WESTIN SPORTS CITY HOTEL, GREATER NOIDA, INDIA

Case Study: Project Development and Construction

Compiled bySoumonath Chatterjee (B00318477)

EXECUTIVE SUMMARY
The following case study project focusses on a hotel concept being developed in India in the National Capital Region, New Delhi at the venue of the Indian Formula One Grand Prix Racing Circuit. The hotel has been identified to be located in the developing Jaypee Greens Sport City Complex, which houses the various sporting arenas, hi-rise residential apartments and proposed Central Business District. The project outlines the concept of the hotel with a description of the hotels features, which include the rooms, dining facilities, spa and health club and meetings arrangements. An attempt has been made to clearly spell the Unique Selling Proposition (USP) and the brand differentiation attributed which would generate interest and confidence in the investors mind. The design structure encompassing the space layout, floor schemes and interior dcor has been explained to make the reader understand the concept in more detail. A brief market appraisal has been presented with the site location overview and the respective accessibility of the subject hotel to other prominent locations. Details about the key demand generators have been enlisted in the section, which builds the base for further assumptions considered during the financial feasibility evaluation. Information about primary and secondary competition has been included to understand the existing competitive landscape with a note on the proposed pipeline of hotels expected in the subject region. Investor and lenders have been kept in mind while preparing the financial feasibility exercise. Rooms and F&B income summaries along with the projected room rates and occupancies over a period of 10 years have been complied with drawing up of the Proforma Profit & Loss Statement for the subject hotel and identifying the stabilised year of operation. The section also reveals the capital structure of the establishment with debt to equity ratios being realized with considering loan levels after owners contribution. To further analyse the feasibility, IRR and payback periods including the debt service have been presented to support the projects viability. The methodology of gathering data has been through secondary and limited primary research with only HVS India office and the development team at Starwood, India with regards to proposed guidelines of approaching a development project of this magnitude and presenting a realistic case study. Furthermore, the project also entails certain marketing and sales strategies that need to consider while planning for sustainable financial performance for the hotel. Similarly, discussions delve into the proposed reporting structure between the owner and operators representatives, the Hotel management contract with the Westin Brand, manpower planning and other key operational requirements. The details of all workings have been provided by the researcher in the appendix section of this report, which would help the reader to refer to the calculations and information about the subject hotel.

Welcome to Westin Sports City Hotel, Greater Noida, India!!!!!

TABLE OF CONTENTS
EXECUTIVE SUMMARY............................................................................................................................................. 2 1. 2. PRODUCT DESCRIPTION .................................................................................................................................. 4 MARKET APPRAISAL ......................................................................................................................................... 5 2.1 Market Overview .................................................................................................................................................... 5 2.2 Site overview .......................................................................................................................................................... 5 2.2.1 Accessibility ..................................................................................................................................................... 6 2.2.2 Demand Generators.......................................................................................................................................... 6 2.3 Primary and Secondary Competitors ...................................................................................................................... 7 3. FINANCIAL FEASIBILTIY EVALUATION ......................................................................................................... 8 3.1 Project Cost Overview ............................................................................................................................................ 8 3.2 Funds Procurement ................................................................................................................................................. 8 3.3 Financial Feasibility ................................................................................................................................................ 8 4. MARKETING AND OPERATIONAL OVERVIEW ......................................................................................... 9 4.1 Marketing Overview ............................................................................................................................................... 9 4.2 Operational Strategy ............................................................................................................................................. 10 5. 6. 7. PRODUCT DIFFERENTIATION ...................................................................................................................... 11 REFERENCES ...................................................................................................................................................... 12 APPENDIX ............................................................................................................................................................ 13 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 Site Location Map ........................................................................................................................................... 13 Site Area Accessibility Map ........................................................................................................................... 14 Area Site Map with Nearby Establishments ................................................................................................... 14 Hotel Area Program ........................................................................................................................................ 15 Hotel Proforma Profit and Loss Statement (10 year period) ........................................................................... 16 Operating Financials ....................................................................................................................................... 17 Hotel P&L Summary with IRR and Payback ................................................................................................. 18 Project Cash Flow with Debt Service ............................................................................................................. 19 Hotel Financial Projections ............................................................................................................................. 20 Primary Demand Generators ........................................................................................................................... 21

