INTRODUCTION

HOSPITALITY INDUSTRY

The Hospitality Industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, and human resources. The hospitality industry covers a wide range of organizations offering food service and accommodation. The industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information.

INDUSTRY PERFORMANCE IN INDIA

The booming tourism industry of India, a top world tourist destination, has also led to the growth of the Indian hospitality industry. The huge number of tourists, both international and domestic, are catered to and taken care of by the 5 star hotels in India, who offer warmth, comfort and contemporary facilities to the guests. The 5 star hotels in India offer a host of services and facilities to corporate as well as leisure travellers. Luxurious and spacious rooms, sumptuous delicacies, ample recreation options and fabulous meeting and conference facilities are the characteristics of these hotels. Besides these, many of these hotels also come up with lucrative holiday packages for the convenience of the tourist and travellers. Many of the 5 star hotels belong to the reputed hotel groups of India , like the Taj Group, Oberoi Group, ITC Group, the Welcome Group and many others. All of them feature among the luxury hotels in India.

Five star hotels are found in many the cities of the country like New Delhi, Kolkata, Mumbai, Bangalore, Agra, Hyderabad, Chennai, Jaipur, Chandigarh, Pune, Khajuraho, Jodhpur, Panaji, Srinagar and others. So, expect good value for your money and enjoy a relaxed and luxurious holiday by lodging in any of the 5 star hotels in India. The warm hospitality offered amidst royal comfort will surely leave you mesmerized.

FINANCIAL ANALYSIS
After witnessing exceptionally bad years in FY09 and FY10 due to the global economic slowdown and terror attacks, the Indian Hotel Industry appears to be now on a path of slow recovery. Foreign tourist arrivals (FTAs) to India surged from 5.11 m in 2009 to 5.58 m in 2010, thereby resulting in an increase of 9.3% YoY. India occupies the sixty-eighth position among the top tourist destinations in the world, according to the Travel and Tourism Competitiveness Report 2011. To encourage the tourism sector, the government in recent times, has taken some measures which will benefit the sector. In the general budget for 2011-12, Rs 11.7 bn for development of tourism infrastructure and promotion of tourism was allocated. This figure is higher by Rs 1.0 bn as compared what was allocated in the previous year. The Centre and States are also working out a PPP (Public-Private-Partnership) model to increase hotel capacity. Government of India increased spend on advertising campaigns (including for the campaigns 'Incredible India' and 'Athithi Devo Bhava' - Visitors are like God) to reinforce the rich variety of tourism in India. The ministry granted Tourist Visa on Arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore. It also promoted India as a safe tourist destination and undertook various measures, such as stepping up vigilance in key cities and at historically important tourist sites. The tourism ministry has envisaged a budgetary allocation of Rs 200 bn in the Twelfth Five Year Plan. According to the latest Tourism Satellite Accounting (TSA) research, released by the World Travel and Tourism Council (WTTC), the demand for travel and tourism in India is expected to grow by 8.2 % between 2010 and 2019. This will place India at the third position in the world. India's travel and tourism sector is expected to be the second largest employer in the world. Capital investment in

India's travel and tourism sector is expected to grow at 8.8 % between 2010 and 2019. The report forecasts India to get more capital investment in the travel and tourism sector and is projected to become the fifth fastest growing business travel destination from 2010 through 2020. Over the past few years, the hotel industry has witnessed a shift in the product mix towards the budget and mid market hotels. Renowned hotel companies have launched brands (eg. Ginger by Indian Hotels (IHCL)) catering to the budget and mid-market customers, who were thus far being served by the unorganized sector. Financial Year '11 The sector began the year FY11 on a positive note, continuing the trend witnessed in the

second half of FY2010. Led by signs of economic recovery, demand from both foreign and domestic travellers continued to be strong. Rising tourist inflow and higher occupancy kept the hotel companies afloat after the slowdown. The foreign tourist arrivals were higher by 9.3% YoY in 2010. Existing hotel companies, new foreign players and real estate players continued with their expansion plans. However, ARRs continued to remain subdued during 1HFY11, as new supply did impact room rentals across India. During 2HFY11, the industry started witnessing some improvements in ARRs, though in single digits, as the supply pressures negated the impact of improvement in demand and prevented any steep increases in room tariffs. Supply overhang in certain cities, increase in food and fuel costs and rising interest

rates eroded the margins for the Indian hotel industry. The balance sheets of hotel companies remained under stress on account of acquisitions of land banks at unrealistically high prices in the past and the resultant rise in debt levels. Prospects The Indian hotel industry is still in the nascent stages of recovery. In the near term, despite an anticipated revival in room demand, hotels will not be able to hike ARRs significantly as the expected additions to room inventory will intensify competition. Chennai, Pune and Hyderabad are expected to be among the worst-hit destinations, as the growth in supply is expected to far outpace that in demand. Though, events like the Formula 1 race planned in Delhi in 2011 will

benefit the hotel industry. Nevertheless, the industry is yet to witness a sustained and significant improvement in occupancy levels and ARRs. In the long-term, the outlook for the sector is very promising. Demand levels are likely to improve as economic growth gathers momentum and companies increase spending on travel. With expectations of healthy salary increases within the corporate world, discretionary spending is expected to increase further, especially on leisure travel. The number of foreign tourists is expected to reach 6.2 m during 2011 and further to 11.1 m by 2021. The demand-supply gap in India is very real and there is need for more hotels in most cities. The shortage is especially true within the budget and the mid market segment. There is an urgent need for budget and mid market hotels in the country as travellers look for safe and affordable accommodation. The Indian hotel industry is on an expansion spree, with several companies announcing investment plans. Investment in Travel & Tourism is estimated at Rs 1.2 trillion in 2011 and is expected to reach Rs 2.8 trillion by 2021 (implying a CAGR of 8.7%), according to World Travel and Tourism Committee (WTCC) estimates. However, in light of the cash crunch and high interest rates, the players are approaching fresh expansion projects with caution. While the long term fundamentals remain strong, the sector is highly dependent on external factors which could possibly mar its performance.

Key Points
Supply As of January 2011, the total count of hotel rooms in India is 120,000 and the country is expected to require additional 80,000. The shortage is more prominent in budget and mid market segment. This will support improvement in ARRs (Average Room Rates) in this segment for the next few years. Largely depends on business travelers but tourist traffic is also on the rise. Demand normally spurts in the peak season between November and March. High capital costs, poor infrastructure facilities and scarcity of land especially in the metros. Limited due to higher competition, especially in the metros.

