Indian Hotel Industry Survey 2008-2009

Green ing our footprints...

For more information, or additional copies of this document, please contact:

Secretary General Federation of Hotel & Restaurant Association of India (FHRAI) B-82, 8th Floor, Himalaya House, 23 Kasturba Gandhi Marg, New Delhi - 110 001 India Tel: Fax: Email: Website: Price: +91 (11) 4078 0780 +91 (11) 4078 0777 fhrai@vsnl.com ww w.fhrai.com FHRAI Members: FHRAI Non-Members Inte rnational Rs. 400 (per additional copy) Rs. 600 US$ 50

Federation of Hotels & Restaurant Association of India, 2009 Reproduction of data from within publication is permitted provided that acknowledgement is accredited to the FHRAI and HVS Hospitality Services.

Table of Contents

In our efforts to reduce our carbon footprints, HVS has published this year's FHRAI report using ENOVA; a 30% Post Consumer Waste (PCW ) + 70% Programme for the Endorsement of Forest Certification (PEFC) certified recycled coated substrate pape r. We shall, in the coming years, substitute this with 100% PCW pape r.

Foreword
The Federation of Hotel & Restaurant Associations of India is pleased to present the twelfth annual edition of the Indian Hotel Indust ry Survey in cooperation with HVS Hospitality Services. This survey, covering the performance of hotels across different cities and different quality standards, provides an indepth understanding of the Indian hospitality indust ry; becoming a benchmark reference standard. We would like to thank the participating hotels for all the detailed info rmation they have provided and helped improve the quality of this research. The Indian Hotel Indust ry Survey analyses the performance of the Indian hospitality indust ry across varying parameters such as facilities, manpowe r, operational performance and marketing trends. The information is based on data received from FHRAI hotel members and the authenticity of this data helps us in providing a clear picture of the operating statistics of India's hospitality sector. Data collated from our member hotels, our extensive historic database and the credibility of our research have helped make this report a prefe rred tool for hotel professionals, consultants, investors, bankers, researchers, gove rnment officials in the tourism department, media persons and all those interested in studying the Indian hotel indust ry. The current edition includes an analysis of seven major cities for which we have received detailed info rmation and twelve other cities where info rmation was available with us for some hotels, though not in sufficient numbers for all the star categories. We earnestly request all our members to be more forthcoming with sharing the required info rmation as this helps us all. Therefore, while we have basic data for 1,168 members (a decline from the 1,204 responses received last year), the financial data is not available for all of them. We have, this year, put special focus on the urgent need to protect and prese rve our environment. Being the standard bearers for our indust ry, it will be our endeavour to lead by example. We encourage feedback on the presentation and content of this report to enable us to better it each year. We are thankful to HVS Hospitality Services for their continued support for this.

Rajindera Kumar

President, FHRAI

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About HVS
HVS Hospitality Services, a global hospitality consulting and services organization, is acknowledged as a specialist in its field. Founded in 1980 in the United States, by Steve Rushmore, the company has 30 offices across the globe and more than 18,000 assignments to its credit. HVS New Delhi was established in 1997 and has risen to be the only dedicated hospitalit y-consulting firm in this region. It currently offers its consulting and valuation services to clients with interests in the South Asian Region covering India, Pakistan, Sri Lanka, Bangladesh and Nepal. The New Delhi office offers the following services. CONSULTING VALUATION AND

The team comprises of experienced and qualified hotel professionals undertaking feasibility studies, development strategies, valuations, market area analyses, market entry strategies, investment services, operator search and management contract negotiations. Our database of hotel info rmation, combined with broad insight and extensive experience, enables HVS to produce well-documented studies that contain fully supported value conclusions. Each report is customized to meet client requirements based on mutually agreed upon parameters. The HVS approach on hotel and real estate appraisal is widely used by hotel management companies, financial institutions, equity investors and developers of hotels in making investment decisions in the South Asian hospitality indust ry. EXECUTIVE SEARCH Executive Search, another vertical to the base of services offered, entered the Indian market in 2001 and manages diverse portfolios across varied sectors. HVS Executive Search has offices in New Delhi and Mumbai and is among South Asia's first retained Executive Search practices catering to the services sector. While hospitality continues to be an important area of focus, this division has carried out senior level searches in the real estate, financial services, retail and healthcare sectors. MARKETING AND COMMUNI CATIONS Mar keting Communications Services provides a specialized platfo rm for its clients creating executable marketing and communication road maps for improved business performance. Our services include PreOpening , Openin g and Tactical Mar keting Campaign , Conceptualization , Strategic Advertising, Development and Implementation of Brand Architecture and Strategies, Creation and Management of CRM Strategies, F&B Mar keting and Corporate Communications.

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WEB STRATEGIES HVS Web Strategies provides affordable, accessible, and streamlined Inte rnet and Web services to hotel and resort owners, operators, developers and investors who recognize the key role technology can play in improving their operational and financial performance. It specializes in conceptualizing, developing and deploying the next generation of online/web solutions, such as, Website designing and development, Online Mar keting and Branding (including SEO), Graphics and Multimedia services to name a few. ASSET MANAGEMENT & STRATEGIC ADVISORY SERVICES The HVS Asset Management & Strategic Advisory Services aims to provide a unique value proposition for its clients through services aimed to assist hotel owners and investors to achieve optimal performance from their hospitality investments. Through expert, independent market assessments and unbiased reviews of various processes affecting the operational efficiency of hotel assets, our analysis and recommendations will be custom-designed to meet the specific needs of each individual client and asset that we manage. The HVS Asset Management & Strategic Advisory vertical offers services like Strategic Advisory Services and Owner Representation, Pre-Opening Capital Plan and Budgeting, Revenue -Cost Optimization and Profitability Analysis, Sales, Mar keting and Revenue Management, Operational Advisory and Audit Services.

OUR CONFERENCES
6TH HOTEL INVESTMENT CONFERENCE SOUTH ASIA

7 - 8 APRIL 2010, MUMBAI, INDIA ww w.hicsa conference .com

HICSA 2010

A confluence of hotel indust ry sta keholders, visions and ideas, indust ry news and networking , HICSA has successfully created an interactive platfo rm in the South Asian region. For enquiries regarding the sixth annual co n fe r e n ce , H IC SA 2010 p le a se v i s i t ww w.hicsaconference.com or email to hicsa@hvs.com

The Hotel Operations Summit India would exclusively focus on and be purely dedicated to hotel operations, introducing hospitality leaders and decision makers to the trend setting practices, products and services. For more info rmation please visit ww w.hosiconference.com or email to hosi@hvs.com

The Indian Hotel Indust ry Survey 2008-2009 brings together the indust ry's key statistics and serves as an easy reference volume. We are grateful to all those who have contributed towards the same and look for ward to increased participation in the years to come.

Manav Thadani Managing Director

Shamsher Singh Mann Senior Associate

Panchali Mahendra Singh Consulting & Valuation Associate

Sally DSouza Research Analyst

Gaurav Sharma Associate - Creative Design

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Ecotel

Property Audit

Roadmap for getting certified

Water Management

Energ y Manageme nt

Environment Commitme nt Wast e Manageme nt Employee Education and Communit y Involveme nt

Audit for certificati on Ecotel training

Ecotel certification

programmes

Annual Audit

Synopsis and Key Highlights of the Survey

Quali fying Conditions While it is our endeavour to represent all the cities of India, we are limited by the data received from the participating hotels. In order to make the study relevant, we present data for only those categories for which we have a minimum of four participating hotels. Hotels across different categories showing similar characteristics have been combined under the same catego ry. To facilitate better evaluation of data across comparable groups, the financial statements are presented upto Net Income, before any deduction of depreciation and interest, which are hotel/owner specific. Limiting Condition In some cases, there are large fluctuations in the data and this noise in the data may be attributed to the changing participation in the survey and not an accurate representation of market performance. Presentation of Financial Data Percentage of Revenue: is an assessment of costs as a percentage of revenue. Departmental expenses are portions of individual revenue heads while Operating and Fixed Expenses are deducted from Gross Hotel Revenue following the inte rnational accounting guidelines. Amount per Available Room (PAR): is the financial performance of a single room and is based on the total invento ry. Amount per Occupied Room (POR): is the performance of a single occupied room. All amounts presented Indian rupees (Rs) for amounts are shown as to eliminate differences in this report have been rounded to the nearest whole number and are in the fiscal year 2008/09 (April-March). In the financial statements, rupee amounts per available room (PAR) and per occupied room (POR) in order in the size of hotels surveyed.

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Key Trends
In the section, 'Count ry Trends', broad indust ry characteristics are highlighted first along with historic mar ketwide trends. 'In the Focus' discusses some key trends and characteristics and this is followed by some emerging trends from hotels across the count ry presented under 'City Trends', analysing hotels in 19 cities. The City Trends reflect HVS' market perception for each city, as well as our expectations with regard to its performance in the current year (2009/10).

Country Trends
Overall Performance: Reflecting the global trend of an economic slowdown, the Indian hospitality market witnessed a sharp decline in the overall occupancies. This was further affected by the unfortunate terror attacks in Mumbai. Average rates did not follow this trend immediately as they generally lag behind; hence, we observe them to be on par with that of the previous year's except in the case of tourist destinations where a decline in average rates is much more visible. Average occupancy across India fell by appr oximately 6.3% with some cities witnessing a decline of upto 20%. It is obse rved that while hotels have been able to reign in the departmental expenses, the overall bottom lines have declined by appr oximately 21% over last year. This can primarily be attributed to an increase in the PAR expenses of energy and POMEC and the overall reduction in top lines. Marketing Media: The advent of new marketing media such as viral marketing (advertising through social networks), Consumer General Media (CGM)/ User Generated Content (end consumers rate and give their opinions on the services/products), Pay Per Click and others have changed the way consumers view mar keting, forcing advertisers and product/se rvice companies to change their approach towards mar keting. We see an increased usage of non-traditional media by the hotel indust ry with the five-star deluxe, five-star and heritage hotels taking the lead. Travellers are researching the inte rnet and forming their opinions and choices based on the info rmation provided by unaffiliated platfo rms where their peers comment on the hotels. Blogs, networking sites, travel sites and suchlike are therefore being used by the travellers for making their choices. It is our opinion that such media shall increasingly become the prefe rred mode of advertising in the coming future and hotels should ensure they are mar keted well online. Bars and License: The lower category (three, two and one-star) hotels have comparatively lesser number of bars operating in their hotels (on an average 0.7 per hotel) as compared to the ones in the higher categories (on an average 1.2 for five-star deluxe, five and four-star hotels). This, howeve r, is not reflective of the demand in the market for bars around the count ry. Furthe r, we are aware of liquor sales traditionally having much higher margins than food and therefore being a very lucrative business option for hotels. The dearth of bars in the lower category hotels may be attributed to the exorbitant procurement and annual license fee required for operating bars across most states in the count ry. It would be in the interest of both the hotel owners and state gove rnments to reduce the barriers to ent ry and see an enhanced revenue growth. Domestic Traveller: The domestic traveller has long been ignored by hotels in India. Their propensity to spend has generally been much lower than other categories and they tend to bargain heavily in order to maximise their value for money. This said, while the underlying fabric of their requirements remains the same, their perception of value for money is undergoing a tectonic shift. Also undergoing a paradigm change is the demographics of the count ry with a rise in the educated, middle class with disposable incomes which is in turn driving domestic tourism. Domestic travellers have helped the hospitality indust ry recover from the downtu rn in the late 1990s and in the current survey, too, hotels in resort destinations were obse rved to tide over the turbulent past year by substituting the high paying foreign guests albeit at lower price points.

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Telephone Department: The telephone department has, over the years, become more of a cost centre than a revenue generato r. Most hotels tend to provide this facility in order to take room rese rvations or transfer calls to other departments. While earlier, room guests used to utilise this facility for their personal consumption, the advent and increased usage of mobile telephony has obviated the need for this technolog y. Newer hotels, especially in the budget and mid market category, are now setting up count rywide call centres that are connected to the individual properties using Voice over Inte rnet Protocol (VoIP). This system requires an initial investment in the setting up of a call centre and annual maintenance charges that are nominal. As the calls between the call centre and the individual properties utilise VoIP, these calls are free, unlike the regular phone charges. Individual/stand alone hotels might find this expense too high but they should consider outsourcing these services to IT companies which can provide this facility at lower costs by aggregating demand across a higher number of hotels. Employees to Hotel Room Ratio: Indian hotels continue to be inefficient in their manpower utilisation. The All India average of total employee ratio to hotel rooms stands at 1.6, much higher than what is obse rved in hotels across the globe. In fact not much has changed from our first survey back in 1988-99 when this ratio was 1.4. More interestingl y, we see that while this average is 1.7 for hotels in the five-star category, it is 1.9 and 1.6 for those in the four and three-star categories, respectivel y. This may be directly attributed to the fact that hotel owners in India generally trend to 'overspec' their hotels. A hotel in the mid-mar ket category would be built to much higher standards than that required and this tendency flows through to the manpower requirements as well. In order to compete with the branded inte rnational hotels entering all segments of the Indian hospitality sector, it becomes imperative for all hotels to reconsider their staffing levels and become more efficient. Visa-on-Arrival: The Gove rnment of India has decided to offer visa-on-arrival to selected countries including Japan, New Zealand, Luxembourg, Singapore and Finland, which the gove rnment was reluctant to offer before due to security reasons. The nationals of the same countries will be allowed to enter India and attain visa-on-arrival. This decision has ostensibly been taken in order to promote Indian tourism and increase the inflow of inte rnational tourists, which will directly and positively affect the Indian hospitality indust ry. Howeve r, the importance of the decision apart from promoting tourism was also to improve inte r-count ry relationships on a long-te rm basis. India, in future, will open its policy only to those countries that are ready to reciprocate. Such a decision, will allow tourists and guests to visit the count ry in an easier way.

In the Focus
The coming years are expected to see a large quantum of new hotel supply entering the Indian market. A substantial proportion of these hotels are expected to be branded and of inte rnational quality in product and service offerings. Indian hotel operators would need to prepare themselves for this coming competition by improving their operational efficiencies and also their products and service offerings. Highlighted below are a few important emerging trends: Exhibit 1 highlights the sources of revenue for the hotel. Contribution from rooms has gradually risen over the past few years; this year, though, saw a 1% displacement between rooms and F&B as compared to last year. The overall decline in revenues, as highlighted later in Exhibit 2, have been similar in rooms and F&B (14%and 12%respectively) showing the correlation between hotel room occupancies and F&B revenues.

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Exhibit 1: Source of Revenue

100% 90% 14% 28% 17% 26% 15% 26% 13% 25% 14% 26% Other Food & Beverage 57% 57% 60% 61% 60% Rooms

Percentage Of Total Revenue

80% 70% 60% 50% 40% 30% 20% 10% 0% 2004/05 2005/06 2006/07 2007/08 2008/09

As seen in Exhibit 2, overall revenue and net income have both declined in the year 2008/09. Howeve r, while the topline has declined by 13%, the net income for hotels has declined by 21%. This may be attributed to the high fixed costs incu rred by hotels and also an increase in other costs such as energy and POMEC.

Exhibit 2: Revenue and Net Income

2,000 1,800 44.0% 42.0%

Revenue per Available Room (Rs, 000s)

1,600 1,400 1,200

40.0%

Net Income (%)

1,000 800 600 400 200 0 2004/05 2005/06 2006/07 2007/08 2008/09

38.0%

Revenue (Rs)

36.0% 34.0% 32.0%

Exhibit 3 shows the earlier mentioned obse rvation of hotel occupancies correcting faster than the rates in 2008/09, a trend commonly noticed during business cycle downtu rns. We expect the rates to show a marginal rationalisation in 2009/10 while the occupancies are expected to rise significantl y.

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Exhibit 3: Hotel Occupancy and Average Rate

5,000 4,500 4,000

70.0% 69.0% 68.0% 67.0% 66.0% 65.0% 64.0% 63.0% 62.0% 61.0% 60.0% 59.0%

3,500 3,000 2,500 2,000 1,500 1,000

The variance in monthly seasonality has been reducing over the past few years as is evident from Exhibit 4, which compares the monthly seasonality of hotel occupancies between 2000/01 and 2008/09. Hotels in India are introducing innovative offerings in order to improve performance in the shoulder period (May to August). This includes targeting the conferencing segments, offering cheaper travel packages among others. Exhibit 4: Monthly Seasonality
80.0 75.0 70.0 65.0

Occupancy(%)

60.0 55.0 50.0 45.0 40.0 35.0

March April May February January August

Occupancy (%)
2008/09 A ll India Average 2000/01 A ll India Average

ARR (Rs, 000s)

30.0

September

November

June

July

Table 1 highlights the performance of hotels across India over the past five years.

