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    3 Star Hotel (200 Rooms)

    3 Star Hotel (200 Rooms)
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    3 STAR HOTEL (200 ROOMS)

    [EIRI/EDPR/4675] J.C.: 2892XL

    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. 

    On the other side, the consistently growing middle class, rising levels of disposable income, and increasing interest among millennials to travel in their home country are a few major reasons that are making the domestic travel industry a profitable one. To attract the millennials ventures like Airbnb, Oyo rooms have changed hospitality scenarios on a global level and are offering price-sensitive stays in most of the prime locations with flexible check-in and check-out options to attract the increasing number of travelers.

    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.


    COST ESTIMATION

    Plant Capacity            200 Rooms  

    Land & Building (4 Acres)    Rs. 57.45 Cr    

    Plant & Machinery                    Rs. 31.96 Cr 

    Working Capital for 2 Months    Rs. 6.54 Cr 

    Total Capital Investment          Rs. 121.27 Cr 

    Rate of Return                          16%

    Break Even Point                      62%


    CONTENTS

    INTRODUCTION

    THE GLOBAL HOTEL MARKET

    HOSPITALITY INDUSTRY IN INDIA MARKET

    GOVERNMENT INITIATIVES TO ATTRACT MORE TOURISM AND RISE IN TOURISM IS DRIVING THE MARKET

    FACILITIES AND SERVICE REQUIRED FOR 3 START HOTEL CLASSIFICATION

    GENERAL FACILITIES FOR 3 STAR HOTEL:

    GUEST ROOM FACILITIES FOR 3 STAR HOTEL

    REQUIRED BATHROOM FACILITIES FOR 3 STAR HOTEL

    PUBLIC AREA FACILITIES FOR 3 STAR HOTEL

    ROOM AND OTHER FACILITIES FOR THE DIFFERENTLY ABLED GUEST

    FOOD AND BEVERAGE FACILITIES FOR 3 STAR CLASSIFICATION

    REQUIRED KITCHEN FACILITIES FOR 3 STAR CLASSIFICATION

    REQUIRED STAFF QUALIFICATIONS, SKILLS AND STAFF WELFARE FOR 3 STAR CLASSIFICATIONS

    GUEST FACILITIES FOR 3 STAR CLASSIFICATION

    SAFETY AND SECURITY FACILITIES FOR 3 STAR CLASSIFICATION

    CATEGORISATION OF HOTELS IN INDIA

    THE BASIC DIVISION IN INDIA ACCORDING TO THE LOCATION IS AS FOLLOWS:

    HERITAGE HOTELS

    LUXURY HOTELS

    BUDGET HOTELS

    RESORTS

    IMPORTANT HOTEL GROUPS IN INDIA

    LATEST DEVELOPMENTS

    MARKET POSITION

    OVERVIEW OF THE INDIAN ECONOMY

    INDIA GDP FORECAST

    KEY DEMOGRAPHIC TRENDS

    KEY TRENDS IN TRAVEL AND TOURISM IN INDIA

    THE TABLE BELOW HIGHLIGHTS THE INDIAN TRAVELLERS SPENDING AS PER CATEGORY OF LODGING FOR CY 2015, CY 2018 AND PROJECTED SPENDING IN CY 2021:

    THE TABLE BELOW PROVIDES THE GROWTH IN COUNTRIES ELIGIBLE FOR E-VISA SINCE THE YEAR 2014

    KEY DRIVERS OF DEMAND AND SUPPLY INFLUENCING THE HOTEL INDUSTRY

    HOTEL INDUSTRY SUPPLY SCENARIO

    CITY WISE HOTEL SECTOR SUPPLY OVERVIEW

    ORGANIZED HOTEL SUPPLY BY MAJOR CITY (2018)

    HOTEL INVENTORY SUPPLY BY KEY CITIES (‘000S)

    ASSET PERFORMANCE THROUGH THE CYCLE

    INCREASING REVPAR ON NEW HOTELS

    INDIAN HOTEL SEGMENTATION

    AS ON DECEMBER 31, 2018 THE EXISTING SUPPLY SEGMENTATION OF ORGANIZED HOTELS IS AS

    THE FOLLOWING TABLE SETS FORTH THE COMPOSITION OF ORGANIZED SUPPLY (EXCLUDING AGGREGATORS) OF HOTEL ROOMS (000S) IN INDIA:

    PRESENCE OF BRANDED HOTELS IN INDIA:

    UPCOMING BRANDED HOTELS IN INDIA:

    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

    REVPAR CAGR OF VARIOUS SEGMENTS IN HOTEL SECTOR FOR THE PERIOD 2013-18

    COMPARISON OF OPERATING COSTS OF HOTELS ACROSS SEGMENTS

    THE AVERAGE DEVELOPMENT COST PER KEY ACROSS DIFFERENT HOTEL SEGMENTS IS REPRODUCED BELOW:

    BARRIERS TO ENTRY

    DEVELOPMENT OF HOTELS IN INDIA FACES SEVERAL CHALLENGES, PRINCIPAL AMONG WHICH ARE:

    COMPETITIVE LANDSCAPE

    TABLE 1: LEADING LISTED HOTEL OWNERSHIP COMPANIES WITH MORE THAN 1,000 OWNED KEYS, LISTED IN ORDER OF OWNED KEYS (AS ON JUNE 30, 2021)

    TABLE 2: AVERAGE KEYS ADDED ANNUALLY* (AS ON JUNE 30, 2021)

    TABLE 3: OWNED HOTELS BY LOCATION (AS ON JUNE 30, 2021)

    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

    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

    FUTURE SUPPLY

    SUPPLY (INVENTORY IN ‘000S)

    PROJECTED SUPPLY GROWTH IS REFLECTED IN THE CHART BELOW: EXPECTED SUPPLY – ALL INDIA, ALL SEGMENTS

    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

    HOTEL BRANDS IN THE SURVEY

    DEVELOPMENT COST PER KEY WITHOUT LAND

    DEVELOPMENT COST PER KEY BY MAJOR COST CATEGORIES

    DEVELOPMENT COST PER SQUARE FOOT AND BUILT-UP AREA ANALYSIS

    CONSTRUCTION TENURE

    INTEREST DURING CONSTRUCTION

    AVERAGE

    PRINCIPLES OF PROJECT LAYOUT

    PRINCIPLES OF PLANT 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:

    ORGANIZATION CHART

    PROJECT LAYOUT

    CONSULTANT

    LIST OF PLANT AND EQUIPMENT SUPPLIERS/MANUFACTURERS

    AIR CONDITIONING & REFRIGERATION UNITS

    LIST OF DOCUMENTS REQUIRED TO GET FOR LICENSES

    OTHER LICENSES REQUIRED FOR THE SETUP:

    SWOL ANALYSIS

    STRENGTHS

    OPPORTUNITIES

    WEAKNESS

    LIMITATIONS

    APPROACH FOR PLANNING

    POWER REQUIREMENT:

    WATER REQUIREMENT AND CONSUMPTIONS PROPOSED PROJECT:-

    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:

    LOCATION OF THE PROJECT

    HOTEL INDUSTRY IN COIMBATORE

    TOP STAR HOTELS IN COIMBATORE

    PROJECT IMPLEMENTATION SCHEDULE

    PROJECT IMPLEMENTATION WILL TAKE A PERIOD OF 18 MONTHS

    LAND & BUILDING

    EQUIPMENTS & MACHINERY


    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)

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