides and Herbicides (Horticulture / Gardens) 66.7 60.0 46.2 66.7 66.7 50.0 50.0 100.0 40.0 62.5 50.0 71.4 33.3 50.0 75.0Use of Pesticides and Herbicides (Inside Building) 66.7 60.0 46.2 66.7 83.3 62.5 25.0 100.0 40.0 37.5 62.5 100.0 50.0 50.0 75.0Use of Pesticides and Herbicides (Pest Control) 100.0 100.0 92.3 50.0 83.3 75.0 75.0 100.0 60.0 87.5 75.0 100.0 66.7 66.7 100.0Use of Pesticides and Herbicides (Public Area) 83.3 60.0 53.8 66.7 83.3 62.5 25.0 100.0 40.0 50.0 50.0 100.0 83.3 50.0 50.0Waste Water Quality 66.7 60.0 38.5 50.0 83.3 50.0 25.0 50.0 40.0 37.5 12.5 57.1 66.7 83.3 50.0Waste Water Volume 66.7 80.0 61.5 50.0 83.3 50.0 50.0 75.0 40.0 50.0 37.5 71.4 83.3 66.7 100.0Water Consumption 100.0 100.0 69.2 66.7 100.0 100.0 100.0 75.0 80.0 87.5 87.5 100.0 50.0 100.0 100.0

Hotel Analysis Worksheet


Hoteliers can analyse their financial data, compare it with their competitors and accordingly

prepare their future strategies and budget with the help of the following table:

COMPOSITION Your Hotel Comparison 1 Comparison 2 Comparison 3

Average Total Rooms Per Hotel:

Average Occupied Rooms Per Hotel:

Average Occupancy Per Hotel:

Average Rate Per Hotel:

REVENUE

Rooms

Food & Beverage

Banquet & Conferences

Telephone & Other

Minor Operated*

Rental & Other Income

Total


Rooms

Food & Beverage

Telephone & Other

Minor Operated*

Rental & Other Income

Total

DEPARTMENTAL INCOME

OPERATING EXPENSES

Administrative & General

Management Fee

Marketing

Franchise Fees

Property Operations & Maintenance

Energy

Total

HOUSE PROFIT

FIXED EXPENSES

Property Taxes

Insurance

Other Fixed Expenses

Rent

Total

NET INCOME**


** Net Income is before depreciati on, interest payments and taxes

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hvs - indian hotel industry survey 2001-2002

Documents

solid waste

horticulture

twin share

average commission

online reservation

touristsleisure

marketing

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