5 STAR HOTELS & RESORT (48 LUXURY ROOMS)
[EIRI/EDPR/4610] J.C.: 2827XL
The hotel industry is an important component of tourism industry. Its foreign exchange earning capacity is also high. The irritation of economic reforms in this country gave a boost to the hotel industry. The demand for rooms in hotels by foreign businessmen has increased sharply. Understand, most Indian hotel chains are pushing ahead with their expansion plans. Perhaps the government should extend a few more sops to the total industry so that its capacity expands to keep up with the rising demand. The hotel industry deserves a few more sops because it is capital intensive, having a long gestation period, and the new tourist destination and circuits also take a long time. The hotel industry is linked to the progress of tourism industry. There is bright future of this project.
Hospitality Industry in India Market
The hospitality industry in India has been scoring a moderate growth number in the past few years and has great potential to score an even greater number in the future. The nation which is rich in culture and diversity has been attracting a large number of tourists from all over the globe. India has also been recognized as a destination for spiritual tourism for international and domestic tourists. India is showing continuous growth in position moving from 65th in 2013 to 34th position in 2019 in the World Economic Forum's travel and tourism competitiveness index.
The hospitality and tourism industry has been witnessing a healthy growth number and accounted for 7.5% of the GDP. India is a part of the top 100 clubs on Ease of Doing Business (EoDB) and ranks 1st in the greenfield FDI ranking globally and to strengthen the cruise tourism sector, the Government of India (GoI) has selected Chennai, Goa, Kochi, Mangalore, and Mumbai ports to develop them as cruise tourism hubs. These terminals will have facilities like hospitality, retail, shopping, and restaurants.
Less than three million foreign tourists visited India in 2020, a dip of around 75 per cent as compared to the previous year, due to travel restrictions imposed to control the coronavirus pandemic. "To incentivize stakeholders in the tourism industry, the guidelines for the scheme of Market Development Assistance (MDA) for providing financial support to stakeholders for the promotion of domestic tourism have been modified to enhance the scope and reach of the scheme, to provide maximum benefits to the stakeholders. In addition, promotional activities have been incorporated including online promotions and the extent of financial assistance permissible has been enhanced.
India’s hospitality sector is being driven by the increase in the number of hotel projects. India's Hospitality Industry ended in the current year with occupancy in the 59-61 percent range, up 15-17 percentage points (pp) from the previous year. However, average rates (ARR) recovered fully in the current year, being 37-39 percent higher than the previous year's levels. As a result, RevPAR in the current year increased by 89-91 percent over the previous year.