Demand

Barriers to entry Bargaining power of suppliers Bargaining power of

Higher in metro cities due to increasing room supply.

customers Competition

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

COMPANY PROFLIE

Taj Hotels Resorts & Palaces

Type Industry Founded

Public Luxury Hospitality 1903

Headquart Mumbai, ers Maharashtra, India Key people Products Ratan Tata, RK Krishna Kumar Raymond Bickson Luxury Hotels, Palaces, Resorts and Spas, Luxury Residences Tata Group Tajhotels.com

Parent Website

Introduction
Taj Hotels Resorts and Palaces is a worldwide chain of hotels and resorts. A part of the Tata Group, one of India's largest business conglomerates, Taj Hotels Resort and Palaces own and operate 76 hotels, 7 palaces, serviced apartments,[6 private islands and 12 resorts and spas, spanning 52 destinations in 12 countries across 5 continents and employ over 13000 people. Besides India, Taj Hotels Resort and Palaces are located in the United States of America, England, Africa, the UAE, Maldives, Malaysia, Bhutan, Sri Lanka and Australia. Jamshetji Nusserwanji Tata, founder of the Tata Group, opened the Taj Mahal Palace & Tower, the first Taj property, on December 16, 1903. He was inspired to open the grand luxury hotel after an incident involving racial discrimination at the Watson's Hotel in Mumbai, where he was refused entry as the hotel did not permit Indians. Hotels which accepted only European guests were common across British India. Jamsetji Tata travelled to London, Paris, Berlin and Dsseldorf to get the best materials and pieces of art, furniture and interior artefacts for his hotel. Due to its prime location, traditional architecture and massive size, this hotel soon gained the status of the most iconic hotel in India.

Brands
Taj: As the erstwhile generic brand of the Taj Hotels Resorts and Palaces, this is now being positioned as the group's flagship brand of traditional luxury full-service hotels, resorts and palaces. These hotels cover business destinations, renowned landmarks, palaces, resorts and forest destinations. Most of Taj's oldest and most prestigious hotels have been retained under this brand. Two specialty brands are being developed under the Taj: Taj Exotica: This is the premium resort brand in the exotic destinations that are Maldives and Goa.

 Taj Safaris: This is the group's nascent wildlife lodge brand. It is expected to cover Taj's premium, high-end forest lodges and destinations. Currently, Taj's luxury lodges in the national parks of Central India carry this brand. Vivanta by Taj Hotels and Resorts: This is a contemporary-luxury hotel brand that is building a more cutting-edge, modern-chic aesthetic. While the brand still caters to an upscale market, it is positioned a step below the flagship Taj brand. Vivanta by Taj hotels are found in both business and vacation destinations. The Gateway Hotels and Resorts: This is a mid-market brand positioned below the Vivanta by Taj brand, and contains properties in both business and vacation destinations. The Gateway Hotel brand was created by Taj in its earlier market segmentation effort in the 1990s, and has been retained and expanded in the current wave of brand-segmentation. Ginger: Ginger is the Tata Groups economy hotels brand across India.

Additional Services
IHCL operates Taj Air, a luxury private jet operation with state-of-the-art Falcon 2000 aircrafts designed by Dassault Aviation, France; and Taj Yachts, two 3-bedroom luxury yachts which can be used by guests in Mumbai and Kochi, in Kerala. IHCL also operates Taj Sats Air Catering Ltd., the largest airline catering service in South Asia, as a joint venture with Singapore Airport Terminal Services, a subsidiary of Singapore Airlines. Additionally, it operates the Indian Institute of Hotel Management, Aurangabad since 1993. The institute offers a three-year diploma, designed with the help of international faculty and has affiliations with several American and European programmes.

Corporate Governance
Taj has been practicing good Corporate Governance even before Securities Exchange Board of India (SEBI) made it a mandatory requirement from 2001. Out of more than 5000 companies listed with the Bombay Stock Exchange the Company is categorized as an "A Group" Company which group comprises only 200 companies and the criteria for selection is based on Market Capitalisation, Liquidity, Industry Representation, Listed History and track record of Compliance. Being a TATA

group Company, the Company goes beyond the mandatory requirements of Corporate Governance and conducts business in a fair and transparent manner. It maintains good investor relationships and endeavors to deliver to investor consistent quality services. Board of Directors The Chairman of the Company is a Non Executive Director The Board of Directors of the Company comprises 12 Directors, of which 8 Directors are Non Executive Directors, 6 of whom are Independent Directors. The Company has one Managing Director and three Executive Directors. The Board of Directors meet regularly and all information that is required by statutes and the Listing Agreement is placed before the Board and transacted. Committees of the Board Audit Committee The Audit Committee comprises three Independent Directors. The members of the committee have the relevant experience in the field of finance, banking and accounting. The Audit Committee meets at the end of every quarter and reviews with the management the financial statements and results before submission to the Board of Directors. Share Transfer & Shareholders/Investor Grievance Committee The Committee comprises three Directors including the Vice - Chairman, the Managing Director and an Executive Director of the Company. The Committee meets regularly and reviews the report submitted by the in-house share registry on the status of transfers, demats and investors grievances if any. Remuneration Committee The Committee comprises three Non Executives Directors. An Independent Director chairs the committee. The Company has a remuneration policy in place that is based on criteria such as industry benchmarks, the Company's performance vis--vis the industry, performance track record of the Director. Insider Training The Company follows a strict code on Insider Trading mandated by the TATA Group. The process is closely monitored and adhered to strictly. Shareholder Relations The Company has a state of art in-house share registry that is registered as a Category I Registrar with SEBI. The Company has over 1,76,005 members. As on date approximately 97% of the Equity Share Capital of the Company has been dematerialized.

All correspondence and grievance received from shareholders are responded to within 48 hours. All valid transfers are processed within 7 days of receipt All demat requests are processed within 48 hours of receipt All enquiries are recorded on the system and responded to immediately All the financial results are promptly reported to the Stock exchange(s) and published in leading newspapers. The results are also simultaneously uploaded on the Company's web site.

Management
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Mr. Raymond Bickson Managing Director & CEO Mr. Anil P. Goel Executive Director - Finance Mr. Abhijit Mukerji Executive Director - Hotel Operations Mr. Mehernosh S. Kapadia Executive Director - Corporate Affairs Mr. Ajoy K. Misra Sr. Vice President Sales & Marketing Mr. Prakash V. Shukla Sr. Vice President Technology & Chief Information Officer Mr. H.N. Shrinivas Sr. Vice President - Human Resources Mr. Veer Vijay Singh Chief Operating Officer - Upper Upscale Hotels Ms. Jyoti Narang Chief Operating Officer - Luxury Division Taj Hotels Resorts and Palaces Mr. P. K. Mohankumar Chief Operating Officer - Gateway Brand Mr. Rajiv Gujral Chief Operating Officer & Sr. Vice President Mergers, Acquisitions & Development Mr. Prabhat Pani Chief Executive Officer Roots Corporation Limited Mr. Yannick Poupon Chief Operating Officer Taj Luxury International Mr. Beejal Desai Vice President - Legal & Company Secretary.

Corporative Social Responsibility

The Taj Group of Hotels commits it EARTH: Vision self to the overall improvement of the ecological environment, which we are all a part of. We recognize that we are not owners but caretakers of the Planet and owe it to our children and future generations of humankind. It is our endeavor not only to conserve and protect but also to renew and regenerate the environment in which we live and operate.Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities.We will partner and engage with our environment through EARTH: Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a program, nor a process; it is a way of life.

