Indian Hotel Industry Survey 2003-2004

The Worlds News Leader
Table of Contents
Foreword from the President, FHRAI... ...... 1
Message from HVS International...... ...... 5
Introduction & Key Highlights of the Survey..... ...... 6
Trends & Opportunities in the Indian Hotel Industry...... ..... 12
1. Indian Hotel Industry - by Star Category ....... 20
2. Indian Hotel Industry - by Hotel Size & Chain Affiliated vs. Independent ....... 30
3. Indian Hotel Industry - Seven Major Cities...... ....... 39
4. Indian Hotel Industry - Twelve Other Cities. .. ........ 50
Hotel Analysis Worksheet. ..... 61
HVS International ... .... 62
CNN....... ..... 63
FOREWORD
The Federation of Hotel & Restaurant Associations of India is pleased to present the seventh
annual edition of the Indian Hotel Industry Survey 2003-2004 in cooperation with HVS
International and our sponsor CNN. We started this research project in 1998 with operational
and financial figures of the Indian hotel industry based on the responses received from our
members for the financial year 1997-98. We are happy to say that this project has been sustained
by us for the last seven years and we hope to continue with it in the future.
We are grateful for the cooperation extended by a large number of FHRAI hotel members who
have supplied detailed information for this survey report. The figures in this report are, therefore,
based on authentic data from hotels across the country and give a true picture of the performance
and trends in the Indian hotel industry in the year 2003-04. The document covers a number of
areas in terms of facilities, manpower, occupancies, marketing trends and operational
performance, integrating all aspects of the hotel industry. We are aware that a large number of
hotel professionals, investors, bankers, consultants, researchers, government officers in tourism
departments, media persons and others value this document for reference and for research
purposes. Professionals based abroad also use this document for a study of the Indian hotel
industry. Most of all, it provides reliable data for feasibility studies and investment decisions to
those interested in setting up new hotel projects in various cities in India.
As always, we have included an analysis of seven major cities from where we have received
detailed information on a number of hotels in different star categories. In addition, we have
included information on twelve other cities where information was available with us for some
hotels, though not in sufficient number for all the star categories. We would like to include
information on additional cities, provided we get sufficient number of responses from our
member hotels through the Hotel Fact Sheet (HFS) sent to them every year in April. We also
urge upon them to try and send us their full financial / operational data as per the HFS, as
many members are not including full data on these parameters. The result is that while we
have basic data for 1,109 members (out of about 1,777 active hotel members at the relevant
time), we have the financial data only for 484 hotels. We will continue to make efforts to persuade
more of our hotel members to participate in this research project. We again assure you that all
the data is used only for averages and no data on individual hotels are released by HVS
International or by FHRAI to anyone under any circumstances.
We continue to strive for improvements in the content and presentation of the annual edition
of the Indian Hotel Industry Survey. We will be happy to receive any comments and suggestions
from the users of this report. We are thankful to HVS International for their continued support
for this project for the past seven years. Our sincere thanks also to the management of CNN,
who has sponsored the current edition.
M. P. Purushothaman
President, FHRAI
HVS International Page 1 FHRAI

CNN, the worlds news leader, is pleased to be associated with the 2003-2004 FHRAI - HVS
survey on the Indian hotel industry. The annual survey, in its seventh year, is regarded as
India's most comprehensive hotel industry report on operational statistics, and it is only natural
for the world's trusted news network, CNN, to partner the collaborative effort of FHRAI and
HVS International.
In today's environment, where the need to know is of prime importance, travelers are particularly
concerned with being cut-off, even temporarily from their customary sources of news. That is
why so many frequent travelers choose to watch CNN over any other cable and satellite news
channel.
The CNN Hotel Partnership Program was successfully launched in the early 1990s, and since
then, over 5000 hotels across the globe enjoy the benefits of the Partnership Programme. The
objective of the programme, then as it is now, is to enable CNN partner hotels to reach similar
target demographics in a most cost-effective manner. The comprehensive, strategic marketing
programme boasts of high multimedia exposure, and is every hotelier's solution to targeting
international travelers.
According to the PAX full year results covering fieldwork conducted between July 2003 and
June 2004 (conducted by Synovate), CNN is the clear leader among international news and
business channels in Asia Pacific for the eighth consecutive year. The survey also proves that
CNN is consistently the most effective news and business channel in reaching the top
management group and business decision makers, attracting 88% more top management than
the next most targeted channel. In the broader PAX demographics groups, CNN reaches at
least 80% more viewers than any other news channel.
Therefore, by enrolling in the programme, hotels can:
● Reach the region's influential frequent travellers, business decision makers and more ...
● Promote the brand to over 250 million affluent television households, 650,000 hotel guest
rooms regionally and millions of Internet users worldwide
● Maximize the value of the brand by partnering with one of the leading global brands -
CNN
These benefits are exclusive to CNN Partner Hotels and the customised programme gives
participating hotels a leading edge in today's rapidly changing global economy at a fraction of
the cost of normal marketing programmes. To learn more about the programme, please fill in
the enclosed form, and fax the form to us. Our Sales Executive will be in touch with you.
FHRAI Page 2 HVS International

ON CNN:
CNN International is the world's leading 24-hour global news network. CNN International
can be seen in more than 175 million television households in 200 countries and territories
through a network of 38 satellites. Since September 1997, CNN International has been
regionalised into five separately schedules channels: CNN International Europe/Middle East/
Africa, CNN International Asia Pacific, CNN International South Asia, CNN International Latin
America and CNN International USA. In 2003, CNNj, a channel created specifically for audiences
in Japan, launched in partnership with Japan Cable Television (JCTV), and partial programming
of which has Japanese translation.
CNN - THE CHANNEL OF CHOICE

THE HPP BENEFITS
The CNN Hotel Partnership Programme allows your hotel to partner with CNN and benefit
from the value-added multi-media promotional benefits. Should you wish to know more about
the programme, please fill the form overleaf, and fax the form to us. Our Sales Executive will be
delighted to get in touch with you.
Promoting Your Hotel Online
CNN.com/travel is a leading-edge consumer travel site that features and prioritizes CNN Partner
Hotels. The site offers the end user full "real-time" booking ability of CNN Partner Hotels,
generating exposure and increased business for participating properties.
CNN On-Air Promotions
An International TV promotion, featuring partner hotels and resorts on CNN. With CNN's
On-air Hotel Promotions your hotels gains invaluable, high impact exposure on CNN. You
can list your hotel name, location and country of each hotel.
* CNN On-air Hotel Promotions are available to all Gold CNN Partner Hotel Groups and Gold CNN Partner individual hotels only.
Discounted Advertising Online
As a CNN Partner Hotel, we can offer your property discounted advertising on all of the
CNN.com website, one of the most visited high-traffic websites in the world.
Discounted Advertising and subscription rates to CNN Traveller Magazine]
CNN Traveller is a bi-monthly magazine designed for the discerning International business
and leisure traveller. CNN Partner Hotels receive a discount on subscriptions and can place
these magazines in lobbies and hotel rooms as an extra guest amenity.
Affiliated Consumer Publications
As part of the TimeWarner group, CNN is able to offer Hotel Partners preferential rates on
other media properties within the group*. Particularly appropriate for hotels attracting a
business and up-scale clientele are TIME, the world's leading newsmagazine; FORTUNE, the
dynamic international business title known for its coverage of leading-edge companies and
industries.
*Rates offered are subject to existing and agreed upon terms and conditions

Fax to: (New Delhi) +91-11 2647 5206, CNN Hotel Sales
Should you like to know about the programme, please complete the form and fax to the number
given above:
✓ Yes please send me more information on the CNN Partnership Programme
(Please tick one)
We currently offer CNN to our hotel guests
We currently do not offer CNN to our hotel guests
Name of Hotel: ___________________________________________________________________
Group Affiliation (if any): __________________________________________________________
Address: _________________________________________________________________________
________________________________________________________________________________
City for Listing:___________________________________________________________________
Telephone: County Code:__________ Area Code:__________ Number: ___________________
Facsimile: County Code:_________ Area Code:________ Number: ______________________
Reservation E-Mail: _______________________________________________________________
Website: _________________________________________________________________________
Total Number of Rooms: __________________(including suites __________________________
NB: Terms and conditions apply
For more information on CNN Hotel Partnership Programme, please email to

chand.parvez@turner.com or contact:
Mr Chand Parvez,
Turner International India Pvt. Ltd.,
S-2 Level Block F,
International Trade Tower,
Nehru Place, New Delhi 110 019.
Tel: +91 11 51699114
Fax: +91 11 2647 5206

HVS International is an association of integrated companies providing a wide range of services
to hotel owners, lenders and operators. In 2005, HVS International celebrates 25 years of
operations. We continue to endeavour to fulfil the growing demand for reliable and well-
documented hotel market studies and feasibility reports. Today, our firm provides the hospitality
industry a full range of consulting services, including valuations, market and feasibility studies,
executive search, hotel acquisitions, strategic analyses, development support, environmental
consulting (ECOTEL), operator search & selection, operational and management strategy
development, timeshare consulting, marketing communications, and technology strategies.
Our company has offices in 21 cities across the globe.
HVS International has worked with over 12,000 hotels in more than 65 countries across the
globe, involving many hotel projects in south Asia, including 26 cities in south Asia. With more
than 250 professionals worldwide, we are able to offer global services that are locally delivered.
We have been in India since 1997 and have now completed over 90 consulting assignments in
the south Asian region including various cities in Pakistan, Bangladesh and Sri Lanka.
HVS International's New Delhi office has been active on the advisory front for hotel acquisitions
and exclusive sales mandate of hotel assets across India. It has also extended its services to
operator/investor search and negotiating management contracts, convention services consulting
and consulting for mixed-use real estate development. Another fact of note is that the New
Delhi office is responsible for all ECOTEL certifications globally.
The Executive Search division in New Delhi commenced operations in May 2001. The division
caters mainly to the hospitality and services market: our core competencies include retained
executive search, compensation design, and employee assessment. The Association of Executive
Search Consultants (AESC) governs our practice and our objective is to set up new benchmarks
within the recruitment process in the hotel sector in this part of the world. Recently, HVS
extended its executive search activities to Hong Kong and London. We will be opening an
office in Dubai in early 2005.
The Indian Hotel Industry Survey 2003-2004 brings together the industry's key statistics in one
easy reference volume. The publication continues to emphasise the scale and importance of
the hospitality, tourism and leisure industry in the Indian economy, by providing readers key
information about this vast and growing industry. We are truly grateful to all those who have
kindly contributed their hotel's results and we look forward to further increased participation
from hotels in the years to come. As always, we welcome any suggestions for improvement.
For further clarification on this report or on HVS International's services, please contact us at:
HVS International, C-67 Anand Niketan, New Delhi 110 021, India
Tel: (91) (11) 2410 1005 Fax: (91) (11) 2410 1066 email: lsabharwal@hvsinternational.com
To learn about HVS' worldwide operations, please visit www.hvsinternational.com
Manav Thadani Lokesh Sabharwal Chandrima Budakoti

Managing Director Consulting & Valuation Analyst Research Analyst

Introduction & Key Highlights of the Survey
Introduction to the FHRAI Indian Hotel Industry Survey

Statistics are presented by star category, by size (according to number of rooms) and by 'chain
affiliated' and 'independent' hotels. Also, separate operating indicators are included for the
following 19 cities:
Agra Chennai Indore Nagpur Thiruvananthapuram
Ahmedabad Cochin Jaipur New Delhi Udaipur
Bhopal Goa Kolkata Pune Vadodara
Bangalore Hyderabad Mumbai Shimla
To ensure confidentiality and to provide a meaningful representation, data for each star category
and city has been presented only in cases where the sample consisted of at least four hotels. In
addition, All India trends for the past five years are also presented.
As in the previous years, a unique feature of this report is that it presents the number of
participating hotels for each area of analysis - room profile, F&B facilities, employee information,
market segmentation, occupancy, revenue and expense information, and so forth. This allows
the reader to assess the validity of the results, based on the number of participants. 'ID' indicates
insufficient data received.
To enable better comparability of data, we have presented the financial statements up to net
income, before any deduction of depreciation and interest, which are too hotel/owner specific
to render their comparison to be meaningful.
All amounts presented in this report have been rounded up the nearest whole number and are
in Indian rupees (Rs) for fiscal year 2003-04 (April-March). In the financial statements, Rupee
amounts are shown as amounts per available room (PAR) and per occupied room (POR) in
order to eliminate differences in the size of hotels surveyed. Market mixes, ratios of various
sales and appropriate departmental expenses have also been presented. In addition, we have
provided highlights throughout the document to reflect certain key aspects of our findings.
Market data has been presented as an average of the respective segments and as a percentage.
Financial data has been presented according to the most common measures of industry
performance: as a percentage of revenue, and as amounts PAR and POR.
The amounts and ratios presented should not be considered a standard for any type of property,
region, city, star category or price category, but only as a guideline for comparison with the
operating results of a specific category. Readers of this report must also keep in mind that large

differences from one year to the next for a particular item may be partly on account of a different
mix of survey participants (thus affecting the average figure), rather than an actual year-to-
year change. This is relevant for some of the unusual figures in the city trends also.
As in the past two years, we have included a Hotel Analysis Worksheet at the end of the report,
for hoteliers to analyse their financial data and compare with that of their competitors, which
will help them in budgeting and in developing their strategies.
Highlights of the Indian Hotel Industry Survey 2003-04
This seventh edition of the Indian Hotel Industry Survey presents a study of 1,109 hotels (60,773
rooms) across various cities in India, compared to 1,037 hotels (54,142 rooms) last year. Mumbai
had the largest number of survey participants (91 in all categories), followed by Pune (32 in all
categories), Kolkata (30 in all categories), New Delhi (28 in all categories) and Bangalore (24 in
all categories).
It is heartening to note the increased response to the survey from the previous year in terms of
respondents and categories of respondents. Significantly, Vadodara and Nagpur have been
presented in detail for the first time. The increased participation of larger hotels in the survey
of 2003-04 (more than 150 rooms), most of which have brand or chain affiliation, has resulted in
an overall increase in average rates reported and highlight stronger market conditions.
As before, in this issue as well, we present two key operating characteristics - occupancy and
average rate - for 30 important hotel markets, and on an 'All India' basis. This is followed by a
listing of the main findings of our survey.
Average Occupancy Average Rate

City 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004
All India 51.7% 55.6% 53.2% 54.8% 59.7% Rs2,123 Rs2,046 Rs2,058 Rs2,004 Rs 2,689
Agra 46.0% 55.4% 42.9% 42.2% 51.0% Rs1,535 Rs1,615 Rs1,269 Rs1,232 Rs 2,201
Ahmedabad 51.9% 57.7% 59.9% 51.3% 57.0% Rs2,227 Rs1,921 Rs1,749 Rs1,740 Rs 2,004
Aurangabad 36.4% 44.8% ID 34.1% 63.0% Rs1,024 Rs1,378 ID Rs1,733 Rs 2,998
Bangalore 57.1% 72.1% 62.8% 72.4% 78.9% Rs1,349 Rs2,570 Rs1,921 Rs2,149 Rs 4,109
Bhopal 51.3% 53.9% ID 62.3% 59.6% Rs1,251 Rs1,288 ID Rs1,145 Rs 1,677
Chennai 58.7% 75.1% 65.0% 63.9% 61.6% Rs2,229 Rs2,118 Rs1,936 Rs2,048 Rs 2,061
Cochin 68.5% 68.2% 58.7% 57.6% 69.0% Rs961 Rs816 Rs1,306 Rs1,089 Rs 1,368
Coimbatore 55.7% 56.4% ID ID 64.5% Rs1,581 Rs1,366 ID ID Rs 1,407
Darjeeling ID 26.3% 28.2% ID 62.6% ID Rs671 Rs1,630 ID Rs 1,902
Goa 49.6% 57.1% 56.1% 60.2% 65.3% Rs2,097 Rs2,174 Rs1,756 Rs1,982 Rs 2,147
Hyderabad 62.1% 71.4% 67.2% 71.0% 72.8% Rs1,553 Rs1,842 Rs1,131 Rs2,049 Rs 2,406
Indore 53.6% 65.1% 77.5% 64.7% 61.4% Rs748 Rs874 Rs850 Rs782 Rs 521
Jaipur 49.2% 52.3% 56.2% 56.9% 62.6% Rs1,526 Rs2,051 Rs1,543 Rs1,289 Rs 1,628
Jodhpur 44.5% 34.7% 32.5% 37.4% 45.9% Rs1,861 Rs2,117 Rs1,290 Rs1,561 Rs 1,226
Kolkata 52.9% 66.7% 61.7% 63.6% 64.6% Rs2,400 Rs2,465 Rs1,417 Rs1,342 Rs 2,520
Kullu-Manali 33.3% 44.4% 39.8% ID 34.5% Rs808 Rs760 Rs1,498 ID Rs 1,964
Mount Abu ID ID 42.1% 38.1% 51.8% ID ID Rs980 Rs922 Rs 1,084
Mumbai 59.5% 66.1% 63.8% 62.6% 66.3% Rs3,872 Rs3,591 Rs2,075 Rs1,822 Rs 3,063
Mussoorie 44.9% 52.9% ID ID 70.0% Rs1,215 Rs1,766 ID ID Rs 2,685
Mysore 55.9% 52.5% ID 51.1% 34.8% Rs1,029 Rs660 ID Rs1,120 Rs 878
New Delhi 60.1% 59.3% 55.9% 58.3% 69.1% Rs4,616 Rs3,911 Rs3,434 Rs2,918 Rs 4,247
Nagpur ID 55.0% 60.0% 57.2% 51.3% ID Rs643 Rs1,113 Rs1,032 Rs985
Pune 58.3% 58.1% 58.0% 59.9% 62.1% Rs1,357 Rs2,036 Rs1,044 Rs1,141 Rs1,820
Shimla 28.4% 48.1% 43.6% 46.7% 45.0% Rs1,578 Rs1,062 Rs1,578 Rs1,022 Rs 2,080
Thiruvananthapuram 41.1% 57.0% 55.4% 60.3% 51.1% Rs1,459 Rs1,153 Rs966 Rs983 Rs 1,302
Udagamandalam (Ooty) ID ID 38.0% ID 48.8% ID ID Rs947 ID Rs 1,609
Udaipur 41.2% 44.0% 44.3% 46.6% 45.7% Rs1,526 Rs3,402 Rs1,924 Rs1,644 Rs2,473
Varanasi 39.3% 46.9% ID ID 52.0% Rs1,576 Rs1,585 ID ID Rs 813
Vadodara ID 58.0% 43.5% 46.4% 62.5% ID Rs1,116 Rs1,039 Rs1,110 Rs458
Visakhapatnam 63.8% 65.6% 56.6% ID 70.1% Rs933 Rs877 Rs1,184 ID Rs 1,293
ID - Insufficient Data
Note: HVS will like to clarify that the increase represented in terms of occupancy percentages and average rates is partly a result of larger hotels participating in the survey.
This increase in rates and overall efficiencies has resulted in certain cities showing much stronger market conditions.

● In 2003-04, Bangalore was the market leader in terms of occupancy, registering occupancy
of 78.9%. Hyderabad achieved the second-highest occupancy at 72.8%. New Delhi had
the highest average room rate (ARR) among the 30 cities, with an ARR of Rs 4,247.
Bangalore was the second highest, registering an ARR of Rs 4,109.
● All India average occupancy was 59.7%, an increase of 4.9% occupancy points above the
previous year's level, or 9.0% in real terms. All India Average Room Rate increased by
34.2% over the previous year.
Key Operating Characteristics
2003-2004
Five-Star All India
COMPOSITION Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others Average
Number of responses: 34 25 42 152 98 45 36 52 484
Average Total Rooms Per Hotel: 235 122 94 57 39 35 35 34 82
Average Occupied Rooms Per Hotel: 56,554 30,128 22,341 11,740 8,294 7,862 5,790 6,443 18,435
Average Occupancy Per Hotel: 68.0% 65.9% 62.5% 56.4% 58.3% 65.1% 46.5% 60.8% 59.7%
Average Rate Per Hotel: Rs 4,447 Rs 2,742 Rs 2,075 Rs 1,292 Rs 792 Rs 503 Rs 2,480 Rs 643 Rs 2,689
Average Revenue Per Available Room (RevPAR): Rs 3,024 Rs1,807 Rs1,297 Rs729 Rs462 Rs327 Rs1,153 Rs391 Rs1,605
Net Income (After Operating & Overhead Expenses, before Depreciation, Interest Payments & Taxes)
- As a Percentage of Revenue 33.5% 29.6% 29.2% 20.3% 16.1% 24.2% 24.9% 21.1% 30.7%
- Per Available Room Rs 662,418 Rs 354,892 Rs 270,052 Rs 109,441 Rs 49,413 Rs 42,701 Rs 209,744 Rs 48,711 Rs 343,622
● Occupancies ranged between 46.5% for heritage hotels to 68.0% for five-star deluxe hotels.
Average rates showed a much greater spread, from Rs 4,447 for five-star deluxe hotels to
Rs 503 for one-star hotels, an increase of Rs 627 and decrease of Rs 34, respectively, from
the previous year.
● The All India average revenue per available room (RevPAR) increased substantially, from
Rs 1,098 in 2002-03 to Rs 1,605 in 2003-04, reflecting an increase of 46.2%.
● Rooms revenue, generally considered to be the most important source of a hotel's overall
profitability, represented 54.2% of total revenue across all hotels (an increase of 3.4%
from 2002-03.) Food & Beverage (F&B) revenue represented 29.6% of total revenue across
all hotels (a decrease from 31.3% last year).
● Rooms revenue was 54.7% of total revenue for five-star deluxe hotels, 57.1% of total
revenue for five-star hotels and 53.1% for four-star hotels.
Breakdown of Revenue - 2003-2004 Departmental Expenses as a Percentage of Revenue -

2003-2004
Food & Beverage
29.6%
60.0 55.9
53.7
47.6
As a Percentage of Revenue
50.0
Banquet &
Conferences 40.0
7.8%
Telephone &Other 30.0
2.3%
17.8
20.0
Minor Operated
3.4%
Rental & Other 10.0 8.1
Income
Rooms 2.7% 0.0
54.2%
Rooms Food & Telephone & Minor Rental & Other
Beverage Other Operated Income
● The All India average of Rooms department expense as a percentage of Rooms revenue
declined from 20.7% in 2002-03 to 17.8% in 2003-04.

● The All India average Food & Beverage department expense as a percentage of Food &
Beverage revenue declined from 58.7% in 2002-03 to 55.9% in 2003-04.
● Minor Operated department expense as a percentage of Minor Operated department
revenue registered a marginal increase from 52.7% in 2002-03 to 53.7% in 2003-04.
● Total departmental expense as a percentage of total departmental revenue reflected a
decline, from 37.4% in 2002-03 to 33.7% in 2003-04. The decline has been witnessed for
the first time since 1999-2000 (35.3%).
● Food and Beverage expense, at 55.9% of total revenue, was the highest departmental
expense. The segment of luxury hotels, which are generally branded, did a far better job
of controlling costs, than other categories of hotels.
● Technology in hotels continues to improve each year and we predict a steady growth in
its use in various areas of hotel operations.
● Of particular interest are the increased trends in utilization of the intranet and e-mail
systems by hotels and usage of CRS and websites as distribution channels. Increased
usage of yield management systems and energy management systems was also noted.
The table below depicts a comparison of the percentage of hotels using each technology,
during the period 1999-2000 to 2003-04.
● Five-star deluxe, five-star and four-star hotels witnessed overall increase in utilization of
yield management systems over the three-year period between 2001-02 and 2003-04.
However, three-star hotels registered the greatest increase: 14%, 16% and 22% in 2001-02,
2002-03 and 2003-04, respectively.

