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					                    HOSPITALITY INDUSTRY ANALYSIS
The travel and hospitality industry continues to be the sector, which has largely profited from the
fast growing economy of India. This has largely been due to the 5.2 m tourist arrivals in FY08
(11% growth) over the previous period. In the last five years, growth stood at 17% per annum.
The hotel industry went through a rough patch between FY00 to FY04 owing to factors like the
Asian financial crisis, Afghan war, Middle East unrest, September 11 attacks, SARS and
domestic riots.

India occupies forty-sixth position among the sixty tourist destinations in the world. A
flourishing economy helped boost demand for the industry. To encourage the tourism sector, the
government is planning to propose a conditional 10-year tax holiday for all tourism projects in
the country. Companies will enjoy full tax exemption up to 50% of profits, but will qualify for
tax benefits for the remaining amount only if they re-invest it in tourism projects. The Centre and
States are also working out a PPP (Public-Private-Partnership) model to increase hotel capacity.
Efforts to diversify tourist attractions by offering new products such as wellness tourism, medical
tourism and golf tourism are expected to have a positive effect on both foreign tourist arrivals
and domestic tourism.

The outlook for India's tourism industry is upbeat. Key factors driving the tourism boom include
India's sustained economic growth, strong foreign direct investment inflows, increased air
networks, the availability of cheaper air travel, a strong domestic market and aggressive
marketing campaigns. Challenges relating to inadequate tourism infrastructure still remain, but
are not enough to dampen the bullish outlook for the Indian hotel market.

SIDDHANT HARALALKA                                                                          Page 1
Table 1 Key stats

                                                               Source: World Trade Tourism Council

Encouraged by this optimistic tourism outlook, many developers, investors and international
hotel management companies are jumping onto the India hotel bandwagon. A number of the
Indian real estate players view hotels as a natural extension and synergy to their growth real
estate portfolios. The major cities that are the hub of economic and real estate development in
India are: Bangalore, Chennai, National Capital Region/Delhi (comprising the capital city Delhi
and suburbs of Noida, Gurgaon, Faridabad, Ghaziabad and Greater Noida), Hyderabad, Kolkata,
Mumbai and Pune.

India has become a favoured destination for global investors and multinational corporations ever
since it opened its economy in the early nineties.

SIDDHANT HARALALKA                                                                              Page 2
Tourism market overview

1. Key trends and demand drivers

      India, which ranks after China (PRC) as the world's second-most populous country, has
       experienced a tourism boom in recent years. Bolstered by a multi-faceted tourism product
       that ranges from 27 world heritage sites to religious relics, spa/mountain resorts and
       wildlife parks, India has much to offer leisure travellers. Figure 1 Shows the Customer
       profile that visited the hotels in the year 2008.

                               Customer Profile in FY 2008


                                           37%                Domestic Leisure
                                                              Domestic Business
                                                              International Leisure
                                                              International Business


       Figure 1   Customer profile

       Source: Indiastat

      The growing Indian economy will spur business travel. The strong performance of the
       corporate sector and the growth in the economy has led to an unprecedented surge in
       business travel. GDP grew at a robust 9.4 per cent in 2006-2007 and is expected to grow
       by another 8.5 per cent in 2007-2008. Tourism’s contribution to the GDP is shown in
       Figure 2. Furthermore, the industrial and services sectors have recorded double-digit
       growth rates. These figures will undoubtedly continue to raise the level of business travel
       in the country. In keeping with the current growth rate, India's hospitality industry is
       anticipated to grow at 8 per cent per annum between 2007 and 2016 .

SIDDHANT HARALALKA                                                                         Page 3
                                                                        Figure 2 T&T Contribution

       Source: Indiastat

      The liberalisation of the airline industry will promote increased travel by both
       international and domestic travellers, further fuelling growth in the hotel sector. Open
       skies policies and direct international flights to the US and Europe have increased the
       country's accessibility, raising international traveller flows. In addition, increased
       frequency of existing routes and the introduction of additional routes by low cost carriers
       (LCC) such as Indigo, Spice Air, Jet Lite and Go Air will enhance domestic travel flows.
      Recognising the importance of the tourism industry, the government has made large
       strides in marketing India internationally. Building on the success of the Incredible India
       campaign in previous years, the Ministry of Tourism has launched an integrated
       international media campaign to promote India as 'must-see' year-round destination, with
       a focus on both generic and niche areas. "Chasing the Monsoon" is the new theme for the
       west Asian market.