Corporate Awards (recent)

Global Awards
May 2011 Apr 2011 Oct 2010 Travel + Leisure, USA 'it' List Editors' Choice Awards - Spin-Off Brands - Vivanta by Taj Hotels & Resorts The Indian Hotels Company Ltd, has won the Gallup Great Work Place Global Award announced by the GALLUP headquarters, Omaha, USA. The Taj Hotels Resorts and Palaces has been voted 2nd best Overseas Hotel Group in the Guardian Travel Awards 2010

National (Indian) Awards

Dec 2011 Nov2009 Apr2009 Conde Nast Traveller India - Taj Inner Circle received the Readers Travel Award 2011 for the 'Favorite Hotel Loyalty Programme.' Travel Agents Federation of India (TAFI) Awards 2009 held in Chiang Mai - Indian Hotels Company Ltd. (Taj Group) Best Luxury Hotel Chain. Jiva Spa is nominated for the award of Best Spa Treatment Ventoz Asia Spa India Awards held on 8th April 2009 held at Delhi.

Regional Awards
Oct2009 Sep2004 2003 The Gateway Brand is the Winner in the Budget Hotel category of the ET TAAI Travel Awards 2009 (Economic Times & TAAI) . TTG Travel Awards 2004 at the Sofitel Central Plaza, Bangkokfor the Best Local Hotel Chain. Pacific Asia Travel Writers Association (PATWA) ITB, Berlin 2002 Lifetime contribution for promoting the Hospitality Industry.

Awards and Recognition

2009 Ranked 11 in the top 100 World's most reputable companies by Forbes Magazine
[5]

2007 Corporate Hotelier of the World (HOTELS magazine) Raymond N. Bickson, MD and CEO, Taj Hotels Resorts and Palaces

Leading Hotels of the World Ltd. (LHW) Chairmans Award 2007 & 2006 for Best Advertising Campaign

Literature Review for Taj

MR. RATAN TATA UNVEILS 'THE TAJ AT APOLLO BUNDER' (1903 2011) ~AN EPIC BOOK THAT CHRONICLES THE HISTORICAL JOURNEY OF THE ICONIC
FLAGSHIP OF THE TAJ GROUP; CELEBRATES 108TH BIRTHDAY OF THE TAJ MAHAL PALACE, MUMBAI~

December 16, 2011

On the special occasion of the 110th year of inception of Indian Hotels Company Ltd and the 108th birthday of its iconic flagship, Mr. Ratan Tata, Chairman, TATA Sons, unveiled the much awaited coffee table book, 'The Taj At Apollo Bunder' at The Taj Mahal Palace, Mumbai. Present on this landmark moment was R.K. Krishna Kumar and Raymond Bickson. 'The Taj At Apollo Bunder', is an epic that captures the rich and profound history of the Taj Mahal Palace from the time of its conceptualization in the 1890's to present day. Written by noted historians Mr. Charles Allen and Ms. Sharada Dwivedi, the book tells the story of a unique institution that is a much beloved icon and hotel. The foreword has been written by Mr. Ratan Tata, Chairman, TATA Sons. 'The Taj At Apollo Bunder' will now be available at book stores across the country and proceeds of the books sales will go to Taj Public Service Welfare Trust.

COND NAST TRAVELLER GOLD LIST 2012 15th December 2011

Taj Hotels Resorts & Palaces has received recognition for three of its properties in two different categories in the UK's Cond Nast Traveller Gold List 2012. The Taj Mahal Palace in Mumbai was included in the Best Hotels for Location category (Asia), while Blue Sydney received the same accolade for the Australasia and South Pacific region.

Considered by the Gold List judges to have one of the best hotel locations in the world, the Taj Mahal Palace boasts stunning views of the Gateway of India and the harbour beyond. Following a meticulous restoration of the Palace wing in 2010, this flagship for the entire group is an icon of India. Blue Sydney also joined the list thanks to its enviable position nestled between the famous Opera House and harbour, and the shops of Paddington. The property occupies a converted factory and features 100 contemporary rooms and a Water Bar with bed-sized ottomans. Meanwhile, Taj Falaknuma Palace which opened in Hyderabad last year was a brand new entry in the category for Best Hotels for Ambiance and Design in Asia. The hotel's extensive 10- year restoration was praised as a tribute to the skills of the local artisans involved, who have brought this famed home of the Nizams back to its former glory. Highlighting the best hotels in the world, the annual Gold List is compiled by Cond Nast Traveller's editors and travel experts, using six criteria including ambience and design, location, food, rooms, leisure facilities and service. It is published in the January 2012 issue of the magazine.

Taj Hotels Resorts & Palaces Presents at Americas Lodging Investment Summit,
January 24, 2012

Taj Hotels Resorts & Palaces Presents at Americas Lodging Investment Summit, Jan-24-2012 03:30 PM. Venue: JW Marriott and Nokia Theatre at LA LIVE, Los Angeles, California, United States. Speakers: Raymond N. E. Bickson, Chief Executive Officer and Managing Director.

Taj Resorts Hotels & Palaces Presents at Hotel Investment Forum India,
January 12, 2012

Taj Resorts Hotels & Palaces Presents at Hotel Investment Forum India, Jan-12-2012 10:00 AM. Venue: Renaissance Mumbai Convention Centre Hotel, Mumbai, Maharashtra, India. Speakers: Raymond N. Bickson, Managing Director & CEO.

Taj Hotels Resorts & Palaces Announces Executive Changes

Taj Hotels Resorts & Palaces announced that Ms. Deepa Harris, Vice-President (Marketing), Taj Group, has been promoted as Senior Vice-President (Sales and Marketing). Mr. Ajoy Misra, who was in this position earlier, is now joining Tata Global Beverages as Deputy CEO and Executive Director, on the board. Ms. Harris will oversee all sales and marketing initiatives for Taj Hotels worldwide and report directly to Mr. Raymond Bickson, Managing Director.

ITC Hotels

Type Industry Founded Headquarters Number of locations

Public Hospitality 1975 Gurgaon, India 80

Area served Key people Owner(s) Website

India Y C Devshwar ITC www.itchotels.in

Introduction
ITCs hotel division was launched on October 18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. ITC Hotels, is today one of Indias finest hotel chains, with its distinctive logo of hands folded in the traditional Namaste is widely recognised as the ultimate in Indian hospitality. Each of the chains hotels pays architectural tribute to ancient dynasties, which ruled India from time to time. The design concept and themes of these dynasties play an important part in their respective style and decor. With more and more hotels being added at strategic destinations, the group has joined hands with the Sheraton Corporation to strengthen its international marketing base.

Growth under Four Brands

Perhaps in the topmost rung of Indias hospitality business, ITC Hotels are classified under four distinct brands. ITC Hotels - Luxury Collection are super deluxe and premium hotels located at strategic business and leisure locations. Welcom Hotel | Sheraton Two of our Hotels have been aligned under the renowned Sheraton brand, offering warm, comforting services to the global traveler. Three WelcomHotels are designed to cater

to the discerning business and leisure traveler offering five-star hospitality. Fortune Hotels offer full service properties all over India, including smaller towns and cities, ideal for the budget traveller. WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the historical Indian grandeur and opulence for the future Indian generations.