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December

October

TABLE 1: Trends in Key Operating Statistics

2004-05 A ll In d ia A v erag e 509 2005-06 A llIn d ia A v erag e 484 2006-07 A llIn d ia A v erag e 488 2007-08 A llIn d ia A verage 453 2008-09 A llIn d ia A verage 474 2004-05 A llI n d ia A verage 509 81 19,392 63.6% Rs 3,412 2005-06 A llIn d ia A verage 484 66 15,549 64.1% Rs3,227 2006-07 A llIn d ia A verage 488 64 15,459 66.9% R s 3,742 2007-08 A llIn d ia A verage 453 68 16,732 69.4% R s 4,605 2008-09 A llIn d ia A verage 474 69 15,143 63.1% R s 4,487 2004-05 A ll In d ia A verage 509 81 19,392 63.6% R s 3,412 2005-06 A llI n d ia A verage 484 66 15,549 64.1% R s3,227 2006-07 A llIn d ia A verage 488 64 15,459 66.9% R s 3,742 2007-08 A llIn d ia A verage 453 68 16,732 69.4% R s 4,605 2008-09 A llI n d ia A verage 474 69 15,143 63.1% R s 4,487

C O M P O S IT IO N N um berof responses:

A v e ra g e ta lRo o m s Pe r H o tel: To 81 A vera ge ccu p ied m sPer H o tel: 19,392 O Roo A vera ge ccu pa n cy H o tel: O Per 6 3 .6 % A vera ge te Per H o tel: Ra R s 3,412

66 64 68 69 15,549 15,459 16,732 15,143 64 .1 % 66 .9 % 69.4% 63.1% Rs3,227 R s 3,742 R s 4,605 R s 4,487 Percen ta g e f Rev en u e o

A m ou nPer A v a ila b le om t Ro 60.5% Rs 813,001 Rs764,321 Rs 903,228 25.9 401,240 343,191 Rs 387,728 8.6 109,463 125,309 128,696 0.6 22,614 27,652 12,192 2.2 44,725 40,532 43,077 2.3 27,707 32,557 39,092 100.0 1,418,749 1,333,560 1,514,010 14.8 55.3 79.7 70.3 9.7 30.3 69.8 8.7 2.7 2.7 0.5 5.4 8.5 28.5 41.2 0.6 0.3 1.1 1.3 3.4 37.9% Rs119,369 Rs119,959 275,303 265,815 14,533 9,497 26,283 23,085 2,269 2,627 437,756 420,984 980,993 912,580 Rs112,477 22,069 43,564 6,902 91,981 126,417 403,409 577,584 Rs97,729 33,980 39,050 7,218 68,511 116,577 363,065 549,514 132,661 297,860 11,058 24,390 6,113 472,082 1,041,930 105,894 31,288 45,620 6,588 81,778 118,763 389,932 651,998 1,140,130 Rs 985,310 472,834 417,248 150,827 144,054 10,919 9,154 48,325 36,360 39,921 36,743 1,862,950 1,628,870 183,116 322,623 11,907 29,233 6,002 552,881 1,310,070 138,316 45,572 54,727 8,074 90,665 135,077 472,431 837,642 146,192 310,165 7,291 25,554 3,553 492,755 1,136,110 141,121 44,133 44,439 8,496 87,780 138,749 464,717 671,396 Rs 3,412 1,684 459 95 188 116 5,955 501 1,156 61 110 10 1,897 4,118 472 93 183 29 386 531 1,693 2,424 33 32 119 128 313 Rs2,112

A m ou nPer O ccu p ied t Room Rs3,227 1,449 529 117 171 137 5,630 506 1,122 40 97 11 1,777 3,853 413 143 165 30 289 492 1,533 2,320 66 27 108 62 263 Rs2,057 Rs 3,742 1,606 533 51 178 162 6,272 550 1,234 46 101 25 1,956 4,316 439 130 189 27 339 492 1,615 2,701 44 34 90 86 254 Rs2,447 Rs 4,605 1,910 609 44 195 161 7,525 740 1,303 48 118 24 2,233 5,292 559 184 221 33 366 546 1,908 3,384 45 24 69 91 229 Rs3,155 Rs 4,487 1,900 656 42 166 167 7,418 666 1,412 33 116 16 2,244 5,174 643 201 202 39 400 632 2,116 3,058 46 21 84 99 249 Rs2,808

REVENUE Rooms Fo o d & B everage B a n q u e ts& Conferences Teleph one O th er & M in o rOperated* Re n ta l& O th e rIncome Total D E R T M TA LE X P E N S E S PA EN Rooms Fo o d & B everage Teleph one O th er & M in o rOperated* Re n ta l& O th e rIncome Tota l D E R T M TA LI N C O M E PA EN O P E AT I N G X P E N S E S R E A d m in istra tiv e G eneral & M anagem ent Fee M ark eting FranchiseFees Property O p e ratio n & Maintenance s E nergy To tal H O U SER O F IT P F IX E D X P E N S E S E Property Taxes Insurance O th erF ix e dExpenses Rent Tota l N E TIN C O M E * *

57.3% 28.3 7.7 1.6 3.2 2.0 100.0 14.7 53.9 64.3 58.8 8.2 30.9 69.1 7.9 1.6 3.1 0.5 6.5 8.9 28.4 40.7 0.6 0.5 2.0 2.2 5.3 35.4%

57.3% 25.7 9.4 2.1 3.0 2.4 100.0 15.7 56.7 34.3 57.0 8.1 31.6 68.4 7.3 2.6 2.9 0.5 5.1 8.7 27.2 41.2 1.2 0.5 1.9 1.1 4.7 36.5%

59.7% 25.6 8.5 0.8 2.9 2.6 100.0 14.7 57.7 90.7 56.6 15.6 31.2 68.8 7.0 2.1 3.0 0.4 5.4 7.8 25.8 43.1 0.7 0.6 1.4 1.4 4.1 39.0%

61.2% 25.4 8.1 0.6 2.6 2.1 100.0 16.1 51.7 109.1 60.5 15.0 29.7 70.3 7.4 2.5 2.9 0.4 4.9 7.3 25.4 45.0 0.6 0.3 0.9 1.2 3.0 41.9%

7,959 15,711 10,520 11,217 10,031 7,545 6,371 8,256 5,933 4,522 28,465 25,507 21,831 17,027 18,365 30,552 14,685 20,670 22,464 21,784 74,521 62,273 61,277 56,640 54,702 Rs503,063 Rs487,241 Rs590,721 Rs781,001 Rs616,694

* M in o r perate d o departm entsinclude: laund gift shop,businesscentre,new s stand,spor ts, h ealthclub,garag e,p arking d so fo r th ry, an ** N etIn co m eis b efored epreciation , interestp ay m entsan d taxes

City Trends
The Indian hospitality indust ry, over the last three years, has been witnessing a remarkable phase in performance and has continued the same in the former part of the year 2008/09. One of the key reasons for the increase in demand for hotel rooms in the count ry was the boom in the overall economy and substantial growth in sectors like info rmation technolog y, telecom, banking and finance, insurance, construction, retail and real estate. Howeve r, the global economic downtu rn and the Mumbai attacks adversely affected the performance of the indust ry in the latter part of the year. This has been, to a large degree, mitigated by a steep increase in domestic travel and we expect this to be one of the major drivers of growth in the short to medium term. With the economy of the count ry improving and a simultaneous effort by the gove rnment to upgrade and improve the existing road, airport and other infrast ructure, we can expect India to recover faster than most countries across the globe. We also expect India to become one of the most favoured investment destinations in the world and all these bode very well for our indust ry. It should be noted that the count ry average is not representative of the trends seen in certain key hotel mar kets in India as it includes the results of lower star category hotels across several cities, which comparativel y, have a more restrained operating environment. Table 2 illustrates average occupancy and rate for 30 cities/regions on an all-India basis over the last five years, which is followed by HVS' viewpoint on the demand-supply scenario and performance of the 19 identified hotel markets based on in-house research.

TABLE 1-1: Indian Hotel Indust ry by Star Catego ry: Facilities Analysis and Staffing
Occupancy C ity 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2004-2005 Average Room Rate 2005-2006 2006-2007 2007-2008 2008-2009

Agra Ahmedabad Aurangabad Bangalore Bhopal Chennai Coimbatore Darjeeling Goa Hyderabad Indore Jaipur Jodhpur Kochi Kolkata Kullu-Manali Lucknow Mount Abu Mumbai Mussoorie Mysore Nagpur New Delhi- NCR Ootacamund Pune Shimla Thir uvananthapuram Udaipur Vadodara Visakhapatnam

62.7% 52.6% 61.1% 79.8% 71.2% 73.3% 67.5% 66.3% 60.1% 75.2% 60.0% 71.5% 56.2% 64.8% 67.1% 47.0% 66.7% 47.1% 74.9% 61.0% ID 46.1% 76.6% 44.4% 77.2% 53.8% 47.5% 54.5% 62.6% 80.6%

60.7% 68.9% 43.2% 71.7% 65.8% 78.0% 79.7% 50.1% 66.7% 80.2% 64.9% 60.2% 45.1% 65.9% 65.0% 48.0% 75.0% 52.7% 75.8% 55.0% 60.9% 71.0% 74.8% 50.3% 77.3% 45.2% 57.6% 55.3% 70.0% 77.2%

58.9% 69.6% 52.9% 67.9% 74.7% 78.7% 72.9% 56.3% 71.3% 71.6% 69.8% 69.2% 50.7% 75.4% 75.6% 46.9% 70.8% 56.6% 79.2% 50.9% 46.4% 69.4% 82.2% 48.5% 80.7% 52.2% 62.4% 57.8% 71.9% 71.4%

62.8% 74.9% ID 73.1% 70.3% 77.4% 77.8% 57.8% 70.1% 63.7% 72.9% 63.0% 53.6% 75.2% 72.5% 48.1% 71.6% 57.0% 80.1% ID 66.3% ID 78.0% 58.3% 76.5% 64.6% 65.1% 58.2% ID 75.9%

54.8% 63.7% 56.5% 56.5% 72.2% 64.6% 72.1% ID 61.7% 56.3% 68.7% 61.4% 51.0% 67.4% 69.6% 50.9% 63.0% 69.4% 71.2% 48.0% 67.7% ID 64.8% 58.1% 65.5% 52.7% 57.9% 51.6% 77.9% 69.0%

1,895 1,825 1,784 6,762 1,785 2,384 1,401 1,570 2,704 2,729 661 1,791 3,346 1,062 2,210 2,668 1,867 1,255 4,307 2,997 ID 931 5,498 1,861 1,295 1,679 1,805 3,800 467 1,531

2,389 2,572 1,837 6,534 1,604 3,080 2,311 1,912 3,994 4,305 773 2,220 1,679 1,247 2,668 1,585 2,060 1,338 4,615 656 1,249 1,307 6,699 1,690 2,621 813 1,665 3,580 2,085 1,686

2,361 2,108 2,160 8,519 2,028 3,340 2,322 2,090 4,515 4,660 992 2,743 4,066 1,237 3,567 2,334 1,988 1,558 4,996 1,454 3,300 1,144 7,459 1,527 3,232 1,554 3,959 3,700 1,730 2,495

Rs3,307 4,138 ID 9,679 2,647 3,076 2,634 1,719 4,368 5,643 1,486 5,460 5,468 1,486 5,138 1,688 2,208 1,825 6,665 ID 1,254 ID 9,728 1,258 4,927 1,033 2,221 6,320 ID 3,169

4,211 4,039 2,289 9,757 2,639 4,678 3,255 ID 5,378 4,730 1,933 4,472 3,964 2,062 5,342 3,716 2,491 1,823 6,822 4,099 2,340 ID 6,087 1,956 4,951 1,766 1,570 7,319 2,779 3,687

Page 12

Seven Major Cities

Bangalore
Bangalore has witnessed a steep drop in its occupancies (-16.6%) while the overall rates have maintained themselves. This has been a result of the new supply entering the market as well as the overall slowdown in the market. The Bangalore market has traditionally been heavily dependent on the IT/ITeS sector. With the financial crisis severely affecting these companies, there has been a direct negative impact on the performance of hotels as can obse rved from the sharp decline in the occupancies and average rates of the hotels. IT companies, in order to reduce their costs, have organised guesthouses and hostels for their usage, thus reducing their dependence on over priced hotels in the market. The market has also got divided into smaller micro-markets such as Whitefield and Electronic City, which now have hotels built in proximity to the feeder markets. The moving of the airport outside the city has helped hotels in Bangalore as visitors invariably need to stay ove rnight owing to the distance between the airport and most parts of the city. Though the Bangalore market will see some quality developments such as the convention centre near the new airport which would increase the overall demand for rooms, hoteliers should be realistic in their pricing strategy for the future and not be swayed by the historical highs seen by the city hotels.

Chennai
The city performance saw a correction in rate and occupancy in the second half of 2008/09 (the occupancies for our reported set fell by appr oximately 12.8%). With the IT & ITeS sectors cutting costs on travel and entertainment, demand from the OMR region saw the sharpest decline. City hotels also saw a decline in demand from industrial areas like Sripe rumbudu r, Ambattur and Egmore. There were only two new property openings towards the end of the year (Lemon Tree 125 keys and Taj Mount Road 215 keys). The current year has seen hotels discount rates and refocus on their segment mix; many PSU companies based in the city have announced new projects and travel associated with this has sustained occupancy levels to some extent. The winter season (Sep 2009 onwards) has seen improved occupancy performance with marginal rate improvement. Chennai has always maintained steady rates across hotels (three star to five star) and we do not see any upward revision this season. City occupancy will get stronger and with the entry of new supply in the next year (2010/11, at least four new hotels estimate 950 rooms), rates will hold and market occupancy may see some correction.

Goa
The Goa market has predominantly been targeted towards the inte rnational tourist segment but over the past few years the growth in the Indian economy and maturity of a large domestic traveler base has changed the overall market mix for these hotels. Improved air connectivity with other Indian cities has further helped increase the traffic of tourists into the city. There are many barriers to entry in the hotel market of Goa, owing to the difficulty in getting approvals from the local and state authorities. This has resulted in a very limited hotel supply entering the market and the subsequent overpricing of the Goa market. While it is recommended that hoteliers in the market do not overprice their products, we see a continued growth, making Goa one of the most lucrative markets in the count ry for investments. At present, we are only aware of one large luxury resort under development that is scheduled to open in the next 12 months.

Kolkata
Over the last year, Kolkata witnessed a drop in room nights demand and the occupancies fell by appr oximately 3% points (HVS research on the market pegs this decline at 7%). The slump was a byproduct of the overall dampening of room nights demand across most major Indian cities, following the November 2008 terrorist attacks in Mumbai and the overall depressed sentiment from the global recession. The average rates, howeve r,

Page 13

did not see any movement owing primarily to the lack of new supply entering the market. Additionall y, unli ke other major cities, Kolkata hotels had not seen an exponential jump in average rates in the past few years and thus the immediate need for rate correction was not warranted. Future supply is expected to be absorbed as room nights demand grows from the central business district as well as the suburban districts of Salt Lake and Rajarhat. A few hotel projects are under const ruction and the city is expected to have an additional thousand branded rooms across various positionings in the next five years. That being said, while some of these hotel projects are finally seeing active development, there are several announced projects on EM Bypass and in Rajarhat that are suffering delays for a variety of reasons. The overall development of Rajarhat as the new commercial hub of Kolkata has been painstakingly slow and even stagnant in recent months. Overall, Kolkata is not expected to see significant growth in average rates or occupancies in the short to medium term and the existing hotels will probably manage to maintain their current performance over the next nine to twelve months.

Mumbai
The Mumbai market was adversely affected by both the global financial crisis and the terror attacks. Being the financial hub of the count ry, it saw a sharp decline in demand from its staple feeder markets such as the banking, financial and consulting companies. Hotels were slow to reduce their rates so while the average rates sustained themselves, hotel occupancies witnessed a very sharp correction. The delay in reducing the average rates can also be attributed to the signing of half yearly contracts with companies which could not always be renegotiated in mid-te rm. The first half of 2009 saw hotels reducing their rates in their endeavour to improve occupancies. This strategy has borne fruit and an improved Indian economy has helped increase both rates and occupancies in the hotels. The coming year will see the opening of many hotel projects such as the Trident at BKC, Westin at Goregaon, Holiday Inn at Saki Naka and Novotel in Juhu. Howeve r, the size of the Mumbai market is growing rapidly and we anticipate that Mumbai shall be able to absorb this demand and continue growing. Quality developments across the city such as the Mumbai Inte rnational Airport's landside development shall further boost demand in the market. Mumbai continues to remain one of India's best pe rforming hotel mar kets.

New Delhi-National Capital Region (NCR)

The NCR has grown in a very well-rounded manner and almost all parts of the city are seeing rapid growth. So while the Gurgaon market, located in close proximity to the Delhi Inte rnational Airport, has been very buoyant over the past few years, other areas such as Rohini (in the West), Shahadra (in the Northeast), Noida and Saket (East) have all seen a healthy increase in demand and supply. Unlike many other cities, hotels across Delhi have demand originating from varied sectors including tourism, gove rnment, manufacturing and of course services. Therefore, while the NCR saw a decline in occupancies in the last year, it has regained its operating performance this year. The growth of the NCR is also largely attributed to the good gove rnance of the state. Infrast ructure projects such as the Metro rail, the road development and upgradation of facilities (owing partly to the upcoming Commonwealth games in 2010) have made the NCR an attractive destination for both investors and residents. Howeve r, there is a large quantum of supply expected to enter the NCR market (including the 4045 rooms at the Delhi Inte rnational Airport Hospitality District) and this might pose a challenge for some of these hotels if not positioned correctl y.