● The maximum increase in utilisation of energy management systems is seen by hotels in
the five-star deluxe category, from 30% in 2001-02 to 50% in 2002-03 and 65% in 2003-04.
This reflected in reduction in energy costs: from Rs 923 POR in 2001-02 to Rs 844 POR in
2002-03 and Rs 758 POR in 2003-04.
● Significantly, increase in use of energy management systems has also been witnessed by
three-star hotels, reflecting the efforts being made by this segment to link energy
conservation with profitability.
● Direct enquiry continues to be the main source of advance reservations at hotels in India
(55.0%), followed by travel agents and tour operators (20.9%). Interestingly, the use of
the online reservation system increased to 3.7% compared to 2.2% in the previous year,
and CRS utilization increased to 5.2% from 4.3%. GDS utilization increased marginally to
1.5% in 2003-04, from 1.4% in the previous year. Also, the use of hotel websites as a source
of advance reservations increased to 4.8% from 4.6%.
● Domestic guests continue to be of importance across all hotels in India, accounting for
75.0% of all guests in 2003-04 (76.9% in 2002-03).
● Domestic business travellers represented the largest percentage of hotel guests (36.9%).
● Percentage of foreign guests increased to 25.0% in 2003-04, compared to 23.1% in 2002-03,

primarily as the percentage of foreign business travelers grew. Of the foreign guests, the UK
provided the largest demand, at 16.0%, followed by USA, at 12.7%, and Germany at 7.6%.
● The percentage of foreign business travellers increased to 9.5% of all hotel guests from
7.4% in the previous year. Foreign business travellers in the five-star deluxe market reflected
an increase from 21.7% in 2002-03 to 27.0% in 2003-04.
● Foreign guests prefer luxury and heritage hotels; however, there was a decrease in foreign
leisure travellers and tour groups in both these segments. The decline was more marked
in the case of heritage hotels: foreign leisure travellers and tour groups comprised 16.4%
and 13.2%, respectively, of the market for heritage hotels in 2003-04, against 22.2% and
18.9% in 2002-03.
● Energy expenses on per occupied room basis increased from Rs 485 in 2002-03 to Rs 523 in
2003-04. The increase was concentrated in the heritage segment, with an increase of Rs 55
per occupied room, from Rs 572 in 2002-03 to Rs 627 in 2003-04.
● Cash sales (including cheques/demand drafts), remain the most popular method of settling
bills in India (accounting for 44.4% of all sales). The dependence on cash sales is declining
slowly: cash sales were 48.4% of all sales in 2002-03. Correspondingly, credit card
transactions increased from 27.7% to 30.4% in 2003-04. In the luxury segment of five-star
deluxe, credit cards remained the most popular method at 46.4%.
● Credit sales (other than credit cards), increased from 22.5% (All India average) in 2002-03
to 24.1% in 2003-04. This increase was primarily in five-star and heritage hotels, perhaps
due to travel agent and company related billings. Interestingly, leisure and group related
business, both domestic and foreign, decreased in both these segments.
● Visa (41.4%) was the most widely used credit card by hotel guests in 2003-04, followed by
Mastercard (36.0%). American Express has the highest collection charges.

Change in Performance Ratios: 2003-04 over 2002-03
Five-Star All India

Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Others Average
Average Rate Per Hotel: 16.4% 0.7% 5.4% 10.8% 2.1% -6.3% 28.5% -4.1% 34.2%
RevPAR 32.5% 16.8% 18.9% 18.6% 5.4% -1.4% 62.1% -3.1% 46.2%
* Some changes may have occurred due to a different mix of hotels participating in our survey
● The table above compares the results of our survey in 2003-04 with the previous year. In
2003-04, RevPAR increased in all categories except one-star. Heritage hotels and five-star
deluxe hotels experienced the highest increase in RevPAR 62.1% and 32.5%, respectively.
● Average occupancy per hotel increased in all hotels, with heritage hotels showing the
greatest increase (9.6%).
● Average room rate increased in all categories along with higher occupancy (except the
one-star and non-classified segments), reflecting the positive demand experienced by the
entire market through the year. The lower average rates in the one-star and non-classified
category may be attributed to a scenario of higher room supply in some cases and
competitive discounting in all cases.
● Luxury hotels monitor environmental issues most closely. Solid waste production is being
monitored by 28.5% of hotels, compared to 23.1% the previous year.
● In 2003-04, as in preceding years, hotels monitored electricity consumption more closely

than other fuels and environment components such as water and air. Hotels monitored
energy consumption (electricity) to the extent of 95.7%. This was followed by energy
consumption (gas) at 85.8% and water consumption at 84.4%.
● In 2003-04, hotels increased the monitoring of chemical usage by housekeeping at 79.1%.

Staff training in environmental issues increased to 48.3% from 44.4% in 2002-03.
● Energy expenses accounted for 10.5% of total revenue as compared to 12.3% last year.
This category of expense (as a percentage of total revenue) continues to be much higher
in India, when compared to other countries (USA: 3.8%).
Environmental Issues - Percentage of Hotels Monitoring Quantitative Performance

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Trends & Opportunities in the Indian Hotel

Industry
Introduction
In this section, we seek to draw attention to some broad industry characteristics and present
certain marketwide trends over the last few years. This being the seventh edition of the Indian
Hotel Industry Survey, we are in a position to analyse survey results for the last seven years
and provide a historical trend for the users of this report.
We have also attempted to provide brief market analyses for 19 cities, under 'City Trends'. The
city analysis reflects HVS International's market perception for each city, as well as our
expectations with regard to its performance in the current year (2004-05).
Indian Hotel Industry - Size and Category
Hotels in India are categorised into two main types: approved and unapproved. The Ministry
of Tourism, Government of India, grants approval to hotels at the project stage and then classifies
them into one of the star categories. This approval status is voluntary; however, only approved
hotels can avail of the various income tax incentives, import licenses and other approvals. The
following table lists the number of FHRAI member hotels in different categories in the last six
years. Nearly all the five-star deluxe, five-star, four-star and three-star hotels in the country are
members of FHRAI, although membership is not so comprehensive in lower star categories.
The majority of hotels and hotel rooms in India are included in the unapproved type, as many
hotels, especially those that are equivalent to lower star category hotels, do not take part in the
Government classification process. Presently, FHRAI has 477 unapproved hotels (with 18,796
rooms) as its members, of a total membership of 1,777 hotels (with 98,515 rooms).
Avg Annual
1999 2000 2001 2002 2003 2004
Rooms Growth
Category Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms Hotels Rooms (1999-2004)
Five-Star Deluxe 41 10,574 57 12,556 65 14,959 68 15,672 68 16,050 74 17,903 11%
Five-Star 59 8,028 73 9,051 72 8,513 72 8,662 72 8,669 71 8,554 1%
Four-Star 77 5,586 92 7,232 99 7,791 100 7,614 102 7,408 104 7,355 6%
Three-Star 256 13,231 379 19,785 402 20,691 413 21,387 409 21,098 414 21,433 10%
Two-Star 208 8,023 244 9,135 263 9,958 234 9,278 226 8,903 221 8,639 1%
One-Star 49 2,472 46 2,253 50 2,428 48 1,696 44 1,520 43 1,480 -10%
Heritage 34 965 66 2,372 73 2,551 71 2,492 67 2,258 69 2,297 19%
Approved (Unclassified) 112 6,009 263 10,560 303 12,318 308 12,515 297 11,921 304 12,058 15%
Un-approved 836 31,486 493 18,350 472 17,757 455 17,925 452 17,895 477 18,796 -10%
Total 1,672 86,374 1,713 91,294 1,799 96,966 1,769 97,241 1,737 95,722 1,777 98,515 3%

Indian Hotel Industry-Revenue and Profitability-Average Per Hotel
● All India average revenue has grown substantially from Rs 5.18 crore during 2002-03 to
Rs 9.15 crore during 2003-04 and is expected to see significant improvement in the next
few years.
● House Profit (Gross Operating Profit after deducting franchise and management fees) as
a percentage of revenue increased from 29.2% in 2002-03 to 34.8% in 2003-04. This is the
second successive year that House Profit has shown upward growth.
● The All India average Net Income (Net Income before depreciation, interest payments
and taxes) also increased, from Rs 1.95 crore (24.9%) in 2002-03 to Rs 2.80 crore (30.7%) in
2003-04, reflecting overall improvement in the industry.
● The number of hotels having a training department increased in all star categories, with
the All India average being 25.8% compared to 19.9% in 2002-03. Five-star deluxe hotels
had the highest percentage of hotels with a training department. There has been an
increase in the number of three-star hotels with a training department: 24.3% in 2003-04
compared to 21.0% in the previous year. This reflects the growing importance being paid
to employee retention and productivity enhancement through training.

● December, followed by November and February, was the busiest month in 2003-04.
Average occupancy was at its highest in December at 67.1%, while November and February
registered average occupancy of 65.9% and 63.2%, respectively. June through August
was the slowest period, with August witnessing the lowest occupancy ( 52.1%).
● While print advertising continues to be the most popular marketing medium used by
hotels across India (93.0%), there has been an increase in the use of hotel websites as
effective marketing media, across all segments of hotels. Direct mail is also the preferred
marketing media for all categories, with an increase in utilisation to 81.4% from 78.8% in
the previous year.
● Use of telemarketing as marketing media has increased, particularly in the three-star

segment. Although the utilisation of loyalty card programmes has increased from 27.9%
to 31.0%, there is decline in its usage by five-star deluxe and five-star hotels, possibly due
to saturation in the market, with hotels targeting the same customer profile.
● Interestingly, radio advertisement and television advertisements have grown in use as

marketing media during 2003-04. Five-star deluxe, five-star and four-star hotels used this
mode of marketing the most, particularly for F&B promotions and weekend or holiday
packages.

Trends in Key Operating Statistics
FHRAI
1999-00 2000-01 2001-02 2002-03 2003-04 1999-00 2000-01 2001-02 2002-03 2003-04 1999-00 2000-01 2001-02 2002-03 2003-04
All India All India All India All India All India All India All India All India All India All India All India All India All India All India All India
Average Average Average Average Average Average Average Average Average Average Average Average Average Average Average
Number of responses: 559 443 424 417 484 559 443 424 417 484 559 443 424 417 484
Average Total Rooms Per Hotel: 63 62 63 66 82 63 62 63 66 82 63 62 63 66 82

Average Occupied Rooms Per Hotel: 11,829 12,659 11,727 13,129 18,435 11,829 12,659 11,727 13,129 18,435 11,829 12,659 11,727 13,129 18,435
Average Occupancy Per Hotel: 51.7% 55.6% 53.2% 54.8% 59.7% 51.7% 55.6% 53.2% 54.8% 59.7% 51.7% 55.6% 53.2% 54.8% 59.7%
Average Rate Per Hotel: Rs2,123 Rs2,046 Rs2,058 Rs2,004 Rs 2,689 Rs2,123 Rs2,046 Rs2,058 Rs2,004 Rs 2,689 Rs2,123 Rs2,046 Rs2,058 Rs2,004 Rs 2,689
Percentage of Revenue Amount Per Available Room Amount Per Occupied Room
REVENUE
Rooms 55.9% 56.4% 53.2% 50.8% 54.2% Rs400,721 Rs416,158 380,561 Rs398,802 Rs 607,328 Rs2,123 Rs2,046 Rs2,058 Rs2,004 Rs 2,689
Food & Beverage 27.8 28.5 30.9 31.3 29.6 199,655 210,327 220,976 245,970 332,217 1,058 1,034 1,195 1,236 1,471
Banquet & Conferences 6.0 6.5 6.8 8.9 7.8 42,851 48,016 48,324 69,850 87,662 227 236 261 351 388
Telephone & Other 4.2 3.6 3.1 2.5 2.3 29,982 26,622 22,063 19,844 25,202 159 131 119 100 112
Minor Operated* 3.1 2.2 2.7 2.8 3.4 21,957 16,341 19,336 21,901 38,420 116 80 105 110 170
Rental & Other Income 3.1 2.8 3.4 3.6 2.7 22,178 20,538 24,338 28,581 30,172 117 101 132 144 134
Total 100.1 100.0 100.0 100.0 100.0 717,344 738,003 715,599 784,949 1,121,000 3,800 3,629 3,869 3,945 4,965
DEPARTMENTAL EXPENSES
Rooms 17.1 19.4 20.6 20.7 17.8 68,650 80,534 78,234 82,462 108,205 364 396 423 414 479
Food & Beverage 62.4 61.7 62.2 58.7 55.9 151,340 159,268 167,450 185,236 234,771 802 783 905 931 1,040
Page 16
Telephone & Other 57.5 56.8 57.7 50.0 47.6 17,237 15,124 12,732 9,921 12,007 91 74 69 50 53
Minor Operated* 59.1 50.5 51.8 52.7 53.7 12,981 8,256 10,016 11,547 20,624 69 41 54 58 91
Rental & Other Income 12.8 7.3 10.1 7.3 8.1 2,834 1,502 2,466 2,097 2,919 15 7 13 11 14
Total 35.3 35.9 37.9 37.4 33.7 253,041 264,685 270,898 293,662 378,052 1,340 1,302 1,465 1,476 1,674
DEPARTMENTAL INCOME 64.8 64.1 62.1 62.6 66.3 464,303 473,318 444,701 491,286 742,949 2,459 2,328 2,405 2,469 3,291
OPERATING EXPENSES
Administrative & General 9.4 8.9 10.3 8.5 8.4 67,592 65,596 73,323 66,328 94,401 358 323 396 333 418
Management Fee 2.0 2.0 2.4 2.3 2.3 14,541 14,525 16,944 18,302 25,842 77 71 92 92 114
Marketing 2.8 2.8 3.5 3.2 3.6 20,154 20,409 24,718 24,980 40,681 107 100 134 126 180
Franchise Fees 0.4 0.4 0.4 0.5 0.4 2,725 3,301 2,796 4,145 3,874 14 16 15 21 17
Property Operations & Maintenance 7.2 7.1 7.3 6.9 6.2 51,296 52,644 52,179 54,321 69,735 272 259 282 273 309
Energy 10.7 11.3 12.5 12.3 10.5 76,502 83,005 89,228 96,439 118,093 405 408 482 485 523
Total 32.5 32.5 36.2 33.4 31.5 232,809 239,480 259,188 262,117 352,626 1,233 1,178 1,401 1,317 1,562
HOUSE PROFIT 32.3 31.7 25.9 29.2 34.8 231,494 233,839 185,512 229,169 390,323 1,226 1,150 1,003 1,152 1,729
FIXED EXPENSES
Property Taxes 0.9 1.0 1.1 1.1 1.0 6,658 7,584 7,831 8,919 11,068 35 37 42 45 49
Insurance 0.8 0.6 0.7 0.8 0.6 5,874 4,236 4,992 6,131 6,845 31 21 27 31 30
Other Fixed Expenses 1.9 2.1 1.8 1.1 1.6 13,957 15,253 13,104 8,740 17,840 74 75 71 44 79
Rent 0.7 0.8 0.9 1.3 1.0 5,016 5,650 6,482 10,115 10,947 27 28 35 51 48
Total 4.3 4.4 4.5 4.3 4.2 31,505 32,723 32,408 33,905 46,700 167 161 175 170 207
NET INCOME** 28.0% 27.2% 21.4% 24.9% 30.7% Rs199,989 Rs201,116 153,103 Rs195,264 Rs 343,622 Rs1,059 Rs989 Rs828 Rs981 Rs 1,521
* Minor operated departments include: laundry, gift shop, business centre, news stand, sports, health club, garage, parking and so forth
** Net Income is before depreciation, interest payments and taxes
HVS International
City Trends
The year 2003-04 was a period of considerable buoyancy and upswing for the hotel industry in
India. Most cities saw occupancy levels improve over the previous year and, for the first time in
six years, both occupancy and average room rates improved. The following paragraphs detail
our expectations of new supply and performance for 19 important hotel markets, based on
research undertaken and forecasts made by HVS International.
New Delhi:
Occupancy witnessed a growth of 10.3% in 2003-04. Average rate increased after a five-year
decline, registering a growth of 45.5% from the previous year. However, the large growth may
partly be attributed to increases in ARR experienced by survey respondents in the branded
hotels category, and those with a larger rooms base.
The central and state governments are encouraging hotel development in all categories, and
particularly in the mid-market segment, in preparation for the Commonwealth games to be
held in the city in 2010. The National Capital Region is expected to see the development of
approximately 17 hotels in various categories over the next three to four years, with
approximately 11 new hotels to be in Gurgaon. Due to strong demand, we anticipate occupancy
and average rate to grow over the next few years before this new supply comes in. This will be
supported by significant infrastructure development in terms of roads and transportation and
the (proposed) privatisation of the airport. The development of new convention centre facilities
in New Delhi, as and when this takes place, will further boost room night demand.
Mumbai:
Citywide occupancy in Mumbai increased by 3.7%, and average rate registered an increase of
68.1% in 2003-04. This sharp rise in ARR is, as in the case of Delhi, due to the increase in the
average rate of the larger hotels, which formed a higher percentage of the total respondents
this year. Mumbai continues to experience a large surge in demand for hotel rooms, primarily
in north Mumbai; however, south Mumbai has also seen demand growth during 2003-04. We
expect room night demand to strengthen significantly in the next couple of years. Average
rates will also increase, especially in the north Mumbai market.
The long-term outlook for Mumbai is positive: we estimate occupancy to grow in 2004-05 as
demand continues to outpace supply, despite the opening of a new hotel by the ITC group in
Parel, and the Grand Hyatt in the Bandra Kurla vicinity commencing full operations. Hotels in
the luxury segment, such as the Four Seasons brand, are expected to enter the market in 2006.
However, with not much other hotel construction ongoing, the market can hope to see significant
gain. Infrastructure improvements are taking place in terms of road and highway development
and the Mumbai airport is also currently under renovation.
Kolkata:
In 2003-04, Kolkata witnessed 1.0% increase in occupancy over the previous year, despite large
increase in supply in the city. The average rate also increased during the same period. This
increase in average rate was realised by hotels in all segments. We expect that room night
demand in Kolkata will grow, although at a lower rate than other metro cities in the country,
and that average rates will increase and stabilise in the next one year. With no new supply
expected to enter the city in 2004-05, occupancy will witness an increase and average rates will
also rise over the previous year's levels. Occupancy and average rate will benefit from the
rising number of units providing BPO and IT services in Salt Lake. Infrastructure development
in the Rajarhaat area, and an increase in transit business due to the development of north-east
India as a leisure destination, will positively impact the Kolkata hotel market. Hotel performance
in Kolkata will also benefit from the city's increased viability as a conference destination.
Pune:
Occupancy and average rate in Pune registered an increase over the previous year. Citywide
occupancy grew 2.2% in 2003-04 and the average rate increased by 59.5%. In Pune as well, a

larger percentage of the survey participants this year were from the luxury segment, thus
contributing to the sharp rise in average rate. We expect the Pune hotel market to witness
significant upward growth in 2004-05, as IT and BPO companies continue to shift base to Pune
in view of the skilled manpower available, relatively lower cost of corporate office space, and
the city's background as an educational centre.
Chennai:
Chennai witnessed occupancy decline of 2.3%, for the second consecutive year. Average rates
increased marginally by 0.6%. We expect occupancy and average rate to experience growth in
2004-05. This will be supported by improvements at the airport and in the airport's vicinity. We
also believe that certain hotel projects, on which work had been discontinued, will be completed
and new supply will enter the market in the next few months.
Bangalore:
Bangalore's hotel market grew by 6.6% in terms of occupancy and 91.2% in terms of the average
room rate. This high increase may also be due to more luxury hotels responding to the survey.
Bangalore is, according to some industry observers, the best hotel market in Asia at present. It
must, however, be noted that Bangalore's infrastructure has not been able to keep pace with
the rapid growth in the city's population and in arrivals. Infrastructure-related inadequacies
may negatively affect Bangalore's growth as a hotel market. No significant new supply is likely
to be added in the current year. As occupancy levels in the city range above 80% and almost all
weekdays are sold out, we expect significant rise in average rates for all hotels, with no new
supply expected until 2006. We expect this rise to continue, before reducing over the next three-
four years, as at least nine new hotels are to enter the Bangalore market.
Goa:
In Goa, overall occupancy increased by 5.1%. Average rates also registered an increase of 8.3%
over the previous year. The city has seen a 23.8% growth in room supply in 2003-04 in the five-
star and above hotel category. The increase in supply has been absorbed, due to strong growth
in room night demand which, in turn, has benefited from keen efforts by the Ministry of Tourism
and the state government to promote Goa as a destination. At present, no significant hotel
development is being planned for Goa. The opening of the charter sector has and is further
expected to result in positive development for Goa.
Ahmedabad:
Following a decrease in 2002-03, Ahmedabad saw occupancy rise by 5.3% in 2003-04 and average
rates increase by 15.2%. We anticipate the market to further recover in 2004-05, in keeping with
a lessening of communal tensions. Gujarat, despite the negative publicity that it received due
to riots, remains a state where business is doing well. Ahmedabad, being one of the main cities
of business in the state, stands at the forefront.
Cochin:
The overall occupancy in Cochin increased strongly by 11.5% in 2003-04. Average rates registered
an increase of 25.6%, due to a larger number of respondents in the four-star category. The
upward trend in occupancy and average rate was mainly witnessed in the domestic business
traveller segment. We expect occupancy levels and average rates to improve in 2004-05 as Cochin,
an important commercial city in Kerala, will benefit from increased leisure travel to the state.
This is especially in view of the active efforts being made, both by the Kerala government and
the union ministry of tourism, to market Kerela as a destination, particularly for Ayurveda and
for health tourism.
Jaipur:
Occupancy levels increased by 5.7% in 2003-04 and average rates increased by 26.3% over the
previous year. Despite new and increased supply, the market is expected to improve further in
2004-05. The 'Pink City' also attracted the largest number of foreign tour groups among all cities
studied. Moreover, with tourist arrivals into India to grow over the next two to three years,

demand in Jaipur is projected to increase. The state government is giving tourism top priority,
and infrastructure for tourism-related activities is being improved in Rajasthan. IT related activity
and conferences and conventions would also grow, along with the development of Jaipur's
airport into an international airport, thus boosting business-related room night demand.
Hyderabad:
The Hyderabad hotel market continued to show improvement in 2002-03 and 2003-04. In 2003-
04, average city occupancy was 72.9%, a 1.9% growth over the previous year's level. Average
rates grew by 17.4%. We estimate that, with no significant new supply expected in the next few
years, average rates will increase significantly. Hyderabad is also expected to see increased and
sustained growth in 2004-05, particularly due to the IT industry. Interest has been shown in the
city by both large multinational and domestic companies, particularly in this sector.
Nagpur:
Nagpur witnessed a decline in occupancy of 5.9% and a decrease in average rates of 4.6% from
the previous year. This may be due to a different mix of hotels among the respondents. HVS
International has not tracked this market in the past.
Bhopal:
Bhopal witnessed a decline in occupancy by 2.7% and a 46.5% increase in average rate over the
previous year. This increase in average rate is mainly because higher rated heritage hotels have
been included in the survey group for this city.
Thiruvananthapuram:
The city has witnessed a decrease in occupancy of 9.2%, and a growth in average room rates of
32.3%. The decline could also be due to a difference in the mix of responding hotels.
Thiruvananthapuram is expected to benefit as inbound tourism to Kerala increases over the
next couple of years.
Vadodara:
We have not been able to track the trend in this city, as we were unable to get adequate responses
from the hotels in the city.
Udaipur:
Citywide occupancy decreased by 0.9% in 2003-04. Average rate, on the other hand, showed a
steep increase of 50.4%. We expect that, like Jaipur, Udaipur will see an increase in both occupancy
and rates in 2004-05, as overall tourist arrivals in Rajasthan are expected to grow substantially in
the next couple of years and the state government gives strong impetus to tourism growth.
Agra:
The city saw occupancy and average rate grow in 2003-04 after a steady decline in the three
previous years. The occupancy increased by 5.4% and the average rate increased by 74.4%.
Increased response to the survey from five-star deluxe and five-star hotels has resulted in a
strong increase in average rates. The meetings segment, particularly of groups of over 100
participants, grew from 5.3% the previous year to 21.5%, indicating Agra's growth as a conference
destination.
Indore:
For the second year in a row, Indore witnessed a drop in occupancy: this time by 3.3%, as well
as a 33.4% decrease in average rates. HVS is not familiar with the recent trends in the city to
comment upon the decline, which could also be due to a different mix among the responding
hotels as compared to the previous year.
Shimla:
Shimla registered a decline of 1.7% in terms of occupancy levels in 2003-04. Average rates,
however, grew from the previous year. As disposable income across India improves due to the
economy, we can expect leisure markets like Shimla to see improvement in their performance.

New Supply of Hotels
Since 1997, HVS International has maintained its own database of new supply into important
hotel markets in India. The graph below highlights the 95 hotels under active development in
various cities, of which HVS International is currently aware. It is important to note that most
HVS data for new supply represents branded properties. It is also quite likely that a large
number of hotels are in the early stages of planning and/or development. New economy segment
hotels are being promoted by some leading hotel chains in the country, which have not been
accounted for in this survey.
Number of New Hotel Developments
18
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No. of hotels
Source: HVS International Research
We are of the opinion that demand for hotels has risen across nearly all cities, in the current
financial year (April 2004 - March 2005). Leading the growth in demand are Bangalore, Delhi,
Mumbai, Hyderabad, Jaipur, Goa, Pune and Chennai. At present HVS's opinion is that probably
all the cities mentioned above will readily absorb all the rooms under development and there
will be a major shortage of rooms over the next 3-4 years.
What the Future Holds
The current year has been a fantastic year for tourism recovery in the Indian region. We have
enjoyed the best year in terms of tourism arrivals, the economy remains relatively strong and
has among the highest rates of GDP growth in the world. At many forums across the globe
India remains the current flavour of the day.
The year 2003-04 has been a year of consolidation and gains for the hotel industry in India,
both in terms of room night demand and average rates. Taking into account the bullish trend
presently witnessed in the industry, together with an overall positive outlook on the Indian
economy, 2004-05 will be a record year in terms of hotel performance across nearly all cities in
the country. As expected, the Indian hotel market is already generating serious interest from
international operators and hotel developers. HVS International is aware that, at present, certain
international hospitality funds and a few new operators are exploring the Indian markets for
both investment and operating opportunities. Also, according to us the biggest boost to the
hotel industry is going to come from the current on-going process of open sky policy and also
the fact that Indian private airlines will be allowed to fly to various regions across the globe.
This along with improved airports will certainly continue to bolster demand for hotel room
nights.