Accomadation
The exclusive Towers concept of a hotel within a hotel, with its own Towers Club and an unique service design is now available at seven ITC Hotels - Luxury Collection .The Executive Club, a concept designed to meet the specific needs of the business traveller, pioneers a tradition in corporate hospitality, setting a premium on discreet efficiency and business related services. Executive Club services are available at nine ITC Hotels at key business locations. The recently launched ITC One offers a new dimension in Corporate Hospitality and is about discovering thePower of Personal Space. ITC One is available at the ITC Maurya, New Delhi , ITC Maratha, Mumbai, ITC Grand Central, Mumbai, ITC Sonar, Kolkata, ITC Windsor, Bangalore, ITC Kakatiya, Hyderabad and ITC Gardenia.

EVA
Exclusive rooms dedicated for the single lady traveler. These rooms have amenities keeping in mind the requirements of a lady pertaining to her special needs in bathroom accessories, security, safety and comfort levels . Service in these rooms , is done by an all ladies team . Branded Cuisine Indias culinary heritage has always been strengthened by the safe hands of the chefs of ITC Hotels. The Bukhara and Peshawrirestaurants give epicures the rugged, outdoor cuisine and the 1000 year culinary adventure of the Northwest Frontier Province. Dakshin has brought together the highly evolved cuisines of the four southern states- Andhra Pradesh, Karnataka, Tamil Nadu and Kerala. Dum Pukht is a unique restaurant dedicated to a 200-year old culinary tradition of slow cooking

food, in sealeddeghs. The fragrance of the meal becomes an invitation befitting royalty. Today the connoisseur can savour these delicacies across the country. Rated high by food connoisseurs all over the world, the group takes exceptional pride in showcasing its internationally renowned cuisine. Distinguished for its ambience and unsurpassed standards of food and beverages, the list is a gastronomical journey starting with Dublin, the Irish pub; along with West View, an authentic grill that brings alive the Western in you; with the Pan Asian, serving specialties from China, Thailand, Mongolia, Japan, Indonesia and Malaysia. With branded Restaurants exclusive to ITC Hotels, spread throughout the country, ITC Hotels have created benchmarks in all areas of hospitality.

Achievements
ITC Hotels was perhaps the first hotel chain in the mid 1980s to foresee a boom in business travel and realised distinct needs of the corporate traveller. ITC Hotels has pioneered the concept of "Branded Accommodation" in the hospitality industry. Branding led to the creation of separate categories of rooms, each with a different service design, aimed at different target segments. The different room categories were branded Executive Club, The Towers and lately, ITC One. The Towers and ITC One introduced the winning concept of a hotel within a hotel. The Indian corporate world gave its unqualified approval to this segmentation. Going beyond the corporate travellers, the chains flagship hotels, ITC Maurya, New Delhi and ITC Windsor, Bangalore have had the proud privilege of hosting many world leaders: from former US President Bill Clinton, Russian President Vladimir Putin, British Prime Minister Tony Blair, German Chancellor Gerhard Schroeder, to business tycoons like Bill Gates and Michael Dell. These hotels received not just the stamp of approval not only from these leaders, but from their security chiefs as well! There have been many other pioneering efforts at ITC Hotels:

ITC Maurya, New Delhi is also the only one in India, to have won the British Safety Councils Sword of Honour- Thrice. ITC Maurya, New Delhi is Indias first hotel to be accorded the ISO 14001 certification for its

Environment Management Systems. Eight more ITC Hotels followed in quick succession: ITC Mughal, Agra; ITC Windsor, Bangalore; Sheraton Park Hotel & Towers, Chennai; My Fortune, Chennai; ITC Kakatiya, Hyderabad; ITC Rajputana, Jaipur; ITC Maratha, Mumbai and ITC Sonar, Kolkata. ITC Maurya is the first hotel in India to be awarded the Golden Peacock Environment Management Award for 2001 by the World Environment Foundation. ITC Maratha at Mumbai was declared to be the Best Luxury Hotel of the Year 2002, by the Federation of Hotel and Restaurant Associations of India. ITC Mughal at Agra was Asias first winner of the Aga Khan Award for Architecture. Bukhara and Dum Pukht, both at ITC Maurya, New Delhi are amongst the first Indian restaurants to win the International Golden Fork Award. Bukhara has been rated as the Best Indian Restaurant amongst 15 others worldwide, by The Restaurant Magazine (UK), successively in the years 2002 and 2003. Most recently, the Association of British Travel Agents (ABTA) in the April 2004 issue of its magazine Business and Travel, declaredITC Sonar, Kolkata as one of the best hotels in the world, Dublin amongst the top 20 bars and in a fitting finale, Bukhara was rated as the best restaurant in Asia and the finest Indian restaurant in the world. ITC Hotels won the PATA Gold Award in the Corporate Environmental category for its WelcomEnviron initiatives in April 2005. ITC Hotels was featured as a Superbrand - a status awarded to the organization by the Superbrands Council comprising of eminent personalities from the world of branding. For its distinctiveness in terms of historic evolution, marketing, advertising and design achievements, ITC Hotels has been voted as one amongst the 101 strongest brands in India.

Promotion of Indias Cultural Heritage

WelcomTheatre was launched eight years ago, to provide guests with a complete experience through entertainment. Acknowledging theatre and art as integral to a countrys culture and tradition, ITC Hotels offers Quality entertainment & theatrical experiences through WelcomTheatre. While each hotel has its own vast collection of art and art objects, the group decided to brand all art activities, under the banner WelcomArt. Through the Srishti Art Galleries located at ITC Hotels, the best of Indian contemporary art finds a focus. WelcomJawan In re-deploying ex-servicemen it assists the national effort by offering a platform for their rehabilitation into productive civilian life. WelcomEnviron WelcomEnviron defines ITC Hotels active commitment to the environment. The need for maintaining an ecological balance and working towards that goal as a concerned "Corporate Citizen" is a high priority for the company. Each hotel thus operates in harmony with nature. "Reduce, Re-use and Recycle" is the Environmental message sent out by every ITC Hotel. Careers Over the years, ITC Hotels has been redefining standards, showcasing the best from India to the world. A spirit of excellence that pervades at all ITC Hotels in key business and leisure locations. ITC Hotels is the only hospitality chain, perhaps in the world to have a unique programme like the "Welcomlegionnaire". This competitive hotel management programme, recruits students on their completion of class 12 for a 4-year course. The first two years are devoted to the basics in hoteliering, personality development, culture building, etc., along with a bachelors in Tourism Administration. The remaining 2 years are spent as Hotel Executive Trainees in sync with in house Management Training Programmes, thus providing the students valuable hands on practical experiences with solid theoretical knowledge.