Pune
In our previous reports, HVS had predicted the Pune market would decline in both occupancies and average rates; this trend has been very visible in the current year. The city has seen a large influx of new hotels and many more are scheduled to enter the market in the coming future. The lacklustre performance has been further accentuated by these hotels being built outside the city and in close proximity to specific feeder markets which neither generate enough demand for rooms to support these developments nor subsist such a high supply in a relatively short period of time. We expect the performance of this market to remain dampened in the short to medium term. Page 14

Twelve Major Cities

Ahmedabad
Ahmedabad, being a commercial destination, has seen a decline in average rates and occupancy (11.2 points decline in occupancy) owing to the economic downtu rn. With sixteen new hotels scheduled to commence operations in the next four to five years, the hotels in the city are expected to witness a price war. Also, some companies such as Torrent Power have developed guest houses and training centers in their facilities. If this trend continues, it could further bring down hotel occupancies. Howeve r, in the long term, the investo r- friendly approach of the Gujarat gove rnment, availability of good infrast ructure such as road connectivity to major metros of Delhi and Mumbai as well as inte rrupted powe r, and proximity to several ports makes Ahmedabad a favored destination for corporations to set up regional offices or headquarters. Although the development of some big projects in Ahmedabad such as the Gujarat Inte rnational Finance Tec-City (GIFT) and the Saba rmati Rive rfront Development Project has slowed down, we expect Gujarat to be a financial hub for West India and continue to generate demand for hotel rooms. In the long term, Ahmedabad might also get more business from domestic and inte rnational airlines as it is developing a separate inte rnational terminal. Airlines that choose to park in Ahmedabad stand to benefit from cheaper parking and accommodation facilities.

Chandigarh
The Chandigarh market has attracted a lot of attention over the past few years, owing primarily to the good performance of existing hotels in the market. The city is the combined capital for Haryana and Punjab, and is located at a juncture where it caters to not just these two states but also to Himachal Pradesh. Therefore, the hospitality market in the city saw demand from sectors such as fast moving consumer goods (FMCG), telecommunications, manufacturing, pha rmaceuticals and others. Many new projects such as the JW Marriott, Sheraton, The Lalit, Radisson and The Trident have been announced in the city though all of them are much behind completion schedule and in many cases const ruction has not even begun.

Coimbatore
Coimbatore's diversified economy consisting of a growing auto-ancilla ry sector, textile manufacturing and services sector (Medical, IT/ITeS) supported with a growing talent pool and significantly lower costs of business operations and living, has helped the city rise to prominence as a business destination in Tamil Nadu. In the medium to long term the proposed development on the commercial, residential and retail front is expected to create significant demand for hotel accommodation and facilities. Also, with the steady growth in the Leisure segment, and proximity of Coimbatore to the Nilgiris (Ooty, Conoo r, Kotagiri), we forsee the demand from the Leisure segment to improve in the next few years. Howeve r, we anticipate the existing base of appr oximately 350 hotel rooms to rise to nearly 875 rooms, adding pressure to the performance of hotels in the coming short to medium term.

Hyderabad
Hyderabad, the capital of Andhra Pradesh, is a modern, cosmopolitan city and also the sixth largest in India. Contempora ry Hyderabad comprises the tri-cities of old Hyderabad, Cyberabad (Madhapur and Gachibowli) and Secunderabad. Hyderabad was once a city dependent on handicrafts, textiles, and gems and jewelle ry. Howeve r, the city's economy has diversified greatly in the last five to ten years, due to the investor friendly gove rnment policies and significant state investment resulting in successful establishment of public-private partnerships. Hyderabad has seen steady growth of info rmation technology (IT), biotechnolog y, banking, finance and insurance sectors. HITEC, Madhapu r, Gachibowli and Nanakramguda in West Hyderabad have seen rapid developments and with a large number of companies, especially those involved in IT and finance in

Page 15

particular having occupied space here. As the Inte rnational Convention Centre approaches its stabilised year of operations and newer hotels open shortly we can be assured that demand will pick up as larger conferences come to this city.

Indore
Indore is the economic and commercial capital of Madhya Pradesh. Historically, business activity had been limited to textile production and domestic trade. These production houses, factories and mills were concentrated in the heart of the city. The state gove rnment is now trying to improve the IT infrast ructure in the city and the plan to set up an IT SEZ near the proposed inte rnational airport has received approval from the state gove rnment. The retail market in the city is on a growth curve. While a majority of the high street retail is concentrated in the CBD, new mall developments are taking place on the outskirts as well. Commercial demand for the city's hotels is primarily dependent upon financial institutions, banks, service providers such as telecommunications companies, and insurance firms. Indore is a key centre for major automobile units like Force Motors and Eicher Motors.

Jaipur
The beginning of the calendar year 2008 did not go well for Jaipur. The communal tension due to the Gujjar agitation and the bomb blasts brought the city to a halt. This impacted the beginning of the fiscal year 2008/09 and resulted in the summer season being a wash out. The Mumbai bombings in November further impacted the leisure demand in the city with huge cancellations and a virtual freeze on the foreign travel to the city. The city, howeve r, still holds a prominent place in the leisure circuit in India. Being the only inte rnational airport in the state till some time now, Jaipur acts as the gateway to Rajasthan. As a result, the city witnesses a longer length of stay. The rich heritage of the city with an easy access to Delhi and Mumbai has also benefited the city to develop as a prefe rred destination for the weddings and meetings segments. The city has also shown tremendous potential for Commercial demand. Jaipur has traditionally been a base for the traders, buyers and sellers from the gems and jewellery business and industrial units on the outskirts of the city. With the economical advantage of lower real estate prices and proximity to the two main markets in India, the city is now attracting other sectors like PSUs, Banking and Insurance, Telecom and IT. to enter the city. The development of the Mahindra World City on the outskirts of Jaipur is also an example of this potential.

Kochi
Kochi has historically been the trade and financial hub for Kerala and has now added tourism to its portfolio becoming the gateway to Kumara kom, Thekkady and other popular tourist spots. This has helped Kochi diversify its target market amongst business travelers, conferences and tourists. The Kochi market is divided into hotels targeting tourists and those targeting the business travelers, based on their location in the city. While we expect the supply in the business hotel category to outstrip demand, tourism oriented resorts are expected to continue performing well.

Ootacamund (Ooty)
Ooty is the prima ry hill station of South India. Located in the Nilgiris, in proximity to the Nilgiri Biosphere Reserve, it can be accessed by road from both Bangalore and Coimbatore. While Ooty continues to retain its charm as a hill station destination, many new innovative and environment-friendly hotels are being made around the location and in closer proximity to the wildlife destinations. With domestic travel set to grow at a fast pace, we expect these newer hotels to outpe rform those in Ooty proper as the prefe rred tourist destination.

Page 16

Shimla
Shimla is the erstwhile summer capital of the British Raaj in India and has long served as the popular hillside getaway for tourists from Delhi, Punjab and Haryana. As the state capital of Himachal Pradesh, it also caters to the demand generated by the gove rnment sector. Howeve r, the city's performance in attracting the Leisure segment is fast ebbing owing to rampant commercial development and widespread dest ruction of the flora and fauna.

Thiruvananthapuram
Thi ruvananthapuram, the official capital of Kerala, caters primarily to a rate-conscious business travellers segment. While there is a strong demand from the tourism segment, this is primarily for destinations located in close proximity to Thi ruvananthapuram such as Kovalam. Two new properties have recently opened in the city but with no substantial future supply, we expect the performance of the city to remain stable.

Vadodara
Vadodara, previously known as Baroda, is located in the state of Gujarat. The city has faced a stable gove rnment for 15 years and is one of the developing areas in the field of finance. Some financial institutions like banks and insurance houses form the prima ry feeder market segment in terms of guests staying in the hotels in Vadodara. The city has a budget to mid market hotel orientation as most of the guests visit the area for commercial purposes.

Visakhapatnam
Vishakhapatnam, the second-largest city in Andhra Pradesh, is primarily an industrial area apart from being a port city. The city has a diversified demand for hotel rooms originating from the ship building, steel, oil and natural gas, and IT&ES sectors. The city has a strong demand from the Extended Stay segment and this has helped increase the overall occupancy in the city; howeve r, there are no branded serviced apartments operational in the city. A Novotel and Double Tree by Hilton are expected to commence operations in this market in the coming yea r.

Page 17

TOWARDS GREENER FOOTPRINTS STRATEGIES FOR THE HOSPI TALITY INDUSTRY

Footprints in the sands of time tell their own story
The story of the earth has indeed reached its nadir this millennium with global warming and climate change. Humanit y, too, needs to carry the earth through its low times as God carried Mary Stevenson in her poem during her sorrows, leaving a single set footprints in the sand as opposedto two when her life was joyful. of The earth has been a silent witness to the march of civilisation. Humanity has indeed made great strides in conquering the skies, the moon and even space. Howeve r, all this has been possible with the industrial revolution primarily after the seventeenth centu ry. Industrialisation transfo rmed the world at an astonishing speed with its new industries of manufacturing, transportation and powe r. Howeve r, this progress has been achieved at a cost, i.e. natural resources and the environment. Moreove r, activities such as deforestation and the burning of fossil fuels like coal, oil, and gas during transportation and power generation have resulted in the release of Carbon dioxide (CO2) a greenhouse gas (GHG). Other GHGs include methane, nitrous oxide and chlorofluorocarbons (CFCs). GHGs trap solar heat in the atmosphere, partly in the same way as glass traps solar heat in a sunroom or a greenhouse, resulting in increased global temperatures and climate change. GHG emissions have grown since pre-industrial times with an increase of 70% between 1970 and 2004. Human activity is now responsible for releasing 7 billion tonnes of carbon a year into the atmosphere. If, as is expected, that rate doubles to 14 billion tonnes a year over the next 50 years, the concentration of CO2 in the atmosphere will reach a level that may cause irreversible changes to the environment including flooding, hurricanes, and spread of diseases. Rising sea levels may flood coastal and river delta communities leading to the disappearance of many island nations; shrinking mountain glaciers and reduced snow cover may diminish fresh water resources leading to droughts. Such changes will affect not only the geography of the earth but also have social, environmental and economic implications. With its close connections to the environment and climate itself, travel and tourism is considered to be a highly climate-sensitive economic sector. Thus, the sector is highly vulnerable to the effects of global warming and climate change. At the same time, the travel and tourism sector is also a contributor of GHG emissions as it includes transport, accommodation (hospitality) and activities that tourists indulge in. Since, the hospitality sector relies heavily on such activities that result in GHG emissions, this article discusses operational strategies to mitigate their impact. Exhibit 1: Emission from Global Tourism 2008

7% 21% 40%

A irTranspor t Car Transpor t Other Transpor t

3% 32%

Accommodatio n Activities

Source: U N W T N E P(2008) O-U

Page 18

STRATEGIES FOR REDUCING GHG EMISSIONS FROM THE HOSPITALTIY SECTOR

Energy Efficiency: The hospitality sector is a huge consumer of energy and thus adds GHG emissions directly through carbon emissions. Carbon is mainly contributed from burning of fossil fuels in such processes as energy generation, heating and cooling, electricity, transportation, and importing products over long distances. Burning of fuel at high temperatures also releases Nitrous oxide, a powe rful GHG (300 times more powe rful than carbon dioxide over a 100-year term) due to its efficiency at trapping infra-red radiation. CFCs the life blood of refrigeration and air conditioning equipment n contribute to the 'greenhouse' effect also because they absorb infra-red radiation from the earth's surface. Some methods for attaining energy efficiency in hotels are: Reduction in energy consumption by exploiting all technical potential for electrical efficiency via technical standards; for example replacement of incandescent bulbs by compact fluorescent lights (CFLs), which use less energy and last eight times longer (8,000h instead of 1,000h) Replacement of old equipment with energy efficient ones Reduction in cogeneration of energy that usually goes waste such as in operations of cooling towers Replacement of fossil energy sources with renewable ones available locally such as wind or sun Sequestering of Carbon for example through planting of trees, which absorb and store Carbon Solid Waste Management: The hospitality sector produces large amount of waste. An average restaurant produces 22,727 kg of garbage a year. Every night, the average diner produces about 1 kg of waste, mostly composed of beverage and paper products, accounting for 65% of all hotel waste. About 95% of this can be recycled or composted, but most is simply thrown away. Logging and burning of tropical forests for making paper and clearing land for agriculture creates about 20% of GHG emissions, more than that emitted from the world's transportation. Hotels also use large quantities of plastic in packaging and amenities, which poses a problem in disposal as this takes up landfill space and takes hundreds of years to break down. Since waste has to be paid for twice - once in the form of packaging and again for disposal - it makes good business sense to create as little as possible in the first place. Not treating waste and diverting it to landfills produces methane emissions; methane is 21 times more powe rful than CO2 as a GHG. Specific methods for a good waste management plan in hotels include: Reduction in use of virgin paper/paper products and increased use of recycled pape r. Twenty cases of recycled paper substituted for non-recycled paper save 17 trees, 390 gallons of oil, 7,000 gallons of wate r, and 4,100 kWh of energy Reduction in use of virgin plastic/p roducts and increased use of recycled plastic/other packaging material Recycling all waste material in the hotel including pape r, glass, metal, plastic, and textiles. An aluminum can saves energy to run a television set for three hours Composting yard and kitchen waste, which can then be used as manure or gas

Page 19

Table 1: GHG Emission in the Hospitality Industry: Sources and Reduction Strategies.
G H GEm issionin Hotels Carbon Source - stationa combustion ry (boilers,stoves) - electricitygeneration - Transport includingfood and drink items from foreigncountries - Paper/cardboardproducts - Plastic products ReductionStrategies - Improveelectricalefficiencythrough technical standards - End the huge amounts of waste energy via coolingtowers - Use large-scale renewable resources of energy available locallylike w ind, sun or geothermal - Burn less fossil fuel - Reduce imports - Increase communitydevelopment - Reduce paper/plasticwastage - Reuse, Recycle paper/plastic Compostkitchenwaste Compostyard waste Reduce landfills Reduce relianceon processed foods

Methane

Kitchenwaste Yard waste Sewage water Food processing

NitrousOxide

- Combustion - Sewage water treatment

- Use less energy - Burn less fossil fuel - Engineeredwater treatment

Water Management: Water is a very expensive commodity in Hotels as a large amount of it is obtained from private tankers and thus paid for. It is estimated that by 2010, water use will increase to appr oximately 475 gallons per day for each room in high luxury facilities. At the same time, water availability is projected to decrease by 30% of the world's rivers as climate change leads to reduced availability of freshwater (less than 3% of the world's water) and groundwate r. With reduced water supplies and increased water demand, water conse rvation becomes a must. Compounding the issue of water conse rvation is the release of GHGs such as methane (CH4) and nitrous oxide that are emitted during wastewater transport and sewage treatment. Water management methods in hotels include: Water-efficient technolog y, like low-flow showerheads and taps fitted with flow restrictors, which reduce water wastage Rainwater harvesting, which utilises the rainwater coming from roofs to supply toilets, laund ry and watering the garden and thus reduces wastage of rainwater Greywater system, which treats water with low pollutants from sources like the laund ry room, sinks and showers and then diverts it for other uses like watering the gardens Engineered wastewater treatment, which reduces production of GHGs Employee Education and Community Development: Since hotels draw on environmental resources and climate change is primarily a result of human activities, it is crucial that people/ staff in hotels understand their role in how resources can be conse rved and GHG emissions mitigated. Mitigation is truly possible when employees manning the operations understand the need for change, believe in it, and adapt their practices Hotels, by their very nature, draw on huge environmental resources and depending on the positioning have high luxury standards. Hotels have to balance out the luxury coefficient of their operations with that of their impact on the environment and adapt accordingl y. For example importing expensive items increases the carbon emissions (due to transportation) and costs, while an understanding with the community or a corporate social responsibility (CSR) project may actually lead to procuring the same item at lowered costs to both the hotel and environment as well as development of the local community Specific employee include: education and community development methods in hotels

Page 20

Commitment to the environment through the complete employee spect rum Standard operating procedures of the hotel to include correct practices regarding different departments Target setting, and involving/ encouraging employees to meet them Training staff on issues related to the environment such as GHG emissions, water shortage, energy and the initiatives taken by the hotel regarding these Community development with the participation of surrounding communities, suppliers and service providers, promoting the economic, social and cultural growth in the region

In addition to the above practices that focus on the operational aspects of hotels, developers of new hotels can further reduce the environmental effect of their hotels from conception itself that is, the design stage to the materials used in construction. Hotels are built to last, literally, a lifetime and hotel owners should ensure their hotels are const ructed using environment-friendly products and have a design that minimises the usage of resources. The world is cohesively moving towards helping green its footprints. The G-8 leaders are meeting in Copenhagen to agree to an acceptable 2 degree centigrade rise in temperature by the end of the centu ry as against a 3 degree one. This involves adopting greener practices that cut down on GHG emissions by all sectors globally. Currently, India ranks fourth among the world's top ten carbon-emitting nations. India's environment policy, under the stewardship of Jairam Ramesh, Indian environment and forests ministe r, is gearing towards substantial cuts in its Carbon emissions anywhere between 20-25% by 2020. We believe that this would be possible only by improving the resource consumption efficiency of eve ry stakeholder including the hospitality sector. Owners and management companies of hotels should ensure that their buildings and processes are duly certified and improvements incorporated wherever possible. Not only does bringing about these changes help improve the bottomline, but they also help the topline by attracting an ever-increasing number of environmentally sensitive customers. Avantika Vijay Singh ECOTEL The ECOTEL Certification, managed by HVS, is HVS's commitment to the environment. ECOTEL enables operators to reduce the environmental impact of their hotels and also to function more efficiently. The certification recognises only those hotels with high operational standads regarding a commitment to the environment through both r the infrastructure of the hotel and the knowledge and practices of the people manning the operations. The criteria are updated to keep current with advances in scientific knowledge and technolog and so hotels must reapply every two y, years.

