Agenda

General overture of the Hotel Industry

Global Scenario
Indian Scenario
Detailed Industry Analysis
SWOT Analysis
PEST Analysis
Michael Porters Five Forces
Barriers in the Industry
Industry Practices
Industry performances
Company Analysis
Ratio Analysis & Interpretation
Future Prospects in India
Conclusions & Findings

A general overture of the Hotel Industry
Hotels are amongst the most visible and important aspects of a
country's infrastructure.
Hotel industry is also inextricably linked to the tourism industry and its
growth has added impetus and zest to the hotel industry.
Objectives of the study:
- To study the hotel Industry globally.
- To study the Indian hotel Industry.
- To look at the future prospects of the Indian hotel industry.
- To analyze factors driving the Indian hospitality industry.
Global Scenario
The demand for the Hotels is decided by
international and domestic tourism.
With the number of tourists expected to rise to
the extent of 10 million by the turn of the
decade, the industry is extrapolated to see a
boom.
A counter argument is that, the influences like
economic recession seen in the consumption,
production, profit, investment etc. can be
counterproductive.
Indian Scenario
The Indian Hotel Industry is exclusively
audacious enterprise.
the Investment environment is also very
crucial as the political instability and acts
of terrorism within the sovereign
boundaries of the nation affect the
growth trajectory.
The events like the IPL can also accelerate
the development, though in a regionally
imbalanced way (National Capital
Region).
Challenges faced by Indian Hotel Industry
Shortage of skilled employees
Retaining quality workforce
Shortage of rooms
Intense competition & image of India
Customer expectations
Manual back-end
Human resource development
Construction costs
Lack of proper career path
Detailed Industry Analysis
Research Methodology(Qualitative)
SWOT Analysis
Strengths:
Rich Culture and heritage.
Government Support.
Weakness:
Poor Infrastructure.
Opportunities:
Open Sky Benefits.
New Business Opportunities.
Threats:
Increasing Competition.
PEST Analysis:
Political Factors:
o Law and Regulation
o Administrative
o Judicial
o Lobbying
Economic Factors:
o Economic Factors that have an impact on the decision of the
customers.
Socio-Cultural Factors:
o Deals with consumers having different demographic, ethnic &
cultural backgrounds
Technological Factors:
o Deals with sophisticated technological advances & regular up
gradation.

Michael Porters Five Forces Model
Barriers In the Industry
Foreign Languages
Service Expectation
Menu and Diet
Education and Support
for Diversity
Government Regulation,
License & Approval
Process.
Industry Practices
Pricing
An overload of customers calling for a mismatch in the demand and
supply levels of hotel rooms in the country causes the prices of the
even cheaply available rooms increase.
o Economic Condition
o Occupation
o Location
Promotion
The main promotional activities provided for this industry is from
the government, aiming to increase the foreign exchange earnings
Industry Performance
The UK Hotel Industry
The US Hotel Industry
The Indian Industry

Company Profile
Hotel Leela Venture Ltd
Market Capitalization Rs.1450. 75 Cr (2009)
Net Profit Rs. 145.23 Cr (March 2009)
Asian Hotels Ltd (AHL)
Market Capitalization Rs. 857.052 Cr (Sept. 2009)
Net Profit Rs. 81.61 Cr (March 2009)
East India Hotels Ltd (EIH)
Market Capitalization Rs. 4821.50 Cr (March 2009).
Net Profit Rs.172.34 Cr (March 2009).



Company Profile
Bharat Hotels Ltd
Market Capitalization Rs. 568 Cr (March 2009).
Net Profit Rs. 139.74Cr (March 2009).

Indian Hotels Company Limited (IHCL)
Market Capitalization Rs.5544.86 Cr(Sept 25, 2009).
Net Profit Rs.250.4 Cr (Mar 2009)

RATIO ANALYSIS
Sales Growth Rate

0.00
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
1,800.00
Mar/09 Mar/08 Mar/07 Mar/06
indian hotel
eih
asian
leela
bharat
Current Ratio

0.00
0.50
1.00
1.50
2.00
2.50
2009 2008 2007 2006 2005
Indian Hotel
EIH
Asian Hotel
Hotel Leela Venture
Bharat
Debt Equity Ratio

0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2009 2008 2007 2006 2005
Indian Hotel
EIH
Asian Hotel
Hotel Leela Venture
Bharat
Profitability Ratio

0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
Mar/09 Mar/08 Mar/07 Mar/06 Mar/05
indian hotel
eih
asian
leela
bharat
Return on Assets

0
0.05
0.1
0.15
0.2
0.25
0.3
Mar/09 Mar/08 Mar/07 Mar/06 Mar/05
indian hotel
eih
asian
leela
bharat
Interest Coverage Ratio

0
2
4
6
8
10
12
14
Mar-09 Mar-08 Mar-07 Mar-06 Mar-05
Indian Hotel
EIH
Asian Hotel
Hotel Leela Venture
Bharat
Fixed Assets Turnover

0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2009 2008 2007 2006 2005
Indian Hotels
East India Hotels
Asian Hotels
Hotel Leela Ventures
Bharat Hotels
Inventory Turnover

0.00
10.00
20.00
30.00
40.00
50.00
60.00
2009 2008 2007 2006 2005
Indian Hotel
EIH
Asian Hotel
Hotel Leela Venture
Bharat
Future in India
Room rates are most likely to rise 25% annually.
Occupancy rate to increase by 80%.
An addition of 60,000 rooms in different stages.
Man power requirements in India to increase from 11 Mn to 15 Mn.
Approx 300 projects are in the pipeline to hit India.
Entry of international brands through joint ventures and tie-ups is
likely to enhance the service levels and will narrow demand-supply
gap of rooms.
Conclusions & Findings
Because of the seasonal trend in the hotel industry,
hotels are never used to their full capacity.
Very difficult to maintain profits.
Out of the reach of the Huge Indian middle class which
are yet upgrading themselves in terms of disposable
incomes.
With more projects in the pipeline the industry slash
down their prices.
This helps the hotels to draw themselves out of seasonal
trend trap.
Major factors driving the growth are sensitivity to
business cycles and adverse political and social events
(including terrorist attacks), high rate of tax, high land
price, bureaucracy, and poor infrastructure.

References
http://www.naukrihub.com/india/hospitality/
http://www.businessworld.in/
http://business.mapsofindia.com/india-industry/
http://www.itopc.org/travel-trade/
www.google.com
www.wikipedia.org

Databases & Sources
An Overview of Hospitality Industry Article Investors Guide
Hotel Industry reiterates demand
Literature Review on ITDC
Saudi Hotel Sector Set For Growth
Indian Hospitality Industry has become an attractive investment destination
Hotel Industry Needs Real Green Change - MapChange 2010
Capital line
Corporate websites
Annual Reports of various Pharmaceutical firms
Hotel Industry Journals & Magazines (Hospitality Outlook, Hoteliers Asso-cham, Panache
maker & ITC hotel ling)

Thank You