1. Indian Hotel Industry by Star Category
In this section, we have analysed hotel performance by star classification. An overall total of
1,109 hotels participated in our survey for 2003-04. The hotels have been classified into the
eight star categories available in India (see tables 1-1 to 1-10), and their responses analysed
accordingly. In order to be fair to the approved hotels that are awaiting classification, we have
combined them with their expected star category. "Unapproved" hotels have been put under
the "Others" category.
To provide further interesting comparisons, we have included a column for All India totals
across all star categories. Each section includes the total number of respondents for each
component of the survey, allowing the reader to judge the validity of the data received.
The layout has been standardized in each section to enable consistency throughout the entire
document. All figures pertain to 2003-04, and monetary figures are in Indian Rupees. The US
dollar conversion rate can be taken at 1US$ = Rs46.0. (conversion rate for the period 2003-04)
● Table 1-1: presents a typical facilities analysis including rooms configuration, F&B
outlets, a subdivision of employees into managerial, supervisory and staff positions
and a breakdown of trained and total employees;
● Table 1-2: presents the individual revenue and expense components as a percentage
of revenue;
● Table 1-3: presents financial statements on a PAR (per available room) basis;
● Table 1-4: presents financial statements on a POR (per occupied room) basis;
● Table 1-5: presents market data including market segmentation, guest analysis and
the country of origin of guests;
● Table 1-6: presents a monthly and daily occupancy analysis;
● Table 1-7: presents the sources of reservations of hotel rooms;
● Table 1-8: presents the use of various forms of marketing media;
● Table 1-9: presents an analysis of payment methods and the use of credit cards;
● Table 1-10: presents the technology used and environment-related issues and practices.

TABLE 1-1: Indian Hotel Industry by Star Category - Facilities Analysis and Staffing
Typical Room Profile of an Average Hotel
2003-2004
Five-Star All India
Air-Conditioned Single 50.1 23.4 21.7 4.3 2.5 1.6 2.6 1.5 5.6
Double 154.9 101.7 65.6 32.6 18.4 9.4 18.5 16.0 33.5
Suites 21.2 8.7 6.1 4.8 2.7 1.4 4.9 2.4 4.5
Non-Air-Conditioned Single 0.0 0.0 0.0 2.2 2.0 4.1 0.8 2.3 1.6
Double 1.2 2.8 2.9 6.9 9.7 15.2 6.1 13.2 8.8
Suites 0.0 0.2 0.1 0.6 1.1 1.1 2.6 1.2 0.9
Total Average Rooms 227.4 136.8 96.5 51.3 36.3 32.7 35.5 36.6 54.8
* The number of non air-conditioned rooms in lower star category hotels appears to be higher, partly because many are located in hill stations where air-conditioning is not
provided in hotels.
Average Number of Food & Beverage Outlets Per Hotel

2003-2004
Five-Star All India
Restaurant 3.6 2.3 1.9 1.6 1.3 1.2 1.5 1.4 1.6
Bar 1.4 1.2 1.1 0.8 0.6 0.2 0.8 0.5 0.8
Others 1.1 0.8 0.6 0.8 0.3 0.1 0.4 0.2 0.6
Total 6.1 4.3 3.7 3.2 2.2 1.5 2.7 2.2 2.9
Average Number of Total Employees Per Hotel (Permanent / Contract / Full Time / Part Time)
2003-2004
Five-Star All India
Managers Male 40.3 20.8 12.3 5.3 2.2 1.8 3.0 2.6 6.3
Female 11.8 5.5 2.4 0.6 0.2 0.1 0.3 0.4 1.2
Supervisors Male 49.1 27.4 16.2 7.8 4.0 3.6 4.7 3.7 8.7
Female 11.3 4.8 2.6 1.1 0.3 0.4 0.7 0.9 1.5
Staff Male 275.4 144.0 113.3 59.2 31.9 21.3 37.7 22.7 57.7
Female 30.2 11.6 11.0 4.1 1.8 2.0 2.4 1.6 4.7
Total 418.0 214.1 157.9 78.1 40.5 29.2 48.8 31.8 80.3
Average Number of Employees Per Room 1.9 1.7 1.8 1.6 1.1 0.9 1.5 0.9 1.5
Average Percentage of Trained Employees Per Hotel

2003-2004
Five-Star All India
Managers 93.5% 84.8% 83.9% 90.6% 92.1% 40.0% 87.4% 80.7% 88.5%
Supervisors 86.2 76.2 64.5 76.6 73.5 71.4 88.2 76.3 76.1
Staff 75.0 59.6 59.2 60.8 50.8 71.3 64.0 49.3 61.1
Total Avg. Trained Employees* 84.9 73.5 69.2 76.0 72.1 60.9 79.8 68.7 75.2
Total Avg. Un-Trained Employees 15.1 26.5 30.8 24.0 27.9 39.1 20.2 31.3 24.8
Hotels with Training Department 95.7% 50.6% 40.4% 24.3% 14.5% 1.7% 32.2% 2.5% 25.8%
** Trained employees includes those with a minimum one year certificate course in an educational institute, however some hotels may have included these with short term
(in house) training.

TABLE 1-2: Indian Hotel Industry by Star Category - Financial Report - Percentage of Revenue
2003-2004
Five-Star All India
HVS International
REVENUE
Rooms 54.7% 57.1% 53.1% 48.9% 56.4% 64.6% 49.2% 52.3% 54.2%
Food & Beverage 28.4 28.5 29.6 36.0 34.6 13.7 34.2 35.0 29.6
Banquet & Conferences 7.8 5.8 10.8 8.6 3.5 1.5 8.2 8.3 7.8
Telephone & Other 2.6 2.2 1.7 1.2 1.6 1.6 1.3 1.4 2.3
Minor Operated* 4.2 3.0 1.9 1.9 0.9 1.2 3.9 1.7 3.4
Rental & Other Income 2.2 3.5 2.8 3.4 3.1 17.4 3.3 1.4 2.7
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Rooms 17.2 18.7 13.6 21.3 29.8 22.8 16.8 27.9 17.8
Food & Beverage 54.8 53.7 53.9 61.7 70.2 92.0 54.7 64.6 55.9
Telephone & Other 34.3 58.9 63.5 105.6 141.4 144.8 101.0 135.2 47.6
Page 23
Minor Operated* 43.7 63.1 102.5 73.1 214.9 152.5 86.7 143.6 53.7
Rental & Other Income 6.7 0.1 5.0 23.2 18.5 12.5 4.9 73.7 8.1
Total 32.2 32.2 32.2 41.4 48.2 35.1 36.3 47.8 33.7
DEPARTMENTAL INCOME 67.8 67.8 67.8 58.6 51.8 64.9 63.7 52.2 66.3
OPERATING EXPENSES
Administrative & General 7.8 9.7 9.6 8.8 8.2 6.7 11.8 6.3 8.4
Management Fee 2.5 2.4 1.8 1.7 3.3 1.0 1.7 1.0 2.3
Marketing 4.0 4.0 2.8 2.8 1.6 4.2 3.4 5.4 3.6
Franchise Fees 0.4 0.3 0.4 0.2 0.1 0.0 0.5 0.0 0.4
Property Operations & Maintenance 5.7 6.1 8.0 7.6 4.9 11.5 6.3 5.1 6.2
Energy 9.7 11.7 12.4 13.6 12.6 12.5 12.4 10.9 10.5
Total 29.9 34.1 35.0 34.7 30.6 35.8 36.2 28.6 31.5
HOUSE PROFIT 37.9 33.8 32.8 24.0 21.2 29.1 27.6 23.6 34.8
FIXED EXPENSES
Property Taxes 0.9 1.7 1.0 0.8 1.0 1.5 0.3 0.5 1.0
Insurance 0.7 0.6 0.6 0.4 0.3 0.2 0.5 0.3 0.6
Other Fixed Expenses 1.9 0.5 1.3 1.7 2.8 2.2 0.6 0.2 1.6
Rent 0.9 1.5 0.8 0.8 1.0 1.1 1.2 1.6 1.0
Total 4.4 4.2 3.6 3.7 5.1 4.9 2.6 2.6 4.2
NET INCOME** 33.5% 29.5% 29.2% 20.3% 16.1% 24.2% 24.9% 21.1% 30.7%
FHRAI
TABLE 1-3: Indian Hotel Industry by Star Category - Financial Report - Amount Per Available Room
FHRAI
2003-2004
Five-Star All India

REVENUE
Rooms Rs 1,069,950 Rs 674,631 Rs 491,515 Rs 264,067 Rs 167,760 Rs 114,203 Rs 413,616 Rs 120,818 Rs 607,328
Food & Beverage 555,729 336,457 274,215 194,793 102,922 24,288 287,852 80,927 332,217
Banquet & Conferences 153,255 68,152 100,330 46,422 10,297 2,604 68,544 19,112 87,662
Telephone & Other 51,514 25,639 15,920 6,643 4,775 2,848 10,688 3,160 25,202
Minor Operated* 82,791 34,972 17,547 10,145 2,603 2,110 32,947 3,830 38,420
Rental & Other Income 42,772 41,674 25,623 18,437 9,114 30,711 27,494 3,286 30,172
Total 1,956,010 1,181,530 925,148 540,507 297,470 176,765 841,141 231,134 1,121,000
Rooms 184,183 125,794 66,807 56,149 50,000 26,061 69,642 33,645 108,205
Food & Beverage 388,346 217,116 201,930 148,917 79,476 24,747 194,929 64,604 234,771
Telephone & Other 17,661 15,105 10,106 7,012 6,752 4,125 10,795 4,272 12,007
Page 24
Minor Operated* 36,188 22,053 17,976 7,415 5,593 3,219 28,552 5,501 20,624
Rental & Other Income 2,864 3,981 1,284 4,271 1,689 3,841 1,350 2,423 2,919
Total 629,243 384,049 298,103 223,763 143,509 61,993 305,268 110,445 378,052
DEPARTMENTAL INCOME 1,326,770 801,417 627,045 316,744 153,961 114,772 535,873 120,689 742,949
OPERATING EXPENSES
Administrative & General 151,620 114,093 88,695 47,743 24,403 11,772 99,425 14,597 94,401
Management Fee 49,000 27,973 16,528 9,088 9,807 1,680 13,914 2,216 25,842
Marketing 77,361 47,044 25,545 14,858 4,664 7,359 28,422 12,379 40,681
Franchise Fees 7,284 3,735 4,115 1,096 142 80 4,432 0 3,874
Property Operations & Maintenance 111,112 71,622 74,083 41,258 14,657 20,343 53,338 11,680 69,735
Energy 182,465 132,479 114,528 73,336 35,713 22,117 104,517 25,174 118,093
Total 578,841 396,947 323,495 187,380 89,385 63,350 304,046 66,045 352,626
HOUSE PROFIT 747,926 404,470 303,551 129,364 64,576 51,422 231,827 54,643 390,323
FIXED EXPENSES
Property Taxes 17,078 19,536 9,219 4,504 2,863 2,573 2,669 1,144 11,068
Insurance 13,379 6,615 5,392 2,339 967 416 3,815 743 6,845
Other Fixed Expenses 37,342 5,577 11,590 9,023 8,395 3,860 5,373 350 17,840
Rent 17,709 17,851 7,297 4,057 2,938 1,872 10,226 3,696 10,947
Total 85,508 49,578 33,499 19,923 15,163 8,720 22,082 5,932 46,700
NET INCOME** Rs 662,418 Rs 354,892 Rs 270,052 Rs 109,441 Rs 49,413 Rs 42,701 Rs 209,744 Rs 48,711 Rs 343,622
HVS International
TABLE 1-4: Indian Hotel Industry by Star Category - Financial Report - Amount Per Occupied Room
2003-2004
Five-Star All India
HVS International
REVENUE
Rooms Rs 4,447 Rs2,742 Rs 2,075 Rs 1,292 Rs 792 Rs 503 Rs 2,480 Rs 643 Rs 2,689
Food & Beverage 2,310 1,368 1,158 953 486 107 1,726 431 1,471
Banquet & Conferences 637 277 424 227 49 11 411 102 388
Telephone & Other 214 104 67 33 23 13 64 17 112
Minor Operated* 344 142 74 50 12 9 198 20 170
Rental & Other Income 178 169 108 90 43 135 165 17 134
Total 8,130 4,803 3,907 2,645 1,406 779 5,044 1,230 4,965
Rooms 766 511 282 275 236 115 418 179 479
Food & Beverage 1,614 883 853 729 376 109 1,169 344 1,040
Telephone & Other 73 61 43 34 32 18 65 23 53
Page 25
Minor Operated* 150 90 76 36 26 14 171 29 91
Rental & Other Income 12 10 5 21 8 17 8 13 14
Total 2,615 1,555 1,259 1,095 678 273 1,831 588 1,674
DEPARTMENTAL INCOME 5,515 3,257 2,648 1,550 728 506 3,213 642 3,291
OPERATING EXPENSES
Administrative & General 630 464 375 234 115 52 596 78 418
Management Fee 204 114 70 44 46 7 83 12 114
Marketing 322 191 108 73 22 32 170 66 180
Franchise Fees 30 15 17 5 1 0 27 0 17
Property Operations & Maintenance 462 291 313 202 69 90 320 62 309
Energy 758 538 484 359 169 97 627 134 523
Total 2,406 1,613 1,366 917 422 279 1,823 352 1,562
HOUSE PROFIT 3,109 1,644 1,282 633 305 227 1,390 291 1,729
FIXED EXPENSES
Property Taxes 71 79 39 22 14 11 16 6 49
Insurance 56 27 23 11 5 2 23 4 30
Other Fixed Expenses 155 23 49 44 40 17 32 2 79
Rent 74 73 31 20 14 8 61 20 48
Total 355 202 141 98 72 38 132 32 207
NET INCOME** Rs 2,753 Rs 1,442 Rs 1,140 Rs 535 Rs 233 Rs 188 Rs 1,257 Rs 259 Rs 1,521
FHRAI
TABLE 1-5: Indian Hotel Industry by Star Category - Market Data
Market Segmentation
2003-2004
Five-Star All India
COMPOSITION Deluxe Five-Star Four-Star Three-Star Two-Star One-Star Heritage Other Average
Airline Crew 7.1% 4.1% 1.2% 0.8% 0.6% 0.3% 1.1% 0.2% 1.3%
Business Traveller - Domestic 21.8 26.8 39.0 38.7 44.6 41.9 16.7 39.9 36.9
Business Traveller - Foreign 27.0 18.6 11.4 6.0 8.5 3.7 11.7 7.5 9.5
Complimentary Rooms 1.8 1.4 1.8 2.2 1.6 1.2 1.8 1.6 1.8
Domestic - Tourists/Leisure FIT 8.4 13.8 14.8 19.0 21.5 29.3 22.0 25.3 19.6
Foreign - Tourists/Leisure FIT 10.4 5.6 10.5 8.3 5.5 6.1 16.4 6.4 8.2
Meeting Participants (Less than 100 Attendees) 3.9 5.8 3.8 3.9 2.7 3.1 5.1 1.9 3.6
Meeting Participants (Over 100 Attendees) 9.3 6.7 5.8 5.7 3.6 2.4 3.2 5.4 5.3
Tour Groups - Domestic 1.6 3.8 4.3 7.5 6.9 6.8 6.0 6.3 6.2
Tour Groups - Foreign 5.1 6.3 4.2 5.1 2.5 2.2 13.2 1.8 4.6
Other 3.5 7.2 3.4 2.8 2.0 3.2 2.8 3.8 3.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Guest Analysis
2003-2004
Five-Star All India
Domestic Guests 48.8% 62.8% 69.4% 79.0% 83.1% 84.4% 46.8% 80.4% 75.0%
Foreign Guests 51.2 37.2 30.6 21.0 16.9 15.6 53.2 19.6 25.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Business Guests 65.2% 61.8% 67.2% 58.3% 60.6% 49.3% 28.9% 51.7% 58.0%
Total Leisure Guests 34.8 38.2 32.8 41.7 39.4 50.7 71.1 48.3 41.9
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Domestic Guests (Days) 2.0 1.9 2.5 2.4 2.5 2.7 6.4 2.2 2.6
Avg. Stay of Foreign Guests (Days) 3.1 3.7 4.3 3.1 2.3 3.1 3.3 2.9 3.2
Avg. Stay of Business Guests (Days) 2.0 1.9 2.2 2.1 1.8 2.6 1.6 2.3 2.0
Avg. Stay of Leisure Guests (Days) 3.1 2.2 2.4 2.2 2.8 2.5 1.8 2.0 2.4
Percentage of Repeat Guests 46.7% 37.0% 38.7% 54.3% 38.2% 59.3% 20.0% 45.0% 45.5%
Country of Origin of Guests

2003-2004
Five-Star All India
ASEAN* 4.0% 4.0% 5.5% 7.4% 8.9% 7.5% 1.2% 4.8% 6.1%
Australia 2.7 2.5 2.8 2.8 3.9 2.4 5.7 4.2 3.3
Canada 2.3 2.3 5.0 3.0 4.1 3.1 2.6 4.3 3.4
Caribbean 1.0 0.2 0.3 0.2 0.6 0.4 0.0 0.1 0.3
China 1.5 1.7 1.9 2.3 1.7 1.3 1.2 1.2 1.8
France 6.8 6.0 6.2 6.2 5.0 3.5 18.1 8.8 7.1
Germany 6.6 6.9 7.7 7.8 6.2 5.1 11.7 8.4 7.6
Japan 6.5 3.9 7.3 5.1 3.6 6.2 3.2 4.5 5.0
Middle East 3.8 4.1 1.6 2.7 6.6 2.8 0.9 3.9 3.4
Other European 8.5 9.8 5.8 8.3 11.1 5.5 13.5 8.6 8.9
Russia 2.9 7.0 5.4 3.1 2.4 2.7 1.9 2.8 3.4
SAARC** 4.0 4.6 8.4 8.5 9.6 27.9 1.0 7.5 8.0
South Africa 0.8 1.7 2.2 2.0 1.2 2.2 0.6 3.2 1.8
UK 17.9 16.7 16.1 16.6 12.4 15.0 20.4 14.2 16.0
USA 17.6 12.0 10.4 14.0 11.3 7.0 12.0 11.4 12.7
Other 13.3 16.7 13.5 10.1 11.5 7.5 6.0 12.2 11.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
* ASEAN: Association of South East Asian Nations
** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

TABLE 1-6: Indian Hotel Industry by Star Category - Monthly & Daily Occupancy
Average Monthly Occupancy

2003-2004
Five-Star All India
January 74.5% 68.0% 67.6% 61.7% 62.5% 65.5% 51.4% 55.1% 63.0%
February 79.9 71.2 66.7 61.4 60.5 64.0 56.2 55.2 63.2
March 71.4 61.9 58.3 55.0 56.5 55.3 48.3 48.7 56.5
April 57.3 56.3 54.5 54.1 57.5 57.6 42.3 50.5 54.5
May 53.4 53.1 53.2 57.0 60.2 75.6 39.0 55.4 57.0
June 56.5 51.9 50.9 54.7 58.3 59.5 35.2 53.2 54.1
July 56.7 51.5 51.6 54.4 54.7 57.0 26.9 49.4 52.4
August 57.7 53.5 52.8 50.2 55.3 58.6 36.1 49.6 52.1
September 72.4 55.8 69.5 51.5 55.7 60.7 34.9 50.6 55.9
October 65.8 59.6 57.4 56.5 59.4 63.2 50.8 56.8 58.3
November 78.4 67.0 67.5 66.3 63.7 68.9 57.2 59.0 65.9
December 73.6 69.6 72.1 66.0 67.2 71.4 53.8 61.6 67.1
Average Daily Occupancy

2003-2004
Five-Star All India
Monday 64.0% 59.8% 58.3% 52.1% 54.8% 57.2% 35.2% 51.7% 54.4%
Tuesday 64.7 62.3 59.5 54.9 55.9 56.0 35.9 52.3 55.9
Wednesday 68.5 62.6 61.2 57.4 56.9 57.4 39.7 52.5 57.6
Thursday 65.4 62.7 62.8 58.2 59.0 59.7 39.1 55.5 58.8
Friday 64.3 60.0 62.0 58.9 58.1 57.1 47.9 53.9 58.5
Saturday 61.0 61.0 59.3 52.4 52.6 58.2 52.4 53.8 55.0
Sunday 60.7 54.6 55.0 45.2 48.6 54.8 44.4 50.5 49.9
TABLE 1-7: Indian Hotel Industry by Star Category - Sources of Reservations

Source of Advance Reservations
2003-2004
Five-Star All India
Chain CRS (Central Reservation System) 18.9% 13.4% 7.5% 3.1% 2.2% 1.6% 8.0% 1.6% 5.2%
Direct Enquiry/ Hotel Representative 40.8 47.3 54.4 55.6 61.0 69.9 27.9 63.3 55.0
Global Distribution System (GDS) 6.0 1.9 0.7 1.9 0.6 0.8 0.7 0.1 1.5
Hotel/Chain Web Site 4.8 3.9 3.0 6.0 5.0 1.8 8.8 2.7 4.8
Travel Agent & Tour Operator 13.4 22.2 23.8 20.8 16.4 14.0 45.2 21.4 20.9
Other online reservation systems 8.7 5.8 4.3 3.5 2.8 1.4 3.3 2.0 3.7
Other websites 2.9 0.5 1.5 1.6 2.0 0.9 2.8 1.6 1.7
Others 4.6 5.0 4.9 7.5 10.1 9.7 3.3 7.3 7.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

TABLE 1-5: Indian Hotel Industry by Star Category - Market Data
Market Segmentation
2003-2004
Five-Star All India
Airline Crew 7.1% 4.1% 1.2% 0.8% 0.6% 0.3% 1.1% 0.2% 1.3%
Business Traveller - Domestic 21.8 26.8 39.0 38.7 44.6 41.9 16.7 39.9 36.9
Business Traveller - Foreign 27.0 18.6 11.4 6.0 8.5 3.7 11.7 7.5 9.5
Complimentary Rooms 1.8 1.4 1.8 2.2 1.6 1.2 1.8 1.6 1.8
Domestic - Tourists/Leisure FIT 8.4 13.8 14.8 19.0 21.5 29.3 22.0 25.3 19.6
Foreign - Tourists/Leisure FIT 10.4 5.6 10.5 8.3 5.5 6.1 16.4 6.4 8.2
Meeting Participants (Less than 100 Attendees) 3.9 5.8 3.8 3.9 2.7 3.1 5.1 1.9 3.6
Meeting Participants (Over 100 Attendees) 9.3 6.7 5.8 5.7 3.6 2.4 3.2 5.4 5.3
Tour Groups - Domestic 1.6 3.8 4.3 7.5 6.9 6.8 6.0 6.3 6.2
Tour Groups - Foreign 5.1 6.3 4.2 5.1 2.5 2.2 13.2 1.8 4.6
Other 3.5 7.2 3.4 2.8 2.0 3.2 2.8 3.8 3.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Guest Analysis
2003-2004
Five-Star All India
Domestic Guests 48.8% 62.8% 69.4% 79.0% 83.1% 84.4% 46.8% 80.4% 75.0%
Foreign Guests 51.2 37.2 30.6 21.0 16.9 15.6 53.2 19.6 25.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Business Guests 65.2% 61.8% 67.2% 58.3% 60.6% 49.3% 28.9% 51.7% 58.0%
Total Leisure Guests 34.8 38.2 32.8 41.7 39.4 50.7 71.1 48.3 41.9
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Domestic Guests (Days) 2.0 1.9 2.5 2.4 2.5 2.7 6.4 2.2 2.6
Avg. Stay of Foreign Guests (Days) 3.1 3.7 4.3 3.1 2.3 3.1 3.3 2.9 3.2
Avg. Stay of Business Guests (Days) 2.0 1.9 2.2 2.1 1.8 2.6 1.6 2.3 2.0
Avg. Stay of Leisure Guests (Days) 3.1 2.2 2.4 2.2 2.8 2.5 1.8 2.0 2.4
Percentage of Repeat Guests 46.7% 37.0% 38.7% 54.3% 38.2% 59.3% 20.0% 45.0% 45.5%