"The government has also introduced initiatives to spur growth in the hospitality sector. Tax
holidays for two, three and four-star hotels established in specified districts that have UNESCO
World Heritage Sites and convention centres with large seating capacities in the National Capital
Territory of Delhi and in the adjacent urban areas of Faridabad, Gurgaon, Ghaziabad or Gautam
Budh Nagar, have been announced to foster development prior to the Commonwealth Games in
2010. In addition, there are proposals to improve the tourism infrastructure that will lead to
increased travel. These proposals include constructing 33,000 kms of the National Highway in
SIDDHANT HARALALKA                                                                                  Page 4
the Golden Quadrilateral, North-South and East-West Corridor areas, improving identified ports
to facilitate cruise tourism and evaluating public-private partnerships to connect identified
circuits and destinations by rail.

"Medical tourism will also result in additional demand for hotel rooms. This sector has gained
momentum in the past few years, given the cost advantage and emergence of high quality
healthcare services in India where a choice of airlines, hotels, transportation, food and
sightseeing is offered along with medical treatment in the form of packages. The country's
medical tourism industry is thriving, encouraged by the introduction of a medical visa. In
addition, the Indian government has announced plans to promote medical tourism with an
investment of Rs 260 billion for funding relevant infrastructure including affordable hospitals
and budget hotels for patients and their relatives. Due to the lack of a 'single window' clearance
system, foreign investors have faced problems investing in this sector, and the Indian
government is looking at ways to improve the system.

Table 2 Key points

      Key Points

                          Supply is catching pace. Metros will witness an oversupply
         Supply           situation after four to five years.
                          Largely depends on business travellers but tourist traffic is also on
        Demand            the rise. Demand normally spurts in the peak season between
                          November and March.
                          High capital costs, poor infrastructure facilities and scarcity of
  Barriers to entry       land especially in the metros.
                          Limited due to higher competition, especially in the metros.
Bargaining power of

                          Higher in metro cities due to increasing room supply.
Bargaining power of

                          Intense in metro cities, slowly picking up in secondary cities.
     Competition          Competition has picked up due to the entry of foreign hotel

2. International visitor arrivals
SIDDHANT HARALALKA                                                                             Page 5
         India has set a tourism target of 10 million international tourist arrivals by 2010, the year
          of the Commonwealth Games in Delhi.
         Preliminary statistics from the Ministry of Tourism indicate that inbound tourist arrivals
          had already reached a 10-year high of approximately five million in 2007. This represents
          a 13 per cent growth over the previous year and the fourth consecutive year of positive
          growth in inbound foreign travellers. Compared with the 2.4 million international arrivals
          in 2002, the number of foreign visitors to India has increased by an impressive 86 per
         In tandem with the increase in foreign arrivals, foreign exchange earnings soared by 34
          per cent over 2006 values to Rs 480 billion in 2007 shown by figure 3.

Figure 3 Foreign tourists arrivals

          Source: Indiastat

         Leisure travel (96.6 per cent) remains the primary reason for travel to India, followed by
          business (2.8 per cent), according to statistics sourced from Ministry of Tourism. While
          the overall trend is expected to remain unchanged over the next few years, the proportion
          of business travellers could increase with the rise in foreign investments to India.

3. Major international source markets

SIDDHANT HARALALKA                                                                               Page 6
      All major source markets recorded positive growth in 2006, with the UK and the US
       maintaining their positions as India's two largest foreign source markets, according to
       latest available statistics from the Ministry of Tourism.
      Nepal, Sri Lanka, Japan and Malaysia were the major source markets. Notably, the
       number of arrivals from Nepal showed the highest year-on-year increase among top
       Asian markets in 2006.
      While the UK and the US are expected to remain India's two largest foreign source
       markets, arrivals from Asia are expected to rise with the availability of more flights to
      In January 2007 India-based Jet Airways launched direct daily flights from Delhi and
       Kolkata to Bangkok. The same year also saw the airline serving the New Delhi - Toronto
       and Mumbai-Newark route via their European hub, Brussels.
      Reflecting strong travel demand for India, Singapore Airlines now operates six flights a
       week to Bangalore while Japan Airlines started daily flights between Tokyo and New
       Delhi in October 2007 to meet the business demand on that route. Other cities such as
       Kolkata, Hyderabad and Chennai are also served by direct international flights from
       major source markets.