Vision and Mission

Vision

 Wow at every moment of truth A commitment beyond the market Fulfillment of the society needs

Mission To provide the best services to customers No compromise with the quality at any cost Promote the nature

The Leela Palaces, Hotels and Resorts

Type Industry Founded Founder(s)

Public Company Hospitality, Turism Mumbaia (1986) Captain C P Krishnan Nair, (Chairman) Mumbai, India Captain C. P. Krishnan Nair,

Headquart ers Key people

(Founder & Chairman) Vivek Nair, (VC and MD) Dinesh Nair, (JEMD) Rajiv Kaul, (President), Owner(s) Website Hotel Leela Venture Limted www.theleela.com

Evolution and History 1981 - Incorporated in 1981 to set up and operate 5-star hotels, Hotel Leela Venture entered into a collaboration with Penta Hotels, UK, which was subsequently transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned by Lufthansa, the German airline. - The Company entered into collaboration agreement with Penta Hotels Ltd. (Penta) for a period of 10 years for sales, marketing & technical know-how. - Penta also agreed to provide full marketing support to the hotel including selling of the hotel by the 3 airline partners of Penta viz. Lufthansa, Swissair & British Airways. - 20,02,939 shares to promoters, etc. and 4,27,580 shares without payment in cash to Lela Scotish Lace Pvt. Ltd. in January/February 1985, 20,69,481 shares were issued at par out of which 70,000 shares to NRI promoters for cash and 99,481 shares to C.K. Kutty (NRI) without payment in cash were reserved and allotted. - Out of the remaining 19,00,000 shares, 6,50,000 shares to NRIs on repatriation basis and 38,000 shares to business associates of the Company were reserved and allotted on a preferential basis. The balance 12,12,000 shares were offered for public subscription during February 1985 (all were taken up). 1986 - The company set up its first 5-star deluxe hotel, Leela Penta, in Bombay in 1986. It was renamed Leela Kempinski in 1988, following the change in its marketing and sales tie-up. It undertook an expansion of its hotel in Bombay by constructing a tower block comprising an additional 172 rooms, including suites. Simultaneously, it also undertook the construction of a new 5-star deluxe resort at

Goa which was part-financed by a rights issue in Sep.'91. Consequent on the enhancement of facilities and upgradation of standards, aggregate cost escalated and the financing for the project had to be revised due to which the company came out with a rights NCDs issue with detachable warrants aggregating Rs 49.09 crores in 1995. - 45,00,000 rights equity shares issued at par in prop. 1:1 during July/August. 1987 - The hotel de-linked itself with Penta & entered into technical, Sales, and Marketing agreement with Kempinski, hotel S-A Switzerland, a part of the Lufthanas Chains of hotel. - The Company undertook to set up a 5-star Deluxe Airport Hotel of international standards. - In view of the large scope for occupancy at the International Airport and in view of the acute shortage of hotel guest room, it was decided to increase the number of guest rooms from 205 to 282. It was also decided to add a large banquet hall and conference rooms to the facilities. - The hotel was assigned a 5 star deluxe status during the year. In recognition of this rating, the collaborators, Penta Hotels, Ltd. assigned the technical sales and marketing agreement in favour of Kempinski hotels, S.A., Switzerland, both groups being in the Lufthansa system of hotels. - The Leela Bombay, was conferred by the Government of India, Department of Tourism, the highest honour in the hospitality industry viz. the National Tourism Award for 1997-98 for outstanding performance in the five star deluxe category hotels in India. 1988 - It was proposed to expand the existing capacity by addition of another 192 rooms. - With effect from 15th October, the name of the hotel was changed to `The Leela Kempinski Bombay' in view of the assignment of the franchise agreement to Kempinski hotels from Penta hotels. - 28,00,000 No. of equity shares issued at par to Lela Scottish Lace Ltd. in conversion of their unsecured loans. - The Leela Palace, Goa has started its operation in Sep, 1998. The hotel has been upgraded to a world class beach resort and has been acclaimed as one of the finest resorts in the world. 1989 - During August, the Company offered 9,00,000-14% secured redeemable non-convertible debentures of Rs 100 each on `rights basis' in the proportion 1 deb.: 10 equity shares held. Only 10,429 debentures were taken up. The remaining 8,89,571 debentures devolved on the underwriters. - These debentures were to be redeemed at a premium of Rs 5 per debenture in three equal annual instalments of Rs 35 each on the expiry of 7th, 8th and 9th year from the date of allotment of debentures. - During August, 59,00,000 Rights shares issued at par in prop. 1:2. Additional 8,85,000 shares were

allotted to retain oversubscription. Simultaneously, another 2,95,000 shares were issued at par to employees but only 500 shares taken up. The balance 2,94,500 shares were allowed to lapse. 1991 - In Sept. 92,92,750 rights shares issued at par in prop. 1:2. Additional 13,93,912 shares were allotted to retain oversubscription. Another 4,64,630 shares offered at par to employees but only 7,650 shares taken up. Out of the remaining 4,56,980 shares 4,50,000 shares taken up by financial institutions and the balance allowed to lapse. 1992 - The Company proposed to add 43 guest rooms at the Leela Beach, Goa. During the year, the Company concluded negotiations for purchase of a plot of land adjoining the hotel property at Mumbai for the construction of a new deluxe all suite hotel consisting of about 200 suites. 1993 - The Company commissioned 60 new rooms at the Leela Beach, Goa and set up a mini golf course of 9 holes. - The Hotel has opened a spectacular entertainment outlet, viz., `Cyclone-The Club'. 1994 - The Company had issued Warrants to its promoters including friends and associates on preferential basis. On conversion of the said Warrants, on 9th November, 30 lakh equity share were allotted at a premium of Rs 128.14 per share. - A MOU was entered into with Four Seasons Hotels & Resorts a international chain of hotels to operate the Leela Palace Bombay at Andheri Kurla Road. 1995 - The company proposed to enter into business of full fledged money changers and allied activities. 1996 - The Company allotted 30,00,000 CCP of Rs 100 each. - The Leela Beach Goa underwent upgradation and refurbishment as per recommendations of Four Season Hotels & Resorts which would be marketing and operating the resort. - The Company also initiated steps to set up a `5' star deluxe hotel at Bangalore with Four Seasons Hotels & Resorts. - The Company entered into a management agreement with Four Season Hotels, Canada, for management of Company's hotels and resorts at Mumbai, Goa and Bangalore. - The Company proposed to change its object clause which, the Company was authorised to carry on the business of power generation and allied activities and dealing in foreign Exchange and to act as