2003-2004
Five-Star All India
ASEAN* 4.0% 4.0% 5.5% 7.4% 8.9% 7.5% 1.2% 4.8% 6.1%
Australia 2.7 2.5 2.8 2.8 3.9 2.4 5.7 4.2 3.3
Canada 2.3 2.3 5.0 3.0 4.1 3.1 2.6 4.3 3.4
Caribbean 1.0 0.2 0.3 0.2 0.6 0.4 0.0 0.1 0.3
China 1.5 1.7 1.9 2.3 1.7 1.3 1.2 1.2 1.8
France 6.8 6.0 6.2 6.2 5.0 3.5 18.1 8.8 7.1
Germany 6.6 6.9 7.7 7.8 6.2 5.1 11.7 8.4 7.6
Japan 6.5 3.9 7.3 5.1 3.6 6.2 3.2 4.5 5.0
Middle East 3.8 4.1 1.6 2.7 6.6 2.8 0.9 3.9 3.4
Other European 8.5 9.8 5.8 8.3 11.1 5.5 13.5 8.6 8.9
Russia 2.9 7.0 5.4 3.1 2.4 2.7 1.9 2.8 3.4
SAARC** 4.0 4.6 8.4 8.5 9.6 27.9 1.0 7.5 8.0
South Africa 0.8 1.7 2.2 2.0 1.2 2.2 0.6 3.2 1.8
UK 17.9 16.7 16.1 16.6 12.4 15.0 20.4 14.2 16.0
USA 17.6 12.0 10.4 14.0 11.3 7.0 12.0 11.4 12.7
Other 13.3 16.7 13.5 10.1 11.5 7.5 6.0 12.2 11.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

TABLE 1-6: Indian Hotel Industry by Star Category - Monthly & Daily Occupancy

2003-2004
Five-Star All India
January 74.5% 68.0% 67.6% 61.7% 62.5% 65.5% 51.4% 55.1% 63.0%
February 79.9 71.2 66.7 61.4 60.5 64.0 56.2 55.2 63.2
March 71.4 61.9 58.3 55.0 56.5 55.3 48.3 48.7 56.5
April 57.3 56.3 54.5 54.1 57.5 57.6 42.3 50.5 54.5
May 53.4 53.1 53.2 57.0 60.2 75.6 39.0 55.4 57.0
June 56.5 51.9 50.9 54.7 58.3 59.5 35.2 53.2 54.1
July 56.7 51.5 51.6 54.4 54.7 57.0 26.9 49.4 52.4
August 57.7 53.5 52.8 50.2 55.3 58.6 36.1 49.6 52.1
September 72.4 55.8 69.5 51.5 55.7 60.7 34.9 50.6 55.9
October 65.8 59.6 57.4 56.5 59.4 63.2 50.8 56.8 58.3
November 78.4 67.0 67.5 66.3 63.7 68.9 57.2 59.0 65.9
December 73.6 69.6 72.1 66.0 67.2 71.4 53.8 61.6 67.1

2003-2004
Five-Star All India
Monday 64.0% 59.8% 58.3% 52.1% 54.8% 57.2% 35.2% 51.7% 54.4%
Tuesday 64.7 62.3 59.5 54.9 55.9 56.0 35.9 52.3 55.9
Wednesday 68.5 62.6 61.2 57.4 56.9 57.4 39.7 52.5 57.6
Thursday 65.4 62.7 62.8 58.2 59.0 59.7 39.1 55.5 58.8
Friday 64.3 60.0 62.0 58.9 58.1 57.1 47.9 53.9 58.5
Saturday 61.0 61.0 59.3 52.4 52.6 58.2 52.4 53.8 55.0
Sunday 60.7 54.6 55.0 45.2 48.6 54.8 44.4 50.5 49.9
TABLE 1-7: Indian Hotel Industry by Star Category - Sources of Reservations

2003-2004
Five-Star All India
Chain CRS (Central Reservation System) 18.9% 13.4% 7.5% 3.1% 2.2% 1.6% 8.0% 1.6% 5.2%
Direct Enquiry/ Hotel Representative 40.8 47.3 54.4 55.6 61.0 69.9 27.9 63.3 55.0
Global Distribution System (GDS) 6.0 1.9 0.7 1.9 0.6 0.8 0.7 0.1 1.5
Hotel/Chain Web Site 4.8 3.9 3.0 6.0 5.0 1.8 8.8 2.7 4.8
Travel Agent & Tour Operator 13.4 22.2 23.8 20.8 16.4 14.0 45.2 21.4 20.9
Other online reservation systems 8.7 5.8 4.3 3.5 2.8 1.4 3.3 2.0 3.7
Other websites 2.9 0.5 1.5 1.6 2.0 0.9 2.8 1.6 1.7
Others 4.6 5.0 4.9 7.5 10.1 9.7 3.3 7.3 7.2
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

2. Indian Hotel Industry - Hotel Size & Chain

Affiliated vs. Independent
In this section, we present key operating and other data for the survey participants according
to number of rooms. The participating hotels have been classified into three categories: 'less
than 50 rooms', 'between 50 and 150 rooms', and 'more than 150 rooms'. We have also made a
comparison between Chain Affiliated and Independent hotels.
● Table 2-1: presents a typical facilities analysis including rooms configuration, F&B
outlets, and a breakup of trained and total employees;
● Table 2-2: presents financial information of chain affiliated hotels vs. independent
hotels;
● Table 2-3: presents financial information of hotels according to hotel size;
● Table 2-4: presents market data including market segmentation, guest analysis and
the country of origin of guests;
● Table 2-5: presents a monthly and daily occupancy analysis;
● Table 2-6: presents the sources of reservations;
● Table 2-7: presents the marketing media most widely used by hotels;
● Table 2-8: presents an analysis of payment methods and the use of credit cards;
● Table 2-9: presents the technology used and environmental issues measured by hotels.

Section Highlights
The majority of responses in our survey for 2003-04 have been from smaller properties, with
664 hotels in the less than 50 rooms category, followed by 349 hotels in the 50 to 150 rooms
category and 96 hotels in the more than 150 rooms segment. The number of survey participants
have increased in both the lower-end (less than 50 rooms) and upper-end (more than 150 rooms)
segments: from 312 in 2002-03 to 349 in 2003-04 in the less than 50 rooms category and from 41
to 96 in the more than 150 rooms category. This increased response is a possible reason for some
of the survey details looking stronger, as more branded and larger hotels participated in the
survey.
Of the total 1,109 useable responses, 146 hotels (87 in 2002-03) have chain affiliations and 963
(950 in 2002-03) are independent hotels.
Some key highlights of the survey are as follows:
● Average occupancy for hotels with more than 150 rooms is 70.0% in 2003-04; for hotels
with 50 to 150 rooms is 62.0%; and for hotels with less than 50 rooms is 55.0%. In all three
categories, average occupancy has increased over the level of the previous year.
● Chain affiliated hotels, which constitute 16.5% of the respondents, have registered
occupancy of 63.0% in 2003-04, and an average room rate of Rs 3,786. In comparison,
independent hotels have had occupancy of 59.0%, with an average rate Rs 2,164. The
difference in average rate is largely because of the fact that most chain hotels are in three-
star and above categories.
● In 2003-04, the average rate for hotels with more than 150 rooms was Rs 3,960; 50 to 150
rooms was Rs 2,053 and less than 50 rooms was Rs 1,102. In 2002-03, the average rate was
Rs 3,259, Rs 1,742 and Rs 939, respectively, for the three categories. Average rate increased
in 2003-04 for all three categories of hotels.
● As indicated by the survey results, the average number of rooms per hotel in the larger
properties is 262, while hotels in the 50 to 150 rooms segment have an average of 78 rooms
per hotel. Hotels in the less than 50 rooms segment have an average of 30 rooms per hotel.
The average number of rooms for the chain affiliated hotels is 152, while independent
hotels have an average of 49 rooms.
● Large hotels enjoy economies of scale and thus are better positioned to earn higher profits.
Net income as a percentage of total revenue was highest for hotels with more than 150
rooms at 34.5%. For hotels with 50 to 150 rooms, it was at 25.0% and for those with less
than 50 rooms, it was at 17.3%. Net income across all categories increased to 30.7% in
2003-04 from 24.9%.
● 46.3% of chain-affiliated hotels utilise an energy management system. Energy costs per
occupied room for these hotels decreased to Rs 667 in 2003-04 from Rs 731 in the previous
year.
● The domestic business traveller comprises 37.4% of the independent hotel market. Foreign
business travellers comprise 22.2% of the chain affiliated hotel market and only 8.3% of
the independent hotel market.
● 50.5% of chain affiliated hotels have an in-house training department, compared to 17.2%
of independent hotels.
● 11.1% of chain affiliated hotels utilise the chain CRS as compared to 4.5% of independent
hotels. 9.5% of chain affiliated hotels have used online reservation systems and websites
as a source of reservations, compared to 4.9% for independent hotels.

TABLE 2-1: Indian Hotel Industry - Hotel Size & Chain Affiliation: Facilities Analysis and
Staffing
Less Than 50 to 150 More Than Chain
COMPOSITION 50 Rooms Rooms 150 Rooms Affiliated Independent
Number of responses: 664 349 96 146 963
Air-Conditioned Single 2.0 5.8 57.6 22.9 4.5

Double 15.7 50.0 181.7 114.5 28.8
Suites 2.5 6.4 21.1 10.3 4.2
Non-Air-Conditioned Single 1.3 2.2 1.1 0.2 1.7

Double 7.6 12.3 0.0 3.4 9.1
Suites 0.8 1.1 0.0 0.5 0.9
Total Average Rooms 30.0 77.7 261.5 151.7 49.1
provided in hotels.

Restaurant 1.4 1.8 3.6 2.5 1.6

Bar 0.6 0.9 1.6 1.2 0.7
Others 0.4 0.8 0.9 1.0 0.5
Total 2.4 3.4 6.0 4.6 2.8
Managers Male 2.5 9.8 38.7 25.5 5.2

Female 0.3 1.5 13.3 7.6 0.8
Supervisors Male 3.5 13.1 55.8 31.5 7.4
Female 0.6 2.0 12.1 6.5 1.2
Staff Male 28.3 84.8 300.9 190.8 49.7
Female 1.6 7.1 34.0 16.7 4.0
Total 36.8 118.2 454.8 278.5 68.4
Average Number of Employees Per Room 1.2 1.5 1.8 1.8 1.4
Average Number of Trained Employees Per Hotel

Managers 88.3% 89.1% 86.7% 91.3% 87.9%
Supervisors 78.1 73.9 78.4 76.8 75.9
Staff 55.9 64.0 64.3 63.4 60.6
Total Average Trained Employees 74.1 75.7 76.5 77.2 74.8

Total Average Un-Trained Employees 25.9 24.3 23.5 22.8 25.2
Hotels with Training Department 20.3% 29.1% 56.8% 50.5% 17.2%

TABLE 2-2: Indian Hotel Industry - Chain Affiliated vs. Independent: Financial Report (2003-2004)
HVS International
Chain Affiliated Independent All India Average 2003-2004

Number of responses: 80 404 484
Average Total Rooms Per Hotel: 156 68 82
Average Occupied Rooms Per Hotel: 37,718 14,809 18,435
Average Occupancy Per Hotel: 63.0% 59.0% 59.7%
Average Rate Per Hotel: Rs 3,786 Rs 2,164 Rs 2,689 Amount Per
Percentage Amount Per Amount Per Percentage Amount Per Amount Per Percentage Amount Per Occupied
COMPOSITION of Revenue Available Room Occupied Room of Revenue Available Room Occupied Room of Revenue Available Room Room
REVENUE
Rooms 55.0% Rs 917,316 Rs 3,786 53.5% Rs 473,295 Rs 2,164 54.2% Rs607,328 Rs 2,689
Food & Beverage 29.2 486,638 2,009 30.0 265,447 1,214 29.6 332,217 1,471
Banquet & Conferences 6.5 107,558 444 8.9 79,057 362 7.8 87,662 388
Telephone & Other 2.9 48,504 200 1.7 15,128 69 2.3 25,202 112
Minor Operated* 4.1 68,691 284 2.9 25,332 116 3.4 38,420 170
Rental & Other Income 2.4 39,600 163 3.0 26,095 119 2.7 30,172 134
Total 100.0 1,668,310 6,886 100.0 884,353 4,045 100.0 1,121,000 4,965
Page 33
Rooms 17.5 160,657 663 18.1 85,525 391 17.8 108,205 479
Food & Beverage 53.8 319,764 1,320 57.5 198,018 906 55.9 234,771 1,040
Telephone & Other 39.8 19,314 80 58.5 8,847 40 47.6 12,007 53
Minor Operated* 41.3 28,333 117 68.3 17,291 79 53.7 20,624 91
Rental & Other Income 0.1 31 0 13.4 3,490 16 8.1 2,919 14
Total 31.7 528,098 2,180 35.4 313,171 1,432 33.7 378,052 1,674
DEPARTMENTAL INCOME 68.4 1,140,210 4,706 64.6 571,182 2,612 66.3 742,949 3,291
OPERATING EXPENSES
Administrative & General 7.7 129,068 533 9.0 79,411 363 8.4 94,401 418
Management Fee 3.4 57,081 236 1.4 12,250 56 2.3 25,842 114
Marketing 3.7 60,943 252 3.6 31,920 146 3.6 40,681 180
Franchise Fees 0.3 5,132 21 0.4 3,331 15 0.4 3,874 17
Property Operations & Maintenance 6.2 102,699 424 6.3 55,350 253 6.2 69,735 309
Energy 9.7 161,480 667 11.2 99,332 454 10.5 118,093 523
Total 31.0 516,403 2,131 31.9 281,592 1,288 31.5 352,626 1,562
HOUSE PROFIT 37.4 623,806 2,575 32.7 289,590 1,324 34.8 390,323 1,729
FIXED EXPENSES
Property Taxes 1.1 18,440 76 0.9 7,856 36 1.0 11,068 49
Insurance 0.6 9,893 41 0.6 5,514 25 0.6 6,845 30
Other Fixed Expenses 1.3 22,359 92 1.8 15,860 73 1.6 17,840 79
Rent 0.9 15,429 64 1.0 8,990 41 1.0 10,947 48
Total 4.0 66,120 273 4.3 38,220 175 4.2 46,700 207
NET INCOME** 33.4% Rs 557,686 Rs 2,301 28.4% Rs 251,370 Rs 1,149 30.7% Rs 343,622 Rs 1,521
FHRAI
TABLE 2-3: Indian Hotel Industry - Hotel Size: Financial Report (2003-2004)
FHRAI
2003-2004 2003-2004 2003-2004

Less Than 50 to 150 More Than All India Less Than 50 to 150 More Than All India Less Than 50 to 150 More Than All India
COMPOSITION 50 Rooms Rooms 150 Rooms Average 50 Rooms Rooms 150 Rooms Average 50 Rooms Rooms 150 Rooms Average
Number of responses: 271 168 45 484 271 168 45 484 271 168 45 484
Average Total Rooms Per Hotel: 32 83 262 82 32 83 262 82 32 83 262 82

Average Occupied Rooms Per Hotel: 6,116 18,616 64,615 18,435 6,116 18,616 64,615 18,435 6,116 18,616 64,615 18,435
Average Occupancy Per Hotel: 55.0% 62.0% 70.0% 59.7% 55.0% 62.0% 70.0% 59.7% 55.0% 62.0% 70.0% 59.7%
Average Rate Per Hotel: Rs 1,102 Rs 2,053 Rs 3,960 Rs 2,689 Rs 1,102 Rs 2,053 Rs 3,960 Rs 2,689 Rs 1,102 Rs 2,053 Rs 3,960 Rs 2,689
Percentage of Revenue Amount Per Available Room Amount Per Occupied Room
REVENUE
Rooms 51.6% 54.6% 54.2% 54.2% Rs 208,604 Rs 459,631 Rs 978,113 Rs 607,328 Rs 1,102 Rs 2,053 Rs 3,960 Rs 2,689
Food & Beverage 35.4 28.0 30.0 29.6 143,158 235,988 540,209 332,217 757 1,054 2,188 1,471
Banquet & Conferences 5.7 10.3 6.6 7.8 23,165 86,522 119,856 87,662 122 387 485 388
Telephone & Other 1.1 1.7 2.7 2.3 4,261 13,882 48,978 25,202 23 62 198 112
Minor Operated* 1.2 2.7 4.1 3.4 4,978 22,711 73,492 38,420 26 101 298 170
Rental & Other Income 5.0 2.8 2.4 2.7 20,228 23,361 43,317 30,172 107 104 175 134
Total 100.0 100.0 100.0 100.0 404,395 842,094 1,803,970 1,121,000 2,138 3,762 7,305 4,965
Page 34
Rooms 25.5 17.1 17.5 17.8 53,210 78,671 170,654 108,205 281 351 691 479
Food & Beverage 65.3 57.8 53.7 55.9 108,590 186,548 354,167 234,771 574 833 1,434 1,040
Telephone & Other 147.4 62.3 38.5 47.6 6,281 8,650 18,856 12,007 33 39 76 53
Minor Operated* 120.1 76.1 43.2 53.7 5,978 17,280 31,748 20,624 32 77 129 91
Rental & Other Income 13.8 12.2 4.3 8.1 2,785 2,841 1,842 2,446 15 13 7 11
Total 43.7 34.9 32.0 33.7 176,845 293,991 577,266 378,052 935 1,313 2,338 1,674
DEPARTMENTAL INCOME 56.3 65.1 68.0 66.3 227,550 548,103 1,226,700 742,949 1,203 2,449 4,968 3,291
OPERATING EXPENSES
Administrative & General 9.4 9.8 7.6 8.4 37,841 82,366 136,495 94,401 200 368 553 418
Management Fee 2.5 2.1 3.1 2.3 8,829 15,664 46,283 25,842 47 70 187 114
Marketing 2.5 3.4 3.9 3.6 9,943 28,803 69,910 40,681 53 129 283 180
Franchise Fees 0.2 0.3 0.4 0.4 759 2,442 7,112 3,874 4 11 29 17
Property Operations & Maintenance 6.9 7.2 5.6 6.2 27,805 60,188 101,381 69,735 147 269 411 309
Energy 13.0 11.8 9.6 10.5 52,460 99,600 172,577 118,093 277 445 699 523
Total 34.4 34.6 30.1 31.5 137,637 289,062 533,757 352,626 728 1,291 2,162 1,562
HOUSE PROFIT 21.9 30.5 37.9 34.8 89,913 259,041 692,942 390,323 475 1,157 2,806 1,729
FIXED EXPENSES
Property Taxes 0.7 1.1 1.0 1.0 2,853 9,141 17,322 11,068 15 41 70 49
HVS International
Insurance 0.8 0.5 0.7 0.6 3,236 3,793 12,268 6,845 17 17 50 30

Other Fixed Expenses 1.7 2.5 1.1 1.6 6,677 20,741 19,687 17,840 35 93 80 79
Rent 1.4 1.5 0.6 1.0 5,729 12,698 11,349 10,947 30 57 46 48
Total 4.6 5.5 3.4 4.2 18,495 46,373 60,626 46,700 98 207 246 207
NET INCOME** 17.3% 25.0% 34.5% 30.7% Rs 71,417 Rs 212,669 Rs 632,316 Rs 343,622 Rs 377 Rs 950 Rs 2,560 Rs 1,521
TABLE 2-4: Indian Hotel Industry - Hotel Size & Chain Affiliation: Market Data
Market Segmentation

Airline Crew 0.6% 1.2% 9.0% 6.6% 0.8%

Business Traveller - Domestic 37.0 38.7 24.9 31.8 37.4
Business Traveller - Foreign 7.2 9.9 27.8 22.2 8.3
Complimentary Rooms 1.9 1.6 2.0 1.2 1.9
Domestic - Tourists/Leisure FIT 23.2 16.0 6.9 8.5 20.6
Foreign - Tourists/Leisure FIT 8.3 8.0 8.0 10.5 8.0
Meeting Participants (Less than 100 Attendees) 3.2 4.1 4.8 2.5 3.7
Meeting Participants (Over 100 Attendees) 4.4 6.4 6.6 4.8 5.3
Tour Groups - Domestic 6.4 6.6 2.0 3.5 6.4
Tour Groups - Foreign 4.5 4.8 3.5 5.6 4.5
Other 3.3 2.7 4.5 2.6 3.2
Total 100.0 100.0 100.0 100.0 100.0
Guest Analysis

Domestic Guests 77.2% 74.6% 46.7% 55.7% 76.1%

Foreign Guests 22.8 25.4 53.3 44.3 23.9
Total 100.0 100.0 100.0 100.0 100.0
Total Business Guests 53.6% 60.5% 72.4% 64.4% 57.2%

Total Leisure Guests 46.4 39.5 27.6 35.6 42.8
Total 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Domestic Guests (Days) 3.0 2.3 2.1 2.5 2.8
Avg. Stay of Foreign Guests (Days) 3.0 3.2 4.1 2.7 3.4
Avg. Stay of Business Guests (Days) 2.0 1.9 2.6 2.1 2.2
Avg. Stay of Leisure Guests (Days) 2.4 2.3 2.7 2.1 1.9
Percentage of Repeat Guests 45.1% 48.7% 40.2% 51.2% 48.8%

ASEAN* 6.7% 5.8% 4.6% 5.7% 6.2%

Australia 3.6 3.0 2.7 2.8 3.3
Canada 4.3 2.3 2.9 2.9 3.5
Caribbean 0.3 0.3 1.0 0.5 0.3
China 1.9 1.8 1.6 1.8 1.8
France 7.8 6.5 5.7 8.1 6.9
Germany 7.9 7.2 7.6 7.9 7.6
Japan 4.8 5.3 4.6 6.7 4.8
Middle East 4.1 2.5 3.3 2.6 3.5
Other European 9.6 8.3 7.2 8.9 8.9
Russia 2.7 4.4 2.9 2.3 3.6
SAARC** 7.1 9.4 6.3 6.4 8.2
South Africa 1.6 2.1 1.1 1.4 1.8
UK 15.7 15.9 18.6 18.0 15.7
USA 11.8 12.7 17.6 14.0 12.5
Other 10.1 12.5 12.3 10.3 11.4
Total 100.0 100.0 100.0 100.0 100.0

TABLE 2-5: Indian Hotel Industry - Hotel Size & Chain Affiliation: Monthly & Daily Occupancy

COMPOSITION
50 Rooms Rooms 150 Rooms Affiliated Independent
January 57.8% 67.6% 76.3% 71.5% 60.0%

February 56.9 68.2 82.8 76.5 61.7
March 52.0 59.2 74.0 66.4 55.3
April 52.4 56.7 58.5 56.6 54.3
May 58.2 55.7 54.8 55.5 57.2
June 54.1 53.6 56.8 56.9 53.8
July 51.3 53.0 56.8 54.1 52.2
August 49.4 55.0 56.6 52.2 52.1
September 50.8 61.2 64.0 57.3 55.7
October 56.3 59.6 66.3 60.2 58.1
November 60.2 71.4 78.7 70.8 65.4
December 62.8 71.0 76.5 69.4 66.8

COMPOSITION
50 Rooms Rooms 150 Rooms Affiliated Independent
Monday 49.9% 57.3% 68.5% 61.2% 53.5%

Tuesday 51.4 58.5 71.3 63.4 54.9
Wednesday 53.1 60.5 72.6 65.6 56.7
Thursday 55.2 61.2 69.9 65.7 57.9
Friday 55.3 61.1 65.5 64.9 57.7
Saturday 51.6 58.3 61.9 59.7 54.4
Sunday 46.1 52.4 62.5 57.5 49.0
TABLE 2-6: Indian Hotel Industry - Hotel Size & Chain Affiliation: Sources of Reservation
Chain CRS (Central Reservation System) 3.7% 6.4% 9.9% 11.1% 4.5%
Direct Enquiry/ Hotel Representative 57.2 53.6 45.7 45.0 56.2
Global Distribution System (GDS) 1.0 1.3 5.8 2.6 1.4
Hotel/Chain Web Site 4.6 5.5 2.9 4.9 4.8
Travel Agent & Tour Operator 21.2 21.0 18.4 21.8 20.8
Other Online Reservation Systems 2.4 4.6 8.0 8.0 3.2
Other Websites 1.8 1.4 2.5 1.5 1.7
Others 8.0 6.1 6.8 5.1 7.4
Total 100.0 100.0 100.0 100.0 100.0

TABLE 2-7: Indian Hotel Industry - Hotel Size & Chain Affiliation: Marketing Media
Marketing Media - Percentage of Hotels Using Each Media
Direct Mail 74.2% 89.0% 100.0% 93.2% 80.4%