1. PRODUCT DESCRIPTION
The concept is a five-star upscale hotel with the Westin brand associate with it. The location of the hotel, closest accommodation facility to the Buddh International Formula 1 track in the Jaypee Greens Sport City, is off great significance as it extends its theme- Formula One car racing. The interior of the hotel have a perfect blend of the Westin specifications and modernity with flaunting of high octane adrenalin. The glass and steel sharp features and finesse to the dcor have been inspired by the aerodynamics of a F1 racing car. The 306 keys establishment is a first of its kind in the country with a Formula 1 theme. The 6 Royal suites (3 bay) are designed and named after the 6 greatest legends of the game- Ayrton Senna, Nick Lauda, Emerson Fittipaldi, Alain Prost, Juan Manuel Fangio and Michael Schumacher, which would house rare pictures of their sporting careers and memorabilia across the 109 square meters of luxury space. These suites would be stylishly appointed with separate living and sleeping areas providing ample space and complete privacy. The Royal Suite bedroom features a luxurious walk-in closet and the signature Westin Heavenly Bed with the seven layers of plush bedding along with walk-in glass shower with rainforest showerhead and separate soaking bathtub filled with Bulgari bath amenities. The unparalleled view of the Buddh International F1 circuit is simply dazzling and fulfilling. Furthermore, the 21 gorgeous Executive Suites spread across 72 square meters with makes you feel at home with a separate living room housing plush contemporary couches as well as a second 42-inch LCD TV, DVD player and other gadgets. There are specially designed seven one-bedroom Renewal Suites, with their large circular sofas and additional powder rooms, are havens romantically perched on the building's corners for dramatic floor-to-ceiling, panoramic vistas of Noida and Taj Expressway. The twelve Aura rooms specially designed for the chic, modern women on-the-go. These rooms, generous in size and conveniently located by the elevators on each floor for easy access, are ideal for single female travellers visiting the city for business or leisure. Doorbells with video function as well as exclusive service by female associates ensure complete safety and security. Similar features and ergonomic designs can be experienced across the Deluxe and Premier rooms perfectly suited for the business traveller with HSIA and business- friendly technology provided. The dining options complement the accommodations arrangement with 2 world class specialty restaurantsOnly Asia with authentic assimilation of regional cuisines from Sczhewan, Canton, Vietnam, Thailand, Japan, and first of its kind offering of Burmese and Sri-Lankan specialties. The other outlet, Riva would serve exquisite Italian cuisine blending with an enviable collection of wines. The All-day-dining, Hairpin Bend named after a racing terminology stems from the location of the coffee-shop at an acute corner at the lobby. The hip and trendy lounge and bar, Octane justifies the adrenalin filled experience of sipping the worlds best martinis along with puffing a habanos cigar or cheering up to a glass of ageing scotch amidst the music and ambience. The deli at the lobby, Pit Stop is adequately named as it the small sandwich and pastries bar which also serves fresh baked items to be picked on the go. The Meeting and Conferences options are very exhaustive with the pillar-less Grand Ballroom of 1115 square meter accommodating up to 1200 guests over a cocktail function alongside 8 medium sized conference and meeting rooms capable of hosting 120-250 pax. There has been appropriate allocation of space for pre-function area which is approximately 600 square meters amounting to an impressive 2800 square meter of banquet space situated at the lower lobby, and mezzanine lobby floors. The lobby would feature two high street luxury retail stores along with the business center. Another striking feature of the hotel is the 1300 square meter Heavenly Spa with 6 treatment rooms along with a spacious Westin -Workout Health Club equipped with modern Precor fitness machines over 300 square meters. The poolside also houses a distinct area for conducting Yoga classes in the mornings for the resident guests. The hotel is a building structure built over a plot area of 4 acres, with total built up space of 39000 square meters across 2 basement floors for parking, lower lobby for banqueting with separate entrance, main lobby area with the main entrance, upper lobby mezzanine floor housing meeting rooms and 7 floors with guest rooms.