4. Domestic tourism

      India's domestic tourism market is significant and growing. According to the Ministry of
       Tourism, the number of domestic travellers has increased steadily from 140 million in
       1996 to 391 million in 2005 (latest available statistics), a year-on-year increase of seven
       per cent. The growth in domestic tourism is attributable to the increasingly affluent and
       growing population, strong economic indicators, expanded air networks and the
       liberalisation of services.
      Pending the release of official data, this growth is expected to have continued into 2006
       with indicative statistics from the Ministry of Tourism suggesting that it might have
       crossed the 460-million mark.

Hotel market overview

Financial Year '08
SIDDHANT HARALALKA                                                                         Page 7
     India continued to witness cheering trends in the tourism sector in 2007 with 5.2 m
      tourists visiting the country, registering a growth of 11% YoY. The Indian hospitality
      sector continued to be the forerunner of India's economic growth with support from the
      government. In the Budget 2007, five-year tax holidays for new star-category hotels and
      convention halls coming up in the National Capital Region by 2010 were announced. The
      Ministry has sanctioned 225 projects and utilised Rs.4.6 bn for upgradation of
      infrastructure facilities at important tourist destinations. Even public-private partnership
      is being planned to develop infrastructure projects. As a result of the high room rates in
      branded hotels, unregulated, unorganised hotels and guesthouse segments have emerged.
      Even the existing hotel players entered new segments like budget hotel and service
     However, in the beginning of the year, the global crisis, slowdown in corporate earnings
      and rising air fares affected the hotel sector to a certain extent. Occupancy levels at hotels
      catering to business travellers have dropped 5% to 10% since the end of January. With
      the dip in occupancy levels and new supply coming in certain destinations, the room rates
      witnessed a marginal increase, which was much slower than what was witnessed last
      year. Further, with hotel rooms in India being relatively more expensive (last year was
      unusual when tariffs rose by 25%), a slowdown was inevitable. Average room rates
      (ARRs) in the branded hotel category in India have increased 280% in the past three
      years, as per HVS International. Bangalore saw a decline in room rates, while Mumbai
      and Delhi witnessed a 15% to 18% increase as compared to more than 30% hikes
      witnessed in FY07. Going forward, the prices will soften by the end of the year as the
      supplies would start coming in from FY09, which would bring tariffs to a more realistic
     The Planning Commission's High Level Group on services sector has pegged the room
      shortage in the country at 150,000 rooms by 2010, out of which more than 100,000 will
      be in the budget category. Not only the Indian hotel majors, but even international players
      have lined up huge capex plans. Investments of US$ 11 bn over the next 2 years are
      expected to be earmarked for the hotel industry in India. Further, new segments like
      budget hotels, service apartments and management contracts are witnessing increasing

SIDDHANT HARALALKA                                                                           Page 8
Existing supply

      Based on the facilities and services provided, the Ministry of Tourism approves and
       classifies hotels in India into eight categories, namely five-star deluxe, five-star, four-star,
       three-star, two-star, one-star, heritage and classification-awaited hotels.
      As at the end of 2006, India had an estimated 1,169 approved hotels accounting for
       75,787 rooms. The majority of this supply was located in Delhi, Mumbai, Bengaluru,
       Chennai and Hyderabad.
      Historically, the high land prices in many of the key cities have resulted in hotels being
       developed in the upper tier categories, causing a scarcity of supply in the lower
       categories. In its recent budget, the government has provided tax incentives to develop
       one, two and three-star hotels in and around Delhi.

Marketing demand

      Aggressive growth in revenue per available room (RevPAR) has been recorded in the
       three key Indian cities of Delhi/NCR, Mumbai and Bengaluru over the past five financial
       years. In FY2006-2007, the five-star deluxe and five-star hotel segment in Delhi/NCR
       and Mumbai reported growth in average room rates (ARR) of about 40 per cent over the
       previous year, while Bengaluru reported almost 20 per cent ADR growth over the same
       period. In comparison, the occupancy growth has been less aggressive and in certain
       markets such as Bengaluru, occupancies have stagnated and even declined.
      Demand for rooms in India particularly in the key cities (e.g. Delhi/NCR, Mumbai and
       Bengaluru) is exceeding supply. This has fuelled the aggressive growth in room rates and
       prompted the entry of new players. To address the huge demand-supply imbalance,
       efforts will be directed towards building 150,000 hotel rooms in the next four years, in
       addition to the launch of a new 'Bed and Breakfast' scheme to meet the requirements.
      The proposed known additions to supply are expected to be rapidly absorbed as they
       come on line over the next two to three years. After that room rates are expected to adjust
       to more realistic levels. Markets such as Bengaluru - which generates one of the highest
       ARRs in India - are expected to experience a substantial rate correction by the end of the