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1. Indian Hotel Industry by Star Category

TABLE 1-1: Indian Hotel Indust ry by Star Catego ry: Facilities Analysis and Staffing
Typical Room Profileof an AverageHotel
Five-Star Deluxe 30 Single Double Suites Single Double Suites 21.2 132.8 27.1 0.0 0.0 0.0 181.1 2008-2009 All India Average 145 1,168 1.3 18.1 1.8 1.3 8.8 0.6 31.9 3.9 38.7 4.8 0.8 6.0 0.6 54.7

C O M P O S IT IO N Number of Responses A ir-Conditioned

Five-Star 47 23.1 110.8 8.4 0.0 0.7 1.6 144.6

Four-Star 74 7.2 72.2 9.7 0.0 3.6 0.3 92.9

Three-Star Two-Star Others 447 298 3.0 42.6 5.0 0.6 4.3 0.3 55.8 2.1 22.5 2.6 1.0 8.3 0.9 37.3

One-Star Heritage 88 39 0.9 14.3 1.6 2.2 10.3 0.4 29.6 0.4 25.2 9.0 0.3 2.9 0.6 38.3

N on-Ar-Conditioned i Total average rooms

* The number of non-air-conditioned rooms in low er star category hotels appears to be higher, par tly because many are located in hillstations where air-conditioning not is provided in hotels

AverageNumberof Food & Beverage O utletsPer Hotel

Five-Star C O M P O S IT IO N Numberof Responses Restaurant Bars Others Total Deluxe Others 27 3.3 1.4 0.9 5.5 Five-Star 47 2.8 1.2 1.1 5.2 Four-Star 68 2.1 1.2 0.6 3.9 Three-Star Two-Star 408 1.6 0.8 1.0 3.4 236 1.3 0.6 0.6 2.5 One-Star Heritage 63 1.2 0.4 0.2 1.9 38 1.8 0.9 0.8 3.4 94 1.3 0.5 0.4 2.2

2008-2009 A ll India Average 981 1.6 0.8 0.8 3.2

AverageNumberof Total EmployeesPer Hotel(Permanent/ Contract Full T im e / Part Time) /

Five-Star Deluxe Others 28 M ale Female M ale Female M ale Female 40.3 10.1 45.1 9.6 215.6 29.8 350.5 2.0 2008-2009 A ll India Average 96 2.3 0.2 3.0 0.4 23.5 1.3 30.8 1.0 1,015 7.2 1.2 9.7 1.5 60.9 6.0 86.4 1.6

C O M P O S IT IO N Numberof Responses Managers Supervisors Staff Total Avg. Employees/ Room

Five-Star 47 29.6 6.2 28.9 3.7 163.9 17.2 249.4 1.7

Four-Star 68 15.5 2.5 17.7 3.0 126.8 10.3 175.8 1.9

Three-Star Two-Star 398 6.4 0.8 10.1 1.7 63.6 6.4 88.9 1.6 265 2.5 0.3 4.2 0.6 30.7 2.7 41.0 1.1

One-Star Heritage 78 2.2 0.1 3.5 0.3 23.5 2.0 31.5 1.1 35 4.3 0.5 8.6 0.8 54.8 4.5 73.5 1.9

AveragePercentage of TrainedEmployeesPer Hotel

Five-Star C O M P O S IT IO N Numberof Responses Managers Supervisors Staff Total Avg. TrainedEmployees* Total Avg. Un-TrainedEmployees Deluxe Others 24 91.5 87.5 69.2 82.7 17.3 Five-Star 43 93.8 84.9 80.3 86.3 13.7 Four-Star 61 87.5 81.2 66.0 78.2 21.8 Three-Star Two-Star 250 85.4 77.5 63.8 75.6 24.5 138 85.4 77.5 62.5 75.9 24.1 One-Star Heritage 33 87.4 74.1 56.7 72.8 27.3 22 98.2 93.9 76.4 89.5 10.5 34 86.4 90.4 73.2 83.4 16.6

2008-2009 A ll India Average 605 87.7 79.9 65.7 77.8 22.3

* Trained Employeesincludes those with a minimumone-year cer tificatecourse from a hotel management or equivalent institution;howeve some hotels may have included r, those with shor t term (in-house) training

Page 23

TABLE 1-2: Indian Hotel Indust ry by Star Catego ry: Financial Report Percentage of Revenue (2008-2009)
Five-Star Deluxe 177 42,089 65.3% Rs 10,096 62.2% 22.3 9.9 0.6 3.5 1.5 100.0 13.6 53.5 57.1 44.1 3.8 27.6 72.4 8.6 4.5 3.1 0.3 4.0 7.2 27.8 44.6 0.6 0.3 1.2 0.9 3.0 41.6% 2008-2009 All India Average 69 15,143 63.1% Rs 4,487 60.5% 25.6 8.8 0.6 2.2 2.3 100.0 14.8 55.3 79.7 70.3 9.7 30.3 69.8 8.7 2.7 2.7 0.5 5.4 8.5 28.5 41.2 0.6 0.3 1.1 1.3 3.4 37.9%

COMPOSITION Average Total Rooms Per H otel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel: REVENUE Rooms Food & Beverage Banquets & C onferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Room s Food & Beverage Telephone & O ther Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME OPERATING EXPENSES Administrative & G eneral M anagement Fee M arketing Franchise Fees Proper ty Operations & M aintenance Energy Total HOUSE PROFIT FIXED EXPENSES Proper ty Taxes Insurance Other Fixed Charges Rent Total NET INCOME**

Five-Star 147 31,686 60.5% Rs 6,724 62.7% 23.3 8.5 0.6 2.1 2.9 100.0 15.2 51.6 69.7 76.3 3.9 28.0 72.0 8.7 1.8 3.0 0.8 5.5 8.4 28.2 43.8 0.6 0.3 0.7 2.0 3.6 40.2%

Four-Star 87 18,614 60.7% Rs 4,673 59.1% 25.3 11.4 0.5 1.9 2.0 100.0 12.4 48.2 98.5 120.7 3.7 27.8 72.2 9.1 2.0 2.1 0.5 6.5 8.6 28.7 43.5 0.5 0.3 1.4 2.3 4.5 39.0%

Three-Star 60 12,910 62.6% Rs 2,530 57.2% 31.6 7.1 0.6 1.1 2.5 100.0 15.6 62.3 88.9 117.0 18.6 35.2 64.8 8.3 1.7 2.3 0.6 6.1 10.7 29.7 35.1 0.6 0.4 1.3 0.7 2.9 32.2%

Two-Star 38 8,769 65.4% Rs 1,242 61.9% 29.1 3.7 0.4 0.6 4.2 100.0 24.5 71.4 239.1 159.4 24.3 41.6 58.4 8.8 1.4 2.4 0.0 7.0 11.4 31.1 27.3 0.6 0.3 1.6 0.7 3.2 24.1%

One-Star 33 7,836 67.8% Rs 790 46.1% 46.4 4.1 0.5 0.3 2.5 100.0 25.0 59.5 149.4 191.3 50.9 44.3 55.7 9.0 1.8 1.5 0.2 3.8 13.1 29.4 26.4 1.0 0.5 1.9 0.7 4.1 22.2%

Heritage 41 7,687 53.6% Rs 3,198 50.5% 35.6 8.6 0.2 1.4 3.8 100.0 19.8 55.5 355.7 112.3 11.6 37.3 62.7 9.2 3.3 3.3 1.7 9.0 9.1 35.4 27.4 0.2 0.2 0.4 1.3 2.1 25.3%

Others 28 6,073 69.6% Rs 1,482 47.9% 39.7 10.8 0.3 0.2 1.1 100.0 17.4 73.4 284.2 387.2 331.5 50.7 49.4 7.1 0.8 1.0 0.1 6.0 14.7 29.7 19.6 0.7 0.2 1.0 0.1 2.1 17.5%

* Minor operated depar tments include: laund ry, gift shop, business ** Net Income is before depreciation, interest payments and taxes ID: Insufficient Data

centre, news stand, spor ts, health club, garage,

parking and so for th

TABLE 1-3: Indian Hotel Indust ry by Star Catego ry: Financial Report Amount Per Available Room (2008-2009)
Five-Star Deluxe 177 42,089 65.3% Rs 10,096 Rs 2,395,050 858,188 379,164 23,564 134,396 57,439 3,847,800 326,089 662,198 13,452 59,200 2,162 1,063,100 2,784,700 332,237 172,785 118,775 10,251 155,509 267,755 1,057,310 1,727,390 24,797 9,574 46,704 36,001 117,076 Rs 1,610,310 2008-2009 All India Average 69 15,143 63.1% Rs 4,487 Rs 985,310 417,248 144,054 9,154 36,360 36,743 1,628,870 146,192 310,165 7,291 25,554 3,553 492,755 1,136,110 141,121 44,133 44,439 8,496 87,780 138,749 464,717 671,396 10,031 4,522 18,365 21,784 54,702 Rs 616,694

COMPOSITION Average Average Average Average Total Rooms Per Hotel: Occupied Rooms Per Hotel: Occupancy Per Hotel: Rate Per Hotel:

Five-Star 147 31,686 60.5% Rs 6,578 Rs 1,445,080 532,242 194,107 13,479 48,715 65,787 2,299,600 220,180 374,663 9,397 37,176 2,574 643,990 1,655,610 200,625 40,324 69,358 18,542 127,494 192,868 649,120 1,006,490 14,314 5,892 16,236 46,794 83,353 Rs 923,133

Four-Star 87 18,614 60.7% Rs 4,673 Rs 995,686 425,762 191,546 777 31,350 33,141 1,685,260 123,876 297,297 7,664 37,844 1,224 467,906 1,217,360 152,826 33,283 35,667 8,773 109,440 138,587 478,576 738,871 8,903 4,136 24,216 38,524 75,779 Rs 663,002

Three-Star 60 12,910 62.6% Rs 2,530 Rs 542,557 299,596 67,450 5,519 9,999 23,438 948,559 84,572 228,622 4,907 11,701 4,369 334,170 614,389 79,050 16,525 21,399 5,434 57,702 100,713 280,823 333,566 6,094 3,401 12,018 6,349 27,861 Rs 305,705

Two-Star 38 8,769 65.4% Rs 1,242 Rs 283,879 133,588 17,097 1,812 2,821 19,411 458,607 69,642 107,547 4,332 4,496 4,725 190,742 267,865 40,290 6,508 11,202 116 32,052 51,273 141,441 126,424 2,707 1,477 7,264 3,312 14,759 Rs 111,665

One-Star 33 7,836 67.8% Rs 790 Rs 188,992 190,283 16,770 2,099 1,366 10,393 409,902 47,282 123,241 3,134 2,613 5,290 181,560 228,341 36,814 7,479 5,979 724 15,661 51,840 118,496 109,845 4,141 2,037 7,772 2,874 16,824 Rs 93,021

Heritage 41 7,687 53.6% Rs 3,198 Rs 599,699 422,509 102,236 2,402 17,083 44,489 1,188,410 118,724 291,058 8,542 19,186 5,154 442,664 745,743 108,714 38,913 38,832 19,562 106,380 108,165 420,566 325,178 2,485 2,164 4,763 15,410 24,822 Rs 300,355

Others 28 6,073 69.6% Rs 1,482 Rs 324,339 268,554 72,698 2,171 1,234 7,490 676,485 56,313 250,565 6,170 4,779 24,827 342,654 333,831 47,992 5,405 6,907 901 40,822 99,076 201,103 132,729 500 1,539 7,050 622 14,210 Rs 118,519

REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMEN TAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMEN TAL INCOME OPERATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Proper ty Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Proper ty Taxes Insurance Other Fixed Charges Rent Total NET INCOME**

* Minor operated depar tments include: laundry, gift shop, business centre, news stand, spor ts, health club, garage, parking and so for th ** Net Income is before depreciation, interest payments and taxes ID: Insufficient Data

TABLE 1-4: Indian Hotel Indust ry by Star Catego ry: Financial Report Amount Per Occupied Room (2008-2009)
Five-Star Deluxe 2008-2009 All India Average

COMPOSITION Average Total Rooms Per H otel: Average Occupied Rooms Per Hotel: Average Occupancy Per Hotel: Average Rate Per Hotel: REVENUE Room s Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTMENTAL EXPENSES Room s Food & Beverage Telephone & O ther Minor Operated* Rental & Other Income Total DEPARTMENTAL INCOME OPERATING EXPENSES Administrative & G eneral Management Fee M arketing Franchise Fees Proper ty Operations & M aintenance Energy Total HOUSE PROFIT FIXED EXPENSES Proper ty Taxes Insurance Other Fixed Charges Rent Total NET INCOME**

Five-Star

Four-Star

Three-Star 147 12,910 62.6% Rs 2,530 Rs 2,530 1,397 315 26 47 109 4,424 394 1,066 23 55 20 1,558 2,865 369 77 100 25 269 470 1,310 1,556 28 16 56 30 130 Rs 1,426

Two-Star

One-Star 87

Heritage

Others 60

177 38 33 42,089 31,686 18,614 15,143 65.3% 60.5% 60.7% Rs 10,096 Rs 6,578 Rs 4,673 Rs 10,096 3,618 1,598 99 567 242 16,220 1,375 2,791 57 250 9 4,481 11,739 1,401 728 501 43 656 1,129 4,457 7,282 105 40 197 152 494 Rs 6,788 Rs 6,724 2,477 903 63 227 306 10,699 1,024 1,743 44 173 12 2,996 7,703 933 188 323 86 593 897 3,020 4,683 67 28 76 218 388 Rs 4,295 Rs 4,673 1,998 899 37 147 156 7,909 581 1,395 36 178 6 2,196 5,713 717 156 167 41 514 650 2,246 3,467 42 19 114 181 356 Rs 3,112

41 8,769 65.4% Rs 1,242 Rs 1,242 585 75 8 12 85 2,007 305 471 19 20 21 835 1,172 176 28 49 1 140 224 619 553 12 6 32 14 65 Rs 489

7,836 67.8% Rs 790 Rs 790 795 70 9 6 43 1,712 198 515 13 11 22 758 954 154 31 25 3 65 217 495 459 17 9 32 12 70 Rs 389

28 7,687 53.6% Rs 3,198 Rs 3,438 2,378 769 16 76 356 7,033 428 1,543 45 95 13 2,120 4,913 652 116 314 35 555 557 2,229 2,684 13 12 112 67 204 Rs 2,480

69 6,073 69.6% Rs 1,482 Rs 1,428 1,227 332 10 6 34 3,091 257 1,145 28 22 113 1,566 1,526 219 25 32 4 187 453 919 607 23 7 32 3 65 Rs 542 63.1% Rs 4,487 Rs 4,487 1,900 656 42 166 167 7,418 666 1,412 33 116 16 2,244 5,174 643 201 202 39 400 632 2,116 3,058 46 21 84 99 249 Rs 2,808

* Minor operated depar tments include: laund ry, gift shop, business ** Net Income is before depreciation, interest payments and taxes ID: Insufficient Data

centre, news stand, spor ts, health club, garage,

parking and so for th

TABLE 1-5: Indian Hotel Indust ry by Star Catego ry: Market Data
M a r k eSegm enta tion t
F ive-S tar D eluxe 25 10.3 16.0 23.3 2.4 12.3 13.5 3.7 9.5 2.0 5.7 1.4 100.0 2008-2009 A llIn d ia O th ers A verage 32 723 0.3 43.8 7.5 1.3 24.2 5.0 3.2 5.8 5.1 1.1 2.6 100.0 1.4 36.6 10.4 1.7 18.6 7.7 3.5 6.4 6.2 5.0 2.5 100.0

C O M P O SIT IO N N um ber Responses of A irlin C rew e B usin essTraveller Domestic BusinessTrav eller Foreign C om plim enta Rooms ry Dom estic Tourists/LeisureI T F Foreig n- To urists/L eisu reIT F M eetin g ticipants Par (Less than 100 Attendees) M eeting ticipants(O ver100 Attendees) Par Tour G roups- D om estic Tour G roups- Foreign O th er Total