2. MARKET APPRAISAL
2.1 Market Overview
In the new era of globalized world, the gradual shift in power in the favour of the emerging economies is significantly visible. India, in the recent past has emerged as an attractive destination for doing business as the returns are considerably alluring for the foreign investor making a bee-line to the country. The existing economic framework has been able to sustain an 8-9% GDP growth in the last decade and show resilience in combatting the Global Crisis in 2008-09. Proliferation of international hospitality brands in the last 4-5 years has pushed the hotel sector to leave the limits of the metro-cities and penetrate into tier 2 and 3 cities with adequate growth. To support such a large business domain, the government has carried out re-development of the international airports, improved air connectivity within the country and also relaxed visa norms to strive for the 2020 vision of welcoming 20 million visitors to this incredible country. Commonwealth Games, ICC Cricket World Cup, Indian Formula 1 Grand Prix, Bangalore Aero Show and similar global trade shows and sporting calendar events would invariably help India gain further visibility and invariably support development for quality hotel rooms in the future across various destinations. The countrys capital city New Delhi governs the largest hotel market in the country with the inclusion of four satellite towns Gurgaon, Noida, Ghaziabad and Faridabad together being called the National Capital Region (NCR). With the existing supply of almost 13000 rooms and close to 18000 rooms in the pipeline and active development, the city region is growing at an aggressive rate. Micro-markets like Gurgaon and Noida have successfully established themselves through attracting respective business segments like Grade A offices, high-rise retail infrastructure, luxury homes and residential societies from Central and South Delhi areas. In addition, the improved Metro connectivity to these two towns along with the development of the interstate expressway to locations like Agra and Manesar respectively have added huge credibility to the commercial real estate market. Created in 1976, under the New Okhla Industrial Development Authority (NOIDA) is located across the Yamuna River has now transformed into a bustling semi-city in the last decade witnessing the maximum growth. Further development has now given birth to a new location, Greater Noida, which saw the 8th highest annual growth in rental values in the world in December 2008. It has been able to attract medium to large scale industries and recorded an annual growth of 25% in industrial rental values in 2008. The location is particularly promoted for campus development and has huge potential for future supply. Hence, luxury hotels have initiated proposals to tap into this market which is expected to grow very fast in the medium to long term horizon.

2.2 Site overview

The hotel site is located in the Jaypee Greens Sports City, Dankaur that comprises of perfectly crafted Country Homes, Villas, Town Homes and mid to high- rise apartments blocks with breath taking views of numerous perennial lakes and canals and multiple social clubs. The area includes Indias first Formula 1 Racing track, an ICC Standard Cricket Stadium along with other international sports stadiums making it the haven for international sporting events in the future. The plan for the first Commercial Business District is equipped with elaborate financial, recreational and civic centres. Replete with all modern facilities, the city offers regular water supply, 24 hours electric power supply from Jaypee Groups own power generation power plants, centrally monitored 3-tier security system, super specialty medical facilities, and educational facilities from kinder crib to primary school to professional colleges etc. The site is well suited to benefit from the diverse demand generators within the vicinity.

2.2.1 Accessibility

The project site is located approximately 45 kms south east of Delhi, 15 kms south of Noida & east of the Yamuna River. It will be well connected with the Yamuna Expressway along its east boundary, Eastern Expressway on its west & ring road to South east. Proposed metro link would run parallel to the Yamuna Expressway. The main railway between Delhi & Agra runs along the west boundary. 0 Point (Greater Noida) The time taken is 15 min (approx.) Noida / Greater Noida Expressway The time taken is 25 min (approx.) South Delhi The time taken is 35 42 min (approx.) The Yamuna Expressway is 165 kms long, connecting Noida to Agra. Indias Longest Access Controlled Expressway with Six Lane Concrete Pavement - slated to reduce the travel time between New Delhi and Agra to 2 hours from the present 4 hours Yamuna Expressway is poised to be Growth Engine for all round economic and industrial growth in western UP impacting a population of around 30 million. Yamuna Expressway Authority has identified ribbon development along Yamuna Expressway to promote Special Development Zones for core activities like IT, Industries, Biotechnology, Service Sectors and Commercial. Connecting National Capital Region with other parts of the state will boost economic activity, decongestion of existing roads and reduction in pollution.
2.2.2 Demand Generators