SIDDHANT HARALALKA                                                                              Page 9
Figure 4 ARR

Additions to supply

Table 3 City Study

Source: Cushman & Wakefield Research

SIDDHANT HARALALKA                     Page 11
      According to research, the six major markets have approximately 28,000 new rooms
       planned by 2011: Bengaluru, Hyderabad and Pune will be most significantly impacted as
       room supply is forecasted to increase almost 250 per cent by 2011; in Delhi/NCR, the
       majority of supply is being developed in Gurgaon and nearby Noida with almost 100 per
       cent rooms expected to be completed by 2011, while Mumbai and Chennai are expected
       to record growth rates of 35 per cent and 55 per cent respectively.
      Chennai has established itself as a preferred destination for the IT/ITeS (Information
       Technology/Information Technology enabled services) industry. The major brands
       expected to enter into the market in 2009 such as Hilton, Hyatt and JW Marriott will raise
       the standard of accommodation. Hyderabad has very few rooms compared with Delhi and
       Mumbai. Most hotels are now concentrated in the central business district (CBD) and
       upcoming markets of IT/ITeS. The Taj Group's hotels are expected to commence
       operations in 2008.
      It is difficult to get accurate information on future developments in India, including
       hotels. There is an unusually long approved process which delays projects and presents
       significant barriers to entry, particularly for foreigners. Land is very expensive
       everywhere and quality sites for hotels are even harder to locate. In some cases, part of
       this delay is caused by the amalgamation of land which is time-consuming as it entails
       purchasing land from different owners.

The investment market

      In November 2007 DLF announced its equal partnership with Aman Resorts to enter into
       definitive agreements to acquire a controlling interest in the group. The entire transaction,
       when completed, is estimated to be valued at Rs 16 billion, with an assumed debt of
       approximately Rs six billion. In addition to expanding its resort locations, Aman Resorts
       is developing projects in key gateway cities around the world, the first of which is
       scheduled to open in New Delhi in 2008.
      US hospitality major Carlson is taking a 25 per cent stake in a new venture with the
       United Group to introduce the Regent Hospitality brand in India. The joint venture will
       develop a luxury hotel property located at Greater Noida with an estimated investment of
       Rs 4.5 billion.

SIDDHANT HARALALKA                                                                          Page 12
     Domestic mid to economy-segment group Lemon Tree Hotels has announced that Kotak
      Mahindra Realty Fund has invested Rs 320 million in the company. In a related
      development, Kotak Mahindra Realty Fund is investing about Rs 20 million in Red Fox
      Hotels which proposes to open limited-service economy hotels in the price range of Rs
      800-2,000 per night.
     Credit Suisse, one of the world's top investment banks, launched its domestic brokerage
      operations in India earlier this year and recently obtained its Indian merchant banking
      licence. Credit Suisse's real estate fund will acquire 10-15 per cent in a hotel chain in a
      structured deal. This is Credit Suisse's second investment in the real estate sector, the first
      being its acquisition of 75 per cent of a Rs 3 billion Info Tech park and five-star hotel
      project from Pune-based developer, Vascon Engineers.
     The Orchid Group of Hotels is planning to invest over Rs 10 billion to set up seven five-
      star properties in key centres across the country as it mulls an international foray with
      properties in China (PRC) and South Africa. It is also planning to add nearly 2,000 rooms
      at seven locations across the country. The company has entered into management
      contracts for 10 hotels set to open across the country over the next two years.
     Milan-based Domina Hotel Group announced in November 2007 that it would develop
      25 hotels through a joint venture and invest Rs 24 billion. In India, its first hotel is
      already under construction and will be marketed under the new brand Vedic Domina
      Hotels & Resorts. Another four are expected to be built within five years.
     It was announced in December 2007 that Kamat Hotels had bought a 60 per cent stake in
      Concept Hospitality for Rs 127 per share. The key hotels Concept will manage include
      Seasons in Pune, Wall Street in Jaipur and Manor Floatel in Delhi. All of these now fall
      under the management of Kamat Hotels. A total of 650 rooms will be under the listed
      Kamat Hotels entity which currently operates about 600 rooms.
     Kotak India Real Estate Fund has just acquired an approximate 11.11 per cent stake in the
      Mumbai-based The Price Group of Hotels at a cost of Rs 450 million. The group, which
      currently operates four five-star hotels, has announced a Rs 3.50 billion expansion and
      renovation plan which includes setting up five-star hotels in Mumbai, Goa, Bengaluru
      and Hyderabad in addition to a resort hotel and spa in Alibaug. The management
      envisages an overall inventory of 1,150 rooms in key cities by end 2009.