Hotel Website 61.8 80.5 87.5 86.4 68.9
Loyalty Card Program 17.8 39.6 84.4 72.7 26.2
Merchandising 15.6 27.3 25.0 27.3 19.9
Other Internet Site 49.3 48.7 56.3 52.3 49.3
Outdoor Advertising 63.1 74.0 56.3 70.5 66.2
Print Advertising 91.1 94.2 100.0 100.0 92.1
Promotions 57.8 81.2 93.8 84.1 67.6
Radio Advertising 8.0 11.0 31.3 20.5 9.8
Telemarketing 42.7 63.6 65.6 70.5 50.1
TV Advertising 28.4 35.1 31.3 40.9 30.0
TABLE 2-8: Indian Hotel Industry - Hotel Size & Chain Affiliation: Payment Methods
Payment Methods Used
Cash Sales (including cheques & drafts) 54.2% 35.4% 19.9% 20.6% 47.1%
Credit Card Sales 26.0 33.1 48.6 40.3 29.3
Credit Sales (Other than Cards) 18.8 30.5 29.0 38.2 22.5
Electronic Fund Transfer 1.1 1.0 2.4 0.9 1.2
Total 100.0 100.0 100.0 100.0 100.0
Credit Cards Used

American Express 9.3% 13.7% 28.4% 22.7% 11.5%

Diners Club 4.9 7.6 7.4 7.4 6.1
Mastercard/Eurocard 37.1 36.4 27.5 29.8 36.7
Visa 44.0 39.5 34.0 36.1 41.9
Other 4.7 2.8 2.7 4.0 3.7
Total 100.0 100.0 100.0 100.0 100.0
Average Credit Card Collection Charges

American Express 2.5 3.2 3.2 3.2 2.8

Diners Club 1.2 1.8 2.3 1.9 1.5
Mastercard/Eurocard 2.2 1.8 1.6 1.6 2.0
Visa 2.2 1.8 1.6 1.6 2.0

TABLE 2-9: Indian Hotel Industry - Hotel Size & Chain Affiliation: Technology &
Environmental Issues
Technology in Hotels - Percentage of Hotels Using Each Technology

Room Size 50 Rooms Rooms 150 Rooms Affiliated Independent
Accounting System 90.2% 94.3% 93.8% 95.1% 91.8%

Call Accounting System 49.0 72.4 87.5 70.7 61.1
Central Reservation System (CRS) 21.6 38.2 65.6 58.5 28.8
Electronic Keycard 14.4 22.0 87.5 53.7 20.6
Energy Management System 13.1 24.4 65.6 46.3 19.5
Internet/E-Mail 81.1 90.2 100.0 97.6 85.0
Internet/Website 64.7 79.7 100.0 92.7 71.5
Intranet System 28.8 33.3 65.6 56.1 31.1
Local Area Network (LAN) 45.1 80.5 93.8 85.4 61.1
Management Information System (MIS) 43.1 69.9 96.9 82.9 55.8
Point of Sale System for Food and Beverage 51.0 82.1 93.8 87.8 64.8
Property Management System 22.9 65.0 87.5 73.2 42.3
Yield Management System 14.4 24.4 46.9 41.5 18.7
Other 6.5 11.4 34.4 29.3 8.6

Room Size 50 Rooms Rooms 150 Rooms Affiliated Independent
Air (External Emissions) 29.3% 48.4% 80.7% 66.7% 38.8%

Air (Indoor Air Quality) 32.0 48.4 80.7 69.2 39.9
Community Interaction 21.8 42.7 67.7 66.7 30.4
Energy Consumption (Electricity) 94.6 96.0 100.0 100.0 95.1
Energy Consumption (Gas) 81.0 87.9 100.0 100.0 83.7
Energy Consumption (Oil) 68.7 83.1 96.8 97.4 74.5
Fresh Water Quality 63.3 78.2 90.3 87.2 70.0
Noise (External) 30.6 43.6 67.7 64.1 36.1
Noise (In House) 40.1 51.6 77.4 71.8 45.3
Solid Waste Disposal 27.9 43.6 64.5 61.5 34.6
Solid Waste Production (Quality) 18.4 31.5 64.5 38.5 27.0
Solid Waste Production (Segregation) 26.5 41.9 61.3 38.5 36.1
Solid Waste Production (Volume) 31.3 41.1 61.3 51.3 36.5
Staff Training in Environmental Issues 37.4 54.0 77.4 79.5 43.7
Use of Chemicals (House Keeping) 77.6 81.5 77.4 84.6 78.3
Use of Chemicals (Maintenance) 62.6 77.4 90.3 87.2 69.2
Use of Pesticides and Herbicides (Dry Rations) 28.6 34.7 54.8 38.5 33.1
Use of Pesticides and Herbicides (Green Groceries) 32.7 35.5 54.8 38.5 35.7
Use of Pesticides and Herbicides (Horticulture / Gardens) 61.0 73.5 76.7 76.9 57.4
Use of Pesticides and Herbicides (Inside Building) 66.9 65.0 76.7 74.4 62.0
Use of Pesticides and Herbicides (Pest Control) 79.6 77.4 77.4 84.6 77.6
Use of Pesticides and Herbicides (Public Area) 61.9 60.5 74.2 71.8 61.2
Waste Water Quality 25.2 59.7 87.1 66.7 42.6
Waste Water Volume 33.3 63.7 83.9 71.8 47.9
Water Consumption 78.2 89.5 93.6 92.3 83.3

3. Indian Hotel Industry - Seven Major Cities
In this section, we have presented the operating profiles and financial data for different categories
of hotels in seven major cities: New Delhi, Mumbai, Kolkata, Pune, Chennai, Bangalore and
Goa. In certain cities and for certain star categories, we were unable to fulfil the minimum data
requirement of at least four hotels in each representation and have reflected this as 'ID'
(insufficient data). With the exception of very few, most cities had insufficient data in individual
star categories; therefore, we have combined star categories to enable the information to be
summarised. However, in doing so we have been careful to combine star categories that are
broadly similar.
● In terms of occupancy Bangalore was the market leader among the seven major cities.
Bangalore's five-star deluxe, five-star and four-star properties had 83.0% occupancy
and Bangalore's three-star and two-star properties had 73.0% occupancy.
● Five-star deluxe and five-star properties in Delhi achieved the highest average rate of
Rs 4,330. Bangalore's five-star deluxe, five-star and four-star properties enjoyed the
highest net income as a percentage of revenue (39.0%), followed by two-star and one-
star hotels in Kolkata (37.3%).
● Goa's five-star deluxe and five-star hotels had the highest average number of employees
per room (2.2), which is in line with resort hotels.
● Reservations through websites increased for all budget hotels across all cities from the
previous year, showing an increased utilisation of the Internet to market these hotels.
● Bangalore's three-star and two-star properties had the highest number of average
stay of business guests (2.8 days). Goa's four-star and three-star properties had the
highest number of average stay of leisure guests (4.7 days).
● Five-star deluxe and five-star hotels in Delhi had the highest percentage of foreign
guests (62.5%), followed by five-star deluxe, five-star and four-star hotels in Bangalore
(48.9%). Also, Bangalore's five-star deluxe, five-star and four-star hotels had the highest
percentage of foreign business travellers (39.9%).

TABLE 3-1: Indian Hotel Industry - Seven Major Cities: Facilities and Guest Analysis
FHRAI
New Delhi Mumbai Kolkata Pune Chennai Bangalore Goa
Four- Two- Four- Two- Five-Star Two- Five- Five-Star Three- Five-Star Three- Four-
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Four- Star & Star, & Three-Star, Deluxe, Five- Star & Deluxe, Five- Star & Five-Star Star &
Deluxe & Three- One- Deluxe & Three- One- Star & Three- One- Four Two-Star & Star & Four- Two- Star & Four- Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Star Star Star One-Star Star Star Star Star Five-Star Star
Number of responses: 8 10 10 12 35 44 10 20 6 26 6 20 7 17 7 13
Air-Conditioned Single 110.0 13.1 6.1 38.8 8.3 3.3 33.9 3.4 0.0 1.9 61.3 6.2 39.3 7.1 0.0 6.1
Double 158.6 79.8 12.2 183.9 40.6 22.8 59.0 14.8 84.5 12.0 100.3 45.4 101.9 29.1 134.7 78.5
Suites 27.5 4.4 0.6 25.9 5.0 2.2 9.9 3.0 3.5 2.7 11.3 8.3 14.0 5.8 18.7 4.0
Non-Air-Conditioned Single 0.0 1.2 2.1 0.0 0.4 0.3 2.0 2.3 0.0 2.9 0.0 4.5 0.0 2.1 0.0 0.0
Double 0.0 0.2 4.6 0.0 1.7 2.9 7.3 6.9 0.0 14.1 0.0 9.0 0.0 16.2 0.0 1.9
Suites 0.0 0.0 0.1 0.0 0.1 0.2 0.0 0.1 0.0 1.5 0.0 0.6 0.0 0.5 0.0 0.0
Total Average Rooms 296.1 98.7 25.8 248.7 56.2 31.8 112.1 30.4 88.0 35.0 173.0 74.0 155.1 60.8 153.4 90.4

Page 40
Restaurant 3.8 1.8 1.0 3.5 1.6 1.1 2.4 1.1 2.2 1.1 3.0 1.6 2.9 1.5 4.7 2.1
Bar 1.4 1.0 0.4 1.2 1.0 0.8 0.9 0.5 0.8 0.5 1.3 0.8 1.4 0.5 2.8 1.8
Others 0.4 0.9 0.4 0.8 0.8 0.2 0.3 0.2 0.7 0.3 1.7 0.8 1.3 0.2 1.0 0.4
Total 5.5 3.6 1.8 5.4 3.4 2.1 3.5 1.8 3.7 1.8 6.0 3.3 5.6 2.2 8.5 4.3
Guest Analysis
Domestic Guests 29.1% 83.0% 91.0% 50.5% 73.3% 69.9% 77.4% 76.8% 78.1% 89.2% 59.7% 76.7% 38.7% 76.9% 52.5% 54.9%
Foreign Guests 70.9 17.0 9.0 49.5 26.7 30.1 22.6 23.2 21.9 10.8 40.3 23.3 61.3 23.1 47.5 45.1
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Total Business Guests 71.7% 70.6% 79.8% 79.8% 71.7% 64.2% 69.8% 56.5% 86.8% 81.2% 77.8% 62.4% 85.5% 71.7% 45.6% 28.3%
Total Leisure Guests 28.3 29.4 20.2 20.2 28.3 35.8 30.2 43.5 13.2 18.8 22.2 37.6 14.5 28.3 54.4 71.7
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Avg. Stay of Domestic Guests (Days) 2.0 2.6 1.5 1.8 3.4 3.4 2.9 3.0 2.0 3.0 1.8 2.6 2.0 3.0 3.0 3.3
Avg. Stay of Foreign Guests (Days) 3.0 2.5 1.8 3.0 3.0 3.1 3.1 3.2 3.0 3.5 3.0 3.3 3.0 3.0 9.5 12.4
Avg. Stay of Business Guests (Days) 2.1 1.8 2.1 1.6 2.1 2.2 1.8 1.3 2.2 2.1 2.1 2.0 2.1 2.8 2.3 1.8
Avg. Stay of Leisure Guests (Days) 1.8 0.8 0.5 1.3 1.8 2.1 1.8 0.8 1.8 1.8 2.5 2.3 1.8 1.9 4.1 4.7
Percentage of Repeat Guests 50.0% 50.0% 48.5% 39.5% 54.5% 56.6% 48.5% 55.4% 62.5% 61.3% 52.5% 68.9% 37.2% 61.3% 23.5% 36.8%
HVS International
TABLE 3-2: Indian Hotel Industry - Seven Major Cities: Staffing
Five-
Four- Two- Four- Five-Star Five- Five-Star Three- Five-Star Three- Star Four-
HVS International
Five-Star Star & Star & Five-Star Star & Two-Star Deluxe, Four- Two-Star Star, & Three-Star, Deluxe, Star & Deluxe, Five- Star & Deluxe Star &
Deluxe & Three- One- Deluxe & Three- & One- Star & & One- Four Two-Star & Five-Star & Two- Star & Four- Two- & Five- Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star One-Star Four-Star Star Star Star Star Star
Managers Male 48.5 8.5 1.3 46.1 7.4 1.6 22.6 1.9 18.0 2.2 26.8 8.3 34.1 4.7 28.3 10.5
Female 18.4 1.4 0.2 16.0 1.6 0.2 5.8 0.2 4.7 0.2 4.8 0.9 11.9 0.7 6.0 2.9
Supervisors Male 59.8 7.5 3.7 56.7 10.2 2.8 19.5 2.7 19.8 2.9 50.8 13.0 53.6 8.5 37.9 13.2
Female 14.9 1.8 0.0 11.8 1.2 1.1 5.2 0.6 3.3 0.9 5.8 1.0 12.9 1.9 10.0 3.7
Staff Male 363.5 133.3 9.2 282.4 75.3 23.1 130.6 20.5 102.3 22.8 238.0 77.7 182.7 57.8 218.3 104.8
Female 50.9 9.6 0.0 36.1 8.8 0.7 10.1 1.6 8.8 0.7 15.0 5.2 15.7 5.7 31.1 13.5
Total 555.9 162.0 14.3 449.1 104.6 29.5 193.8 27.5 157.0 29.6 341.3 106.1 310.9 79.2 331.6 148.5
1.3 1.0
Average Number of Employees Per Room 2.0 1.7 0.7 2.0 2.0 1.0 1.3 1.0 1.7 0.9 2.0 1.4 2.0 1.7 2.2 1.6
provided in hotels.
Page 41
Five-
Four- Two- Four- Five-Star Five- Five-Star Three- Five-Star Three- Star Four-
Five-Star Star & Star & Five-Star Star & Two-Star Deluxe, Four- Two-Star Star, & Three-Star, Deluxe, Star & Deluxe, Five- Star & Deluxe Star &
Deluxe & Three- One- Deluxe & Three- & One- Star & & One- Four Two-Star & Five-Star & Two- Star & Four- Two- & Five- Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star One-Star Four-Star Star Star Star Star Star
Number of responses: 8 ID 5 7 10 1 5 2 3 3 4 7 7 9 6 9
Managers 100.0% 68.8% 78.6% 89.7% 100.0% 100.0% 100.0% 88.9% 81.5% 95.2% 85.7% 82.8% 97.5% 74.1% 72.2%
Supervisors 78.7 68.5 79.8 86.7 50.0 98.4 85.7 74.6 80.2 92.2 86.7 64.3 94.3 67.2 48.1
Staff 85.1 53.6 70.0 71.3 73.9 76.7 56.9 67.9 41.7 62.9 55.8 43.4 97.0 55.2 37.4
Total Avg. Trained Employees 87.9 63.6 76.1 82.6 74.6 91.7 80.9 77.1 67.8 83.4 76.1 63.5 96.2 65.5 52.6
Total Avg. Un-Trained Employees 12.1 36.4 23.9 17.4 25.4 8.3 19.1 22.9 32.2 16.6 23.9 36.5 3.8 34.5 47.5
Hotels with Training Department 75.0% 0.0 50.0% 13.2% 0.0 30.0% 0.0 78.0% 9.1% 50.5% 35.2% 85.7% 29.7% 57.8% 32.5%
FHRAI
TABLE 3-3: Indian Hotel Industry - Seven Major Cities: Financial Report - Percentage of Revenue
FHRAI
Five-Star Five-Star Five-Star
Five-Star Five-Star Four-Star Two-Star Deluxe, Four- Two-Star Five-Star, Three-Star, Deluxe, Five- Three- Deluxe, Five- Three- Five-Star Four-Star
Deluxe & Deluxe & & Three- & One- Star & Three- & One- & Four Two-Star & Star & Four- Star & Star & Four- Star & Deluxe & & Three-
COMPOSITION Five- Star Five- Star Star Star Star Star Star One-Star Star Two-Star Star Two-Star Five- Star Star
Number of responses: 8 10 12 15 6 4 5 6 4 9 7 7 6 7
Average Total Rooms: 296 240 71 34 162 41 90 41 210 82 155 64 156 104
Average Occupied Rooms: 76,705 60,645 15,862 6,953 37,893 10,203 23,582 8,072 47,397 18,575 44,931 15,822 37,110 23,476
Average Occupancy: 73.0% 72.0% 66.0% 61.0% 64.0% 66.0% 71.0% 59.0% 65.0% 59.0% 83.0% 73.0% 68.0% 63.0%
Average Rate: Rs 4,330 Rs 4,347 Rs 2,284 Rs 1,151 Rs 2,847 Rs 696 Rs 2,529 Rs 899 Rs 2,855 Rs 1,314 Rs 5,313 Rs 1,003 Rs 2,820 Rs 1,234
REVENUE
Rooms 53.4% 58.6% 64.1% 76.1% 48.8% 73.1% 57.0% 76.0% 49.2% 44.9% 59.8% 46.5% 53.9% 43.4%
Food & Beverage 28.7 27.4 24.9 18.9 35.7 14.3 24.9 15.7 34.1 43.1 28.0 47.0 34.4 41.1
Banquet & Conferences 7.9 4.5 6.6 1.7 10.2 5.0 12.6 2.5 10.0 6.9 4.2 1.2 3.2 1.9
Telephone & Other 3.1 2.5 1.3 0.9 1.4 1.5 2.0 2.4 2.9 2.0 3.5 1.0 0.8 0.9
Minor Operated* 5.0 3.9 2.4 0.6 2.5 4.6 2.4 0.9 2.3 1.6 3.7 1.6 5.3 3.5
Rental & Other Income 1.9 3.2 0.8 1.9 1.4 1.6 1.1 2.5 1.6 1.6 0.8 2.8 2.4 9.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Rooms 17.3 17.8 19.6 19.4 22.1 10.4 17.4 22.9 15.0 23.2 13.9 27.8 19.3 25.4
Food & Beverage 53.7 62.9 74.1 88.5 53.9 72.7 45.5 87.7 49.5 58.8 50.5 60.2 56.0 51.0
Page 42
Telephone & Other 26.8 52.0 91.8 181.3 74.6 73.4 64.9 91.0 24.3 75.8 36.3 97.7 69.9 142.2
Minor Operated* 39.6 42.6 183.6 445.5 68.8 32.3 41.1 136.0 57.9 93.9 62.1 115.7 48.7 35.9
Rental & Other Income 0.0 9.4 41.6 22.7 2.6 143.8 2.8 609.9 6.8 18.1 19.7 7.1 0.0 1.1
Total 31.7 33.7 41.7 37.6 38.3 26.5 29.2 52.2 31.3 43.1 28.3 44.9 34.6 35.5
DEPARTMENTAL INCOME 68.3 66.3 58.3 62.4 61.7 73.5 70.8 47.8 68.7 57.0 71.7 55.1 65.4 64.5
OPERATING EXPENSES
Administrative & General 7.4 9.1 7.7 4.9 8.6 15.9 11.0 6.9 5.7 11.3 6.2 7.5 13.2 9.3
Management Fee 3.6 1.3 1.5 0.9 0.9 0.0 2.2 2.7 4.1 1.1 1.9 0.5 1.8 0.0
Marketing 4.2 4.3 2.8 0.8 4.9 3.1 2.8 1.4 1.6 1.2 3.1 2.8 5.3 5.4
Franchise Fees 0.0 0.7 0.2 0.0 0.0 0.0 0.7 0.0 1.3 0.4 0.0 0.0 0.4 1.1
Property Operations & Maintenance 5.8 5.6 6.6 6.0 11.0 5.5 9.4 4.1 4.0 4.7 4.2 7.3 8.3 0.0
Energy 9.2 8.6 15.7 19.9 12.5 7.1 9.8 8.8 13.6 15.1 7.3 11.8 12.3 12.0
Total 30.1 29.6 34.4 32.4 38.0 31.6 35.7 24.0 30.3 33.7 22.7 30.0 41.4 27.8
HOUSE PROFIT 38.2 36.7 23.9 29.9 23.7 41.9 35.0 23.8 38.4 23.2 49.0 25.1 24.0 36.7
FIXED EXPENSES
Property Taxes 1.0 1.0 1.6 1.9 1.6 0.4 1.1 2.2 0.5 0.9 1.8 0.7 0.1 0.0
Insurance 0.5 0.5 0.4 0.4 0.9 0.1 1.1 1.0 2.4 0.4 0.4 0.5 0.7 0.0
Other Fixed Expenses 0.0 0.0 0.3 1.6 2.3 2.3 0.7 6.6 0.0 3.4 3.6 3.5 2.0 0.0
Rent 0.1 0.2 0.2 0.6 2.0 1.8 0.1 1.2 0.4 0.0 4.3 1.9 0.0 0.0
Total 1.7 1.7 2.5 4.5 6.7 4.6 2.9 11.0 3.3 4.7 10.0 6.6 2.8 0.0
NET INCOME** 36.5% 35.0% 21.4% 25.4% 17.0% 37.3% 32.2% 12.8% 35.1% 18.5% 39.0% 18.5% 21.2% 36.7%
HVS International
TABLE 3-4: Indian Hotel Industry - Seven Major Cities: Financial Report - Amount Per Available Room