The full potential of the location can be realized in 3-4 years with all the simultaneous infrastructural developments taking complete shape, in a way by the time the hotel gets operational by 2016. The following factors have been identified to be the most significant demand generators. The location will definitely have a more pronounced position and image on the global map with the aforementioned calendar events. The Formula 1 Indian Grand Prix would take place during the last week of October with hotels being booked for 3 weeks in advance till the race day. On an average each of the 20 racing teams require close to 100 rooms to accommodate the entire team of engineers, technical crew, drivers, security, managers etc. The event is of such grand scale that all the hotels would get sold out in the vicinity well in advance and drives the room rates through the roof during that period making it extremely viable for hotels. The ICC standard Cricket Stadium would be second in the that region after the Feroz Shah Kotla, with huge support being garnered from the UP State Cricket Board helping it turn into a money spinner, with getting more international matches and all important Indian Premier League (IPL) tournament which is a calendar event spread over 2 months. The venue could easily bag 2-3 One Day matches along with 10-15 IPL T-20 matches across the off-season months of April and May. Other sporting events could be of significant opportunity to generate demand for hotel rooms in that region. The commercial zoning of the Central Business District would boost the demand from the corporate segment with key activities from Industrial, Information Technology (IT)/ (ITES), Bio-Tech, Institutional, Recreational and Service Industry. The Honda-SIEL factory, along with Samsungs production unit and NIITs office on the other side of the Taj Expressway would be generating a great deal of demand within a radius of 5 kms. The IT/ ITES offices have a lion share in the grade A office of up to 27 %, with considerable demand coming from the Technical universities and the biggest Gautam Buddha University contributing equally. The location of the mega hospitals in the area would be also generating strong demand and may also help build medical tourism in this zone. The MICE market has been consistently building up over the past few years and given a couple of more years would attain critical mass to generate volume demand for hotel facilities. A significant contributor is the India Exposition Mart which is built over 28000 square meters and can accommodate up to 8000 conventioneers under the same roof. Over the last few years, IEM has been able to market the destination and bag some key global trade shows and are hosting the IC&TM in August 2012. The hotel is positioned in a sweet spot to benefit from all the key activities taking place during the year.

The 2 hour drive to Agra would definitely make the international leisure segment want to stay at this spot and slip into the city of Taj Mahal creating a strong demand for transient leisure segment in this area and vice-versa for people travelling back from Agra could avoid staying in New Delhi and rather putting up at Greater Noida and flying out. The overall demand framework for the subject property would definitely be a corporate heavy hotel with almost 40%, followed by MICE being 30%, Calendar events being up to 20% and the rest 10% being transient.

2.3 Primary and Secondary Competitors

The existing competitors are based in practically 3 market zones- Greater Noida, Noida and Mayur Vihar and Nehru Place in New Delhi which is the first entry point when travelling from Noida. There are mainly two hotels, Radisson Blu and Jaypee Golf and Spa Resort in the vicinity of the hotel site with room size of 175 and 170 rooms respectively at an ARR of INR 8000-9000. The next circle includes the star category hotels in Noida and Mayur Vihar area, which are approx. 3.1 kms from the site and have direct influence on the demand being generated in the subject area. MBD Radisson, which is the oldest hotel with 114 rooms charging INR 10500; followed by the 196 key Double Tree by Hilton priced at INR 8000 and the 168 rooms Hilton New Delhi charging rooms at INR 9000. The next primary competitor would be located in the third circle of Nehru Place, which is the Eros Hotel managed by Hilton is an established old hotel with room rates at INR 10000 and inventory of 217 rooms. This hotel also caters to the segment of guests who prefer to stay in New Delhi but go on business visits during the day to Noida and Greater Noida. The secondary competitors are not very distinct and are 3-4 star hotels available in Noida region with average inventory of 45-50 rooms with ARR of INR 5500. These are Extended-stay hotels with kitchenette and bigger room size and select services. The prominent ones are the Fraser Suites and the Savoy Suites. The other business hotel is the Fortune Inn Grazia which is a 42 room hotel priced at INR 6500 in the Noida area. Apart from the existing hotels, there is an aggressive pipeline of 5 star and luxury deluxe array of brands coming up in the Greater Noida Area. The proposed 500 rooms Grand Hyatt, 200 rooms Courtyard by Marriott, 250 rooms Vivanta by Taj, Accor hotel, Lemon Tree and Intercontinental hotels are some of the few significant players planning to enter the market in the next couple of years, which would see the market, develop and create opportunities for every hotel to operate successfully in the concerned marketplace.
Primary Competitors Radisson Blu Jaypee Golf & Spa Resorts MBD Radisson, Noida Double Tree by Hilton, Mayur Vihar Hilton New Delhi, Mayur Vihar Eros- Hotel, Nehru Place Country Inns & Suites by Carlson Secondary Competitors Savoy Suites Fraser Suites The Nanee Suites Fortune Inn Grazia Rooms Distance (km) Room Rate (INR) 175 0 8000 170 0 9000 114 3.1 10500 196 3.1 8000 168 3.1 9000 217 7.4 10000 217 8 7000 Rooms Distance (km) Room Rate (INR) 44 3.1 6500 92 3.1 6000 35 3.1 5500 42 3.1 6500