F ive-Star 38 6.1 22.7 20.4 1.6 10.5 10.7 2.7 9.4 2.7 7.5 5.6 100.0

Fo ur-Star 55 1.4 33.0 18.6 1.6 13.8 7.4 4.5 6.1 4.3 5.9 3.5 100.0

T hree-S ta r 309 1.1 36.4 9.4 1.7 17.5 7.7 4.2 7.3 6.8 5.2 2.8 100.0

Tw o-Star 188 0.4 41.6 7.1 1.7 22.0 6.5 3.0 5.2 7.5 3.2 1.9 100.0

O n e-S ta r 54 0.5 48.1 8.9 1.4 22.8 4.5 1.7 4.0 5.2 1.4 1.5 100.0

H eritage 22 0.8 15.8 7.0 3.0 18.0 18.6 3.1 3.8 5.3 23.5 1.2 100.0

G uestA nalysis
F ive-Star D elu x e 30 43.3 56.7 100.0 61.7 38.3 100.0 3.0 2.3 2.4 2.1 34.6 2008-2009 A llIn d ia A verage 872 73.6 26.4 100.0 58.4 41.6 100.0 3.5 2.9 2.8 2.5 45.8

C O M P O SIT IO N N um ber Responses of D om estic Guests Foreig nGuests To ta l TotalB usinessGuests To talL eisu reGuests To ta l Avg. Stay o f ForeignGuests(D ays) Avg. Stay of D om esticG uests(Days) Avg. Stay o f BusinessGuests(D ays) Avg. Stay of L eisureG uests(Days) Percentage f RepeatGuests o

F ive-S tar 43 51.5 48.5 100.0 64.5 35.5 100.0 3.6 2.1 2.0 2.5 27.2

Fo ur-S tar 68 62.9 37.1 100.0 63.4 36.6 100.0 3.3 2.1 2.7 2.5 42.0

T hree-S ta r 369 75.4 24.6 100.0 58.1 41.9 100.0 4.0 3.3 3.2 2.4 45.6

Tw o-Star 220 81.9 17.7 100.0 57.9 42.1 100.0 3.1 2.8 2.9 2.7 49.3

O n e-S ta r 73 84.9 15.1 100.0 62.2 37.8 100.0 2.9 2.9 2.7 2.8 50.2

H eritage 29 41.4 58.6 100.0 30.1 69.9 100.0 2.7 2.3 1.4 1.9 39.7

O th ers 40 83.0 17.0 100.0 60.4 39.6 100.0 3.4 2.5 2.7 2.2 54.8

C o u nry o f O r ig in G uests t of
F ive-Star D eluxe 23 2.7 3.7 2.3 0.4 1.6 3.6 8.9 3.3 2.2 9.1 3.5 2.4 0.9 13.3 19.2 22.9 100.0 2008-2009 A llIn d ia O th ers A verage 8 417 8.3 3.7 13.9 0.0 2.6 6.8 6.6 3.9 1.3 9.3 2.6 11.8 6.4 9.3 11.1 2.9 100.0 5.2 3.5 3.5 0.6 3.9 6.3 6.8 4.6 3.5 9.0 3.1 6.2 2.3 13.8 12.4 15.3 100.0

C O M P O SIT IO N N um ber Responses of A SEAN * A ustralia Canada Caribbean C h in a France G erm any Japan M id d le East O th erEuropean Russia S A A ** RC SouthA fric a UK U SA O th er Total

F ive-Star 32 4.1 2.4 1.8 0.2 1.8 6.2 5.9 4.2 2.0 10.1 3.2 3.8 1.5 16.8 13.0 23.3 100.0

Fo ur-Star 49 4.5 3.4 4.3 0.6 3.0 7.0 8.0 6.1 3.4 7.8 3.1 2.9 1.9 13.1 12.1 18.8 100.0

T hree-S ta r 186 6.5 3.4 3.4 0.6 5.3 5.8 6.5 4.9 4.0 9.6 3.8 6.0 2.5 12.7 13.0 12.2 100.0

Tw o-Star 79 4.9 4.1 3.3 0.7 3.2 4.6 5.1 3.2 3.6 9.3 2.1 11.7 2.5 14.8 9.6 17.5 100.0

O n e-S ta r 20 3.3 4.4 4.5 0.8 6.8 5.9 6.7 5.4 4.4 5.9 2.2 6.2 4.1 17.9 13.7 7.9 100.0

H eritage 20 2.6 3.6 2.1 0.2 0.9 19.1 11.7 4.0 1.8 5.5 0.7 2.4 1.4 15.9 10.4 17.9 100.0

* A S E A N :ssociation So uth ast A sianN ations A of E ** S A A : S ou thA sianA sso ciation r Reg io nal o -operation In d ia,Pakistan, B anglade sh, ri L anka, epal, hutan, aldives RC fo C S N B M

Page 27

TABLE 1-6: Indian Hotel Indust ry by Star Catego ry: Monthly & Daily Occupancy
A v e r a g e o n thO c c u p a n c y M ly
F iv e - S t a r D e lu x e F iv e - S t a r Fo ur- S t a r T h r e e - S t a r Tw o - S t a r O n e - S t a r H e r ita g e 27 44 64 330 197 59 28 6 3 .6 7 1 .7 6 4 .6 7 0 .3 6 4 .7 6 1 .2 6 1 .4 6 3 .4 6 4 .3 6 7 .2 7 3 .3 5 3 .3 6 5 .6 7 3 .3 6 4 .0 7 0 .6 6 0 .7 5 7 .1 5 7 .6 5 9 .9 6 1 .4 6 0 .2 7 3 .3 5 5 .8 6 4 .6 6 9 .5 5 9 .4 6 6 .0 6 2 .6 5 8 .1 5 5 .7 5 6 .1 5 6 .0 5 9 .6 6 5 .8 6 4 .7 6 5 .0 6 3 .9 5 8 .9 6 2 .1 6 3 .2 5 8 .1 5 5 .7 5 6 .1 5 6 .0 5 9 .6 6 5 .8 6 4 .7 6 2 .4 6 0 .8 5 6 .3 5 9 .5 6 3 .6 6 1 .2 5 6 .1 5 6 .9 5 6 .1 6 0 .0 6 3 .5 6 4 .0 6 4 .2 6 0 .5 5 6 .9 6 0 .4 6 5 .1 6 4 .2 6 0 .1 5 7 .1 5 7 .3 6 1 .9 6 4 .3 6 6 .5 6 0 .7 6 4 .6 5 9 .4 5 1 .6 4 0 .6 3 6 .0 3 7 .7 5 1 .1 4 5 .0 6 0 .7 7 3 .5 6 0 .1 2 0 0 8 -2 0 0 9 A llI n d ia O th e r s A v e r a g e 36 785 6 4 .7 6 6 .5 5 8 .0 5 8 .5 6 4 .2 6 1 .5 6 0 .3 6 0 .0 6 0 .6 6 5 .6 6 8 .7 7 1 .2 6 4 .1 6 4 .3 5 8 .6 6 1 .9 6 2 .6 5 8 .8 5 6 .2 5 7 .1 5 6 .8 6 0 .5 6 6 .4 6 3 .3

C O M P O S IT IO N N u m b e rf R esp o n ses o Ja n ury a Fe bru ary M a rc h A p r il M ay Ju n e J u ly A u g u st S e p te m b e r O c to b e r N o v em b er D ecem ber

A v e r a g e a ily c c u p a n c y D O
F iv e - S t a r D e lu x e F iv e - S t a r Fo ur- S t a r T h r e e - S t a r Tw o - S t a r O n e - S t a r H e r ita g e 24 37 57 313 186 59 17 6 9 .9 7 1 .3 7 3 .7 7 0 .1 6 6 .2 6 3 .4 6 0 .3 6 3 .8 6 3 .8 6 7 .4 6 2 .8 5 7 .9 5 5 .0 5 3 .7 6 1 .0 6 4 .0 6 6 .6 6 5 .8 6 3 .8 5 8 .2 5 3 .0 5 6 .0 5 8 .2 5 9 .8 5 9 .1 5 9 .8 5 6 .4 4 8 .6 5 6 .1 5 8 .0 5 9 .3 6 0 .3 6 1 .9 5 8 .9 5 0 .3 6 2 .9 6 2 .5 6 3 .1 6 3 .2 6 7 .2 6 7 .2 5 8 .3 4 5 .8 4 4 .4 4 7 .3 4 6 .0 5 0 .9 5 2 .1 4 7 .0 2 0 0 8 -2 0 0 9 A llI n d ia O th e r s A v e r a g e 33 729 5 3 .3 5 4 .9 5 8 .4 5 7 .3 5 9 .8 5 5 .1 4 5 .8 5 7 .0 5 8 .8 6 0 .6 6 0 .0 6 0 .5 5 7 .3 5 0 .1

C O M P O S IT IO N N u m b e rf R esp o n ses o M on day Tu e s d a y We d n e sd a y T h u rsd ay Fr id a y S a tu rd a y S unday

TABLE 1-7: Indian Hotel Indust ry by Star Catego ry: Sources of Reservation S o u r c e sfA d v a nRees e v a t io n s o c r
C O M P O S IT IO N N u m b o rR e sp o n s e s ef C h a in R S C e n trRel s e v a t ioSn y s te m ) C ( a r D i r e c tn q ryi / H o t eRe p r e s e n ta tio n E u l G lo b D li s tr ib u ti o n te mG D S ) a Sys ( H o te/ lC h a in b s it e We Tr a v eA g e n tn dTo u rO p e r a to r l a O t h eOr n lin e s e v a t io S y s te m s Re r n O th eWe b s ite r O th e r To t a l F i v e - S ta r D e lu x e F i v e - S ta r Fo ur- S t a r T h r e e - S t a r Tw o - S ta r O n e - S t a r H e r it a g e 27 40 66 318 203 67 25 1 1 .8 4 5 .8 1 2 .4 5 .2 1 4 .8 5 .3 2 .4 2 .3 1 0 0 .0 5 .6 4 4 .1 7 .1 5 .2 2 3 .7 5 .1 3 .1 6 .0 1 0 0 .0 1 0 .2 4 9 .1 2 .9 5 .4 1 8 .7 4 .6 3 .2 5 .9 1 0 0 .0 2 .6 5 4 .8 1 .2 6 .4 2 2 .4 2 .6 4 .4 7 .9 1 0 0 .0 2 .4 5 7 .2 0 .4 6 .9 1 7 .8 2 .4 4 .5 8 .5 1 0 0 .0 0 .4 6 5 .2 0 .2 3 .7 1 5 .9 2 .7 3 .6 8 .3 1 0 0 .0 9 .0 2 6 .5 0 .2 4 .6 4 7 .4 5 .1 3 .6 3 .7 1 0 0 .0 2 0 0 8 -2 0 0 9 A l I n d ia l O th ers A v erag e 31 813 0 .8 6 2 .9 0 .2 4 .6 1 3 .3 1 .0 3 .8 1 3 .4 1 0 0 .0 3 .7 5 3 .3 1 .7 6 .0 2 0 .7 3 .0 4 .1 7 .7 1 0 0 .0

Page 28

TABLE 1-8: Indian Hotel Indust ry by Star Catego ry: Mar keting Media
M a r k e t in ge d ia Pe r c e n ta goef H o te ls s in g a c h e d ia M U E M
F iv e - S ta r C O M P O S IT IO N N u m b eorf R esp o n ses C o n su m Gre n e ra te d e d ia G M ) e M (C D ir e cM a il t H o teWeb site l L o y a lty a rdp ro g ra m C M e rc h a n d is in g O th eIrn ten e tS ite r O u td o o r d v etis in g A r Pa y Pe r C lic k Pr in tA d vrtis in g e Pro m o tio n s Ra d ioA d vrtis in g e Te le m a rk e tin g T VA d vrtis in g e V ir a l M a r k e ti n g D e lu x e 28 2 8 .6 8 5 .7 1 0 0 .0 9 2 .9 4 6 .4 8 7 .6 7 1 .4 2 5 .0 9 6 .4 9 6 .4 3 5 .7 6 4 .3 3 2.1 1 7 .9 F iv e - S ta r Fo ur-S t a r T h r e e - S ta r Tw o - S ta r 43 68 3 49 1 97 1 6.3 7 9 .1 9 7.7 8 8.4 3 4.9 6 9.8 7 9 .1 1 1.6 9 5.4 9 0.7 3 2.6 7 4.4 3 7.2 9 .3 8 .8 8 2 .4 9 2 .7 5 1 .5 2 5 .0 6 6 .2 5 7 .4 2 .9 8 5 .3 8 3 .8 2 9 .4 6 0 .3 2 6 .5 1 .5 7 .5 8 3.4 8 7.4 3 0 .1 2 1.5 6 0.2 6 4.5 7 .7 8 8.5 6 7.9 1 7.2 5 3.9 2 6.9 7 .2 5 .1 7 2.1 7 3.1 1 6 .8 1 2 .2 5 5 .8 5 2 .8 3 .6 8 5 .8 4 8 .7 6 .6 3 2 .5 1 9 .8 2 .5 O n e - S t a r H e r ita g e 65 29 0 .0 7 0.8 5 8.5 9 .2 1 0.8 4 7.7 5 6.9 1 .5 8 1.5 4 3 .1 6 .2 3 5.4 1 3.9 4 .6 1 3 .8 8 6 .2 9 6 .6 2 7 .6 2 4.1 8 2 .8 5 1 .7 1 7 .2 8 9 .7 8 2 .8 6 .9 4 4 .8 1 3 .8 1 3 .8 O th e r s 32 6 .3 7 1.9 5 9.4 1 2.5 1 2.5 4 3.8 4 6.9 6 .3 5 6.3 4 0.6 6 .3 3 1.3 1 5.6 1 2.5 2 00 8-20 09 A llI n d ia A vera ge 8 11 7 .8 7 9.0 8 2.2 3 1.4 2 0.0 5 9.9 6 0.3 6 .9 8 6.4 6 4.2 1 5.4 4 8.0 2 3.9 6 .3

TABLE 1-9: Indian Hotel Indust ry by Star Catego ry: Payment Methods
Paym en M eth odU sed t s
C O M P O S IT IO N N u m ber Responses of CashSales C red it a rdSales C C re d it Sales(otherthan cards) E lectronic Transfer Fund To ta l F iv e-S ta r D elu x e 17 16.2% 45.4 33.9 4.5 100.0 2008-2009 A llI n d ia O th e r s A verage 32 743 64.9% 21.5 11.6 2.0 100.0 4 3.6% 31.1 21.4 3.9 100.0

F iv e-S ta r 37 18.4% 36.8 39.1 5.8 100.0

Fo ur-S ta r 62 25.2% 39.3 32.8 2.7 100.0

T h re e -S ta r 316 40.4% 33.6 21.2 4.5 100.0

Tw o-Star 189 53.2% 28.4 14.6 3.8 100.0

O n e-S ta r 62 68.6% 19.5 9.7 2.2 100.0

H erita g e 28 26.6% 24.7 45.1 3.5 100.0

C r e d it C a rU s d sed
C O M P O S IT IO N N u m ber Responses of A m erican xpress E D in e rsC lu b M astercard E uro card / V isa O th e r To ta l F iv e-S ta r D elu x e 18 36.2% 2.9 25.6 33.7 1.6 100.0 2008-2009 A llI n d ia O th er s A verage 19 617 5 .8% 0.8 33.5 50.5 9.4 100.0 9 .5 % 2.5 37.4 46.2 4.4 100.0

F iv e-S ta r 39 21.4% 2.5 33.3 37.8 5.0 100.0

Fo ur-S ta r 57 15.5% 4.0 35.9 42.3 2.4 100.0

T h re e-S ta r 282 8.6% 2.7 37.7 46.5 4.6 100.0

Tw o -S ta r 140 4.3% 1.4 40.4 49.1 4.8 100.0

O n e -S ta r 39 3.3% 3.6 40.0 51.4 1.6 100.0

H erita g e 23 10.8% 1.3 34.7 46.3 6.9 100.0

A v e r a g C r e d it C a Cd m issio n e r om
C O M P O S IT IO N N um b er f Responses o A m erican xpress E D in e rsC lu b M astercard E uro card / V isa O th er F iv e-S ta r D elu x e 17 3 .3 % 1.9 1.2 1.2 0.2 2008-2009 A llI n d ia A verage O th er s 9 468 1 .6% 0.3 1.9 1.9 0.5 2 .6 % 0.7 1.6 1.6 0.3