COST ESTIMATION
Plant Capacity 48 Luxury Rooms
Land & Building (4 Acres) Rs. 19.00 Cr
Plant & Machinery Rs. 10.65 Cr
Working Capital for 3 Months Rs. 5.70 Cr
Total Capital Investment Rs. 37.93 Cr
Rate of Return 23%
Break Even Point 58%
CONTENTS
INTRODUCTION
HOSPITALITY INDUSTRY IN INDIA MARKET
GOVERNMENT INITIATIVES TO ATTRACT MORE TOURISM AND RISE IN TOURISM IS DRIVING THE MARKET
HOSPITALITY INDUSTRY IN INDIA INDUSTRY OVERVIEW
FACILITIES AND SERVICE REQUIRED FOR 5 START HOTEL CLASSIFICATIONS:
GENERAL FACILITIES FOR 5 STAR HOTELS:
GUEST ROOM FACILITIES FOR 5 STAR HOTEL
REQUIRED BATHROOM FACILITIES FOR 5 STAR HOTEL
PUBLIC AREA FACILITIES FOR 5 STAR HOTEL
ROOM AND OTHER FACILITIES FOR THE DIFFERENTLY ABLED GUEST
FOOD AND BEVERAGE FACILITIES FOR 5 STAR CLASSIFICATION
REQUIRED KITCHEN FACILITIES FOR 5 STAR CLASSIFICATIONS
REQUIRED STAFF QUALIFICATIONS, SKILLS AND STAFF WELFARE FOR 5 STAR CLASSIFICATION
GUEST FACILITIES FOR 5 STAR CLASSIFICATIONS
SAFETY AND SECURITY FACILITIES FOR 5 STAR CLASSIFICATION
OTHER FACILITIES AND REQUIREMENTS
CATEGORIZATION OF HOTELS IN INDIA
HERITAGE HOTELS
LUXURY HOTELS
BUDGET HOTELS
RESORTS
IMPORTANT HOTEL GROUPS IN INDIA
MARKET POSITION
INDIA GDP FORECAST
KEY DEMOGRAPHIC TRENDS
KEY TRENDS IN TRAVEL AND TOURISM IN INDIA
HOTEL INDUSTRY SUPPLY SCENARIO
CITY WISE HOTEL SECTOR SUPPLY OVERVIEW
ASSET PERFORMANCE THROUGH THE CYCLE
INCREASING REVPAR ON NEW HOTELS
INDIAN HOTEL SEGMENTATION
MARKET PERFORMANCE OF INDIAN HOTELS
PERFORMANCE OF SELECT GEOGRAPHICAL MARKETS IN INDIA
MARKET WISE OCCUPANCY AND ARR
INDIA HOTEL MARKET PERFORMANCE BY SEGMENTS
UPSCALE
UPPER UPSCALE
SUMMARY OF PERFORMANCE OF DIFFERENT SEGMENTS IN THE HOTEL SECTOR
COMPARISON OF OPERATING COSTS OF HOTELS ACROSS SEGMENTS
THE AVERAGE DEVELOPMENT COST PER KEY ACROSS DIFFERENT HOTEL SEGMENTS IS REPRODUCED BELOW:
BARRIERS TO ENTRY
COMPETITIVE LANDSCAPE
LEADING LISTED HOTEL OWNERSHIP COMPANIES WITH MORE THAN 1,000 OWNED KEYS, LISTED IN ORDER OF OWNED KEYS (AS ON JUNE 30, 2019)
AVERAGE KEYS ADDED ANNUALLY* (AS ON JUNE 30, 2019)
OWNED HOTELS BY LOCATION (AS ON JUNE 30, 2019)
KEY REGULATIONS AND POLICIES IN INDIA
FOOD RELATED LEGISLATIONS
THE FOOD SAFETY AND STANDARDS ACT, 2006 (“FSS ACT”)
ENVIRONMENTAL LEGISLATIONS
OTHER APPLICABLE LAW
STATE LAWS
MUNICIPALITY LAWS
SHOPS AND ESTABLISHMENTS LEGISLATIONS IN VARIOUS STATES
AIRPORTS AUTHORITY OF INDIA ACT, 1994, AS AMENDED (“AAI ACT”)
EXCISE LAWS
INTELLECTUAL PROPERTY LAWS
FOREIGN INVESTMENT REGULATIONS
LABOUR LAW LEGISLATIONS
MACROECONOMIC OVERVIEW OF INDIA
INDIA GDP FORECAST
KEY CHARACTERISTICS OF INDIA’S HOSPITALITY INDUSTRY
INDUSTRY SIZE – CHAIN AFFILIATED HOTELS
ALL-INDIA CHAIN-AFFILIATED INVENTORY AS AT SEPTEMBER 2021 IS ESTIMATED AT 157K ROOMS. INVENTORY BUILD-UP AND SEGMENTAL COMPOSITION OF SUPPLY, ARE REFLECTED IN TABLE BELOW:
TOP 10 CHAINS – NUMBER OF HOTELS