3. FINANCIAL FEASIBILTIY EVALUATION

3.1 Project Cost Overview

The total project cost for the subject hotel is INR 26,010 Lakhs (1 = INR 65.00), which included the development of the hotel, the cold shell, MEP (Mechanical, Electrical and Plumbing), towards Interiors ( FF &E) and soft costs such as fees paid to architect, designer and interest paid on construction loans. This is exclusive of the land acquisition cost. The total number of keys is 306 and the development cost per key is INR 85 Lakhs for the Westin Brand. The breakup of the development costs is as follows: Particulars Cold Shell MEP Contribution % 33 32 Costs (in INR Lakhs) 858.33 832.32 901.35

Interior and Soft 35 Cost

3.2 Funds Procurement

The project would be funded by a Debt to Equity Ratio of 65:35. The Owners would contribute 35% of the Paid in Capital and undertake a commercial property loan at Loan to Value (LTV) of 65% from Axis Bank Pvt. Ltd in India @ 12.5 % p.a. with 1 year moratorium period and payable in 9 Annual payments. Owner Paid in Capital 35% @ INR 9,104 Lakhs Construction Period 3 years Debt Structure LTV 65% @ INR 16,906 Lakhs

Interest @ 12.5%. 1 year Moratorium plus 3 years construction period Capital disbursed in 3 tranches 9 Equal Annual instalments over period of construction Y 1 : INR 3,095 Lakhs Total Terms 13 Y 2 : INR 3,004 Lakhs Y 3 : INR 3,004 Lakhs

3.3 Financial Feasibility

The projects financial feasibility has been drawn up with respect to the Proforma P&L statements for 10 year period. The IRR calculates to 26.06% with a Payback period (Excl. construction period) of 4.5 years and cumulative Payback period of 7.5 years. The DSCR (Debt Service Coverage Ratio) for the stabilized year is at a healthy rate of 1.9, which would ensure timely repayment of the annual loan amount. The stabilized year is reached in the hotels 4th year of operations, when the hotel clocks 73% occupancy. The hotel starts with an occupancy of approx. 50% and grows to 58% and 65% in the 2nd and 3rd year with an y-o-y growth of 12% .The hotel would have a projected ARR (Average Room Rate) of INR 7500.00 and would grow at an inflationary rate of 6% y-o-y. The Restaurant Average check (APC) in the opening year is at INR 893.00 and reaches INR 1063.00 along with the Banquet APC reaching INR 1556.00 in the 4th year. The subject hotel has engaged with Starwood Hotels and Resorts through a Hotel Management Contract for its Westin Brand for an Initial Term of 15 years with 3 Renewal periods of 5 years each. The Base management Fee has been decided at 3% of the Total Revenue (Turnover) and the Incentive fee at 8% of Gross Operating Profit (GOP). EBIDTA margins reach 41% whereas the GOP margins touch the 48% in the stabilized year of operations. Replacement for Reserves has been allocated and capped at 4%.

