5 STAR HOTELS INDUSTRY IN NEW DELHI

The main 5 star hotels in New Delhi are Le-Meridian, Park

Royal, Raddisson, Maurya Sheraton, Ashoka, Hyatt, Oberio
etc. Since New Delhi is a capital of India, total of visitors
from India and abroad visits New Delhi daily. It is a venue
for various national and international conferences for various
Industries.

All the government policies and rules are famed and

designed in New Delhi and therefore lot of government
delegates of various states visits New Delhi regularly, for
this purpose. Many international sports events are also held
in New Delhi regularly in which players of various countries
participate. Moreover, New Delhi has some historical sites
also which Delhi attracts lot of visitors.

Therefore, the hotel Industry in New Delhi has a lot of

opportunities which successfully exploiting. All the 5 star
hotels in New Delhi are doing well. Two years back Le-
Meridian was the no. 1 hotel in the capital of India due to its
unique location and services. But there is intense congestion
in this segment and other players are also doing well.

Le-Meridian Brief Outlook

History: - Le-Meridian is a division of forte Hotels of France.

It is established 21years ago. Over the period of time they
have a worldwide network of 125 hotels and resorts in the
world.
Highlight of Le-Meridian, Delhi

1. Le-Meridian is located at a stone throw distance from

places of interests like Corporate Offices, foreign
embassy, Railway station, Parliament Bhawan, etc.

2. Le-Meridian has state of art structure in which no brick

and mortor is visible to a naked eye. It is a first glass
building in India.

3. Le-Meridian is providing excellent facilities to its

customers like (a) it has got 365 rooms, (b) 54 exclusive
deluxe President rooms, (c) 44 deluxe suits and has a
decorated designer suite.

Le-Meridian Keeping Abreast with New Delhi

Opportunity

1. Due to emergence of India as a World Information

technology Centre, Le-Meridian has taken few steps in
order to grab the visitors of IT industries specially those
who are from abroad.

For this Le-Meridian has launched it’s hotels in Chennai

and they are soon starting one in Mumbai where all the
foreign investment and businesses are expected to come.
But this is not the least, Le-Meridian is also arranging a
lot of activities in their hotels like star night, Tambola,
etc.
2. Emphasis Local Culture: - The rise of Le-Meridian
near basically because it emphasis on local culture with a
European touch.

3. Providing high level of personal service.

4. Le-Meridian has a exciting cuisine.

Threat from Competitor: - With the passage of time the

competition has also arisen in New Delhi Hotel Industry due
to the emergence of New hotels like Park Royal and
Raddisson and the recent visit of US President Mr. Bill
Clinton and the world richest gian Mr. Billgate has also put
Hotel Maurya Sheraton into limelight. But in our case, we
are discussing threat given to Hotel Le-Meridian with the
emergence of hotels like Park Royal and Raddisson.

But What is the Repurcussion?

The major repercussion of this is that Le-Meridian is loosing

its market shares and occupying level day by day. The
recent data shows that Park Royal and Raddisson are
grabbing the visitors of Le-Meridian specially Raddisson
which is near to the airport.
Problem : - Our point of discussion that what hotel Le-
Meridian should do to complete in the hotel Industry that
measure Le-Meridian has to take to increase its occupancy
and to again come at no. Position 1 in New Delhi.

THE HOTEL INDUSTRY IN INDIA

 The Hotel Industry in the country has been growing
spectacularly in the recent times. The international
classification is the “Star” categorization. Accordingly on the
basis of range and quality of services offered, at the high
end are 5 star deluxe and 5-star hotels, in the middle are
heritage hotels, four, three and two star hotels and the low-
end one star and unstarred hotels.

Star classification of hotels was done first in 1963. Then

there were seven high-end hotels with 1,184 rooms. In all
we had 186 hotels and 7,085 rooms, within two decades, in
1982, the number of high-end rose to 29 with 6,065 rooms,
the increase in room capacity being over 425 per cent. In
the middle-market class, the number rose to 163 with 7,918
rooms, the rise in room, capacity being around 90 percent,
Not spectacular compared to the growth in 5-star and 5-star
deluxe category. In 1996, the number of up-end hotels
swelled to 96, with room capacity rising to 18,379.

A spectacular growth is seen in the hi-end segment and

there was an increase of nearly 13 times in the number of
hotels and 14 times growth in rooms, Much of the growth
took place in the 1980s, when India hosted that Asiad
games. Beginning 1990, was the mid-marked, which saw a
strong growth ahead. From 418 properties in March 199, the
figure rose 30 percent to 573 while the room strength rose
40 percent from 18,979 to 26.535. The low-end market it
almost stagnant due to “lack of value” though thee is much
volume.
Before the P.V. Narasimha Rao government set in motion
post-independence India as most wide-ranging economic
reforms at the start of this decade, most hotels had an ideal
mix of business and leisure guess. In the first flush of
foreign investment, as companies overseas dispatched their
senior executives to set up shop in the emerging Indian
market, hotel rooms started filling up. In sectors like
telecom and power in particular, companies had a posse of
executives parked in hotels for months at a stretch. As the
hotel business boomed the industry decided to cash in on the
opportunity.

Practically, every hotel started calling itself a business hotel.

With some upgradation in facilities, they hiked their rates, at
times twice a year, and rooms became unaffordable for the
leisure segment of the market. Today it is virtually
impossible to chance upon a property in New Delhi and
Mumbai, in particular, which does not call itself a business
hotel. And most five-star and five-star deluxe hotels admit
that less than 5 percent of their rooms are occupied by
tourists.

Liberalisation has also marked the entry of several

international hotel chains into India. Until recently, the
three Indian ones-Oberoi, Taj and ITC have had clear field.
Through a combination of adept handling of the market,
good fortune and an alleged attempt to keep the foreign
chains out, the Indian chains have dominated the market.
Now the law allows foreign companies to manage hotel
properties and a whole host of them ae here with wheir
blockbuster bands: Le-Meridian¸Hyatt, Park Royal,
Raddisson, Holiday Inn etc.

The overseas chains are bringing with them efficient systems

and service standards from flourishing US and European
markets, so the quality of competition in the Indian hotel
sector is sure to rise.

India will then become a normal market – like others in the

East or in Southeast Asia – with demand and supply
determining the price.
 RESEARCH METHODOLOGY

REPORT ON

PROBLEM FACED

BY

LE-MERIDIAN HOTEL – DELHI

Submitted to:

Prof. N. Sondhi

Submitted by:

Bhanu Khemka - 1071

Mitun Kaushal - 1085

Rupinder Singh - 1105

Sanjay Prasad - 1107