money changers. - 1,00,000 - 16% CCP of Rs 100 and 29,00,000 - 17% CCP of Rs 100 issued on private placement basis. 1997 - The company undertook to set up a beach resort consisting of 300 villas at Goa. Technical services and sales and marketing agreement was signed with Kempinski hotels S.A. for the project. - Hotel Leela Venture Limited, incorporated in 1981, to set up and operate 5-star hotels, entered into a collaboration with Penta Hotels of UK which was subsequently transferred to Kempinski Hotels, a European chain of 5-star deluxe hotels, owned by Lufthansa, the German airline. - The company set up its first 5-star deluxe hotel, Leela Penta, in Mumbai in 1986. - Hotel Leelaventure had signed a 30 year lease agreement with AAI in February 1996 for 11,000 sq mts of land for expansion of its hotel by 150 rooms. - HLV will be setting up hotels in the five star deluxe category at Bangalore, Delhi, Mumbai and Goa. - The company has also set up a subsidiary company, Leela Hotels Ltd., which will promote two greenfield projects. 1998 - Investment Information and Credit Rating Agency (ICRA) has placed the non-convertible debenture and fixed deposit programmes of Hotel Leelaventure Ltd. under rating watch. - The company's Rs 49.1-crore fixed deposit (FD) programme with a current rating of MAA minus has also suffered the same fate. 1999 - The five star hotel project has been undertaken by the 100 per cent subsidiary of Leela Hotels Ltd (LHL) on a controversial plot the same plot was allotted earlier to MS Shoes East Ltd. - Leela Hotels Ltd, a subsidiary of Hotel Leelventure Ltd, was awarded an interim relief the Delhi High Court after Leela sought legal redressal. - Leelaventure is spreading its wings and has set eyes to build a hotel in the scenic backwaters of Kerala. - The lease agreement with LSLL makes it paramount for the company to get a commercial complex built on the land with an area of 15,000 square meters. 2000 - The Company has allotted balance 80,47,4000 No. of equity shares to the promoters of the company viz., Leela Scottish Lace Ltd.

- The Company appointed a Dr. K. U. Mada as the Director and Mr Venu Krishnana as an Executive Director effective from 29th January. - Mr. M. Narasimhan has resigned as the Director effective from September 20. - The Company issued 15630000 Equity shares of Rs 10/- each at a premium of Rs 21 per share to the promoters of the Company, M/s Leela Scottish Lace Limited on 6th April, 2000 on fully paid basis. 2001 - Hotel Leelaventure is setting up a five-star deluxe resort property in the Kannur district of Kerala state. The 100-room property would be developed by its wholly-owned subsidiary, Vision Hotels, and would be completed by the end of 2001. The 300-room Bangalore five-star hotel had a soft launch on 15th July, 2001. In the first phase , 77 guest rooms are expected to be in commercial operation from August, 2001 and the rest of the rooms with full compliment of facilities are expected to be progressively completed by the end of 2001. - During the year 2001, the company also formed an arrangement for a joint venture to develop a large commercial complex on the land of Andheri-Kurla road, Mumbai. 2002 -Dr. Gunter resigns as director of the company -Board approves the proposal for amalgamation/merger of Leela Hotels witn Hotel Leelaventure 2003 -Ties up with General Hotel Management (GHM) Singapore, the holding company of Aman Resorts, for its Goa property -Board approves voluntary delisting from Ahmedabad, Bangalore, Cochin, Delhi and Mangalore Stock Exchanges -Board approves allotment of Non Cumulative Redeemable Preference Shares (NCRPS) of Rs 317.50 million to the Holding Company, Leela Scottish Lace Pvt Ltd. 2004 - Delisting of the equity shares of the Company from Ahmedabad, Bangalore, Cochin, Delhi and Mangalore Stock Exchanges. 2006 -Hotel Leela Venture Ltd. has appointed Mr. V.L. Ganesh as the Chief Financial Officer of the Company with effect from November 01, 2006.

Key Dates Incorporation Date - 20/03/1981 Year Ending Month - March AGM Month - June Book Closure Start Date - 23/06/2011 Book Closure End Date - 28/06/2011 Listing Information Face Value - 2.0 Market Lot Of Equity Shares - 1 BSE Code - 500193 BSE Group - B The company forms a part of following indices BSE 500 Index (500 Cos) BSE Mid-Cap Index CNX Smallcap Index Nifty Midcap 50 Index S&P CNX 500 Equity Index (500 Cos) Listed On Bangalore Stock Exchange Ltd. Cochin Stock Exchange Ltd. Delhi Stock Exchange Assoc. Ltd. Hyderabad Stock Exchange Ltd Jaipur Stock Exchange Ltd Ludhiana Stock Exchange Assoc. Ltd. Madras Stock Exchange Ltd., National Stock Exchange of India Ltd. Over The Counter Exchange Of India Ltd.

ACHIEVEMENTS
Lifetime Achievement Award, 2007 For Capt. Nair by the Galileo Express Travelworld Awards, for his sterling contribution to the hospitality industry. First Choice Gold Award, 2006 The Leela, Kovalam Beach, Kerala awarded the First Choice Gold Award, 2006 ( Received in 2007)

Kerala Ratna Award 2007 Conferred by The Global Kerala Initiative for Capt. C. P. Krishnan Nair for his sterling contribution for infrastructural facilities in Tourism, Handloom and Information Technology November 2007. Lifetime Achievement Award For the first time in the world by WTA, conferred on Capt. C. P. Krishnan Nair, The Leela Palaces, Hotels & Resorts November 2007. WTA award November 2007 For The Leela Palace, Bangalore as The Leading Business Hotel of India. WTA award November 2007 For The Leela Kempinski Goa as Asias Leading Resort. The Leela Palace Kempinski Bangalore was voted the world's No.1 "Business Hotel 2007" by Conde Nast Traveller. Forbes ranks The Leela Palace Kempinski Bangalore India's hottest Wedding Destinations. "Lifetime Achievement Award" For Capt. Nair, Chairman, Leela Palaces~Hotels~Resorts conferred by 'Today's Traveller' and Gill India Publications - August 2007. "Lifetime Achievement Award" For Capt. C. P. Krishnan Nair, Chairman, Leela Scottish Lace Private Ltd., conferred by AEPC (Apparel Export Promotion Council)- July 2007. Forbes honours Jamavar Indian Signature restaurant at The Leela Palace Kempinski Bangalore amongst World's Ten Top Power Dining spots - May 2007. "Lifetime Achievement Award" For Capt. Nair, Chairman, Leela Palaces~Hotels~Resorts conferred by SATTE (South Asian Travel Tourism Expo)- April 2007. SATTE Award - April 2007 For Leela Goa as the best beach resort in India. SATTE Award - April 2007 For Leela Kempinski Bangalore for the best business hotel in India. National Tourism Award 2005-2006 The Leela Palace Kempinski Bangalore for the Best Eco-friendly hotel. Global 500 Laureate Roll of Honour 1999 by United Nations Environment Programme presented by His Majesty Emperor Akihito of Japan Lifetime Achievement Award for Capt. Nair, Chairman, Leela Palaces & Resorts conferred by The American Academy of Hospitality Sciences March 2005.