4. MARKETING AND OPERATIONAL OVERVIEW

4.1 Marketing Overview
The competitive advantage the hotel would get through the Westin Hotels and Resorts brand is immense even amidst the brand- frenzied Indian hotel market. The hotel would benefit from an established hotel brand with a history of innovation blended with a service culture dedicated to providing guests with enhancing guests with enriching experience through modern-day design and signature programming. This is further coupled with unwavering customer loyalty through the world renowned SPG loyalty program and a global sales and marketing infrastructure to help the hotel achieve sustainable performances. These philosophies have helped Westin grow to 185 properties across 40 countries with a strong presence in the Asian market as well. The Starwood Hotels global sales network would help market and sell the hotel through the exisitng channels and proprietary sales infraturures enabling success at the highest level. The Central Marketing Delivery (CMD) channel being the biggest contributor of driving room revenue by 41%. This is closely followed by the 33 Global Sales Organisations (GSO) that generate group, leisure and transient businesses, which results to 23% of the total revenue. Micro programs like the Team HOT, which includes hotels cross selling each partner hotel, Starwood privileges- a stay purchase program which comprises of 100 partnering hotels acros Asia, EMEA regions and StarChoice is a reservation loyalty program for travel arrangers across Asia, EMEA regions. The recent 100 million $ investment towards improving the Starwoods branded website has resutled in a strong 16% contribution with gradually reducing the age old over dependancy on GDS channels thereby reducing commissions. This is followed by the Customer Contact Centre (CCC) which geenerates 14% and the GDS driving 6 % of the remaining revenue. Another ace booking source is the SPG- Starwood Preferred Guests Program, which contributes a whopping 37% of all revenues for a partner hotel. The critical positioning statement for the hotel would be to become the official partners for some of the key sporting events in order to drive hotel demand for rooms and events. The strategic approach would be to become the official hospitality partner for the Formula One Indian Grand Prix by registering with the FIA by virtue of being located adjoining to the racing venue. This marketing tie-up would definitely provide strong visibility for the hotel and would generate future business. Parallel attempts should be made to be partners for one or two prominent racing teams like Ferrari and Red Bull as the competing Hilton at Mayur Vihar is the official partner for Maclaren Mercedes team and the neighbouring Radisson Blue hosting the Force India and Renault teams. Similar efforts should be placed to seek potential business from the International cricketing events by tying up with the BCCI (Board for Control for Cricket in India) in order to host the cricket teams during the matches. In addition, during the IPL (Indian Cricket Premier League) the Westin brand is the official hospitality partners of the Delhi Daredevils, hence the hotel should be able to host the teams during the events and generate substantial PR mileage as well as revenue. Furthermore, similar attempts should be made to bag the contract from the Indian Exposition Mart- the MICE convention centre of being the Hospitality vendor for the large scale events adequately spread across the year. The Corporate segments need to be tapped in from the neighbouring CBD and the offices as well. The dining options should target the captive residential market available at the Jaypee Greens Residential complex. The Local Advertising and Promotion spend has been maintained at 4%, whereas the Corporate A &P for the initial years of the hotel operation till it reaches the stabilized year occupancy have been allocated 5% along with CRS/CIS costs at 1%.

4.2 Operational Strategy

The brand promise For a Better You is consistently delivered through every signature program designed from the famed Heavenly series- Heavenly Beds, Bath, Spa and the recently developed Westin Workouts, SuperFoods Rx and Breathe that connect with every customer contact point. The Westin design theme is inspired by nature, with materials that are textural interpretations of landscape imagery run across the lobby, the guestrooms, meeting and social spaces of the hotel. The concept of In-room spa service allows guests to restore energy and revitalise in the confined privacy of their hotel rooms. The guests are welcomed into an energizing space with signature design elements like check-in pods, meeting tables and semi-private enclaves that lend the lobby diversity and style. There are acoustic zones, sophisticated technology and precise lighting to arise sensory moods. There are different design schemes developed to address the needs and desires of different segments of guests. The three types- Classis, which reflects classic art deco features, Modern that idolizes the 20th century modern streamlined dcor with softened organic textures and Historic which derives distinct ancient traditional norms of design structures native to a place. Furthermore, the centralized Revenue Management team enables the hotel to utilize top analytical talent and the latest technology to introduce innovative pricing and inventory management. In addition, the benefits of Starwoods centralised supply chain services that generates significant savings up to 15% through strategic partnerships with vendors at national, regional and local levels is operationally critical in order to reduce the Raw material Costs from the existing 22%. It also provides to improve operating efficiencies by incorporating the e-procurement technology at the subject hotel. The energy costs have been considered to be at 11% with the respective occupancy levels projected. Rents and property taxes would be capped at 3%. The Owner would be responsible for the staffing at the hotel and would own the payroll with the Operator deploying the GM, DOSM and the Executive Chef. The staff ratio has been maintained at 1.7 for an upscale hotel like the Westin brand with payroll costs amounting to 20% of the turnover for the 520 employees. To reduce the payroll costs, Public area and BOH attendants, Security and Maintenance personnel would be outsourced to a Multi-utility services company with performance clauses. The front-line staff would also be hired on a FTC (Fixed Term Contract) to reduce manpower costs. The Food and Beverage section would be headed by an Executive Assistant Manager (EAM-F &B) and the corresponding Rooms division would be handled by EAM Accommodations who in turn would report to the Resident Manager and further reporting to the General Manager. These along with the Heads of Departments would form the Senior Management of the hotel. The team of GM, Chief Financial Controller and the Director of Sales and Marketing would report to the owner on prior established periodic basis to appraise of the financial and operational health of the company along with quarterly meetings with the Westin Brand Head for India to review performances. The Dining options also include the exclusive Westin Executive Lounge for only Suite guests, which serve round the clock refreshments, and alcoholic beverages during the happy hours in the evening from 1830 2000hrs and serves after dinner aperitifs and a moderate spread of breakfasts. The In Room Dining also is exclusive for the resident guests with round the clock features with exclusive Overnight and a Healthy breakfast menu sections. The 90 covers Only Asia restaurant has interactive cooking sections, dim-sum trolleys and a special 12 covers Tepanyaki section. On the other hand, the Riva has a stone clay pizza oven in the live counter and has a full wall dedicated to authentic wines from the country and other regions of the world.