F iv e-S ta r 34 3.4 % 1.4 1.3 1.3 0.3

Fo ur-S ta r 52 3.0% 1.1 1.3 1.3 0.1

T h re e-S ta r 212 2.6% 0.7 1.6 1.6 0.3

Tw o -S ta r 101 2.0% 0.4 1.8 1.8 0.3

O n e -S ta r 24 1.6% 0.4 1.7 1.7 0.0

H erita g e 19 3.5% 0.2 1.6 1.6 0.1

Page 29

TABLE 1-10: Indian Hotel Indust ry by Star Catego ry: Technology Management Practices
Te c h n o lo g y H o te- ls r c e n t a g eH o t e ls s in E a c h c h n o lo g y in Pe of U g Te
F iv e - S t a r C O M P O S IT IO N N u m b e r R e sp o n se s of D e l u x e F iv e - S ta r Fo ur-S t a r T h r e e - S t a r Tw o - S t a r O n e - S t a r H e r i t a g e 28 44 65 320 163 54 24 9 7 .7 % 9 3 .2 5 2 .3 7 5 .0 4 7 .7 9 7 .7 9 3 .2 5 9 .1 8 .6 7 5 .0 9 5 .5 8 1 .8 4 0 .9 2 7 .3 9 5 .4 % 8 0 .0 4 7 .7 6 1 .5 2 7 .7 9 6 .6 9 6 .6 5 6 .9 9 3 .9 8 4 .6 9 3 .9 7 5 .4 2 9 .2 7 .7 9 4 .7 % 6 2 .2 2 6 .6 3 1 .9 2 5 .9 9 5 .0 8 7 .5 4 6 .6 8 2 .5 6 1 .8 7 6 .6 4 9 .7 2 3 .8 8 .4 9 2 .6 % 5 1 .5 1 1 .0 1 6 .0 1 2 .9 8 .3 7 6 .7 3 2 .5 6 3 .8 3 3 .1 5 3 .4 2 .7 1 0 .4 5 .5 9 8 .2 % 4 0 .7 7 .4 2 0 .4 9 .3 9 2 .6 6 3 .0 2 7 .8 5 3 .7 3 3 .3 4 2 .6 1 1 .1 9 .3 3 .7 1 0 0 .0 % 5 4 .2 4 5 .8 3 3 .3 5 8 .3 1 0 0 .0 9 5 .8 6 2 .5 9 5 .8 7 5 .0 9 1 .7 5 0 .0 3 7 .5 8 .3 O th e r s 24 9 1 .7 % 3 3 .3 1 6 .7 1 6 .7 2 5 .0 8 7 .5 7 5 .0 3 7 .5 5 8 .3 2 9 .2 4 1 .7 2 0 .8 8 .3 8 .3 2 0 0 8 -2 0 0 9 A llI n d ia A verage 722 9 5 .0 % 6 1 .4 2 6 .9 3 4 .4 2 4 .9 9 3 .8 8 4 .8 4 5 .2 7 7 .8 5 6 .4 7 1 .8 4 5 .8 2 2 .4 8 .7

A c c o u n tinygs te m S 1 0 0 .0 % C a ll c c o u n tinygste m A S 8 5 .7 C e n tr Re serv a tio S y s te mC R S ) al n ( 6 4 .3 E le c tr o nKe y c a rd ic 8 5 .7 E n e rgM a n a g e m S y s te m y ent 4 2 .9 I n ten e t/ E -M a il r 1 0 0 .0 I n t ren e t/ We b s ite 1 0 0 .0 I n tra n S ty ste m e 7 8 .6 L o c aA r e N e t w o(LA N ) l a rk 1 0 0 .0 M a n a g e m Iennftrom a tio S y stem n 8 5 .7 Po in o fS a leS y s te mo rFo o da n dB e v e r a g e 1 0 0 .0 t f Pro p ret y M a n a g e m S y s te m ent 9 6 .4 Y i e lM a n a g e m S y s te m d ent 5 7 .1 O th e r 1 4 .3

Page 30

2. Indian Hotel Industry Inventory and

TABLE 2-1: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Facilities Analysis and Staffing
Typical Room Profile of an Average Hotel
CO M POSITIO N Number of Responses Air-Conditioned Single Double Suites Single Double Suites Less Than 50 Rooms 734 1.7 19.2 2.6 0.7 5.9 0.6 30.6 50 to 150 Rooms 387 4.6 59.9 7.2 1.2 6.5 0.6 79.9 More Than 150 Rooms 47 32.2 167.1 20.6 0.4 3.6 0.0 223.9 Chain Affiliated 115 11.0 79.6 11.4 0.1 2.9 0.3 105.4 Independent 1053 3.1 34.2 4.1 0.9 6.3 0.6 49.2

Non-Air-Conditioned

Total Average Rooms

Average Number of Food & Beverage Outlets Per Hotel

COMPOSITION Number of Responses Restaurant Bars Others Total Less Than 50 Rooms 593 1.4 0.7 0.6 2.6 50 to 150 Rooms 344 1.9 0.9 1.0 3.8 More Than 150 Rooms 44 3.3 1.5 1.0 5.8 Chain Affiliated Independent 109 872 2.2 1.1 0.9 4.3 1.6 0.7 0.7 3.0

Average Number of Total Employees Per Hotel (Permanent / Contract / Full Time / Part Time)
COMPOSITION Number of Responses Managers Supervisors Staff Total Average Number of Employees per Room Male Female Male Female Male Female Less Than 50 Rooms 628 3.0 0.4 4.3 0.6 31.9 2.9 43.0 1.4 50 to 150 Rooms 345 11.3 1.7 14.8 2.2 92.0 8.6 130.6 1.6 More Than 150 Rooms 42 36.6 9.8 47.2 9.0 239.4 30.6 372.5 1.6 Chain Affiliated Independent 111 904 18.6 3.5 19.9 3.4 124.9 12.5 182.8 1.7 5.8 0.9 8.4 1.3 53.1 5.2 74.6 1.5

Average Percentage of Trained Employees Per Hotel

CO M POSITIO N Number of Responses Managers Supervisors Staff Total Avg. Trained Employees* Total Avg. Un-Trained Employees Less Than 50 Rooms 327 88.1% 79.7 64.4 77.4 22.6 50 to 150 Rooms 243 87.1% 80.7 67.4 78.4 21.6 More Than 150 Rooms 35 88.4% 75.7 66.5 76.8 23.2 Chain Affiliated 91 91.9% 87.1 74.9 84.6 15.4 Independent 514 86.9% 78.6 64.1 76.5 23.5

* Trained Employees includes those with a minimum one-year cer tificate course from a hotel management or equivalent institution; however, some hotels may have included those with shor t term (in-house) training

Page 32

TABLE 2-2: Indian Hotel Indust ry Chain Affiliated vs. Independent

Chain Affiliated 92 110 24,285 60.6% Rs 6,575 Percentage of Revenue Amount Per Amount Per Available Room Occupied Room Percentage of Revenue

: Financial Report (2008-2009)

Independent 382 59 12,941 63.6% Rs 3,543 Amount Per Available Room Amount Per Occupied Room 2008-2009 All India Average 474 69 15,143 63.1% Rs 4,487 Percentage Amount Per of Revenue Available Room Amount Per Occupied Room

Number of Responses Average Average Average Average Total Rooms Per Hotel: Occupied Rooms Per Hotel: Occupancy Per Hotel: Rate Per Hotel:

COM POSITION

REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other Minor Operated* Rental & Other Income Total DEPARTM EN TAL EXPENSES Rooms Food & Beverage Telephone & Other Minor Operated* Rental & Other Income Total DEPARTM EN TAL INCOME OPER ATING EXPENSES Administrative & General Management Fee Marketing Franchise Fees Proper ty Operations & Maintenance Energy Total HOUSE PROFIT FIXED EXPENSES Proper ty Taxes Insurance Other Fixed Charges Rent Total NET INCOME**

61.3% 23.4 10.2 0.6 2.7 1.9 100.0 14.2 51.2 57.0 48.7 3.7 27.6 72.4 9.1 4.5 2.9 0.6 4.6 7.6 29.2 43.2 0.5 0.2 1.2 1.4 3.3 39.9%

Rs 1,447,990 552,098 240,337 14,546 63,898 44,053 2,362,920 205,114 405,917 8,289 31,145 1,626 652,091 1,710,830 214,947 105,142 69,165 13,109 109,519 178,301 690,183 1,020,650 11,117 5,701 29,374 32,832 79,024 Rs 941,622

Rs 6,575 2,507 1,091 66 290 200 10,730 931 1,843 38 141 7 2,961 7,769 976 477 314 60 497 810 3,134 4,635 50 26 133 149 359 Rs 4,276

59.8% 27.5 7.8 0.5 1.9 2.6 100.0 15.4 58.4 101.7 96.1 13.2 32.4 67.6 8.3 1.3 2.6 0.5 6.0 9.3 28.0 39.6 0.7 0.3 1.0 1.3 3.4 36%

Rs 777,174 356,603 100,732 6,728 23,969 33,457 1,298,660 11,988 267,106 6,843 23,041 4,421 421,099 877,564 107,908 16,675 33,315 6,421 78,006 120,964 363,289 514,275 9,544 3,992 13,412 16,814 43,762 Rs 470,514

Rs 3,543 1,626 459 31 109 153 5,921 546 1218 31 105 20 1,920 4,001 492 76 152 29 356 551 1,656 2,345 44 18 61 77 199 Rs 2,145

60.5% 25.6 8.8 0.6 2.2 2.3 100.0 14.8 55.3 79.7 70.3 9.7 30.3 69.8 8.7 2.7 2.7 0.5 5.4 8.5 28.5 41.2 0.6 0.3 1.1 1.3 3.4 37.9%

Rs 985,310 417,248 144,054 9,154 36,360 36,743 1,628,870 146,192 310,165 7,291 25,554 3,553 492,755 1,136,110 141,121 44,133 44,439 8,496 87,780 138,749 464,717 671,396 10,031 4,522 18,365 21,784 54,702 Rs 616,694

Rs 4,487 1,900 656 42 166 167 7,418 666 1,412 33 116 16 2,244 5,174 643 201 202 39 400 632 2,116 3,058 46 21 84 99 249 Rs 2,808

* Minor operated depar tments include: laundry, gift shop, business centre, news stand, spor ts, health club, garage, parking and so for th ** Net Income is before depreciation, interest payments and taxes

TABLE 2-3: Indian Hotel Indust ry Hotel Size : Financial Report (2008-2009)
2008-2009 All India Average 474 69 15,143 63.1% Rs 4,487 2008-2009 A ll India Average 474 69 15,143 63.1% Rs 4,487

Numberof Responses AverageTotal Rooms Per H otel: Average OccupiedRooms Per Hotel: AverageOccupancyPer Hotel: Average Rate Per Hotel: REVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other M inor Operated* Rental & Other Income Total D EPA R T M ETA L EX P EN S E S N Rooms Food & Beverage Telephone & Other M inorOperated* Rental & O ther Income Total D EPA R T M ETA L IN C O M E N O P E R IN GE X P E N SE S AT A dm inistrative General & ManagementFee Marketing Franchise Fees Proper ty Operations& Maintenance Energy Total H O U S E R O F IT P F IX E D X P E N S E S E Proper ty Taxes Insurance OtherFixedCharges Rent Total N E TIN C O M E * *

Less T han 50 Rooms 237 32 6,965 62.7% Rs 2,101

50 to 150 M oreT han Rooms 150 Rooms 203 34 86 18,689 63.1% Rs 4,069 225 50,849 64.7% Rs 7,694

Less T han50 Rooms Average 237 32 6,965 62.7% Rs 2,101

50 to 150 Rooms 203 86 18,689 63.1% Rs 4,069

M ore Th an150 Rooms 34 225 50,849 64.7% Rs 7,694

2008-2009 A ll India 474 69 15,143 63.1% Rs 4,487

Less Than 50 Rooms 237 32 6,965 62.7% Rs 2,101

50 to 150 M oreT han Rooms 150 Rooms 203 34 86 18,689 63.1% Rs 4,069 225 50,849 64.7% Rs 7,694

Percentage of Revenue 55.3% 34.8 5.4 0.3 1.1 3.1 100.0 21.0 65.5 213.4 103.5 28.0 40.7 59.3 7.9 2.4 2.6 0.4 6.2 9.8 29.4 30.0 0.5 0.4 1.4 0.9 3.2 26.8% 60.6% 26.2 8.4 0.5 1.8 2.5 100.0 15.3 57.6 80.6 66.0 6.8 31.0 69.0 10.5 2.8 2.3 0.5 5.7 9.0 30.8 38.3 0.6 0.3 1.4 1.1 3.3 35.0% 61.9% 22.2 10.4 0.7 3.0 1.8 100.0 12.7 48.4 59.7 69.5 5.2 26.3 73.7 6.7 3.5 3.3 0.6 4.8 7.5 26.5 47.2 0.6 0.3 0.8 1.8 3.5 43.8% 60.5% 25.6 8.8 0.6 2.2 2.3 100.0 14.8 55.3 79.7 70.3 9.7 30.3 69.8 8.7 2.7 2.7 0.5 5.4 8.5 28.5 41.2 0.6 0.3 1.1 1.3 3.4 37.9% Rs 452,410 284,732 44,130 2,723 9,252 25,248 818,496 95,127 215,331 5,813 9,577 7,059 332,907 485,589 65,006 17,518 21,506 3,034 51,014 80,195 238,274 247,314 4,435 3,002 11,081 7,287 25,804 Rs 221,510

AmountPer AvailableRoom Rs 887,899 384,677 123,120 7,442 26,722 36,081 1,465,940 135,543 292,225 5,999 17,638 2,440 453,844 1,012,100 154,220 38,077 33,044 6,732 83,532 132,510 448,115 563,981 9,210 4,100 19,763 15,744 48,816 Rs 515,165 Rs 1,740,370 623,808 291,748 19,491 85,435 49,738 2,810,590 221,207 443,479 11,638 59,405 2,567 738,295 2,072,300 187,753 84,558 93,112 17,915 134,226 211,986 729,549 1,342,750 17,503 7,002 22,472 50,042 97,019 Rs 1,245,730 Rs 985,310 417,248 144,054 9,154 36,360 36,743 1,628,870 146,192 310,165 7,291 25,554 3,553 492,755 1,136,110 141,121 44,133 44,439 8,496 87,780 138,749 464,717 671,396 10,031 4,522 18,365 21,784 54,702 Rs 616,694

AmountPer OccupiedRoom Rs 2,101 1,322 205 13 43 117 3,801 442 1,000 27 44 33 1,546 2,255 302 81 100 14 237 372 1,107 1,149 21 14 51 34 120 Rs 1,029 Rs 4,069 1,763 564 34 122 165 6,718 621 1,339 27 81 11 2,080 4,638 707 174 151 31 383 607 2,054 2,584 42 19 91 72 224 Rs 2,361 Rs 7,694 2,758 1,290 86 378 220 12,425 978 1,961 51 263 11 3,264 9,161 830 374 412 79 593 937 3,225 5,936 77 31 99 221 429 Rs 5,507 Rs 4,487 1,900 656 42 166 167 7,418 666 1,412 33 116 16 2,244 5,174 643 201 202 39 400 632 2,116 3,058 46 21 84 99 249 Rs 2,808

* M inoroperated depar tments include:laundry, gift shop, business centre, news stand, spor ts, health club, garage, parkingand so for th ** Net Income is before depreciation,interest payments and taxes

TABLE 2-4: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Market Data
Market Segmentation
C O M P O SIT IO N Number of Responses A irlineCrew Business Traveller- Domestic Business Traveller- Foreign Complimenta Rooms ry Domestic - Tourists / Leisure FIT Foreign - Tourists / Leisure FIT Meeting Par ticipants (Less than 100 Attendees) Meeting Par ticipants (Over 100 Attendees) Tour Groups - Domestic Tour Groups - Foreign Other Total Less Than 50 Rooms 429 1% 39.5 8.0 1.6 21.8 6.9 3.1 5.8 6.6 4.1 2.2 100.0 Less Than 50 Rooms 510 78.4% 21.6 100.0 56.8% 43.2 100.0 3.1 2.7 2.7 2.6 48.3 50 to 150 Rooms 255 1.8% 33.9 12.6 2.0 14.9 8.8 4.0 7.0 5.7 6.5 2.9 100.0 50 to 150 Rooms 319 69.8% 30.2 100.0 59.6% 40.4 100.0 4.0 3.1 3.1 2.3 42.5 M ore Than 150 Rooms 39 9.5% 22.9 22.0 1.5 7.1 9.5 4.9 9.9 4.1 4.9 3.8 100.0 M ore Than 150 Rooms 43 49.3% 50.7 100.0 68.8% 31.2 100.0 4.1 2.3 2.3 2.5 38.1 Chain Affiliated Independent 88 5.4% 28.8 18.6 1.6 12.6 10.1 3.1 6.4 3.8 6.1 3.6 100.0 635 0.9% 37.7 9.2 1.7 19.4 7.4 3.6 6.4 6.5 4.8 2.4 100.0

Guest Analysis
C O M P O SIT IO N Number of Responses Domestic Guests Foreign Guests Total Total business Total leisure Total Avg. Stay of Foreign Guests (Days) Avg. Stay of Domestic Guests (Days) Avg. Stay of Business Guests (Days) Avg. Stay of Leisure Guests (Days) Percentage of Repeat Guests Chain Affiliated Independent 126 57.4% 42.6 100.0 62.4% 37.7 100.0 2.1 2.3 3.3 2.3 31.7 746 78.3% 21.7 100.0 56.3% 43.7 100.0 3.1 2.9 3.6 2.5 47.6

Country of Origin of Guests

C O M P O SIT IO N Number of Responses ASEAN* Australia Canada Caribbean China France Germany Japan MiddleEast Other european Russia SAARC ** South Africa UK U SA Other Total Less Than 50 Rooms 207 5.0% 3.9 4.1 0.6 4.2 6.3 6.4 4.4 3.6 9.0 2.5 7.5 2.6 14.1 11.8 14.2 100.0 50 to 150 Rooms 174 5.9% 3.2 3.0 0.5 3.9 6.6 7.0 4.7 3.6 9.4 3.4 5.0 2.3 12.5 12.9 16.1 100.0 M ore Than 150 Rooms 36 3.4% 3.0 2.9 0.7 2.6 4.7 7.5 4.6 2.1 7.0 4.5 5.4 1.3 18.6 14.3 17.7 100.0 Chain Affiliated Independent 76 4.6% 3.2 2.8 0.3 2.3 5.6 6.7 5.3 2.6 9.1 3.4 4.1 1.7 12.2 16.4 19.7 100.0 341 5.4% 3.6 3.7 0.6 4.3 6.4 6.8 4.4 3.7 8.9 3.0 6.8 2.5 14.2 11.6 14.3 100.0