Winner of the International Five Star Diamond Award, 2005 for The Leela Group conferred by The American Academy of Hospitality Sciences March 2005. Winner of the Imperial Mark for The Leela Kempinski Goa Worlds oldest and most prestigious award for unmatched excellence in the field of hospitality February 2004. Lifetime Achievement Award from CMAI {Clothing Manufacturers Association of India} in recognition of Capt.Nairs sterling contribution to the Apparel Industry Dec. 2006. Kerala Chamber of Commerce, conferred the Lifetime Achievement Award to Capt. Nair, for his contribution to Industry and Tourism. 2004-2005 The Leela Palace Kempinski Bangalore won the National Horticulture Award for Best Ornamental Park Garden Bangalore conferred by Hospitality India Magazine. 2004-2005 The Leela Palaces and Resorts for the second time won theBombay Chamber Civic Award 200405 for environment excellence May 2005. PATA Award of Merit, 2005 for Capt. C. P. Krishnan Nair for outstanding service & leadership to the Industry April 2005. Winner of the Hewitt and CNBC Award for the Leela Group. - as one amongst 5 Best Managed Workforces in the country Dec. 2004. CNN Ultimate Service Award 2003 & 2004 For The Leela Palace, Bangalore. An award that celebrates global excellence in hospitality service. Winner of three PATA GOLD Awards 2002 Corporate Environmental Programme The Leela, Mumbai The best Travel Advertising The Leela Palace, Bangalore The best National Marketing Programme The Leela Palace, Goa Maharana Udai Singh Award 2002 For Excellence in Environmental Initiatives V P Menon Award 2002 For Outstanding Performance and Valuable Support to the field of Environment and Industry Forbes Magazine Selects The Leela Palace Kempinski Bangalore as One of the Eight Best New Business Hotels in the World 2001 World Travel Awards for year 2000, 2001, 2002 and 2005 The Leela Kempinski Goa voted as The very Best Resort in Asia Pacific. Winner of National and Regional Tourism Awards From 1994 to 2000 for 6 consecutive years The Leela Kempinski Mumbai. Corporate Environmental Achievement Award 1998 6th World Wilderness Congress.

BCCI ( Bombay Chambers Civic and Industry Award) Bombay Chamber of Commerce and Industry for improving environment and civic conditions of Bombay. Green Hotelier Award 1996 International Hotel and Restaurant Association, Paris.

RESEARCH METHODOLOGY

OBJECTIVES This report is intended to serve as a primer, describing the evolution of the Construction industry and its current status. The main objectives of this report are To study the global standing of these three selected companies. To find the different marketing strategies adopted by each company.

 To study the product segmentation of the companies. To analyze the SWOT &McKenzies 7S of these companies. NATURE OF DATA The following types of data have been used to complete this report. Secondary data: Secondary data that is already available and published it could be internal and external source of data.

Internal source: which originates from the specific field or area where research is carried out e.g. publish broachers, official reports etc.

External source: This originates outside the field of study likebooks, periodicals, journals, newspapers and the Internet.

Other methods of analyzing data have also been used. E.g., SWOT analysis, 7S McKinsey Model, etc. LIMITATIONS No primary data is used. The reliability of the secondary data is questionable. The data is not verifiable. Time constraints.

LITERATURE REVIEW

Literature Review for Taj

MR. RATAN TATA UNVEILS 'THE TAJ AT APOLLO BUNDER' (1903 2011) ~AN EPIC BOOK THAT CHRONICLES THE HISTORICAL JOURNEY OF THE ICONIC

FLAGSHIP OF THE TAJ GROUP; CELEBRATES 108TH BIRTHDAY OF THE TAJ MAHAL PALACE, MUMBAI~

December 16, 2011

On the special occasion of the 110th year of inception of Indian Hotels Company Ltd and the 108th birthday of its iconic flagship, Mr. Ratan Tata, Chairman, TATA Sons, unveiled the much awaited coffee table book, 'The Taj At Apollo Bunder' at The Taj Mahal Palace, Mumbai. Present on this landmark moment was R.K. Krishna Kumar and Raymond Bickson. 'The Taj At Apollo Bunder', is an epic that captures the rich and profound history of the Taj Mahal Palace from the time of its conceptualization in the 1890's to present day. Written by noted historians Mr. Charles Allen and Ms. Sharada Dwivedi, the book tells the story of a unique institution that is a much beloved icon and hotel. The foreword has been written by Mr. Ratan Tata, Chairman, TATA Sons. 'The Taj At Apollo Bunder' will now be available at book stores across the country and proceeds of the books sales will go to Taj Public Service Welfare Trust.

COND NAST TRAVELLER GOLD LIST 2012 15th December 2011

Taj Hotels Resorts & Palaces has received recognition for three of its properties in two different categories in the UK's Cond Nast Traveller Gold List 2012. The Taj Mahal Palace in Mumbai was included in the Best Hotels for Location category (Asia), while Blue Sydney received the same accolade for the Australasia and South Pacific region. Considered by the Gold List judges to have one of the best hotel locations in the world, the Taj Mahal Palace boasts stunning views of the Gateway of India and the harbour beyond. Following a meticulous restoration of the Palace wing in 2010, this flagship for the entire group is an icon of India. Blue Sydney also joined the list thanks to its enviable position nestled between the famous Opera House and harbour, and the shops of Paddington. The property occupies a converted factory and features 100 contemporary rooms and a Water Bar with bed-sized ottomans.

Meanwhile, Taj Falaknuma Palace which opened in Hyderabad last year was a brand new entry in the category for Best Hotels for Ambiance and Design in Asia. The hotel's extensive 10- year restoration was praised as a tribute to the skills of the local artisans involved, who have brought this famed home of the Nizams back to its former glory. Highlighting the best hotels in the world, the annual Gold List is compiled by Cond Nast Traveller's editors and travel experts, using six criteria including ambience and design, location, food, rooms, leisure facilities and service. It is published in the January 2012 issue of the magazine.

Taj Hotels Resorts & Palaces Presents at Americas Lodging Investment Summit,
January 24, 2012

Taj Hotels Resorts & Palaces Presents at Americas Lodging Investment Summit, Jan-24-2012 03:30 PM. Venue: JW Marriott and Nokia Theatre at LA LIVE, Los Angeles, California, United States. Speakers: Raymond N. E. Bickson, Chief Executive Officer and Managing Director.

Taj Resorts Hotels & Palaces Presents at Hotel Investment Forum India,
January 12, 2012

Taj Resorts Hotels & Palaces Presents at Hotel Investment Forum India, Jan-12-2012 10:00 AM. Venue: Renaissance Mumbai Convention Centre Hotel, Mumbai, Maharashtra, India. Speakers: Raymond N. Bickson, Managing Director & CEO.

Taj Hotels Resorts & Palaces Announces Executive Changes

Taj Hotels Resorts & Palaces announced that Ms. Deepa Harris, Vice-President (Marketing), Taj Group, has been promoted as Senior Vice-President (Sales and Marketing). Mr. Ajoy Misra, who was in this position earlier, is now joining Tata Global Beverages as Deputy CEO and Executive Director, on the board. Ms. Harris will oversee all sales and marketing initiatives for Taj Hotels worldwide and report directly to Mr. Raymond Bickson, Managing Director.