5. PRODUCT DIFFERENTIATION
The subject hotel derives its differential from three aspects- location, concept and design and the brand. The hotel has a tremendous value proposition by virtue of being at the epicentre of all the events. It would be the closest hotel to the Race Track and the unrivalled view from the room would be worth every single penny spent by the guest. The hotel is located at the heart of the Jaypee Greens Sports City, which would be a selfsustaining town structure with all market segments in close proximity ready to be tapped into as a captive market. The hotel has the potential for becoming a preferred location for visitors to this part of the city with different purposes. The accessibility to all leading venues and industrial and business offices gives the hotel a significant advantage over its competitors, who are located on the other side of the Expressway, Noida and Mayur Vihar, regions that cater to this market. The most critical differentiation the hotel would have is that of the image of Formula One concept hotel just gravels away from the Buddh International racing track. The ambience with sharp LED lights, inspiring music, refreshing dcor of the hotel extending a pulsating feel and aerodynamically shaped structures would provide the guests with an innovative experience. The 6 Royal Suites would capture a racing enthusiasts imagination with invaluable memorabilia collected across generations of racing legends. In addition, the Octane lounge and bar would feature and celebrate the entire Formula One calendar with race days combined with events to make it the trendiest bar in town. The bar would also have favourite cocktails of famous international drivers and serve them with a quick fact coaster stand of the driver as a small take away. To further complement the concept, the ADD Hairpin Bend would incorporate special menus across the grand prix locations of the world and have special table fixtures and amenities that resemble the sport. This would be clearly the hotels Unique Selling Proposition. The Westin brand also adds to the differentiation as it brings with it the muscle and spread of the Starwood Hotels chains global sales and marketing infrastructure. The Westin brand has been a pioneer in every hospitality term with innovating every aspect of guests services and products throughout its existence. The brand also provides enough ways to connect with the guests through the diverse programs carefully tailored for the Westiners. The biggest impact is the level of loyalty a hotel witnesses by being part of the SPG programme and with renewed investments from the parent brand; it is definitely the biggest differentiating factor for hotels to get unconditional support and trust from its loyal guests over and over again. These were the reasons for selecting Westin as an upscale brand for the site location of the subject hotel. With almost 40 Westin hotels being opened across Asia, the hotel would further benefit from the enhanced image of the brand and more so from the collection of existing Westin properties in India.

6. REFERENCES
MARKET REPORTS 1. MarketBeat Report, NCR New Delhi Region, Cushman & Wakefield Sector Research, Q3-4, 2010 2. Trends & Opportunities 2011, Indian Hospitality Report, HVS India, 2011 3. FHRAI HVS Report on Indian Hospitality Report, HVS India, 2011 4. Hotel Valuation Index Report 2011, HVS India, 2011

WEBSITE SOURCES 1. http:// www.starwoodhotels.com 2. http://www.development.starwoodhotels.com 3. http://www.hotels.com 4. http://jaypee.sportscity.co.in 5. http://greaternoidaauthority.in

7. APPENDIX
7.1 Site Location Map

7.2

Site Area Accessibility Map

7.3

Area Site Map with Nearby Establishments

7.4

Hotel Area Program

7.5

Hotel Proforma Profit and Loss Statement (10 year period)

