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Hotel Industry – India September 2014
Executive Summary Market
Tourism is slated to grow at 7% CAGR over 2013-18e India has emerged as a favorite destination for tourists both for business as well as for leisure as it is still considered to be one with enough potential for growth Hotel sector in India, though has faced dismal figures, has still managed to post growth and is slated to grow in future Drivers:
Drivers & Challenges
Trends
Competitive Landscape
Challenges:
Growth in tourism Opening of aviation sector Emergence of budget hotels Major Events Changing Demographics and Consumer Behavior
Increasing operating costs Depreciation of rupee Lack of infrastructure Socio-political concerns
Entry of foreign players Franchising model of business operation Rationalizing employee-to-room ratio Majors selling off properties Major Players Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
HOTEL INDUSTRY IN INDIA 2014.PPT
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•Macroeconomic Indicators
•Introduction •Market Overview •Drivers & Challenges •Trends •Regulations
•Competitive Landscape •Strategic Recommendations •Appendix HOTEL INDUSTRY IN INDIA 2014.PPT
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Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14 d1 c1 13 b1 12 a1
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
Q3 2013-14
2012-13
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
-t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
HOTEL INDUSTRY IN INDIA 2014.PPT
Nov 2013 - Dec 2013 4
Despite slowdown, India is still considered to be a major destination in terms of hospitality business
SAMPLE
Hotel Market in India – Overview • India is considered to be one of the top 10 markets that is poised to deliver 3/4th of the global hospitality growth • Hotels in India offer a wide range of options including luxury, upscale, leisure and mid-market or economy • India has become a global destination with many international brands making a foray into the country as part of their expansion plans • Major international events such as Commonwealth Games, Formula One Grand Prix have led to a dynamically growing hotel industry, however, recent terror attacks or even violence against women has acted negatively for the sector
Branded Hotel Rooms – India Unit
b1 a1
a2
a3
2013
2014e
2015e
a4
a5
a6
0 2016e
HOTEL INDUSTRY IN INDIA 2014.PPT
2017e
2018e 5
Drivers & Challenges – Summary
Challenges Drivers Growth in tourism Opening of aviation sector Emergence of budget hotels
Increasing operating costs Depreciation of rupee Lack of infrastructure Socio-political concerns
Major Events Changing Demographics and Consumer Behavior
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Trends – Summary
Majors selling off properties
Entry of foreign players
Trends
Rationalizing employee-to-room ratio
Franchising model of business operation
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Regulations – Summary
Tourism enhancement initiatives
Federation of Hotel & Restaurant Association of India
Key Regulations
Taxation System
Hospitality Development and Promotion Board
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Market Competition – Porter’s Five Forces Analysis Impact XX Threat of New Entrants
Impact XX
Bargaining Power of Suppliers
Impact XX
Competitive Rivalry
Impact XX
Bargaining Power of Buyers
Impact XX Threat of Substitutes
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Competitive Benchmarking – Private Companies (2/5) Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3) Operating Margin
Net Margin
% 20
o1
0 m1
-20
n1
n2
o2
-40 -60
m2
-80
Hotel Leelaventure Ltd.
Sterling Holiday Resorts India Ltd.
The Indian Hotel Company Ltd.
• Text • Text
• Text
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Public: Domestic Company – Company 1 (1/4) Company Information
SAMPLE Offices and Centres – India
Corporate Address Tel No. Fax No. City
Website Year of Incorporation
Ticker Symbol Stock Exchange
Products and Services Category
Head Office
Products/Services
Key People Hospitality Others
P1, p2 P3, p4
Name
Designation
Person 1
Chairman
Person 2
President of Finance and Operations
Person 3
VP of Corporate, Compliance Officer
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SAMPLE
Public: Domestic Company – Company 1 (2/4) Financial Snapshot
Key Ratios
Total Income
Net Profit/Loss
INR mn
INR mn
y6 y2
y7 y8
0 2011
2012
2013
2014
Financial Summary • The company incurred a net loss of INR - mn in FY 2014, as compared to net profit of INR - mn in FY 2013 • It reported total income of INR - mn in FY 2014, registering a decrease of y9 per cent over FY 2013 • It earned an operating margin of y10 per cent in FY 2014, an increase of y11 percentage points over FY 2013 • It reported debt to equity ratio of - in FY 2014, an increase of y12 per cent over FY 2013
Financial Summary Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
2014
2013
2012
2011
Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
y3 y4
y-o-y change (2014-13)
Profitability Ratios
y5 y1
Particulars
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
HOTEL INDUSTRY IN INDIA 2014.PPT
Decline
12
Public: Domestic Company – Company 1 (3/4) Key Business Segments
Key Geographic Segments India
Hospitality/Hotel Business r1
100%
r2
100%
50%
50%
0%
0%
2014
2014
Business Highlights Description
Overview
News
• Text • Text
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Public: Domestic Company – Company 1 – SWOT Analysis (4/4)
SAMPLE
• text
• text
S
W
O
T
• text
• text
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