1. HOSPITALITY INDUSTRY IN INDIA

2. HOSPITALITY INDUSTRY Star Rated Hotels Heritage Hotels Hotels
Hotel Industry
Budget Hotels
Facility Hotels
Restaurants
Resorts
Casual Dining
Fine Dining
Tourism
Coffee Bars
Travel and Tourism Industry
Fast Food Hotel Chains
Travel

3. CURRENT MARKET SITUATION

4. • Indian hospitality industry is Facing a mismatch between the Demand and Supply of rooms.
• The demand is high and is only expected to rise in future
• Indian hotel brands are making their presence felt globally. The Taj hotels, resorts & palaces and Oberoi hotels & resorts are leading Examples.

5. . In India, people are breaking away from traditional methods and Lifestyles. (thanks to high income).
This changed mindset is creating a huge demand for hotels that Provide quality at affordable rates
Example:
Fortune park hotels ltd, a Subsidiary of ITC ltd at 46 properties (out of which 25 are up and running)
Across 38 cities.

6. • The concept of hotels in malls is also flourishing
• The concept of hotels in malls is also flourishing. Budget hotels in malls which offer shopping
experience with entertainment facilities under one roof are eliciting attention from various
hospitality players. An upcoming Five-star hotel in east end mall in Ghaziabad is one such example.

7. REASONS FOR MORE DEMAND

8. Hotel industry depends largely upon the foreign tourists arrivals further classified into Business Travelers and Leisure travelers (both domestic and International)
• The buoyant domestic growth has resulted in the growth of business travel to India. (high income changed mindsets)
• India has now discovered the power of marketing and with campaigns like ‘Incredible India’ and various large scale regional and global events
Like the upcoming commonwealth games, Asian games and the recent Indian premiere league builds interest about the nation and is attracting more
domestic as well as international Leisure travelers.

9. There is a huge amount allotted for2010 commonwealth Games
• The policies and incentives provided to the hotel industry is acting as a catalyst for its growth.
The centre and states are also working out a model to increase hotel capacity.
There is a huge amount allotted for2010 commonwealth Games

10. INVESTMENTS

11. NEED FOR INVESTMENT • Increase in no. Of foreign travelers.
• Emphasized focus on tourism by Government.
• commonwealth games in Delhi

12. To overcome the shortage Indian hotel industry is adding
about 60,000 quality rooms, currently in different stages of
Planning and development, which should be ready by 2012.
Government has approved 300 hotel projects which indeed
shows what the industry is up to.
A lot of real estate developers are also investing into the
business to bridge the demand-supply gap.
INTERNAL INVESTMENTS

13. • Berggruen holdings India, a subsidiary of New York-based investment company Berggruen holdings, has announced that
it is seed-funding a non-luxury hotel chain in India.
• private equity firm Warburg Pincus has picked up around 27 % stake in Delhi-based mid-price hotel chain, Lemon tree, for $60.2 million
• Starwoods, hilton, intercontinental have significant growth plans for India
EXTERNAL INVESTMENTS

14. THE ENGINE OF GROWTH
TOURISM

15. • According to a research released by world travel & tourism Council, India’s travel & tourism is expected to generate Us$ billion by 2018.
As reported by MAFOI management consultants around 40 International hotel chains are expected to invest in the Indian Hotel market by This includes Hilton, Accor, Mariott

16. Foreign Tourist Arrivals (Nos.)
Foreign Tourist Arrivals (FTAs) to India till December 2008 and comparative figures of 2006 and 2007
Foreign Tourist Arrivals (Nos)
Month
Foreign Tourist Arrivals (Nos.)
Percentage Change
2006
2007
2008
2007/2006
2008/2007
January
459489
535631
591337
16.6%
10.4%
February
439090
501692
561393
14.3%
11.9%
March
391009
472494
541478
20.8%
14.6%
April
309208
350550
384203
13.4%
9.6%
May
255008
277017
300840
8.6%
June
278370
310364
340159
11.5%
July
337332
399866
429456
18.5%
7.4%
August
304387
358446
391423
17.8%
9.2%
September
297891
301892
330874
1.3%
October
391399
444564
452566
13.6%
1.8%
November
442413
532428
521247
20.3%
-2.1%
December
541571
596560
521990
10.2%
-12.5%
Total
5.6%

17. HOTEL
SEGMENTATION

18. Star Rated Hotels
5 Star Deluxe
5 Star
Heritage Hotels
4 Star
3 Star
Budget Hotels
2 Star
1 Star
Facility Hotels
Business Hotels
Air Port Hotels
Resorts
Honey moon Hotels
Motels
Unclassified
Guest Houses
Lodge

19. CHALLENGES TO FACE

20. Shortage of skilled employees Retaining quality workforce
Challenges for the Industry
Shortage of Rooms
Manual Back end
Lack of adequate infrastructure

21. Thank you