7.6

Operating Financials

7.7

Hotel P&L Summary with IRR and Payback

7.8

Project Cash Flow with Debt Service

7.9

Hotel Financial Projections

7.10 Primary Demand Generators

LANDMARKS
Greater Noida International Sports City

RESIDENTIAL COMPLEX Unitech Horizon[11]

INDUSTRIES HiGlance Laboratories Private Limited.[15]

IT & BIO-TECH COMPANIES

Swikar Software Solutions

HOSPITALS
Kailash Hospital, Near Pari chowk

COLLEGES
Sharda University(Private State University),Sharda Group United College of Engineering & Research[28] IIMT College of Enggineering

Buddh International Circuit Graduate School of Business & Administration(GSBA)[6] Ishan Institute of Management & Technology[7]
GNIT and management, greater noida Priyadarshini College of Computer Sciences,Greater Noida IILM Aademy Of Higher Learning

Unitech Verve[12]

Videocon d2h

Videocon d2h

Samvedana Hospital, Sector 48

RETAIL ALPHA COMMERCIAL BELT The Grand Venezia[47] (1.2 km NIIT from Pari-Chowk near Golf Course) Omaxe Connaught Cetpa Infotech Pvt. Ltd. Place[48] (5 km north of Pari-Chowk)
Kasana Tower (Alpha Commercial Belt) Parsvanath Bibhab Plaza (Alpha Commercial Belt) S.L.Tower (Alpha Commercial belt) SNZ Plaza, (Near Galgotia Institute, Expressway) Ansal Plaza (Near Pari Chowk) Omaxe NRI City Centre (Near Pari Chowk) Central Market (Rampur Jagir Sector Beta-1) Jagat Farm Market (Amritpuram,Sector Gamma-1) Bouginvilia Shopping Complex (Sector Gamma-2) DUCAT India

Unitech Cascade[13]

Samsung India Electronics Pvt Ltd.

NIIT

ITS Dental Hospital, Knowledge Park

Unitech Habitat[14]

Yamaha Motors

American Express

Sharda Hospital, Knowledge Park-3

Dronacharya group of institutions[29] Skyline Institute of Engineering & Technology (SIET)[30] Greater Noida Institute of Technology(GNIT)[31] Priyadarshini College of Computer Sciences.[32] College of Engineering and Technology-Institute of Integrated LearningITS college of engineering

LIC of India

iHOMZ Noida

Honda Siel Cars India

Wipro Technologies

Shashi Dental Care, B104 Alpha 1

HDFC

Gharonda Housing Society, GH06, Alpha I; 700m from Pari Chowk

LG Electronics (India) Pvt Ltd.

Yashoda Hospital & Research Centre

Sahdev Hospital, Near Sector P-3 Bakson Homoeopathic Medical college and Hospital, Tugalpur, Near Pari Chowk Yatharth Wellness Hospital & Trauma Center, Sector OMEGA, Near Senior Citizens Astha Hospital, Block- I, Sector- Alpha-II

ICICI

Silver City II 3 km from Pari Chowk

Daewoo Motors

HCL Technologies

State Bank of India

IEC college of engineering & Tech.

Purvanchal Heights ; 5 km from Pari Chowk

WIPRO

LG Electronics

Axis bank

Dronacharya College of Engineering

Sports City 15 km from Pari Chowk

Moser Baer India Ltd.

Moser Baer

Max-New York Life Insurance

G L Bajaj Institute of Technology Army Institute of Management and Technology Greater NOIDA

Ansal Megapolis 6 km from Pari Chowk

Alstom

Samsung Electronics

Navin Hospital, BlockF, Sector- Alpha-II National homoeopathic centre, main markit, tugalpur, Near Pari Chowk

Accurate Institute of Management & Technology[34] Galgotias Collage of Engineering & Technology
IEC College of Engineering

Honey Money Top - A high-end retail store

Many property dealers' offices

Black Gold Society 2.0 km from Pari Chowk

BPCL R&D Centre

Franciscan Solutions[20]

Sharda University

Parsvnath Platinum 2.5 km from Pari Chowk

Asian Paints

STMicroelectronics

Sector Beta-1 Market

Noida International University [8]

Parsvnath Edens 3 km from Pari Chowk

Delphi automotive

ST-Ericsson

Alpine College of Engineering[35]

Sector Alpha-2 Market