SIDDHANT HARALALKA                                                                           Page 13
     Dubai Ventures, the private equity arm of Dubai Investment Group, has bought a five per
      cent stake in Delhi-based Bharat Hotels for Rs 1.6 billion - the deal values the company
      at Rs 32 billion. The hospitality chain plans to raise up to Rs 10 billion for the expansion
      of six properties under construction and has recently announced an international foray
      through a joint venture with the Dubai-based Nakheel Group - Grand Fort Dubai is set to
      open in 2009. Other hotels that are under construction and scheduled to open over the
      next two years including The Grand Jaipur, The Grand Resort Bekal, The Grand
      Ahmedabad, The Grand Chandigarh and The Grand Noida.
     DB Realty, a domestic real estate fund, is investing about Rs 3.2 billion in a 320-room
      five-star property in Goa. Hyatt International will manage and market the property. The
      project is likely to be completed by the second quarter of 2009.
     Financial services giant Morgan Stanley is close to picking up a 15-20 per cent stake in
      the Institute of Human Health Research Hospitality, owners of the Ananda and Ista
      brands of spas and hotels, for Rs 1.4 to 1.6 billion. Morgan Stanley will have a seat on the
      board of the hospitality company which is in the process of expanding its footprint in
      Delhi, Hyderabad, Pune and Ahmedabad. It plans to have nine properties under the Ista
      brand over the next three years.
     Oberoi Hotels is fast expanding in India, Abu Dhabi, the Maldives, Cambodia and Dubai,
      partly through management contracts and also through investing about Rs five billion of
      its own funds. The Group has hired Kotak Mahindra to help raise Rs four billion via debt
      and new equity.
     India's Parsvnath Developers has signed an agreement with conglomerate ITC's Fortune
      Park Hotels to manage 50 hotels comprising 4,100 rooms for Parsvnath Hotels, a
      subsidiary of Parsvnath. Parsvnath Hotels is expected to invest approximately Rs 25.4
      billion to develop and own 50 hotels in India which will comprised 20 five-star hotels, 20
      four-star hotels and 10 three-star and budget hotels between 2011 and 2013. The hotels
      will fall under the brands of Fortune Select, which are likely to have at least 100 rooms
      each; Fortune Park, which is expected to have 75 or more rooms, and other brands such
      as Fortune Inn and Fortune Faith, which are likely to have at least 50 rooms. Faith, which
      is likely to have at least 50 rooms. Parsvnath plans to eventually develop 75 to 100 hotels

SIDDHANT HARALALKA                                                                        Page 14
      across India, especially in the second and third-tier cities, as well as in other major
     Choice Hotels India (CHI) has announced a Rs 7.6 billion franchise and management
      plan to partner with various investors to develop 20 new hotels with approximately 2,000
      guestrooms in India's major, tier-one and tier-two cities by 2010. CHI is also planning to
      introduce India's first all-suite hotel, Clarion Ludhiana, in Ludhiana, Punjab by the end of
      2008. The 120-suite Clarion Ludhiana Hotel aims to target non-resident Indians (NRIs).
      In addition, CHI has also linked up with Royal Indian Raj International Corporation
      which is expected to invest approximately Rs 160 billion from 2008 to 2012 to
      develop15,000 budget guestrooms across India under CHI's hotel brand such as Clarion,
      Comfort Inn, Quality Inn and Sleep Inn.
     India's real estate fund, Yatra Capital, has entered into a joint venture with Atlas
      Hospitality Company (AHPL), a subsidiary of Ruia Group, to develop a luxury hotel and
      serviced apartments in Pune. Yatra is expected to hold a 20 per cent stake in the Rs 286.4
      billion venture, which also marks its entry into India's hospitality industry. Scheduled to
      be completed in late 2009, the 26,900 square metre project is likely to comprise 319 hotel
      rooms and 96 serviced apartments. The project is expected to cater to business travellers
      in the area.
     Rakeen India Operations Company (Rakindo) has announced the signing of a
      Memorandum of Understanding (MoU) with Lotus Hotel Investment Fund (Lotus) to
      develop business hotels in Asia, particularly in India. According to the MoU, a joint
      venture company will be formed to invest in three-star and four-star hotels in Asia, with
      six major cities in South India being the initial focus.
     Real estate developer, Royal Palms India (RPI), has announced its plans to invest Rs 15.3
      billion in the next three years to develop a 8 million square feet development in suburban
      Goregaon. The development is expected to comprise three-star to five-star hotels, IT
      offices, residences, villas and a retail mall.
     ITC has announced that through its subsidiary, Fortune Park Hotels, plans are underway
      to add 100 hotels in rural India to leverage the growing corporate demand as well as
      reach out to approximately 792 million (72 per cent of the 1.1 billion population) people
      living in the rural areas. Fortune Park Hotels is expected to expand hotels and inns with