Five-Star Five-Star Deluxe, Four- Three-Star, Deluxe, Five- Deluxe, Five- Five-Star
HVS International
Deluxe & Deluxe & Four-Star & Two-Star & Star & Three- Two-Star & Five-Star, & Two-Star & Star & Four- Three- Star Star & Four- Three- Star Deluxe & Five- Four-Star &
COMPOSITION Five- Star Five- Star Three-Star One-Star Star One-Star Four Star One-Star Star & Two-Star Star & Two-Star Star Three-Star
REVENUE
Rooms 1,121,830 1,098,040 512,762 233,542 665,404 175,483 659,976 179,235 645,294 299,014 1,538,830 249,787 672,394 279,374
Food & Beverage 602,295 513,460 199,034 58,040 486,788 34,239 287,808 36,922 448,231 287,197 720,429 252,233 429,178 264,455
Banquet & Conferences 166,668 84,959 52,473 5,152 138,663 11,994 145,184 5,951 130,666 46,122 107,515 6,529 39,988 11,980
Telephone & Other 64,582 46,311 10,382 2,743 19,366 3,531 23,606 5,613 37,655 13,094 89,683 5,109 9,847 5,574
Minor Operated* 104,372 72,395 18,944 1,832 33,645 11,078 27,821 2,148 30,090 10,597 94,948 8,564 65,883 22,275
Rental & Other Income 40,541 60,180 6,517 5,800 19,131 3,864 12,622 5,959 20,936 10,321 21,042 14,758 30,420 60,576
Total 2,100,280 1,875,350 800,112 307,109 1,363,000 240,188 1,157,020 235,827 1,312,870 666,345 2,572,440 536,979 1,247,710 644,234
Rooms 194,239 195,411 100,237 45,203 147,196 18,272 114,697 41,070 96,598 69,216 213,318 69,403 129,961 71,040
Food & Beverage 412,988 376,332 186,297 55,948 336,986 33,624 196,774 37,605 286,748 195,872 418,217 155,771 262,884 140,887
Page 43
Telephone & Other 17,326 24,078 9,531 4,973 14,451 2,593 15,325 5,107 9,141 9,918 32,529 4,989 6,879 7,924
Minor Operated* 41,282 30,861 34,771 8,162 23,160 3,580 11,440 2,922 17,416 9,952 58,944 9,904 32,081 7,988
Rental & Other Income 0 5,684 2,713 1,315 612 5,556 1,211 36,342 1,430 1,872 4,148 1,044 0 689
Total 665,836 632,367 333,549 115,601 522,405 63,624 339,448 123,045 411,334 286,830 727,156 241,110 431,804 228,528
DEPARTMENTAL INCOME 1,434,450 1,242,980 466,563 191,508 841,205 176,564 818,779 112,782 901,537 379,515 1,845,290 295,869 815,905 415,706
OPERATING EXPENSES
Administrative & General 155,626 169,916 61,334 14,894 117,279 38,253 127,128 16,264 75,105 75,355 158,498 40,422 165,123 59,752
Management Fee 76,193 25,012 11,615 2,616 12,794 0 24,881 6,370 53,494 7,115 48,647 2,427 23,019 0
Marketing 87,234 80,978 22,478 2,388 66,426 7,407 32,608 3,391 21,031 7,752 79,839 15,208 66,016 34,982
Franchise Fees 0 13,903 1,779 36 0 0 7,520 0 17,423 2,449 0 129 5,155 7,084
Property Operations & Maintenance 121,118 104,354 52,440 18,483 150,381 13,272 108,319 9,753 52,412 31,359 109,104 39,274 103,679 0
Energy 192,196 161,211 125,864 61,199 170,979 16,975 113,029 20,798 178,254 100,663 188,202 63,462 153,305 77,397
Total 632,367 555,374 275,511 99,616 517,859 75,907 413,485 56,576 397,720 224,693 584,290 160,921 516,296 179,215
HOUSE PROFIT 802,081 687,604 191,052 91,893 323,345 100,657 405,294 56,206 503,817 154,822 1,261,000 134,947 299,609 236,491
FIXED EXPENSES
Property Taxes 21,070 18,741 13,107 5,818 21,386 1,019 12,179 5,226 7,008 5,766 46,015 3,836 940 0
Insurance 11,004 8,643 2,961 1,351 12,238 191 12,241 2,461 31,598 2,752 9,283 2,814 8,237 0
Other Fixed Expenses 0 320 2,690 4,877 30,824 5,556 7,896 15,490 0 22,668 92,584 18,630 25,267 0
Rent 3,011 3,272 1,220 1,726 27,461 4,321 699 2,733 4,887 27 109,883 10,397 136 0
Total 35,086 30,976 19,978 13,772 91,910 11,086 33,015 25,910 43,493 31,214 257,765 35,676 34,581 0
NET INCOME** Rs 766,995 Rs 656,629 Rs 171,074 Rs 78,120 Rs 231,435 Rs 89,570 Rs 372,279 Rs 30,296 Rs 460,324 Rs 123,608 Rs 1,003,230 Rs 99,271 Rs 265,029 Rs 236,491
FHRAI
TABLE 3-5: Indian Hotel Industry - Seven Major Cities: Financial Report: Amount Per Occupied Room
FHRAI
Five-Star Five-Star Two-Star Deluxe, Four- Two-Star Five-Star, Three-Star, Deluxe, Five- Three- Deluxe, Five- Five-Star
Deluxe & Deluxe & Four-Star & & One- Star & Three- & One- & Four Two-Star & Star & Four- Star & Star & Four- Three- Star Deluxe & Four-Star &
COMPOSITION Five-Star Five-Star Three-Star Star Star Star Star One-Star Star Two-Star Star & Two-Star Five-Star Three-Star
REVENUE
Rooms Rs 4,330 Rs 4,347 Rs 2,284 Rs 1,151 Rs 2,847 Rs 696 Rs 2,529 Rs 899 Rs 2,855 Rs 1,314 Rs 5,313 Rs 1,003 Rs 2,820 Rs 1,234
Food & Beverage 2,325 2,033 887 286 2,083 136 1,103 185 1,984 1,263 2,488 1,013 1,800 1,168
Banquet & Conferences 643 336 234 25 593 48 557 30 578 203 371 26 168 53
Telephone & Other 249 183 46 14 83 14 90 28 167 58 310 21 41 25
Minor Operated* 403 287 84 9 144 44 107 11 133 47 328 34 276 98
Rental & Other Income 157 238 29 29 82 15 48 30 93 45 73 59 128 268
Total 8,108 7,425 3,565 1,514 5,833 953 4,435 1,183 5,810 2,930 8,882 2,158 5,234 2,846
Rooms 750 774 447 223 630 73 440 206 427 304 737 279 545 314
Food & Beverage 1,594 1,490 830 276 1,442 133 754 189 1,269 861 1,444 626 1,103 622
Page 44
Telephone & Other 67 95 42 25 62 10 59 26 40 44 112 20 29 35
Minor Operated* 159 122 155 40 99 14 44 15 77 44 204 40 135 35
Rental & Other Income 0 23 12 6 3 22 6 182 6 8 14 4 0 3
Total 2,570 2,504 1,486 570 2,233 253 1,297 617 1,820 1,261 2,511 969 1,811 1,010
DEPARTMENTAL INCOME 5,538 4,921 2,079 944 3,600 701 3,139 566 3,990 1,669 6,371 1,189 3,423 1,836
OPERATING EXPENSES
Administrative & General 601 673 273 73 502 152 487 82 332 331 547 162 693 264
Management Fee 294 99 52 13 55 0 95 32 237 31 168 10 97 0
Marketing 337 321 100 12 284 29 125 17 93 34 276 61 277 155
Franchise Fees 0 55 8 0 0 0 29 0 77 11 0 1 22 31
Property Operations & Maintenance 468 413 234 91 644 53 415 49 232 138 377 158 435 0
Energy 742 638 561 302 732 67 433 104 789 443 650 255 643 342
Total 2,441 2,199 1,228 491 2,216 301 1,585 284 1,760 988 2,017 647 2,166 792
HOUSE PROFIT 3,096 2,722 851 453 1,384 400 1,554 282 2,230 681 4,354 542 1,257 1,045
FIXED EXPENSES
Property Taxes 81 74 58 29 92 4 47 26 31 25 159 15 4 0
Insurance 42 34 13 7 52 1 47 12 140 12 32 11 35 0
Other Fixed Expenses 0 1 12 24 132 22 30 78 0 100 320 75 106 0
Rent 12 13 5 9 118 17 3 14 22 0 379 42 1 0
Total 135 123 89 68 393 44 127 130 192 137 890 143 145 0
NET INCOME** Rs 2,960 Rs 2,599 Rs 762 Rs 385 Rs 990 Rs 355 Rs 1,427 Rs 152 Rs 2,037 Rs 543 Rs 3,463 Rs 398 Rs 1,111 Rs 1,044
HVS International
TABLE 3-6: Indian Hotel Industry - Seven Major Cities: Market Data
Market Segmentation
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Four- Star & Star, Three-Star, Deluxe, Five- Star & Deluxe, Star & Five-Star Star &
HVS International
Deluxe & Three- One- Deluxe & Three- One- Star & One- & Four Two-Star & Star & Four- Two- Five-Star & Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star One-Star Star Star Four-Star Star Five-Star Star
Airline Crew 7.8% 0.0% 0.4% 8.0% 1.4% 0.3% 10.5% 0.0% 1.2% 0.0 12.3% 0.9% 0.9% 0.1% 7.5% 1.0%
Business Traveller - Domestic 16.1 54.5 60.0 28.0 47.2 60.3 51.6 71.0 57.8 42.9 40.3 37.8 28.0 38.8 5.9 15.7
Business Traveller - Foreign 35.5 7.7 7.0 31.1 9.8 11.7 10.8 9.4 17.7 3.4 29.0 11.3 51.5 12.4 1.1 5.6
Complimentary Rooms 2.0 0.3 0.0 1.2 1.1 1.1 2.6 0.0 0.8 1.8 0.7 1.4 0.8 7.8 1.9 1.7
Domestic - Tourists/Leisure FIT 3.7 5.0 7.5 6.0 14.3 9.1 7.4 8.8 2.5 23.0 4.8 13.5 3.9 19.3 18.7 18.7
Foreign - Tourists/Leisure FIT 8.3 3.0 4.5 3.2 9.4 8.7 5.6 1.2 1.8 3.5 2.6 5.3 6.0 3.4 12.9 32.9
Meeting Participants (Less than 100 Attendees) 2.7 0.0 9.6 0.5 2.5 0.8 2.4 0.0 1.0 2.5 1.4 4.0 0.4 5.0 13.5 4.3
Meeting Participants (Over 100 Attendees) 7.4 1.3 1.0 14.4 2.5 0.7 4.9 6.0 10.3 13.0 4.2 6.7 4.9 5.5 9.5 5.7
Tour Groups - Domestic 2.7 0.8 1.0 1.6 4.8 2.9 1.5 2.0 1.5 3.8 0.6 10.7 0.2 5.3 9.9 6.5
Tour Groups - Foreign 11.8 2.5 0.0 2.1 3.2 2.0 1.7 1.6 3.3 1.5 1.6 4.5 0.9 1.5 4.8 2.8
Other 2.1 25.0 9.0 3.8 3.7 2.4 1.0 0.0 2.0 4.6 2.5 4.0 2.6 1.1 14.4 5.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Page 45
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Four- Star & Star, Three-Star, Deluxe, Five- Star & Deluxe, Star & Five-Star Star &
Deluxe & Three- One- Deluxe & Three- One- Star & One- & Four Two-Star & Star & Four- Two- Five-Star & Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star One-Star Star Star Four-Star Star Five-Star Star
Number of responses: 8 4 ID 11 15 17 7 6 4 6 ID 10 7 6 6 10
ASEAN* 7.0% 4.3% 4.3% 9.6% 6.8% 4.6% 9.3% 6.1% 0.8% 14.6% 7.7% 6.5% 0.9% 4.8%
Australia 2.3 3.3 3.5 2.3 2.9 2.2 9.7 7.4 5.5 2.6 3.3 4.5 0.7 1.0
Canada 2.9 2.0 3.3 3.0 2.9 1.8 1.8 1.4 4.2 5.3 2.0 3.0 0.5 2.4
Caribbean 0.2 0.0 0.6 0.3 1.2 3.3 0.4 0.3 0.0 0.2 0.4 0.7 0.0 0.0
China 1.8 0.7 1.9 1.3 1.3 2.5 1.5 2.8 0.8 1.9 2.1 4.5 0.3 0.0
France 7.1 0.7 3.9 5.0 2.4 5.4 4.7 4.7 3.3 4.1 3.7 5.2 3.4 0.5
Germany 6.6 2.3 6.6 3.7 5.0 5.0 3.6 6.2 7.7 3.7 10.1 10.2 7.3 8.5
Japan 4.6 7.7 3.2 4.5 1.3 7.4 2.4 5.1 2.8 2.6 2.4 6.5 1.0 1.6
Middle East 3.6 2.3 3.2 6.7 14.2 3.2 0.0 1.3 1.2 4.2 1.4 3.7 1.3 0.4
Other European 5.7 17.0 12.5 11.9 5.9 7.2 13.7 5.1 10.0 4.2 6.3 4.3 13.2 8.0
Russia 3.7 4.0 0.9 3.2 4.3 0.2 1.7 10.4 1.7 1.5 0.7 4.8 22.2 12.7
SAARC** 5.0 23.7 4.3 5.7 10.8 31.8 25.8 5.8 2.5 13.2 6.7 3.3 8.1 0.4
South Africa 2.8 0.7 1.9 3.2 2.4 0.9 0.1 1.3 0.8 4.3 1.0 1.2 0.0 5.6
UK 14.0 4.3 15.8 20.2 16.5 11.5 11.6 9.4 10.8 11.4 20.0 7.7 35.5 37.2
USA 17.7 12.7 16.1 11.3 7.9 9.0 9.4 11.8 20.3 13.1 28.4 8.5 3.2 4.7
Other 15.1 14.3 18.0 8.2 14.4 4.3 4.3 21.2 27.5 13.1 3.7 25.5 2.6 12.1
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
* ASEAN: Association of South East Asian Nations ** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives
FHRAI
TABLE 3-7: Indian Hotel Industry - Seven Major Cities: Monthly & Daily Occupancy
FHRAI
New Delhi Mumbai Kolkata PuneThree- Chennai Bangalore Goa
Star,
Four- Two- Four- Two- Five-Star Two- Five- Two- Five-Star Three- Five-Star Three- Four-
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Four- Star & Star, & Star & Deluxe, Five- Star & Deluxe, Star & Five-Star Star &
Deluxe & Three- One- Deluxe & Three- One- Star & One- Four One- Star & Four- Two- Five-Star & Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star Star Star Star Four-Star Star Five-Star Star
January 71.4% 77.4% 31.5% 83.4% 85.1% 71.9% 70.0% 70.7% 66.4% 61.9% 52.2% 62.1% 83.1% 74.3% 91.7% 83.5%
February 84.7 86.4 47.5 84.6 78.1 69.5 73.2 69.1 69.8 61.5 56.2 64.4 91.0 69.1 88.8 81.7
March 73.3 70.5 38.0 74.2 65.6 64.2 60.3 60.6 68.6 53.8 52.0 59.5 88.8 66.5 83.2 75.7
April 51.6 66.8 43.5 65.9 58.9 60.1 62.3 56.4 67.8 57.7 44.2 52.4 75.0 68.8 67.3 55.9
May 46.9 68.1 33.5 60.7 57.9 58.6 63.2 106.8 64.0 59.7 42.6 54.0 79.2 73.6 53.0 42.3
June 44.9 65.3 24.0 62.5 56.1 60.7 63.1 59.9 68.8 59.8 48.4 54.4 86.0 65.3 53.8 39.7
July 49.9 70.0 34.5 66.9 92.7 60.4 66.8 58.7 72.8 55.5 57.9 57.8 85.5 62.1 43.7 32.7
August 55.6 61.3 31.5 59.1 56.1 61.7 62.0 56.4 70.6 59.2 51.4 57.3 81.5 62.2 54.3 36.9
September 67.7 63.1 35.0 63.0 54.1 62.4 69.3 63.1 210.2 59.8 57.0 57.1 82.3 68.8 59.0 41.2
October 77.6 63.5 46.5 66.8 58.0 64.6 58.8 58.2 66.4 63.1 57.4 58.8 80.6 68.0 65.8 55.2
Page 46
November 87.1 79.5 54.0 78.7 66.6 67.7 73.2 65.6 81.4 67.7 71.8 63.3 86.7 72.9 84.2 86.7
December 79.9 69.6 41.0 82.0 76.7 74.4 75.6 70.6 85.6 72.4 73.4 72.4 72.83 72.92 89.5 78.1

New Delhi Mumbai Kolkata PuneThree- Chennai Bangalore Goa
Star,
Four- Two- Four- Two- Five-Star Two- Five- Two- Five-Star Three- Five-Star Three- Four-
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Four- Star & Star, & Star & Deluxe, Five- Star & Deluxe, Star & Five-Star Star &
Deluxe & Three- One- Deluxe & Three- One- Star & One- Four One- Star & Four- Two- Five-Star & Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star Star Star Star Four-Star Star Five-Star Star
Monday 66.1% 71.7% 32.5% 70.8% 65.1% 59.4% 58.0% 65.6% 72.9% 64.4% 72.4% 52.0% 90.2% 71.8% 62.5% 46.7%
Tuesday 68.6 78.3 37.5 74.0 69.7 57.4 60.4 66.1 75.1 59.3 79.4 54.4 86.6 68.2 60.0 47.1
Wednesday 68.6 78.3 37.5 74.2 74.3 61.4 62.0 65.4 75.7 59.0 78.4 58.5 93.2 71.7 63.8 46.8
Thursday 63.9 78.3 40.0 69.9 72.5 65.8 64.7 62.2 72.9 54.6 75.6 60.5 87.7 72.0 67.5 49.7
Friday 60.9 71.7 35.0 65.9 66.4 59.5 58.3 57.2 71.1 48.9 69.2 61.3 84.3 72.6 76.3 52.4
Saturday 56.4 56.7 20.0 62.5 57.7 52.5 51.6 56.1 71.9 44.4 60.0 52.6 78.4 64.2 78.8 55.0
Sunday 59.1 55.0 20.0 63.0 50.3 51.2 51.0 52.8 65.1 50.7 66.0 49.9 77.7 60.6 75.0 55.0
HVS International
TABLE 3-8: Indian Hotel Industry - Seven Major Cities: Sources of Reservation
HVS International
Five-Star Star & Star & Five-Star Star & Star & Deluxe, Star & Star, & Three-Star, Deluxe, Star & Deluxe, Star & Five-Star Star &
Deluxe & Three- One- Deluxe & Three- One- Four-Star & One- Four Two-Star & Five-Star & Two- Five-Star & Two- Deluxe & Three-
COMPOSITION Five-Star Star Star Five-Star Star Star Three- Star Star Star One-Star Four-Star Star Four-Star Star Five-Star Star
Chain CRS (Central Reservation System) 4.8% 2.0% 0.3% 14.0% 3.3% 0.5% 16.6% 0.9% 3.3% 0.3% 3.8% 2.8% 19.1% 0.6% 0.0 4.2%
Direct Enquiry/ Hotel Representative 49.8 64.3 80.3 57.5 65.2 64.3 53.6 60.0 63.3 76.1 45.1 49.0 46.2 58.8 30.9 27.9
Global Distribution System (GDS) 4.2 4.0 0.3 8.3 0.3 2.4 1.9 0.9 4.8 0.4 5.0 1.7 7.8 0.0 1.7 0.3
Hotel/Chain Web Site 6.0 1.7 0.7 2.1 2.8 3.0 7.2 10.0 3.5 2.9 1.7 9.8 2.1 4.8 9.8 3.0
Travel Agent & Tour Operator 17.4 8.0 4.7 8.3 17.8 13.4 11.6 14.4 10.0 6.1 5.7 14.9 3.0 10.6 50.4 56.3
Other Online Reservation Systems 7.3 0.0 0.0 5.2 1.4 0.3 5.4 2.2 10.5 2.5 33.1 10.1 14.0 5.0 1.5 2.5
Other Websites 1.5 1.3 2.3 1.3 2.1 2.2 1.5 2.8 3.4 0.8 2.1 1.3 6.0 8.1 0.8 1.1
Others 8.9 18.7 11.3 3.3 7.0 13.9 2.2 8.8 1.3 10.9 3.6 10.3 1.7 12.1 4.9 4.8
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Page 47
TABLE 3-9 : Indian Hotel Industry - Seven Major Cities: Marketing Media
Direct Mail 100.0 50.0 100.0 100.0 86.7 58.3 100.0 85.7 100.0 66.7 100.0 80.0 100.0 66.7 100.0 100.0
Hotel Website 75.0 100.0 100.0 88.9 80.0 58.3 85.7 28.6 100.0 44.4 80.0 66.7 85.7 66.7 100.0 100.0
Loyalty Card Program 100.0 0.0 0.0 100.0 13.3 16.7 71.4 14.3 75.0 11.1 40.0 33.3 71.4 0.0 75.0 16.7
Merchandising 37.5 0.0 50.0 33.3 6.7 16.7 14.3 28.6 25.0 11.1 20.0 13.3 42.9 16.7 25.0 33.3
Other Internet Site 50.0 50.0 100.0 66.7 46.7 50.0 71.4 14.3 50.0 33.3 20.0 40.0 71.4 50.0 50.0 83.3
Outdoor Advertising 37.5 50.0 50.0 55.6 60.0 33.3 57.1 57.1 100.0 44.4 60.0 80.0 100.0 66.7 100.0 66.7
Print Advertising 100.0 50.0 50.0 100.0 86.7 75.0 100.0 100.0 100.0 88.9 100.0 93.3 100.0 100.0 100.0 100.0
Promotions 100.0 50.0 50.0 88.9 66.7 33.3 71.4 71.4 100.0 66.7 80.0 80.0 100.0 50.0 100.0 91.7
Radio Advertising 62.5 0.0 0.0 44.4 13.3 8.3 28.6 0.0 0.0 22.2 0.0 6.7 85.7 0.0 0.0 16.7
Telemarketing 87.5 0.0 0.0 77.8 66.7 33.3 100.0 71.4 75.0 33.3 40.0 80.0 85.7 83.3 0.0 50.0
TV Advertising 37.5 0.0 0.0 11.1 20.0 8.3 57.1 28.6 25.0 22.2 0.0 20.0 42.9 16.7 0.0 41.7
FHRAI
TABLE 3-10: Indian Hotel Industry - Seven Major Cities: Payment Methods
Payment Methods
FHRAI
Cash Sales (including cheques & drafts) 15.5% 33.3% 85.0% 22.2% 28.0% 51.0% 33.9% 46.4% 29.0% 51.3% 24.3% 35.0% 9.6% 39.3% 18.0% 23.3%
Credit Card Sales 51.0 22.5 7.5 53.7 30.7 32.3 39.3 30.0 42.1 29.6 46.6 43.8 64.1 34.8 26.6 19.1
Credit Sales (Other than Cards) 32.2 44.3 7.5 21.5 40.4 16.7 26.8 23.6 27.8 19.2 29.1 21.1 25.7 25.9 51.4 45.8
Electronic Fund Transfer 1.4 0.0 0.0 2.6 0.8 0.0 0.0 0.0 1.1 0.0 0.0 0.1 0.6 0.0 4.0 11.8
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Credit Cards Used

Page 48
Number of responses: 8 6 ID 8 20 16 7 5 5 8 5 15 7 12 4 12
American Express 23.3% 7.9% 32.7% 13.3% 6.9% 21.5% 9.6% 16.6% 5.3% 26.5% 15.2% 32.7% 11.7% 18.0% 9.2%
Diners Club 7.0 5.9 10.3 8.3 4.2 4.2 6.4 10.3 6.8 7.7 8.4 6.4 6.7 8.3 3.9
Mastercard/Eurocard 30.2 57.9 26.3 35.8 39.3 29.6 31.0 31.4 41.3 30.7 31.7 30.4 36.7 22.3 30.2
Visa 37.6 25.0 30.0 40.2 43.3 42.5 53.0 36.8 32.4 35.0 39.5 30.5 42.2 51.5 54.7
Other 1.9 3.4 0.8 2.5 6.4 2.3 0.0 4.9 14.4 0.0 5.2 0.0 2.8 0.0 1.9
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.1 100.0 100.0 100.0 100.0 100.0 100.0
Average Credit Card Collection charges
Number of responses: 6 6 ID 9 19 16 6 5 6 7 5 12 7 8 5 12
American Express 3.2 1.8 3.1 3.6 2.8 3.2 3.2 3.4 1.6 3.5 3.3 3.3 3.2 3.1 3.0
Diners Club 2.0 3.0 2.2 1.9 1.4 2.0 1.6 2.1 0.6 1.9 1.5 2.6 2.0 2.4 1.3
Mastercard/Eurocard 1.5 1.7 1.5 1.8 2.0 1.5 1.8 1.6 2.0 1.6 1.8 1.6 1.5 1.6 2.1
HVS International
Visa 1.5 1.7 1.5 1.7 2.0 1.6 1.8 1.6 1.9 1.5 1.9 1.6 1.5 1.3 2.1
TABLE 3-11: Indian Hotel Industry - Seven Major Cities: Technology & Environmental Issues
Technology in Hotels - Percentage of Hotels Using Each Technology
Three-
Four- Four- Five-Star Two- Star, Five-Star Five-Star Three- Four-
Five-Star Star & Five-Star Star & Two-Star Deluxe, Star & Five- Two-Star Deluxe, Five- Three- Deluxe, Five- Star & Five-Star Star &
Deluxe & Three- Deluxe & Three- & One- Four-Star & One- Star, & & One- Star & Four- Star & Star & Four- Two- Deluxe & Three-
HVS International
COMPOSITION Five-Star Star Five-Star Star Star Three- Star Star Four Star Star Star Two-Star Star Star Five-Star Star
No. of responses: 8 6 10 13 13 7 ID 4 7 5 12 6 11 5 10
Accounting System 100.0% 100.0% 100.0% 84.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 90.0%
Call Accounting System 87.5 100.0 80.0 69.2 61.5 85.7 100.0 57.1 100.0 66.7 83.3 100.0 80.0 70.0
Central Reservation System (CRS) 62.5 50.0 70.0 23.1 7.7 57.1 25.0 42.9 80.0 33.3 66.7 20.0 0.0 30.0
Electronic Keycard 87.5 0.0 90.0 15.4 30.8 57.1 25.0 0.0 80.0 25.0 66.7 20.0 80.0 20.0
Energy Management System 62.5 100.0 60.0 15.4 7.7 42.9 0.0 0.0 60.0 33.3 50.0 20.0 0.0 0.0
Internet/E-Mail 100.0 100.0 100.0 100.0 69.2 100.0 100.0 71.4 80.0 91.7 100.0 80.0 100.0 100.0
Internet/Website 87.5 100.0 90.0 92.3 53.9 85.7 75.0 57.1 80.0 50.0 100.0 80.0 100.0 100.0
Intranet System 62.5 0.0 80.0 30.8 15.4 57.1 50.0 28.6 40.0 8.3 83.3 20.0 20.0 40.0
Local Area Network (LAN) 87.5 50.0 100.0 69.2 38.5 100.0 100.0 28.6 100.0 75.0 100.0 80.0 100.0 70.0
Management Information System (MIS) 100.0 100.0 100.0 53.9 15.4 85.7 100.0 42.9 100.0 83.3 66.7 100.0 60.0 70.0
Point of Sale System for Food and Beverage 87.5 50.0 90.0 76.9 38.5 85.7 100.0 28.6 100.0 91.7 83.3 100.0 80.0 90.0
Property Management System 100.0 50.0 90.0 30.8 7.7 71.4 75.0 14.3 100.0 58.3 83.3 80.0 40.0 60.0
Yield Management System 62.5 50.0 40.0 23.1 0.0 42.9 25.0 0.0 60.0 33.3 50.0 40.0 0.0 20.0
Other 25.0 0.0 30.0 15.4 0.0 71.4 50.00 14.29 60.0 8.3 33.3 0.0 0.0 0.0