* ASEA N:Association of South East Asian Nations ** SAARC: South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

Page 35

TABLE 2-5: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Monthly & Daily Occupancy
Average Monthly Occupancy
C O M P O SIT IO N Number of Responses January February March April May June July August September October November December

Less Than 50 Rooms 445 63.5% 61.5 57.2 59.6 62.8 59.2 55.1 55.7 55.1 60.8 64.6 64.5

50 to 150 Rooms 300 64.3% 66.9 60.0 64.1 62.5 57.9 57.5 58.6 58.3 59.7 68.0 62.4

More Than 150 Rooms 40 68.7% 75.0 63.2 70.7 61.1 60.1 59.3 61.1 64.3 63.1 74.9 57.9

Chain Affiliated Independent 100 62.5% 68.7 61.1 65.4 61.8 57.9 58.9 59.5 58.7 59.5 65.5 54.9 685 64.3% 63.6 58.2 61.4 62.7 58.9 55.9 56.7 56.5 60.6 66.1 64.6

Average Daily Occupancy

C O M P O SIT IO N Number of Responses Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Less Than 50 Rooms 419 55.5% 57.2 58.6 58.4 60.1 57.2 49.3

50 to 150 Rooms 271 58.0% 60.1 62.3 61.5 60.6 57.0 50.2

More Than 150 Rooms 39 66.1% 67.4 69.7 66.6 63.2 59.6 58.1

Chain Affiliated Independent 89 61.9% 62.7 65.0 62.0 62.8 58.4 53.6 640 56.3% 58.3 59.9 59.7 60.1 57.1 49.6

TABLE 2-6: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Monthly & Daily Occupancy
Sources of Advance Reservations
C O M P O SIT IO N Number of Responses Chain CRS (Central Reservation System) Direct Enquiry / Hotel Representative Global DistributionSystem (GDS) Hotel / Chain Website Travel Agent & Tour Operator Other Online Reservation Systems Other Websites Other Total Less Than 50 Rooms 472 3.1% 54.8 0.7 6.4 20.1 2.1 4.0 8.8 100.0 50 to 150 Rooms 300 4.0% 52.7 2.0 5.3 21.5 3.9 4.3 6.4 100.0 More Than 150 Rooms 41 7.6% 40.8 10.0 5.7 21.8 5.8 3.0 5.2 100.0 Chain Affiliated Independent 97 8.8% 47.9 5.8 6.0 18.3 6.4 2.7 4.3 100.0 716 3.0% 54.0 1.1 6.0 21.0 2.5 4.2 8.2 100.0

Page 36

TABLE 2-7: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Mar keting Media
Marketing Media - Percentage of Hotels Using Each Media
Less Than C O M P O SIT IO N Number of Responses Consumer Generated Media (CGM) Direct Mail Hotel Web site LoyaltyCard Program Merchandising Other Internet Site Outdoor Adver tising Pay Per Click Print Adver tising Promotions Radio Adver tising Telemarketing T V Adver tising V iralMarketing 50 Rooms 464 6.7% 76.3 75.4 20.9 14.7 55.6 58.0 5.6 84.7 55.8 9.5 37.9 20.0 5.8 50 to 150 Rooms 303 9.2% 82.5 90.4 40.6 25.1 64.7 63.4 7.9 88.8 73.3 21.1 60.7 28.1 6.6 M ore Than 150 Rooms 44 9.1% 84.1 97.7 79.6 40.9 72.7 63.6 13.6 88.6 90.9 38.6 65.9 36.4 9.1 Chain Affiliated Independent 90 524 15.4% 81.7 84.2 71.2 32.7 70.2 69.2 10.6 92.3 93.3 24.0 61.5 30.8 9.6 6.7% 78.6 80.5 25.6 18.1 58.4 59.0 6.4 85.6 60.0 14.1 46.0 22.9 5.8

TABLE 2-8: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Payment Methods
Payment Methods Used
C O M P O SIT IO N Number of Responses Cash Sales Credit Card Sales Credit Sales (Other Than Cards) ElectronicFund Transfer Total Less Than 50 Rooms 434 51.1% 27.8 17.2 3.8 100.0 50 to 150 Rooms 275 34.6% 35.0 26.6 3.9 100.0 M ore Than 150 Rooms 34 20.3% 42.4 32.5 4.7 100.0 Chain Affiliated Independent 84 21.7% 39.3 35.6 3.3 100.0 659 46.4% 30.1 19.6 4.0 100.0

Credit Cards Used

C O M P O SIT IO N Number of Responses American Express Diners club Mastercard/Eurocard Visa Other Total Less Than 50 Rooms 336 5.5% 2.1 38.9 49.0 4.6 100.0 50 to 150 Rooms 248 13.0% 2.9 36.5 43.5 4.2 100.0 M ore Than 150 Rooms 33 25.0% 3.3 29.3 38.3 4.1 100.0 Chain Affiliated Independent 86 20.9% 2.8 31.1 40.3 4.9 100.0 531 7.7% 2.4 38.4 47.1 4.4 100.0

Average Credit Card Commission

C O M P O SIT IO N Number of Responses American Express Diners club Mastercard/Eurocard Visa Other Less Than 50 Rooms 241 2.2 0.5 1.7 1.7 0.2 50 to 150 Rooms 200 2.9 0.9 1.5 1.5 0.3 M ore Than 150 Rooms 27 3.0 1.5 1.2 1.3 0.2 Chain Affiliated Independent 75 3.3 1.2 1.3 1.3 0.3 393 2.4 0.6 1.6 1.6 0.3

Page 37

TABLE 2-9: Indian Hotel Indust ry Hotel Size & Chain Affiliation: Technology Management Practices
Technology in Hotels - Percentage of Hotels Using Each Technology
Less Than C O M P O S IT IO N Number of Responses Accounting System Call Accounting System Central Reservation System (CRS) ElectronicKeycard Energy Management System Internet / E-Mail Internet / Website Intranet System Local Area Network(LAN) Management Information System Point of Sale System for Food and Beverage Proper ty Management System Y ieldManagement System Other 50 Rooms 392 92.6% 51.5 16.8 21.9 19.4 91.3 79.9 37.5 70.4 43.1 60.5 29.1 16.1 5.1 50 to 150 Rooms 286 97.9% 71.7 36.7 44.1 30.4 96.5 89.9 52.1 85.3 71.3 83.9 62.9 27.6 12.2 More Than 150 Rooms 44 97.7% 81.8 52.3 81.8 38.6 97.7 95.5 68.2 95.5 77.3 93.2 84.1 45.5 18.2 Chain Affiliated Independent 100 622 90.0% 80.0 66.0 67.0 45.0 96.0 93.0 70.0 92.0 79.0 94.0 82.0 40.0 9.0 95.0% 58.4 20.6 29.1 21.7 93.4 83.4 41.2 75.6 52.7 68.2 40.0 19.6 8.7

Page 38

3. Indian Hotel Industry Seven Major Cities

TABLE 3-1: Indian Hotel Indust ry Seven Major Cities: Facilities and Guest Analysis
Typical Room Profile of an Average H otel
Chennai Five-Star D eluxe , Five-Star Three& Fou rStar & Star Two-Star 9 27 0.0 1 38.1 32.1 0.0 0.0 0.0 1 70.2 7.0 53.7 7.9 0.6 3.5 0.0 7 2.7 Goa Kolkata Five-Star Deluxe , Five-Star Three& Fou rStar & Star Two-Star 7 2 5 0.0 16 8.3 14.9 0.0 0.0 0.0 1 83.1 4.4 2 5.5 2.4 1.8 3.8 0.0 37.9 M umbai New Delhi-NCR Five-Star D eluxe , Five-Star Three& Fou rStar & Star Tw o-Star 11 21 7.6 97 .7 21.6 0.0 0.0 0.0 1 26.8 5.1 33.2 1.3 0.8 1.2 0.0 4 1.5 Pune Five-Star D eluxe, Five-Star Three& Fou rStar & Star Tw o-Star 6 31 16 .0 7 5.2 3.2 0.0 0.0 0.0 94 .3 6.3 2 6.9 1.7 1.1 5.3 0.8 4 2.1

Bangalore Fou r-Sta r, ThreeStar & Tw o-Star 2 7 6.7 53 .3 5.1 1.4 10 .3 0.0 76.7

COMPOSITION N ber of R o ses um esp n Air-Conditioned S gle in Double S ites u Single Double Suites

Five-Star D eluxe & Five-Star 9 0.0 1 76.3 16.8 0.0 0.0 0.0 1 .0 93

Five-Star Fou r-Star Deluxe & & ThreeFive-Star Star 9 1 7 0.0 16 1.2 10.3 0.0 0.0 0.0 1 71.6 0.0 63.5 8.4 0.0 2.0 0.0 73 .9

Five-Star Fou r-Star Deluxe & & ThreeFive-Star Star 1 2 55 69.8 99.8 21.0 0.0 0.0 0.0 19 0.7 5.0 49.4 4.5 0.0 1.7 0.0 6 0.5

Tw o-Star &O neStar 5 5 3.2 2 6.2 2.5 0.1 0.8 0.0 32 .8

Non-Ai r-Conditioned

Total Average

Room s

Average

Num ber

of Food & Beverage

Bangalore

O utlets

Per H otel
Chennai Five-Star D xe , elu Five-Star Three& Fou rStar & Star Tw o-Star 9 24 Goa Kolkata Five-Star D xe , elu Five-Star Three& Fou rStar & Star Two-Star 6 1 4 M umbai New Delhi-NCR Five-Star D xe , elu Five-Star Three& Fou rStar & Star Tw o-Star 10 1 7 Pune Five-Star D eluxe, Five-Star Three& Fou rStar & Star Two-Star 6 21

COMPOSITION N ber of R o ses um esp n

Five-Star D eluxe & Five-Star 8

Fou r-Sta r, ThreeStar & Tw o-Star 24

Five-Star D eluxe & Five-Star 8

Fou r-Star & ThreeStar 17

Five-Star Deluxe & Five-Star 12

Fou r-Star & ThreeStar 53

Tw o-Star & OneStar 3 6

B ars O thers Total

1.1 0.3 4 .3

0.9 1.3 4.0

1.4 0.7 4.9

0.8 1.2 3.8

2.5 0.8 7.6

1.7 0.5 4.3

1.5 0.7 5.8

0.9 0.9 3.2

1.3 0.8 5.2

0.8 0.8 2.8

0.6 0.3 2.0

1.0 1.3 4.4

0.7 1.1 3.0

1.0 0.5 4.0

0.6 0.7 2.5

G uest A nalysis
Bangalore Fou r-Sta r, Five-Star ThreeDeluxe & Star & Five-Star Two-Star 8 19 29.7% 70 .7 1 .0 00 91.7% 8.3 1 .0 00 2.8 2 .0 2.8 1 .6 2 7.2 71.7% 2 8.7 1 00.0 68.5% 31.5 10 0.0 4.6 3.0 3.8 2.4 3 4.1 Chennai Five-Star D xe , elu Five-Star ThreeStar & & Fou rTw o-Star Star 9 24 54.0% 46 .0 1 00.0 82.0% 18 .0 10 0.0 4.1 2.6 2.5 2.8 50 .5 69.7% 3 0.3 1 00.0 82.1% 17.9 1 00.0 2.8 3.7 3.2 2.7 51 .8 Goa Kolkata Five-Star D xe , elu Five-Star ThreeStar & & Fou rTw o-Star Star 179 62.7% 3 7.3 10 0.0 82.7% 17.3 10 0.0 2.2 2.1 2.0 2.5 36 .0 85.3% 1 4.7 10 0.0 78.5% 2 1.5 10 0.0 3.2 3.3 3.1 2.4 63 .0 Mumbai New Delhi-NCR Five-Star D xe , elu Five-Star ThreeStar & & Fou rTw o-Star Star 10 14 44.9% 5 5.1 1 00.0 69.0% 31 .0 10 0.0 3.5 2.0 3.0 1.8 4 0.2 60.1% 40.0 1 00.0 69.3% 30.7 1 00.0 2.5 2.3 2.2 1.5 3 3.9 Pune Five-Star D eluxe, Five-Star ThreeStar & & Fou rTwo-Star Star 6 25 42.0% 5 8.0 10 0.0 89.3% 1 0.7 10 0.0 5.0 3.3 2.5 1.8 57 .5 76.6% 2 3.4 10 0.0 74.6% 2 5.4 10 0.0 18 .6 16.1 17 .1 2.9 5 5.7

COMPOSITION N ber of R o ses um esp n D estic G om uests Foreign G uests Total Total B usiness Total Leisure Total Avg. Stay Avg. Stay Avg. Stay Avg. Stay Percentage of Foreign G uests (D ays) of D estic G om uests (D ays) of B usiness G uests (D ays) of Leisure G uests (D ays) of Rep eat G uests

Five-Star Fou r-Star D eluxe & & ThreeFive-Star Star 16 57.0% 43.0 1 00.0 30.8% 69.2 1 00.0 9.7 3.1 2.2 5.5 1 8.4 59.6% 4 0.4 1 00.0 38.4% 6 1.6 1 00.0 8.7 3.1 2.6 4.0 3 2.3

Five-Star Fou r-Star Deluxe & & ThreeFive-Star Star 11 41 56.9% 43 .1 1 00.0 72.1% 2 8.0 10 0.0 2.2 2.0 2.2 1.9 3 2.9 65.3% 34.7 1 00.0 69.0% 3 1.0 10 0.0 3.2 2.7 3.5 2.7 5 0.9

Tw o-Star & OneStar 45 71.2% 2 8.8 10 0.0 68.5% 31.5 10 0.0 2.8 2.6 3.1 3.3 4 7.5

TABLE 3-2: Indian Hotel Indust ry Seven Major Cities: Staffing

A v era g e u m b er f To ta lE m ployees H otel(Perm anent C o n tra ct Fu llT im e/ Part T im e) N o Per / /
Bangalore Fo ur-Star, Five-Star T hreeD eluxe & Star & Five-Star Two-Star 8 24 M ale Fem ale M ale Fem ale M ale Fem ale 51.0 14.4 64.8 6.6 245.5 23.6 405.9 2.2 8.0 1.2 10.3 1.2 77.5 5.3 103.5 1.7 C h en n ai Five-Star D eluxe, F ive-Star T hree& Fo ur- Star & Star Two-Star 8 24 32.3 5.8 35.3 8.9 230.9 22.3 335.3 2.1 11.4 1.3 17.4 1.8 100.6 8.4 141.0 2.3 Kolkata M u m b ai New D elh iFive-Star N C RFive-Star Deluxe, D eluxe, Five-Star Four-Star Five-Star T hree- Five-Star Four-Star Two-Star Five-Star T hreeD eluxe & & T hree& Fo ur- Star & D eluxe & & T hree- & O n e- & Four- Star & Star Star Two-Star Five-Star Star Star Star Tw o-Star Five-Star 9 16 6 21 12 48 51 10 14 G oa 41.8 10.8 31.7 8.6 228.7 32.6 354.0 2.0 8.6 2.8 8.9 3.7 82.3 10.0 116.3 1.7 45.3 12.0 37.8 7.3 198.7 27.7 328.8 2.0 2.7 0.7 4.5 0.7 31.7 1.0 41.2 1.2 33.3 10.4 58.3 11.3 198.4 31.7 343.3 1.9 7.6 1.7 10.9 2.3 77.1 4.4 104.1 1.8 2.0 0.3 2.7 0.7 23.6 1.5 30.8 1.1 21.2 4.0 16.2 3.4 158.6 20.5 223.9 2.0 7.4 1.4 8.2 1.2 57.3 2.7 78.2 1.6 Pune Five-Star D eluxe, Five-Star T hreeStar & & FourStar Tw o-Star 5 29 27.8 6.2 17.0 2.4 138.4 9.6 201.4 2.0 3.3 0.5 5.0 1.0 30.3 2.5 42.6 1.0

C O M P O S IT IO N Numberof Responses Managers Supervisors Staff Total AverageN um berof Em ployees Room per

A verage Percen tage Tra in ed m p loyees H otel of E Per

Bangalore Fo ur-Star, Five-Star T hreeD eluxe & Star& Five-Star Tw o-Star 8 14 86.1% 78.4 52.5 72.3 27.7 76.4% 68.3 62.4 69.0 31.0 C h enn ai Five-Star D eluxe, Five-Star T hree& Four- Star & Star Tw o-Star 7 18 98.1% 95.7 89.4 94.4 5.6 91.1% 77.9 71.2 80.1 19.9 G oa Kolkata M um bai New D elh iPune Five-Star D eluxe, Five-Star T hree& Fo urStar & Star Tw o-Star 5 14 83.1% 80.8 52.4 72.1 27.9 95.7% 92.6 78.1 88.8 11.2 Five-Star N C RFive-Star D eluxe, Deluxe, Five-Star Fo ur-Star Five-Star T hree- Five-Star Fo ur-Star Tw o-Star F ive-Star T hree& Four- Star & Deluxe & & T hree- & O n e- & Fo ur- Star & Deluxe & & T hreeStar Star Tw o-Star Five-Star Star Star Star Tw o-Star Five-Star 8 12 6 8 8 30 19 9 7 77.1% 53.6 60.0 63.5 36.5 84.0% 74.5 49.3 69.3 30.7 85.6% 85.0 72.0 80.9 19.2 100.0% 81.3 51.3 77.5 22.5 96.9% 94.6 90.5 94.0 6.0 83.2% 75.1 58.9 72.4 27.6 88.7% 72.8 53.7 71.8 28.3 90.7% 81.7 69.5 80.6 19.4 84.1% 89.4 68.4 80.6 19.4