SIDDHANT HARALALKA                                                                        Page 15
      as few as 200 rooms each in the smaller towns of India by 2012, adding 3,000 rooms
      under its brand.
     Indian real estate developer DLF will open a Four Seasons Hotels in Gurgaon at a cost of
      Rs 5.9 billion. Part of DLF's ambition to become India's largest hotel group, the 250-
      room hotel will be developed on a 10-acre site at DLF Golf Link and is expected to open
      before the Commonwealth Games in 2010. The developer has also secured links with
      Hilton Hotels to construct over 25,000 hotel rooms on 40 parcels of land in 71 cities in
      the country by 2010. The cities include Delhi, Mumbai, Chennai, Kolkata, Bengaluru,
      Hyderabad, Pune, Chhattisgarh, Amritsar and Ludhiana.

SIDDHANT HARALALKA                                                                    Page 16
     Kolkata, the capital of West Bengal, is the commercial capital of the north-eastern region.
     Most companies have their regional offices in the city which acts as a major demand
     driver for the hospitality sector. Kolkata is also a major commercial and military port,
     being the only city in the region to have an international airport besides having good port
     infrastructure. It is also the headquarters of Indian corporations like ITC Ltd, Birla
     Corporation, RPG Ltd, Peerless Industries, etc. Many global and domestic software
     companies have set foot in the city and the gradually growing IT/ ITeS sector is expected
     to drive the development of the hospitality sector in the city. Constructions of various
     flyovers, up-gradation of the international airport and extension of METRO have been a
     few of the initiatives taken to improve infrastructure and to keep pace with all the
     development activities. Kolkata has also gained significance as a MICE destination with
     large number of conferences held at the city.

SIDDHANT HARALALKA                                                                      Page 17
      Figure 5 Kolkata Map

      Source: Cushman & Wakefield Research
      Hospitality Dynamics
           The existing room inventory consists of 2,300 – 2,500 rooms spread across 23

           Approximately 64% of this room inventory consists of up-scale hotels,

              primarily located along Salt Lake City, Park Street, Jawaharlal Nehru Road
              and AJC Bose Road.
           The remaining existing room inventory is divided into mid-scale and budget

              hotels each constituting approximately 18%.
     Kolkata City Map

SIDDHANT HARALALKA                                                               Page 18
      Figure 6 ARR vs Occupancy

     Source: CRISILAverage Room Rate Vs. Occupancy -

     REPORT
      ARR increased by 25% from INR 5,500 in 2006-07 to INR 6,860 in 2007-08 due to
      increasing demand for room nights in areas like Salt Lake, Rajarhat, Kariadanga,
      Dankuni etc. Similarly the occupancy rate witnessed a marginal increase from 75% in
      2006-07 to 76% in 2007-08.
      Similar to other metros, Kolkata is no exception to the business/ corporate travellers
      being the major occupants (63%) in the hotels under consideration.


SIDDHANT HARALALKA                                                                  Page 19
     Figure 7 Upcoming supply

     Source: CRISIL

     New supply of approximately 2,400 - 2,600 rooms is expected to come up in the city over
     the next three years, spread across 11 new hotel developments. Majority of these rooms
     will be in up-scale category constituting approximately 82% of the total expected room
     supply, with the remaining 18% in the mid-scale category. Additional supply is expected
     to be concentrated along the EM Bypass, Salt Lake Sector V and New Town.

SIDDHANT HARALALKA                                                                    Page 20

siddhant haralalka siddhant haralalka manager