ROOMS SUPPLY - BY MARKETS
CHAIN COVERAGE OF STATE CAPITALS
CHAIN COVERAGE – STATE CAPITALS
THE LEISURE SECTOR
LEISURE SUPPLY – TOP 5 CHAINS
INTERNATIONAL PRESENCE
MAJOR DOMESTIC CHAINS - INTERNATIONAL PRESENCE AS AT SEP 21
OPERATING STRUCTURES
TOP 10 CHAINS – OPERATING STRUCTURES (BASED ON HOTELS SIGNED AT DATE)
FUTURE SUPPLY
SUPPLY (INVENTORY IN ‘000S)
PROJECTED SUPPLY GROWTH IS REFLECTED IN THE CHART BELOW:
EXPECTED SUPPLY – ALL INDIA, ALL SEGMENTS (INVENTORY IN 000S)
DEMAND
FUTURE DEMAND
DEMAND RECOVERY/GROWTH ESTIMATES – RELATIVE TO FY19 DEMAND
SUPPLY AND DEMAND CAGR
OVERVIEW OF SOME KEY IMPACT FACTORS
KEY DEMAND DRIVERS
DEMAND FOR HOTELS ARISES FOR VARIOUS PURPOSES, PRINCIPALLY:
MARKET PERFORMANCE ANALYSIS
ALL INDIA AND KEY MARKETS
QUARTERLY REVENUES – SELECT LISTED HOTEL COMPANIES
CHART 12 – MONTHLY OCCUPANCY AND ADR – JAN-19 TO JUL-21
PRINCIPLES OF PROJECT LAYOUT
PLANT LOCATION FACTORS
PRIMARY FACTORS
1. RAW-MATERIAL SUPPLY:
2. MARKETS:
3. POWER AND FUEL SUPPLY:
4. WATER SUPPLY:
5. CLIMATE:
SPECIFIC FACTORS
6. TRANSPORTATION:
A. AVAILABILITY OF VARIOUS SERVICES AND PROJECTED RATES
7. WASTE DISPOSAL:
8. LABOR:
9. REGULATORY LAWS:
10. TAXES:
11. SITE CHARACTERISTICS:
12. COMMUNITY FACTORS:
13. VULNERABILITY TO WARTIME ATTACK:
14. FLOOD AND FIRE CONTROL:
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
1. DEPRECIATION:
2. FIXED ASSETS:
3. WORKING CAPITAL:
4. BREAK-EVEN POINT:
5. OTHER FIXED EXPENSES:
6. MARGIN MONEY:
7. TERM LOANS:
8. TOTAL LOAD:
9. LAND AREA/MAN POWER RATIO:
UTILITIES
POWER
WORKING
TOTAL MANPOWER AND PAYROLL
UTILITIES
PROJECT LAYOUT
LIST OF PLANT AND EQUIPMENT SUPPLIERS/MANUFACTURERS
AIR CONDITIONING & REFRIGERATION UNITS
CONSULTANT
PROJECT LOCATION:
ABOUT DISTRICT (MAHABALESHWAR)
ARTHER SEAT
ECHO POINT
VENNA LAKE
FALKLAND POINT
LINGMALA WATER FALL
BOMBAY POINT
KSHETRA MABALESHWAR
IN INDIA, BELOW ARE THE TOP TEN LUXURY HOTELS.
LIST OF DOCUMENTS REQUIRED TO GET FOR LICENSES
OTHER LICENSES REQUIRED FOR THE SETUP:
SWOL ANALYSIS
STRENGTHS
OPPORTUNITIES
WEAKNESS
LIMITATIONS
PPROACH FOR PLANNING
POWER REQUIREMENT:
WATER REQUIREMENT AND CONSUMPTIONS PROPOSED PROJECT:-
WATER CALCULATION AND WATER BALANCE
CHARACTRISTICS OF TREATED WATER ARE AS FOLLOW:
SEWERAGE SYSTEMS:
TOTAL SEWAGE PRODUCED –
SEWAGE QUANTITY, TREATMENT, REUSE & DISPOSAL:
SOLID WASTE GENERATION:
ENERGY CONSERVATION MEASURES:
ENERGY CONSERVATION MEASURES & MANAGEMENT PLAN:
FOLLOWING MEASURES HAVE BEEN PROPOSED TO REDUCE ENERGY CONSUMPTION FOR ELECTRICAL INSTALLATION:
IMPLEMENTATION SCHEDULE
THE KEY FACTORS THAT WOULD FACILITATE SUCCESSFUL AND TIMELY PROJECT IMPLEMENTATION ARE –
IMPLEMENTATION STRATEGY
IMPLEMENTATION SCHEDULE
PRE-PROJECT ACTIVITIES INCLUDE:
PROJECT IMPLEMENTATION SCHEDULE
PROJECT IMPLEMENTATION WILL TAKE A PERIOD OF 18 MONTHS
FOLLOWING IS THE ENTRY NO. 3 OF SECTION “LAND & BUILDING” IN EXCEL SHEET
FOLLOWING IS THE ENTRY NO. 22 AND 23 OF SECTION “PLANT & MACHINERY” IN EXCEL SHEET
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)