Literature Review for ITC

Literature Review for Leela

COMPARATIVE ANALYSIS

S.W.O.T ANALYSIS

For TAJ Strengths

A very wide variety of hotels is present in the country that can fulfil the demand of the tourists. There are international players in the market such as Taj and Oberoi & International Chains. Thus, the needs of the international tourists travellers are met while they are on a visit to India.

Manpower costs in the Indian hotel industry are one of the lowest in the world. This provides better margins for Indian hotel industry. India offers a readymade tourist destination with the resources it has. Thus the magnet to pull customers already exists and has potential grow.

Weaknesses
The cost of land in India is high at 50% of total project cost as against 15% abroad. This acts as a major deterrent to the Indian hotel industry. The hotel industry in India is heavily staffed. This can be gauged from the facts that while Indian hotel companies have a staff to room ratio of 3:1, this ratio is 1:1 for international hotel companies. High tax structure in the industry makes the industry worse off than its international equivalent. In India the expenditure tax, luxury tax and sales tax inflate the hotel bill by over 30%. Effective tax in the South East Asian countries works out to only 4-5%. Only 97,000 hotel rooms are available in India today, which is less than the Bangkok hotel capacity. The services currently offered by the hotels in India are only limited value added services. It is not comparable to the existing world standards.

Opportunities
Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays. For international tourists the peak season for arrival is between September to March when the climatic conditions are suitable where as the national tourist waits for school holidays, generally the summer months. In the long-term the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourists as it is the only country with the most diverse topography. For India, the inbound tourists are a mere 0.49% of the global figures. This number is expected to increase at a phenomenal rate thus pushing up the demand for the hotel industry. Unique experience in heritage hotels.

Threats

Guest houses replace the hotels. This is a growing trend in the west and is now catching up in India also, thus diverting the hotel traffic. Political turbulence in the area reduces tourist traffic and thus the business of the hotels. In India examples of the same are Insurgency in Jammu Kashmir and the Kargil war. Changing trends in the west demand similar changes in India, which here are difficult to implement due to high project costs. The economic conditions of a country have a direct impact on the earnings in hotel industry. Lack of training man power in the hotel industry.

for ITC swot here for Leela

swot here

Mc Kinsys Frame work 7 S

Taj
Strategy: They follow segmentation strategy, they operate in the luxury, premium, mid-market and value segments of the market, Advertisement of premium brand at affordable prices unique concept like jiva spas, Taj air etc to delight their customers. Structure: They follow top down structure, Reversal role wherein people from one team keep exchanging roles, decision making and controlling is centralized. System: Operation performed by managerial staff and frontend employees ,

 Feedback with its guests, Maintain database of their clients Shared values: People diversity Passion for excellence Increase the expectations Innovation Social responsibility Joy at work Skills: Service mentality Immediate response Operation excellence Networking skills Attention to detail Style: Leadership style Internal mobility process Safe environment(encourages the employees) Staff: Best employee of industry who can satisfy and gratify the customer effectively and efficiently to ensure that a through recruitment and selection process is done, assigning the right people to the right job.

ITC
Strategy: launched on October 18, 1975 distinctive logo of hands folded in the traditional Namaste pays architectural tribute to ancient dynasties joined hands with the Sheraton Corporation to strengthen its international marketing base classified under five distinct brands Branded Cuisine Structure: principles of Corporate Governance adopted by the Company leadership within ITC is exercised at three levels This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom System: believe that businesses exist to sub serve larger societal goals. IT has innovatively crafted unique business models that synergies long-term shareholder value creation with enhancing societal capital This commitment is reflected in ITC's 'Triple Bottom Line' approach of contributing to the economic, ecological and social capital of the country. Shared values:

 ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders Customer Focus Excellence Innovation Nation Orientation Skills: ITC visits premier Engineering and Management campuses every year to induct quality talent for its various Businesses. Manufacturing , Marketing & Human Resources, finance. Style: Avoidance of Conflict of Interest Transparency Protection of Confidential Information Company Facilities Staff: only hospitality chain, to have a unique programmer.

Leela
Strategy The Leela Palaces, Hotels and Resorts expands its wings by partnering worlds largest luxury Global Hotel Alliance ( GHA ). The Leela Group intends to increase its awareness among international travelers. Tie up with different airways. Aggressive growth plan. Structure Centralized. Top to down decisions. Personnel department and training department. Shared values Corporate Governance is based on the principles of integrity, fairness, equity, transparency, accountability and commitment to values. Standards of corporate values and ethics. It has been the endeavor of The Leela group to give fair and equitable treatment to all its stakeholders, including employees, customers and shareholders. Staff Responsibility for the overall recruitment process is assigned to human resources managers. Style Their goal is to attract and retain a work force that is motivated to provide a level of service. Making Excellence our way of life. The Leadership at the Leela is committed to not only Employee welfare but also to create a work culture that is challenging and rewarding. Skills Strong Marketing skills Relationship building.

 Hospitality and service. Effective communication of value proposition. System The Leela Kaminski is now certified for ISO 22000 by Bureau Veritas , an internationally recognized certification Body. Rooms of Leela Hotel are spacious and elegantly furnished with ceiling fans and central air conditioning, equipped with 25" color TV with satellite channels video cassette players, hi-fi compact disc players sound system and personal safes. All rooms have a lagoon view except the royal villas and presidential suite. Highly centralized computer system

CONCLUSION

The Indian hotel industry is still in the nascent stages of recovery. In the near term, despite an anticipated revival in room demand, hotels will not be able to hike ARRs significantly as the expected additions to room inventory will intensify competition. Chennai, Pune and Hyderabad are expected to be among the worst-hit destinations, as the growth in supply is expected to far outpace that in demand. Though, events like the Formula 1 race planned in Delhi in 2011 will benefit the hotel industry. Nevertheless, the industry is yet to witness a sustained and significant improvement in occupancy levels and ARRs.

In the long-term, the outlook for the sector is very promising. Demand levels are likely to improve as economic growth gathers momentum and companies increase spending on travel. With expectations of healthy salary increases within the corporate world, discretionary spending is expected to increase further, especially on leisure travel. The number of foreign tourists is expected to reach 6.2 m during 2011 and further to 11.1 m by 2021. The demand-supply gap in India is very real and there is need for more hotels in most cities. The shortage is especially true within the budget and the mid market segment. There is an urgent need for budget and mid market hotels in the country as travellers look for safe and affordable accommodation. The Indian hotel industry is on an expansion spree, with several companies announcing investment plans. Investment in Travel & Tourism is estimated at Rs 1.2 trillion in 2011 and is expected to reach Rs 2.8 trillion by 2021 (implying a CAGR of 8.7%), according to World Travel and Tourism Committee (WTCC) estimates. However, in light of the cash crunch and high interest rates, the players are approaching fresh expansion projects with caution. While the long term fundamentals remain strong, the sector is highly dependent on external factors which could possibly mar its performance.