Three-
Page 49
Four- Four- Five-Star Two- Star, Five-Star Five-Star Three- Four-
Five-Star Star & Five-Star Star & Two-Star Deluxe, Star & Five- Two-Star Deluxe, Five- Three- Deluxe, Five- Star & Five-Star Star &
Deluxe & Three- Deluxe & Three- & One- Four-Star & One- Star, & & One- Star & Four- Star & Star & Four- Two- Deluxe & Three-
COMPOSITION Five-Star Star Five-Star Star Star Three- Star Star Four Star Star Star Two-Star Star Star Five-Star Star
No. of responses: 7 6 10 15 11 6 4 4 7 5 12 7 11 5 10
Air (External Emissions) 100.0% 50.0% 90.0% 26.7% 45.5% 66.7% 50.0% 25.0% 14.3% 60.0% 50.0% 85.7% 33.3% 40.0% 70.0%
Air (Indoor Air Quality) 100.0 50.0 90.0 33.3 18.2 83.3 25.0 25.0 0.0 60.0 50.0 85.7 50.0 40.0 80.0
Community Interaction 85.7 50.0 80.0 26.7 9.1 83.3 25.0 25.0 0.0 20.0 41.7 85.7 16.7 40.0 20.0
Energy Consumption (Electricity) 100.0 100.0 90.0 93.3 90.9 100.0 100.0 100.0 85.7 100.0 100.0 100.0 83.3 100.0 100.0
Energy Consumption (Gas) 100.0 100.0 90.0 93.3 90.9 100.0 0.0 100.0 71.4 100.0 91.7 85.7 66.7 80.0 100.0
Energy Consumption (Oil) 100.0 50.0 80.0 66.7 72.7 100.0 25.0 75.0 71.4 60.0 91.7 100.0 50.0 100.0 100.0
Fresh Water Quality 100.0 100.0 100.0 73.3 54.6 83.3 50.0 75.0 28.6 80.0 83.3 100.0 50.0 80.0 90.0
Noise (External) 57.1 50.0 70.0 26.7 27.3 83.3 25.0 50.0 14.3 40.0 41.7 100.0 16.7 20.0 60.0
Noise (In House) 71.4 50.0 80.0 26.7 27.3 83.3 25.0 50.0 14.3 60.0 66.7 85.7 16.7 40.0 80.0
Solid Waste Disposal 85.7 50.0 50.0 13.3 27.3 66.7 25.0 75.0 14.3 20.0 58.3 85.7 33.3 40.0 50.0
Solid Waste Production (Quality) 85.7 0.0 60.0 13.3 27.3 66.7 25.0 25.0 0.0 40.0 50.0 42.9 0.0 20.0 30.0
Solid Waste Production (Segregation) 85.7 0.0 60.0 40.0 27.3 66.7 50.0 50.0 0.0 60.0 58.3 42.9 0.0 40.0 40.0
Solid Waste Production (Volume) 71.4 50.0 70.0 26.7 27.3 66.7 25.0 50.0 28.6 80.0 50.0 57.1 33.3 40.0 40.0
Staff Training in Environmental Issues 85.7 50.0 90.0 46.7 9.1 83.3 50.0 25.0 14.3 40.0 58.3 100.0 33.3 60.0 70.0
Use of Chemicals (House Keeping) 85.7 100.0 80.0 80.0 63.6 83.3 75.0 75.0 85.7 60.0 83.3 71.4 33.3 80.0 90.0
Use of Chemicals (Maintenance) 71.4 50.0 90.0 80.0 36.4 83.3 75.0 75.0 57.1 80.0 83.3 85.7 33.3 100.0 100.0
Use of Pesticides and Herbicides (Dry Rations) 71.4 100.0 30.0 26.7 18.2 50.0 25.0 50.0 14.3 40.0 33.3 42.9 16.7 40.0 40.0
Use of Pesticides and Herbicides (Green Groceries) 71.4 100.0 30.0 26.7 36.4 50.0 0.0 75.0 14.3 40.0 33.3 42.9 16.7 40.0 40.0
Use of Pesticides and Herbicides (Horticulture/Gardens) 85.7 100.0 80.0 33.3 36.4 83.3 0.0 75.0 14.3 60.0 66.7 57.1 33.3 100.0 60.0
Use of Pesticides and Herbicides (Inside Building) 71.4 100.0 60.0 73.3 45.5 83.3 25.0 75.0 42.9 80.0 83.3 71.4 33.3 80.0 70.0
Use of Pesticides and Herbicides (Pest Control) 71.4 100.0 70.0 73.3 72.7 83.3 50.0 100.0 57.1 80.0 91.7 85.7 33.3 100.0 80.0
Use of Pesticides and Herbicides (Public Area) 71.4 100.0 70.0 40.0 36.4 83.3 25.0 75.0 28.6 60.0 75.0 85.7 16.7 80.0 70.0
Waste Water Quality 100.0 50.0 90.0 33.3 18.2 66.7 0.0 25.0 14.3 80.0 83.3 100.0 16.7 100.0 90.0
Waste Water Volume 85.7 50.0 90.0 40.0 27.3 83.3 0.0 25.0 42.9 80.0 83.3 85.7 16.7 80.0 90.0
FHRAI
Water Consumption 100.0 100.0 90.0 100.0 90.9 83.3 75.0 100.0 85.7 80.0 91.7 100.0 66.7 80.0 90.0
4. Indian Hotel Industry - Twelve Other Cities
In this section, we continue to highlight market trends in 12 cities, namely, Ahmedabad, Cochin,
Jaipur, Hyderabad, Nagpur, Bhopal, Indore, Thiruvananthapuram, Shimla, Vadodara, Udaipur,
and Agra. Due to inadequate response from Lucknow and Ooty we could not cover these
markets.
As in Section 3, in certain cities and for certain star categories, we are unable to show the minimum
data requirement of at least four hotels in each representation and have reflected this as 'ID'.
With the exception of very few, most cities had insufficient data in individual star categories;
therefore, we have combined star categories to enable the information to be summarised.
However, in doing so, we have been careful to combine star categories that are broadly similar.
● Jaipur's five-star deluxe, five-star and four-star hotels had the highest percentage of foreign
guests (61.0%).
● Hyderabad's four-star and three-star hotels had the highest percentage of domestic
business travellers (66.0%).
● Four-star and three-star hotels in Hyderabad achieved the highest occupancy among the
twelve cities (75.0%). The same hotels registered the highest net income as a percentage
of revenue (39.8%).
● Three-star and two-star hotels in Vadodara achieved the lowest (among the twelve cities)
average rate (Rs 458) and five-star deluxe and four-star hotels in Jaipur achieved the highest
(among the twelve cities) average rate (Rs 2,508).
● Four-star and three-star hotels in Cochin registered a marked increase in guests from
ASEAN countries (11.2%) from the previous year (5.2%). This may be a result of the
promotional efforts of the Kerala government's tourism department.
● Ahmedabad and Agra, two cities which saw an inclusion of five-star deluxe and five-star
hotels in the survey response, reported an increase in reservations through the hotel
CRS, GDS, hotel website, other websites and online reservation systems. This is an
indication of the improved, and increased, distribution channels that chain affiliated hotels
utilize, leading to higher hotel reservations.

TABLE 4-1: Indian Hotel Industry - Twelve Other Cities: Facilities and Guest Analysis
Ahm'bad Cochin Jaipur Hyderabad Nagpur Bhopal Indore Thiruv'puram Shimla Vadodara Udaipur Agra
Five-Star Five-Star Dlx,

Four-Star, Dlx, & Three- Three- Three-Star, Four-Star, Three-Star Five-Star Five-Star,
Five-Star & Three-Star & Four Star & Four-Star & Star & Three-Star Two-Star & Four-Star, Three- Three-Star & & Two- Dlx & Two Star &
HVS International
COMPOSITION Three-Star Two-Star Star Two-Star Three-Star Others & Heritage One-Star Star & Two-Star Two-Star Star Heritage Others
Number of responses: 8 14 9 9 7 10 6 7 13 4 10 4 10
Air-Conditioned Single 3.1 3.4 1.2 2.6 29.4 3.8 5.0 4.4 0.9 0.0 4.6 0.3 1.2
Double 49.4 25.9 64.0 39.1 40.1 20.0 36.3 33.1 33.9 0.0 38.9 32.0 88.4
Suites 10.4 3.3 6.8 4.9 5.0 5.5 3.8 15.6 5.2 0.0 4.6 11.5 2.3
Non-Air-Conditioned Single 0.0 3.9 0.0 2.3 2.9 8.0 0.0 0.3 0.3 0.8 0.0 0.0 2.5
Double 3.3 9.0 4.9 3.7 10.9 10.4 0.0 1.3 4.9 24.5 4.4 0.0 7.3
Suites 0.0 0.3 0.0 0.3 0.6 0.0 0.0 0.0 0.2 4.3 0.0 0.0 0.0
Total Average Rooms 66.1 45.8 76.9 52.9 88.9 47.7 45.2 54.7 45.3 29.5 52.4 43.8 101.7


Number of responses: 8 14 9 9 6 7 6 5 12 ID 7 4 9
Page 51
Restaurant 1.3 1.6 1.9 1.3 2.2 1.7 1.8 1.4 2.0 1.7 2.0 1.8
Bar 0.1 0.4 1.1 0.7 1.0 1.3 1.2 0.8 0.5 0.0 1.3 0.7
Others 1.1 0.9 0.3 1.2 0.8 0.9 2.0 0.4 1.2 0.3 0.3 0.9
Total 2.5 2.9 3.3 3.2 4.0 3.9 5.0 2.6 3.7 2.0 3.5 3.3
Guest Analysis

Domestic Guests 79.5% 72.2% 39.0% 75.0% 88.8% 91.9% 83.0% 93.3% 49.7% 91.3% 33.3% 63.3%
Foreign Guests 20.5 27.8 61.0 25.0 11.2 8.1 17.0 6.7 50.3 8.8 66.7 36.7
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0
Total Business Guests 71.7% 47.8% 73.5% 71.7% 76.4% 71.8% 72.5% 85.2% 52.3% 68.5% 65.2% 71.7%
Total Leisure Guests 28.3 52.2 26.5 28.3 23.6 28.2 27.5 14.8 47.7 31.5 34.8 28.3
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0
Avg. Stay of Domestic Guests (Days) 2.0 2.0 2.0 2.0 2.0 2.0 2.0 4.3 2.5 2.0 2.0 2.0
Avg. Stay of Foreign Guests (Days) 3.0 3.0 3.5 3.0 3.1 2.9 3.0 3.0 4.6 2.1 2.8 3.0
Avg. Stay of Business Guests (Days) 2.1 2.3 2.2 2.1 2.7 2.1 2.5 2.2 2.0 2.5 1.2 2.0
Avg. Stay of Leisure Guests (Days) 1.0 1.4 1.9 1.8 1.9 1.8 2.1 1.9 4.3 1.3 2.0 1.8
68.0% 37.0% 42.6% 48.5% 72.8% 51.2% 57.0% 46.3% 51.2% 26.0% 25.3% 43.3%
FHRAI
Percentage of Repeat Guests
TABLE 4-2: Indian Hotel Industry - Twelve Other Cities: Staffing
FHRAI

Number of responses: 7 14 8 7 7 9 5 4 11 4 7 4 9
Managers Male 8.3 4.4 11.4 9.4 9.4 2.6 9.4 3.3 4.2 2.3 4.3 8.5 9.8
Female 1.3 0.5 1.3 0.6 1.6 0.4 1.0 0.3 0.6 0.3 0.9 1.0 0.4
Supervisors Male 8.6 5.2 9.5 8.0 18.1 5.4 14.6 4.8 5.1 1.8 10.3 13.0 8.9
Female 2.1 1.1 1.6 0.6 4.4 0.9 2.2 0.8 0.7 0.0 2.3 1.3 0.6
Staff Male 73.0 48.9 84.4 60.7 100.0 30.1 96.8 44.8 45.2 23.0 52.0 72.0 66.7
Female 2.7 7.4 2.9 1.0 9.1 5.9 1.4 0.3 5.6 0.3 4.4 1.0 1.4
Total 96.0 67.5 111.0 80.3 142.7 45.3 125.4 54.0 61.4 27.5 74.1 96.8 87.8
Average Number of Employees Per Room 1.4 1.6 1.5 1.4 1.7 0.8 2.8 1.9 1.5 0.9 1.3 2.6 0.7
Page 52

Number of responses: 3 5 4 ID 4 ID ID ID 6 ID ID 3 ID
Managers 69.2% 90.0% 94.4% 93.0% 91.7% 77.8%
Supervisors 57.5 64.0 74.2 78.4 91.7 80.7
Staff 50.4 74.9 72.9 68.0 72.3 76.2
Total Avg. Trained Employees 59.0 76.3 80.5 79.8 85.2 78.2
Total Avg. Un-Trained Employees 41.0 23.7 19.5 20.2 14.8 21.8
Hotels with Training Department 25.0% 7.1% 11.1% 0.0% 7.7% 50.0%
HVS International
*Trained employees include those with a minimum one year certificate course in an educational institute, however some hotels may have included those with short term (in-house) training.
TABLE 4-3: Indian Hotel Industry - Twelve Other Cities: Financial Report - Percentage of Revenue
Ahm'bad Cochin Jaipur Hyderabad Nagpur Bhopal Indore Thiruv'puram Vadodara Udaipur Agra
Five-Star Three-Star, Four-Star, Five-Star Dlx,

Five-Star & Four-Star, & Dlx, & Four Three-Star & Four-Star & Three-Star Three-Star Two-Star & Three-Star & Three-Star Five-Star Dlx Five-Star, Two
HVS International
COMPOSITION Three-Star Three-Star Star Two-Star Three-Star & Others & Heritage One-Star Two-Star & Two-Star & Heritage Star & Others
Average Total Rooms: 72 52 89 63 97 53 50 56 53 52 44 106
Average Occupied Rooms: 15,121 11,903 19,000 15,600 26,285 10,126 10,779 12,761 9,508 10,247 7,214 18,881
Average Occupancy: 57.0% 69.0% 57.0% 66.0% 75.0% 59.0% 59.0% 67.0% 51.0% 56.0% 47.0% 48.0%
Average Rate: Rs 2,354 Rs 908 Rs 2,508 Rs 985 Rs 1,751 Rs 1,220 Rs 1,532 Rs 1,294 Rs 1,302 Rs 1,196 Rs 6,307 Rs 1,998
REVENUE
Rooms 61.8% 44.0% 56.4% 62.1% 57.4% 44.2% 39.6% 28.0% 43.3% 46.6% 54.8% 52.6%
Food & Beverage 20.9 38.5 27.4 23.2 24.9 43.2 38.6 26.2 27.4 22.6 12.3 19.0
Banquet & Conferences 6.7 7.5 10.3 7.5 13.3 1.6 14.5 31.0 17.1 26.4 27.1 13.1
Telephone & Other 2.4 2.2 1.4 2.0 1.3 1.0 1.8 0.2 2.0 2.3 0.7 0.7
Minor Operated* 1.9 0.0 1.2 0.6 1.2 3.4 1.2 2.0 0.6 1.0 1.8 0.0
Rental & Other Income 6.2 7.8 3.5 4.5 1.8 6.7 4.2 12.4 9.7 1.3 3.2 14.6
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Rooms 12.1 20.1 11.7 16.8 12.8 18.4 20.1 12.4 16.7 17.0 18.6 28.5
Food & Beverage 60.5 70.9 54.0 67.7 58.8 65.9 61.4 61.6 57.0 58.7 53.4 42.5
Page 53
Telephone & Other 38.5 87.3 64.9 242.7 78.9 22.8 76.4 88.2 64.3 90.6 81.3 59.5
Minor Operated* 100.0 0.0 34.7 602.9 31.4 2.6 123.8 104.6 84.4 59.9 165.3 3,789.4
Rental & Other Income 2.2 28.2 2.3 0.0 9.6 126.9 13.0 0.7 0.0 18.1 19.4 0.2
Total 27.2 46.5 28.3 39.8 31.4 46.5 44.0 41.2 34.3 39.6 35.5 29.8
DEPARTMENTAL INCOME 72.8 53.5 71.7 60.2 68.7 53.6 56.0 58.8 65.7 60.5 64.5 70.2
OPERATING EXPENSES
Administrative & General 8.8 7.8 9.9 7.3 5.8 15.5 5.6 16.2 10.9 8.7 12.9 1.8
Management Fee 4.7 0.9 0.8 1.3 1.0 0.0 0.7 0.4 2.0 10.8 1.4 1.2
Marketing 1.9 1.4 7.1 3.7 1.2 2.3 2.4 2.8 1.8 1.9 6.1 2.0
Franchise Fees 0.0 0.0 0.0 0.0 0.0 0.0 0.9 0.1 0.1 0.0 0.0 0.0
Property Operations & Maintenance 5.6 26.8 6.0 6.1 7.8 5.2 5.1 2.8 7.6 3.5 5.0 2.6
Energy 12.0 13.4 11.8 16.9 9.7 10.0 16.2 9.5 13.5 17.3 8.5 14.7
Total 33.0 50.2 35.7 35.4 25.6 33.0 30.7 31.8 35.8 42.1 33.9 22.3
HOUSE PROFIT 39.8 3.3 36.1 24.9 43.0 20.6 25.3 27.0 29.9 18.4 30.7 47.8
FIXED EXPENSES
Property Taxes 1.0 0.2 0.2 0.8 1.6 0.2 0.5 1.0 0.2 0.4 0.0 0.1
Insurance 0.7 0.2 0.4 0.5 0.3 0.1 0.4 0.3 0.8 0.7 0.1 1.1
Other Fixed Expenses 0.7 0.0 0.5 0.6 0.5 0.5 0.6 1.0 1.2 1.7 23.2 11.9
Rent 0.0 2.4 0.7 1.1 0.9 0.0 3.6 0.1 0.1 1.0 0.0 1.5
Total 2.5 2.8 1.8 3.0 3.3 0.8 5.1 2.5 2.2 3.8 23.4 14.6
NET INCOME** 37.4% 0.6% 34.2% 22.0% 39.8% 19.7% 20.2% 24.5% 27.2% 14.6% 7.2% 33.2%
FHRAI
TABLE 4-4: Indian Hotel Industry - Twelve Other Cities: Financial Report - Per Available Room
FHRAI
Ahm'bad Cochin Jaipur Hyderabad Nagpur Bhopal Thiruv'puram Vadodara Udaipur Agra
Four-Star, Five-Star Dlx,

Five-Star & Four-Star & Five-Star Dlx, Three-Star & Four-Star & Three-Star & Three-Star & Three-Star & Three-Star & Five-Star Dlx & Five-Star, Two
COMPOSITION Three-Star Three-Star & Four Star Two-Star Three-Star Others Heritage Two-Star Two-Star Heritage Star & Others
Number of responses: 5 5 4 5 5 4 5 6 4 4 5
Average Total Rooms: 72 52 89 63 97 53 50 53 52 44 106
Average Occupied Rooms: 15,121 11,903 19,000 15,600 26,285 10,126 10,779 9,508 10,247 7,214 18,881
Average Occupancy: 57.0% 69.0% 57.0% 66.0% 75.0% 59.0% 59.0% 51.0% 56.0% 47.0% 48.0%
Average Rate: Rs 2,354 Rs 908 Rs 2,508 Rs 985 Rs 1,751 Rs 1,220 Rs 1,532 Rs 1,302 Rs 1,196 Rs 6,307 Rs 1,998
REVENUE
Rooms Rs497,300 Rs206,315 Rs533,501 Rs243,212 Rs475,552 Rs235,395 Rs329,092 Rs232,838 Rs236,901 Rs1,040,030 Rs357,399
Food & Beverage 168,236 180,374 259,047 90,962 206,376 230,295 320,685 147,191 115,678 233,920 128,839
Banquet & Conferences 53,905 35,015 96,970 29,396 110,273 8,710 120,442 91,778 135,031 513,206 89,138
Telephone & Other 19,157 10,384 12,833 7,696 10,469 5,104 14,853 10,529 11,769 14,120 4,895
Minor Operated* 15,508 0 10,844 2,402 9,833 17,871 10,311 3,103 5,197 34,663 136
Rental & Other Income 49,832 36,546 32,677 17,661 15,134 35,462 35,136 52,398 6,415 60,387 99,083
Total 803,938 468,634 945,871 391,329 827,636 532,837 830,518 537,838 510,992 1,896,330 679,491
Rooms 60,221 41,458 62,525 40,940 60,616 43,305 66,016 38,756 40,203 193,320 101,962
Food & Beverage 134,421 152,761 192,257 81,465 186,083 157,571 271,020 136,151 147,029 398,869 92,565
Page 54
Telephone & Other 7,372 9,065 8,325 18,677 8,256 1,162 11,343 6,771 10,662 11,480 2,914
Minor Operated* 15,510 4,141 3,765 14,481 3,083 471 12,765 2,620 3,111 57,291 5,167
Rental & Other Income 1,075 10,305 746 0 1,446 45,005 4,550 0 1,159 11,726 159
Total 218,598 217,731 267,618 155,563 259,483 247,514 365,693 184,299 202,164 672,686 202,768
DEPARTMENTAL INCOME 585,340 250,903 678,253 235,766 568,153 285,323 464,825 353,539 308,827 1,223,640 476,724
OPERATING EXPENSES
Administrative & General 70,696 36,450 93,586 28,636 48,128 82,400 46,299 58,742 44,348 243,611 12,360
Management Fee 38,089 4,330 7,616 5,000 8,463 0 5,478 10,990 55,024 26,691 8,371
Marketing 15,345 6,584 66,984 14,649 10,231 12,357 19,518 9,438 9,473 114,857 13,442
Franchise Fees 0 0 0 0 52 0 7,394 314 0 0 0
Property Operations & Maintenance 45,287 125,454 57,133 23,972 64,729 27,443 42,147 40,643 17,831 95,029 17,940
Energy 96,089 62,603 111,866 66,136 80,304 53,500 134,187 72,441 88,401 161,891 99,655
Total 265,507 235,422 337,184 138,392 211,907 175,700 255,024 192,568 215,077 642,080 151,768
HOUSE PROFIT 319,833 15,481 341,069 97,373 356,246 109,623 209,801 160,971 93,750 581,563 324,955
FIXED EXPENSES
Property Taxes 8,283 932 2,235 3,120 13,256 1,010 4,502 997 1,792 103 419
Insurance 5,726 841 3,944 1,921 2,744 671 3,020 4,106 3,638 2,623 7,436
Other Fixed Expenses 5,774 115 4,567 2,373 3,891 2,757 4,578 6,611 8,797 439,989 81,081
Rent 0 10,992 6,149 4,095 7,120 0 30,167 314 4,952 589 10,108
Total 19,784 12,880 16,896 11,510 27,010 4,438 42,267 12,027 19,179 443,303 99,044
NET INCOME** Rs300,050 Rs 2,601 Rs324,173 Rs85,864 Rs 329,236 Rs105,185 Rs167,534 Rs 148,944 Rs74,571 Rs138,260 Rs225,912
HVS International
TABLE 4-5: Indian Hotel Industry - Twelve Other Cities: Financial Report - Per Occupied Room
Ahm'bad Cochin Jaipur Hyderabad Nagpur Bhopal Thiruv'puram Vadodara Udaipur Agra
HVS International
Five-Star & Four-Star & Dlx, & Four Three-Star Four-Star & Three-Star & Three-Star & Four-Star, Three- Three-Star & Two- Five-Star Dlx & Five-Star, Two
COMPOSITION Three-Star Three-Star Star & Two-Star Three-Star Others Heritage Star & Two-Star Star Heritage Star & Others
Number of responses: 5 5 4 5 5 4 5 6 4 4 5
Average Total Rooms: 72 52 89 63 97 53 50 53 52 44 106
Average Occupied Rooms: 15,121 11,903 19,000 15,600 26,285 10,126 10,779 9,508 10,247 7,214 18,881
Average Occupancy: 57.0% 69.0% 57.0% 66.0% 75.0% 59.0% 59.0% 51.0% 56.0% 47.0% 48.0%
Average Rate: Rs 2,354 Rs 908 Rs 2,508 Rs 985 Rs 1,751 Rs 1,220 Rs 1,532 Rs 1,302 Rs 1,196 Rs 6,307 Rs 1,998
REVENUE
Rooms Rs2,355 Rs908 Rs2,508 Rs985 Rs1,751 Rs1,221 Rs1,533 Rs1,302 Rs1,196 Rs6,308 Rs1,999
Food & Beverage 797 794 1,218 369 760 1,194 1,494 823 584 1,419 721
Banquet & Conferences 255 154 456 119 406 45 561 513 682 3,112 499
Telephone & Other 91 46 60 31 39 26 69 59 59 86 27
Minor Operated* 73 0 51 10 36 93 48 17 26 210 1
Rental & Other Income 236 161 154 72 56 184 164 293 32 366 554
Total 3,807 2,063 4,447 1,585 3,048 2,763 3,868 3,008 2,581 11,501 3,800
Rooms 285 183 294 166 223 225 307 217 203 1,172 570
Food & Beverage 637 672 904 330 685 817 1,262 761 743 2,419 518
Page 55
Telephone & Other 35 40 39 76 30 6 53 38 54 70 16
Minor Operated* 73 18 18 59 11 2 59 15 16 347 29
Rental & Other Income 5 45 4 0 5 233 21 0 6 71 1
Total 1,035 959 1,258 630 956 1,283 1,703 1,031 1,021 4,080 1,134
DEPARTMENTAL INCOME 2,772 1,105 3,189 955 2,092 1,479 2,165 1,977 1,560 7,421 2,666
OPERATING EXPENSES
Administrative & General 335 160 440 116 177 427 216 329 224 1,477 69
Management Fee 180 19 36 20 31 0 26 61 278 162 47
Marketing 73 29 315 59 38 64 91 53 48 697 75
Franchise Fees 0 0 0 0 0 0 34 2 0 0 0
Property Operations & Maintenance 214 552 269 97 238 142 196 227 90 576 100
Energy 455 276 526 268 296 277 625 405 446 982 557
Total 1,257 1,036 1,585 561 780 911 1,188 1,077 1,086 3,894 849
HOUSE PROFIT 1,514 68 1,604 394 1,312 568 977 900 473 3,527 1,817
FIXED EXPENSES
Property Taxes 39 4 11 13 49 5 21 6 9 1 2
Insurance 27 4 19 8 10 3 14 23 18 16 42
Other Fixed Expenses 27 1 21 10 14 14 21 37 44 2,668 453
Rent 0 48 29 17 26 0 141 2 25 4 57
Total 94 57 79 47 99 23 197 67 97 2,689 554
NET INCOME** Rs 1,420 Rs 11 Rs1,524 Rs348 Rs 1,212 Rs545 Rs780 Rs 832 Rs377 Rs839 Rs1,263
FHRAI
TABLE 4-6: Indian Hotel Industry - Twelve Other Cities: Market Data
FHRAI
Market Segmentation
Five-Star Four-Star, Five-Star Three- Three-Star, Four-Star, Five-Star Five-Star Dlx,

& Three- Three-Star & Dlx, & Four Star & Four-Star & Three-Star Three-Star & Two-Star & Three-Star & Three-Star Dlx & Five-Star, Two
COMPOSITION Star Two-Star Star Two-Star Three-Star & Others Heritage One-Star Two-Star & Two-Star Heritage Star & Others
Airline Crew 6.0% 0.4% 1.0% 0.4% 0.4% 0.0% 1.0% 2.8% 0.5% 1.3% 4.5% 0.7%
Business Traveller - Domestic 54.8 45.4 3.5 40.4 66.0 64.7 56.0 40.4 17.1 62.4 10.1 12.8
Business Traveller - Foreign 7.3 4.7 2.0 3.4 6.7 4.0 8.0 2.6 12.0 10.3 16.4 5.5
Complimentary Rooms 1.0 1.0 3.8 0.6 1.2 2.7 2.3 4.8 1.1 1.3 2.5 2.8
Domestic - Tourists/Leisure FIT 6.6 14.4 14.8 15.6 12.3 13.0 4.8 12.4 20.2 3.3 8.1 15.8
Foreign - Tourists/Leisure FIT 5.0 15.0 19.3 9.4 2.3 1.4 6.3 6.4 18.7 3.8 31.1 16.2
Meeting Participants (Less than 100 Attendees) 2.6 3.0 10.0 5.8 1.4 0.0 1.5 5.0 1.5 5.0 0.4 4.2
Meeting Participants (Over 100 Attendees) 4.6 1.7 13.0 8.0 3.9 11.6 7.3 13.0 2.2 5.8 1.4 11.5
Tour Groups - Domestic 3.6 6.7 5.5 8.4 3.4 2.0 4.5 8.2 10.3 2.3 3.9 17.7
Tour Groups - Foreign 0.9 3.3 21.3 7.2 1.0 0.0 8.0 2.0 14.1 1.0 11.6 11.3
Other 7.6 4.4 6.0 0.8 1.5 0.7 0.5 2.4 2.2 3.8 10.0 1.5
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Page 56
Five-Star Four-Star, Five-Star Three- Three-Star, Four-Star, Five-Star Five-Star Dlx,

& Three- Three-Star & Dlx, & Four Star & Four-Star & Three-Star Three-Star & Two-Star & Three-Star & Three-Star Dlx & Five-Star, Two
COMPOSITION Star Two-Star Star Two-Star Three-Star & Others Heritage One-Star Two-Star & Two-Star Heritage Star & Others
Number of responses: 5 9 5 5 5 ID 4 4 11 4 4 6
ASEAN* 3.2% 11.2% 2.4% 4.3% 6.5% 26.5% 1.3% 4.4% 0.2% 0.8% 2.8%
Australia 3.4 5.2 2.0 3.2 1.3 2.8 1.5 1.5 0.3 4.3 5.4
Canada 3.2 1.7 1.8 1.9 1.8 6.5 6.3 2.4 0.2 2.9 2.7
Caribbean 0.8 0.0 0.0 0.4 0.4 0.0 0.0 0.2 0.0 0.0 0.2
China 1.1 2.6 1.2 2.0 1.3 2.3 1.0 0.8 0.1 1.1 2.1
France 3.6 6.4 17.4 10.4 1.7 4.3 4.5 4.7 0.3 15.2 10.7
Germany 7.4 10.0 5.6 3.2 6.7 3.0 4.0 8.4 0.6 8.7 12.7
Japan 2.3 4.4 7.6 3.9 1.3 18.5 4.5 4.0 0.4 3.1 7.4
Middle East 3.0 6.9 0.8 0.4 6.1 0.5 0.5 1.7 0.0 0.5 2.1
Other European 2.6 8.2 11.4 3.7 3.6 2.8 4.3 9.0 2.3 20.0 6.1
Russia 0.8 0.8 3.0 0.2 0.7 0.5 2.0 1.6 0.1 0.1 1.1
SAARC** 21.7 5.8 1.2 4.6 20.6 2.8 3.3 2.4 23.7 0.5 2.1
South Africa 1.5 1.9 0.2 1.2 1.0 0.8 0.3 1.3 0.1 0.3 1.1
UK 8.6 13.8 25.6 11.0 9.7 10.3 28.3 40.2 11.9 14.8 14.6
USA 17.8 13.3 14.6 6.7 31.3 5.3 31.0 7.6 54.6 14.4 10.6
Other 19.1 8.0 5.2 43.1 6.0 13.5 7.5 9.7 5.3 13.4 18.5
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.1 100.0 100.0 100.0 100.0
* ASEAN: Association of South East Asian Nations ** South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives
HVS International
TABLE 4-7: Indian Hotel Industry - Twelve Other Cities: Monthly & Daily Occupancy
Five-Star
Dlx, Five-
HVS International
Five-Star Three-Star, Four-Star, Four-Star, Star, Two
Five-Star & Four-Star & Dlx, & Four Three-Star Four-Star & Three-Star & Three-Star Two-Star & Three-Star & Three-Star & Three-Star & Five-Star Dlx Star &
COMPOSITION Three-Star Three-Star Star & Two-Star Three-Star Others & Heritage One-Star Two-Star Two-Star Two-Star & Heritage Others
January 69.5% 68.4% 70.4% 83.4% 72.4% 64.5% 65.4% 63.7% 80.6% 45.5% 62.9% 68.5%
February 67.1 66.9 73.1 84.4 76.2 58.8 72.0 64.7 75.8 47.5 65.4 74.2
March 59.3 58.1 63.2 76.6 71.4 54.8 61.8 56.5 62.4 41.5 47.1 53.5
April 53.3 61.2 45.2 55.3 70.2 50.3 67.5 61.0 48.8 44.0 29.7 45.9
May 52.9 66.6 26.5 44.8 70.8 46.3 68.3 63.5 43.0 48.0 11.4 35.3
June 55.9 54.6 26.6 47.2 73.2 53.0 58.0 62.0 32.2 49.0 11.2 30.9
July 56.5 50.1 27.7 51.4 60.8 52.5 52.3 61.5 34.0 46.8 21.8 37.0
August 53.1 59.5 45.3 60.1 53.4 57.5 49.5 60.0 43.6 49.3 52.8 42.6
September 63.5 66.3 103.3 61.7 57.4 64.5 59.3 62.5 45.3 51.3 40.7 44.8
October 60.3 69.5 57.6 71.0 58.4 67.5 59.3 58.8 54.3 49.8 64.6 51.0
November 72.1 73.7 71.2 80.2 76.6 69.3 58.5 61.2 69.7 52.8 69.5 66.2
December 73.9 79.0 68.0 82.2 75.2 72.5 61.0 63.7 83.2 60.0 71.0 62.9
Page 57
Five-Star
Dlx, Five-
Five-Star Three-Star, Four-Star, Four-Star, Star, Two
Five-Star & Four-Star & Dlx, & Four Three-Star Four-Star & Three-Star & Three-Star Two-Star & Three-Star & Three-Star & Three-Star & Five-Star Dlx Star &
COMPOSITION Three-Star Three-Star Star & Two-Star Three-Star Others & Heritage One-Star Two-Star Two-Star Two-Star & Heritage Others
Number of responses: 5 8 4 4 5 4 4 6 7 ID 4 ID 5
Monday 59.0% 57.6% 29.0% 54.3% 73.2% 58.8% 63.3% 52.5% 52.0% 48.3% 38.3%
Tuesday 64.4 58.5 21.7 63.3 79.4 65.0 67.3 60.0 55.7 55.0 41.0
Wednesday 68.0 54.8 21.0 67.7 76.6 55.0 69.0 65.0 57.0 63.0 43.0
Thursday 66.0 60.6 24.0 73.0 75.8 57.5 71.8 66.7 55.3 55.7 43.0
Friday 54.4 63.2 45.3 69.0 69.2 52.5 57.3 62.5 58.1 55.0 37.0
Saturday 49.2 64.4 48.7 64.3 57.6 41.3 49.0 48.3 58.9 38.3 61.0
Sunday 46.2 52.5 35.3 56.7 51.8 32.5 42.5 37.5 55.3 30.0 47.0
FHRAI
TABLE 4-8: Indian Hotel Industry - Twelve Other Cities: Sources of Reservation
FHRAI
Five-Star
Dlx, Five-
Five-Star Three-Star, Four-Star, Four-Star, Five-Star Star, Two
Five-Star & Four-Star & Dlx, & Four Three-Star Four-Star & Three-Star & Three-Star Two-Star & Three-Star & Three-Star & Three-Star & Dlx & Star &
COMPOSITION Three-Star Three-Star Star & Two-Star Three-Star Others & Heritage One-Star Two-Star Two-Star Two-Star Heritage Others
Chain Central Resvn. Sys. 8.4% 10.0% 33.3% 10.0% 0.7% 0.0% 2.3% 0.0% 16.0% 5.0% 24.3% 14.4%
Direct Enquiry/ Hotel Rep. 62.0 48.0 15.0 64.5 71.2 84.7 58.8 73.8 30.3 51.2 5.7 25.9
Global Distribution Sys. (GDS) 1.0 0.0 1.7 0.0 0.0 0.0 0.8 0.0 0.2 1.8 0.8 1.1
Hotel/Chain Web Site 10.4 6.8 3.3 4.5 3.5 0.0 15.7 6.3 2.6 3.8 2.3 4.7
Travel Agent & Tour Operator 7.8 18.6 31.7 12.7 16.0 8.3 14.0 10.3 39.5 14.5 46.3 36.7
Other Online Resvn. Sys. 2.0 1.9 1.7 0.8 4.2 0.0 0.3 0.0 3.2 7.5 17.0 1.1
Other Websites 2.0 2.0 0.0 0.0 0.2 0.0 1.3 0.0 1.5 3.8 0.0 5.6
Others 6.4 12.8 13.3 7.5 4.3 7.0 7.0 9.8 6.9 12.5 3.8 10.4
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Page 58
TABLE 4-9: Indian Hotel Industry - Twelve Other Cities: Marketing Media
Five-Star
Dlx, Five-
Number of responses: 5 8 4 6 4 4 ID 4 11 ID 4 4 6
Direct Mail 100.0% 87.5% 75.0% 100.0% 75.0% 75.0% 100.0% 90.9% 100.0% 100.0% 66.7%
Hotel Website 100.0 75.0 100.0 83.3 75.0 0.0 50.0 81.8 75.0 100.0 66.7
Loyalty Card Program 40.0 25.0 50.0 50.0 75.0 0.0 25.0 36.4 50.0 50.0 33.3
Merchandising 40.0 25.0 0.0 33.3 50.0 75.0 25.0 36.4 0.0 25.0 0.0
Other Internet Site 60.0 62.5 75.0 50.0 25.0 0.0 50.0 54.6 75.0 100.0 33.3
Outdoor Advertising 60.0 87.5 100.0 66.7 25.0 50.0 75.0 63.6 75.0 50.0 50.0
Print Advertising 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Promotions 100.0 87.5 100.0 83.3 100.0 0.0 75.0 90.9 50.0 75.0 83.3
Radio Advertising 20.0 12.5 0.0 16.7 0.0 0.0 25.0 0.0 0.0 0.0 0.0
Telemarketing 100.0 87.5 75.0 50.0 100.0 25.0 50.0 63.6 100.0 25.0 50.0
HVS International
TV Advertising 100.0 37.5 50.0 16.7 25.0 0.0 25.0 45.5 75.0 50.0 50.0
TABLE 4-10: Indian Hotel Industry - Twelve Other Cities: Payment Methods
Payment Methods
Five-Star
Dlx, Five-
HVS International
Cash Sales (including cheques & drafts) 16.9% 50.2% 20.3% 53.5% 35.8% 64.7% 31.1% 53.7% 30.6% 47.5% 15.5% 45.5%
Credit Card Sales 52.2 30.9 20.3 28.6 43.7 20.8 33.0 25.2 38.1 29.8 28.3 17.3
Credit Sales (Other than Cards) 30.9 18.4 59.3 17.9 20.5 14.5 33.9 19.5 28.1 20.3 54.5 37.2
Electronic Fund Transfer 0.0 0.5 0.0 0.0 0.0 0.0 2.0 1.7 3.2 2.5 1.8 0.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0
Credit Cards Used

Five-Star
Dlx, Five-
Page 59
American Express 11.8% 5.9% 22.7% 9.1% 15.0% 12.4% 12.8% 6.2% 8.3% 9.3% 27.6% 19.3%
Diners Club 15.9 13.0 4.2 3.9 5.0 6.7 9.8 4.4 7.1 21.0 0.7 2.1
Mastercard/Eurocard 35.4 29.7 25.2 28.3 30.5 32.5 37.2 39.0 35.3 20.0 33.0 35.2
Visa 31.9 37.8 37.7 57.1 48.8 41.5 40.2 40.4 45.6 43.3 38.8 42.5
Other 5.0 13.6 10.3 1.7 0.8 7.0 0.0 10.0 3.7 6.3 0.0 1.0
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 0.0 100.0 100.0 100.0
Average Credit Card Collection Charges

Five-Star
Dlx, Five-
American Express 3.6 2.4 3.2 3.6 3.5 2.9 3.6 2.4 3.2 1.5 3.5 3.5
Diners Club 2.2 1.2 1.7 2.2 2.2 1.5 2.5 1.5 1.5 2.6 2.1 1.6
Mastercard/Eurocard 1.6 2.5 1.7 1.5 2.1 2.5 1.8 1.8 2.0 2.4 1.6 1.7
FHRAI
Visa 1.6 2.6 1.7 1.5 2.0 2.5 1.8 1.8 1.9 2.7 1.6 1.7
TABLE 4-11: Indian Hotel Industry - Twelve Other Cities: Technology Issues
FHRAI
Ahm'bad Cochin Jaipur Hyderabad Nagpur Thiruv'puram Vadodara Udaipur Agra
Five-Star
Dlx, Five-
Four-Star, Five-Star Star, Two
Five-Star & Four-Star & Five-Star Dlx, Three-Star & Four-Star & Three-Star Three-Star & Three-Star & Dlx & Star &
COMPOSITION Three-Star Three-Star & Four Star Two-Star Three-Star & Others Two-Star Two-Star Heritage Others
Number of responses: 5 8 4 4 4 4 9 4 4 ID
Accounting System 100.0% 75.0% 66.7% 100.0% 100.0% 100.0% 66.7% 100.0% 100.0%
Call Accounting System 60.0 62.5 66.7 75.0 75.0 25.0 44.4 66.7 75.0
Central Reservation System (CRS) 80.0 50.0 66.7 50.0 25.0 0.0 33.3 33.3 100.0
Electronic Keycard 60.0 0.0 33.3 50.0 0.0 0.0 11.1 33.3 50.0
Energy Management System 40.0 25.0 0.0 25.0 0.0 0.0 22.2 0.0 75.0
Internet/E-Mail 100.0 87.5 100.0 100.0 100.0 25.0 88.9 66.7 100.0
Internet/Website 100.0 62.5 100.0 100.0 100.0 25.0 88.9 0.0 100.0
Intranet System 80.0 37.5 33.3 25.0 25.0 0.0 44.4 66.7 100.0
Local Area Network (LAN) 100.0 62.5 100.0 100.0 100.0 0.0 66.7 33.3 100.0
Management Information System (MIS) 100.0 62.5 100.0 75.0 100.0 25.0 22.2 66.7 100.0
Point of Sale System for F&B 100.0 50.0 100.0 100.0 100.0 0.0 33.3 33.3 100.0
Property Management System 80.0 37.5 100.0 100.0 50.0 0.0 44.4 33.3 75.0
Yield Management System 40.0 25.0 0.0 25.0 25.0 0.0 33.3 0.0 50.0
Other 40.0 0.0 0.0 25.0 0.0 0.0 11.1 0.0 25.0
Ahm'bad Cochin Jaipur Hyderabad Nagpur Thiruv'puram Vadodara Udaipur Agra

Five-Star
Dlx, Five-
Page 60
Four-Star, Five-Star Star, Two
Five-Star & Four-Star & Five-Star Dlx, Three-Star & Four-Star & Three-Star Three-Star & Three-Star & Dlx & Star &
COMPOSITION Three-Star Three-Star & Four Star Two-Star Three-Star & Others Two-Star Two-Star Heritage Others
Number of responses: 5 6 4 4 4 4 9 4 4 4
Air (External Emissions) 60.0% 33.3% 33.3% 31.2% 25.0% 50.0% 66.7% 33.3% 66.7% 37.5%
Air (Indoor Air Quality) 100.0 33.3 33.3 33.3 25.0 25.0 66.7 66.7 66.7 0.0
Community Interaction 60.0 16.7 33.3 33.3 25.0 0.0 55.6 0.0 66.7 0.0
Energy Consumption (Electric) 100.0 100.0 100.0 100.0 100.0 75.0 100.0 100.0 100.0 100.0
Energy Consumption (Gas) 100.0 83.3 100.0 100.0 100.0 75.0 100.0 66.7 100.0 100.0
Energy Consumption (Oil) 100.0 83.3 66.7 100.0 100.0 0.0 77.8 66.7 100.0 100.0
Fresh Water Quality 100.0 66.7 33.3 66.7 100.0 25.0 66.7 66.7 100.0 66.7
Noise (External) 80.0 16.7 33.3 0.0 25.0 75.0 66.7 33.3 66.7 0.0
Noise (In House) 60.0 66.7 33.3 66.7 50.0 75.0 55.6 66.7 66.7 0.0
Solid Waste Disposal 80.0 33.3 66.7 0.0 75.0 50.0 66.7 0.0 33.3 0.0
Solid Waste Production (Quality) 80.0 33.3 33.3 33.3 25.0 0.0 44.4 33.3 66.7 0.0
Solid Waste Production (Segregation) 80.0 33.3 33.3 66.7 25.0 0.0 55.6 33.3 66.7 0.0
Solid Waste Production (Volume) 80.0 50.0 0.0 33.3 25.0 50.0 44.4 33.3 33.3 33.3
Staff Training in Environmental Issues 100.0 16.7 33.3 66.7 50.0 0.0 77.8 33.3 66.7 33.3
Use of Chemicals (House Keeping) 100.0 83.3 66.7 100.0 100.0 100.0 88.9 100.0 100.0 100.0
Use of Chemicals (Maintenance) 100.0 50.0 66.7 100.0 100.0 100.0 66.7 100.0 100.0 100.0
Use of Pesticides and Herbicides (Dry Rations) 80.0 16.7 33.3 66.7 25.0 75.0 22.2 33.3 66.7 0.0
Use of Pesticides and Herbicides (Green Groceries) 80.0 16.7 33.3 100.0 25.0 75.0 33.3 33.3 66.7 33.3
Use of Pesticides and Herbicides (Horticulture / Gardens) 100.0 33.3 100.0 66.7 100.0 100.0 66.7 66.7 100.0 33.3
Use of Pesticides and Herbicides (Inside Building) 80.0 50.0 66.7 66.7 50.0 75.0 66.7 66.7 100.0 0.0
Use of Pesticides and Herbicides (Pest Control) 100.0 83.3 100.0 33.3 75.0 100.0 88.9 66.7 100.0 66.7
Use of Pesticides and Herbicides (Public Area) 80.0 33.3 66.7 33.3 50.0 75.0 66.7 66.7 100.0 0.0
Waste Water Quality 60.0 66.7 33.3 66.7 50.0 0.0 33.3 33.3 100.0 0.0
Waste Water Volume 80.0 66.7 66.7 100.0 50.0 0.0 55.6 33.3 100.0 66.7
HVS International
Water Consumption 100.0 100.0 66.7 100.0 100.0 50.0 77.8 100.0 100.0 100.0

Indian Hotel Industry Survey 2003-2004

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The Worlds News Leader

Foreword from the President, FHRAI ... ...... 1

Message from HVS International.. . . .. ...... 5

Introduction & Key Highlights of the Survey.. ... ...... 6

Trends & Opportunities in the Indian Hotel Industry.. .... ..... 12

1. Indian Hotel Industry - by Star Category ....... 20

3. Indian Hotel Industry - Seven Major Cities.... . . ....... 39

4. Indian Hotel Industry - Twelve Other Cities. .. ........ 50

Hotel Analysis Worksheet. ..... 61

HVS International ... .... 62

HVS International Page 1 FHRAI

Therefore, by enrolling in the programme, hotels can:

FHRAI Page 2 HVS International

CNN - THE CHANNEL OF CHOICE

Promoting Your Hotel Online

CNN On-Air Promotions

Discounted Advertising Online

Discounted Advertising and subscription rates to CNN Traveller Magazine]

Affiliated Consumer Publications

HVS International Page 3 FHRAI

✓ Yes please send me more information on the CNN Partnership Programme

(Please tick one)

We currently offer CNN to our hotel guests

We currently do not offer CNN to our hotel guests

Name of Hotel: ___________________________________________________________________

Group Affiliation (if any): __________________________________________________________

City for Listing:___________________________________________________________________

Telephone: County Code:__________ Area Code:__________ Number: ___________________

Facsimile: County Code:_________ Area Code:________ Number: ______________________

Reservation E-Mail: _______________________________________________________________

Total Number of Rooms: __________________(including suites __________________________

NB: Terms and conditions apply

For more information on CNN Hotel Partnership Programme, please email to

FHRAI Page 4 HVS International

Manav Thadani Lokesh Sabharwal Chandrima Budakoti

HVS International Page 5 FHRAI

Introduction & Key Highlights of the Survey

Introduction to the FHRAI Indian Hotel Industry Survey

HVS International Page 7 FHRAI

Average Occupancy Average Rate

FHRAI Page 8 HVS International

Breakdown of Revenue - 2003-2004 Departmental Expenses as a Percentage of Revenue -

HVS International Page 9 FHRAI

FHRAI Page 10 HVS International

● Percentage of foreign guests increased to 25.0% in 2003-04, compared to 23.1% in 2002-03,

HVS International Page 11 FHRAI

Five-Star All India

● In 2003-04, as in preceding years, hotels monitored electricity consumption more closely

● In 2003-04, hotels increased the monitoring of chemical usage by housekeeping at 79.1%.

Environmental Issues - Percentage of Hotels Monitoring Quantitative Performance

FHRAI Page 12 HVS International

Trends & Opportunities in the Indian Hotel

HVS International Page 13 FHRAI

FHRAI Page 14 HVS International

● Use of telemarketing as marketing media has increased, particularly in the three-star

● Interestingly, radio advertisement and television advertisements have grown in use as

HVS International Page 15 FHRAI

Average Total Rooms Per Hotel: 63 62 63 66 82 63 62 63 66 82 63 62 63 66 82

HVS International Page 17 FHRAI

FHRAI Page 18 HVS International

HVS International Page 19 FHRAI

Number of New Hotel Developments

FHRAI Page 20 HVS International

The Worlds News Leader

Foreword from the President, FHRAI... ...... 1

Message from HVS International...... ...... 5

Introduction & Key Highlights of the Survey..... ...... 6

Trends & Opportunities in the Indian Hotel Industry...... ..... 12

3. Indian Hotel Industry - Seven Major Cities...... ....... 39

Telephone: County Code: Area Code: Number: ___________

Facsimile: County Code:_ Area Code: Number: ______________

Total Number of Rooms: (including suites ________