C O M P O S IT IO N Numberof Responses Managers Supervisors Staff TotalAvg .Train edEmployees* TotalAvg .U n-TrainedEmployees

* TrainedEm ployees includesthose w itha m inim um one-yearcer tificatecourse from a hotelm anagem ent equivalent or institution; howeve, som e hotels m ay have includedthose w ithshor t term (in-house)training r

TABLE 3-3: Indian Hotel Indust ry Seven Major Cities: Financial Report Percentage of Revenue (2008-2009)

Bangalore

Chennai Five-Star Deluxe , Five-Star Three-Star & Four& TwoStar Star 7 10 165 39,828 65.7% Rs5,971 57.6% 27.5 11.8 0.7 1.8 0.7 100.0 14.1 42.6 64.3 48.2 7.7 26.2 73.8 4.6 1.8 2.2 0.5 4.5 7.7 21.4 52.5 0.4 0.2 0.5 1.2 2.3 50.2% 82 18,594 63.5% Rs3,106 55.2% 30.0 10.6 0.4 1.0 2.8 100.0 11.4 50.3 100.1 292.9 12.0 30.4 69.7 8.3 0.7 3.0 1.0 6.2 11.5 30.7 38.9 0.5 0.2 0.5 0.3 1.5 37.4%

G oa

Kolkata Five-Star Deluxe, Five- Star Three-Star & Four & TwoStar Star 5 7 167 44,360 75.0% Rs6,524 53.5% 27.8 13.9 0.5 2.7 1.6 100.0 15.1 47.1 54.1 53.0 0.0 29.4 70.6 11.5 3.4 4.3 0.0 6.5 7.2 32.9 37.8 0.3 0.2 0.6 1.4 2.6 35.2% 52 12,219 68.5% Rs2,556 74.6% 17.3 4.2 0.2 1.3 2.5 100.0 16.6 72.2 573.0 252.3 28.2 32.8 67.2 8.4 2.6 4.4 0.4 4.2 6.7 26.6 40.5 1.0 1.2 2.0 0.4 4.7 35.8%

M umbai

New D elhi-NCR Five-Star Deluxe , Five-Star Three& Four- Star & Star Two-Star 8 9 77 52 20,213 10,196 73.6% 58.3% Rs7,990 Rs3,188 65.2% 23.5 6.6 0.6 3.0 1.1 100.0 14.2 68.1 109.9 52.0 0.0 32.0 68.0 7.8 0.6 3.5 0.1 6.1 6.6 24.7 43.3 0.4 0.2 0.4 0.5 1.4 42.0% 64.9% 21.3 9.4 0.2 1.0 3.2 100.0 16.3 77.3 242.7 84.8 16.3 36.2 63.8 6.3 0.0 2.8 0.6 6.6 9.9 26.1 37.7 0.5 0.2 0.3 0.0 0.9 36.8%

Pune Five-Star Deluxe, Five- Star Three-Star & Four & TwoStar Star 5 13 102 22,206 634.0% Rs7,043 66.8% 20.8 9.2 0.5 0.9 1.8 100.0 12.2 143.2 89.1 75.5 17.7 52.5 47.5 7.9 2.6 3.0 0.0 3.3 6.0 22.9 24.6 0.4 0.2 0.8 0.7 2.2 22.5% 44 10,026 65.9% Rs3,735 68.5% 23.7 1.6 0.8 2.1 3.4 100.0 15.2 56.0 75.6 72.9 22.5 27.4 72.6 6.5 3.3 1.2 0.4 5.5 8.2 25.1 47.6 0.6 0.2 1.3 0.1 2.2 45.3%

C O M P O S IT IO N Number of Responses

Five-Star Deluxe & Five-Star 8

Four-Star, Three-Star & TwoStar 9 82 12,957 48.6% Rs4,877 55.7% 31.4 9.7 0.6 1.9 0.7 100.0 9.3 53.6 90.4 36.6 8.3 28.5 73.8 4.6 1.8 2.2 0.5 4.5 7.7 21.4 52.5 0.4 0.2 0.5 1.2 2.3 50.2%

Five-Star Deluxe & Five-Star 9 172 38,729 66.7% Rs6,496 63.9% 26.3 2.0 0.2 3.3 4.4 100.0 14.4 56.7 71.0 46.4 0.1 26.9 73.1 11.9 1.1 4.2 0.7 9.2 7.9 35.1 38.1 0.1 0.5 0.6 0.2 1.5 36.6%

Four-Star & ThreeStar 7 78 17,244 62.3% Rs2,504 68.4% 24.4 1.0 0.2 1.6 4.4 100.0 19.0 81.7 484.7 42.5 0.8 35.3 64.7 18.2 1.4 3.3 0.7 5.5 8.1 37.2 27.5 0.3 0.3 0.0 0.2 0.8 26.8%

Five-Star Deluxe & Five-Star 12 191 45,524 68.6% Rs10,333 66.3% 18.8 8.9 0.6 3.8 1.7 100.0 9.9 49.7 48.4 41.0 5.0 22.3 77.7 5.9 4.3 3.0 1.2 4.0 8.8 27.1 50.6 1.0 0.2 0.2 0.6 2.0 48.6%

Four-Star & ThreeStar 29 62 14,144 70.6% Rs4,394 69.7% 22.1 5.1 0.5 0.9 1.7 100.0 15.2 59.4 95.5 135.8 11.8 28.6 71.4 8.7 2.4 2.5 0.2 6.5 12.1 32.3 39.1 0.7 0.3 1.3 0.8 3.2 35.9%

Two-Star & OneStar 21 34 8,927 74.9% Rs1,892 80.1% 14.7 0.7 0.8 0.3 3.5 100.0 18.3 97.4 141.1 347.4 41.6 33.1 66.9 12.1 0.7 4.1 0.2 5.9 12.7 35.6 31.3 0.5 0.4 0.3 0.3 1.5 29.8%

Average Total Room s Per Hotel: 197 AverageOccupiedRooms Per Hotel: 44,172 AverageOccupancyPer Hotel: 62.4% AverageRate Per Hotel: Rs11,799 R EVENUE Rooms Food & Beverage Banquets & Conferences Telephone & Other M inorOperated* Rental & Other Income Total D EPA R T M ETA L EX PE N SE S N Rooms Food & Beverage Telephone & Other M inorOperated* Rental & Other Income Total D EPA R T M ETA L IN C O M E N O P E R IN GE X PE N SE S AT A dm inistrative& General Management Fee Marketing Franchise Fees Proper ty Operations & Maintenance Energy Total H O U S EP R O F IT F IX E D X PE N SE S E Proper ty Taxes Insurance Other FixedCharges Rent Total N E T IN C O M E * * 64.8% 21.2 8.5 1.0 2.9 1.6 100.0 12.8 51.9 60.3 44.6 2.4 25.7 74.3 9.3 1.8 2.7 0.2 4.0 5.3 23.3 51.1 0.9 0.2 1.0 4.5 6.5 44.6%

* Minor operated depar tments include:laundry, gift shop, business centre, news stand, spor ts, health club, garage, parkingand so for th ** Net Income is before depreciation,interest payments and taxes ID : InsufficientData

TABLE 3-4: Indian Hotel Indust ry Seven Major Cities: Financial Report Amount Per Available Room (2008-2009)

B a n g a lo r e

C henn ai F iv e - S ta r

G oa

Ko lk a ta F iv e -S ta r

M um bai

N e wD e lh i- N C R F iv e -S t a r

Pune F iv e - S ta r

C O M P O S IT IO N N u m b eorf R espo n ses

F iv e -S t a r Fo ur-S ta, D e lu x,eF iv er F iv e -S ta r D e lu x e , iv e F F iv e -S ta r D e lu x ,eF iv e D e lu x e , iv e F D e lu x & F iv e - T h r e e - S ta r S t a r& Fo ur- T h r e e - S t& r D e lu x & F iv e - Fo ur-S ta r e & S ta r& Fo ur- T h r e e - S ta r S ta r& Fo u r- T h r e e - S t& r a e & S ta r& Fo u r- T h r e e -S t aD e lu x & F iv e - Fo ur-S ta r Tw o -S ta& r e & r & a S ta r Tw o -S ta r S ta r Tw o -S ta r S t a r T h r e e -S t a r S t a r & Tw o -S ta r S ta r T h r e e - S ta r O n e - S t a r S tar Tw o -S ta r S ta r Tw o -S ta r 8 9 7 10 9 7 5 7 12 29 21 8 9 5 13 1 97 4 4 ,1 7 2 6 2 .4 % R s1 1,7 99 82 1 2 ,9 5 7 4 8 .6 % R s4 ,8 7 7 1 65 3 9 ,8 2 8 6 5 .7 % R s5 ,9 7 1 82 1 8 ,5 9 4 6 3 .5 % R s3 ,1 0 6 17 2 3 8 ,7 2 9 6 6 .7 % R s6 ,4 9 6 78 1 7 ,2 4 4 6 2 .3 % R s2 ,5 0 4 1 67 4 4 ,3 6 0 7 5 .0 % R s6 ,5 2 4 52 1 2 ,2 1 9 6 8 .5 % R s2 ,5 5 6 1 91 4 5 ,5 2 4 6 8 .6 % R s1 0,3 33 62 1 4 ,1 4 4 7 0 .6 % R s4 ,3 9 4 34 8 ,9 2 7 7 4 .9 % R s1 ,8 9 2 77 2 0 ,2 1 3 7 3 .6 % R s7 ,9 9 0 52 1 0,19 6 5 8 .3 % R s3 ,1 8 8 10 2 2 2,20 6 6 3 .8 % R s7 ,0 4 3 44 1 0,02 6 6 5 .9 % R s3 ,7 3 5

A v e r a gTo ta lRo o m s r H o t e l: e Pe A v e r a g e c c u p ie d o m s r H o te l: O Ro Pe A v e r a gO c c u p a nPeyr H o te l: e c A v e r a gRa tePe r H o te l: e

REVENUE Ro o m s R s2 ,6 4 3 ,9 6 0 R s7 7 0 ,6 7 2 R s1 48 ,7 3 0 R s7 04 ,2 0 2 R s1 ,4 66 ,34 0 R s5 5 4 ,6 1 0 R s1 ,7 3 2 ,9 9 0 R s5 9 5 ,5 9 2 R s2 ,4 6 6 ,9 9 0 R s1 ,0 0 0 ,6 4 0 R s4 9 5 ,6 2 5s2 ,1 0 4 ,2 5 0 R s6 2 7 ,7 0 5 R s1 ,5 3 3 ,3 2 0 R s8 5 8 ,4 3 1 R Fo o d& B ev erag e 8 6 6 ,6 1 0 4 3 5 ,0 1 0 6 8 5 ,9 8 4 3 8 2 ,4 4 7 6 0 3 ,2 6 8 1 9 7 ,7 9 5 9 0 0 ,9 4 3 1 3 8 ,0 9 3 6 9 8 ,7 1 3 3 1 7 ,8 2 4 9 0 ,6 3 6 7 5 8 ,4 2 5 2 0 5 ,6 1 0 4 76 ,5 45 2 96 ,4 91 B a n q u e & C o n fere n c e s ts 3 47 ,0 47 1 34 ,0 11 2 94 ,3 62 1 35 ,5 55 4 6,47 6 7,74 1 4 49 ,5 52 3 3,73 6 3 30 ,1 60 7 3,09 1 4 ,3 35 2 13 ,7 27 9 1,10 0 2 11 ,1 14 1 9,71 1 Te le p h o n& O th e r e 4 1,94 0 8 ,5 86 1 7,33 2 5 ,1 29 5 ,4 32 1 ,4 11 1 4,46 2 1 ,4 14 2 3,45 2 7 ,3 40 4 ,7 12 1 8,03 0 2 ,2 55 1 1,61 0 9 ,6 52 M in oO p e ra te d * r 1 1 8 ,5 7 5 2 6 ,5 4 4 4 4 ,5 5 0 1 2 ,7 6 1 7 4 ,8 7 7 1 3 ,0 9 3 8 8 ,1 1 1 1 0 ,0 1 1 1 4 1 ,2 5 3 1 2 ,4 1 2 1 ,6 1 6 9 7 ,4 3 2 9 ,3 0 4 1 9,95 3 2 6,13 2 Re n t a & O th eIn c o m e l r 6 5 ,0 8 5 9 ,8 7 3 1 7 ,4 1 4 3 5 ,7 0 9 9 9 ,8 4 8 3 5 ,7 9 9 5 1 ,5 7 5 1 9 ,8 1 6 6 1 ,4 2 6 2 4 ,9 4 7 2 1 ,6 7 6 3 4 ,2 6 9 3 1 ,1 3 3 4 1,49 0 42 ,5 43 To tal 4 ,0 8 3 ,2 1 0 1 ,3 8 4 ,7 0 0 2 ,4 9 8 ,3 7 0 1 ,2 7 5 ,8 0 0 2 ,2 9 6 ,2 4 0 8 1 0 ,4 4 8 3 ,2 3 7 ,6 3 0 7 9 8 ,6 6 1 3 ,7 2 1 ,9 9 0 1 ,4 3 6 ,2 6 0 6 1 8 ,6 0 1 3 ,2 2 6 ,1 3 0 9 67 ,1 06 2 ,2 94 ,0 30 1 ,2 52 ,9 60 D E R T MTA NE X P E N S E S PA EL Ro om s 3 37 ,2 44 7 1,99 9 2 02 ,2 40 7 9,90 3 2 10 ,7 17 1 05 ,3 31 2 61 ,3 37 9 9,09 9 2 44 ,9 26 1 51 ,8 18 9 0,73 3 2 98 ,4 28 1 02 ,3 28 1 87 ,4 41 1 30 ,0 29 Fo o d& B ev erag e 6 30 ,1 78 3 04 ,1 87 4 17 ,6 51 2 60 ,6 20 3 68 ,3 78 1 67 ,9 51 6 35 ,7 22 1 24 ,0 71 5 11 ,7 03 2 32 ,0 54 9 2,53 2 6 62 ,0 36 2 29 ,2 45 9 84 ,6 59 1 77 ,1 41 Te le p h o n& O th e r e 2 5,30 6 7 ,7 60 1 1,14 1 5 ,1 35 3 ,8 54 6 ,8 38 7 ,8 20 8 ,1 03 1 1,34 6 7 ,0 09 6 ,6 47 1 9,81 6 5 ,4 71 1 0,33 9 7 ,2 98 M in o r O p e ra te d * 5 2 ,8 6 1 9 ,6 4 0 2 1 ,4 9 0 3 7 ,3 7 0 3 4 ,7 1 4 5 ,5 7 0 4 6 ,7 0 7 2 5 ,2 5 9 5 7 ,9 4 7 1 6 ,8 5 2 5 ,6 1 5 5 0 ,6 3 0 7 ,8 8 8 1 5,06 9 1 9,05 2 Re n ta & O th eIn c o m e l r 1 ,5 8 5 818 1 ,3 3 8 4 ,2 8 9 65 275 0 5 ,5 8 6 3 ,0 6 6 2 ,9 3 8 9 ,0 1 6 0 5 ,0 8 3 7 ,3 57 9 ,5 86 To ta l 1 ,0 4 7 ,1 7 0 3 9 4 ,4 0 4 6 5 3 ,8 5 9 38 7,31 6 61 ,7 27 28 5,96 5 95 1,58 6 26 2,11 8 82 8,98 9 41 0,67 1 20 4,54 2 1,03 0,91 0 35 0,01 6 1,20 4,86 0 34 3,10 6 D E R T MTA NI N C O M E PA EL 3 ,0 36 ,0 40 9 90 ,2 92 1 ,8 44 ,5 10 8 88 ,4 88 1 ,6 78 ,5 20 5 24 ,4 83 2 ,2 86 ,0 50 5 36 ,5 44 2 ,8 93 ,0 00 1 ,0 25 ,5 90 4 14 ,0 59 2 ,1 95 ,2 20 6 17 ,0 90 1 ,0 89 ,1 70 9 09 ,8 55 O P EAT I N G X P E N S E S R E A d m in is tr a tivG en eral & e 3 79 ,5 17 1 34 ,6 39 1 15 ,9 95 1 05 ,5 81 2 72 ,4 31 1 47 ,7 96 3 70 ,9 02 6 7,02 1 2 19 ,0 71 1 24 ,3 90 7 4,94 3 2 53 ,0 41 6 0,51 7 1 80 ,6 92 8 1,88 5 M a n a g e m en e Fe t 7 4 ,4 5 3 5 ,1 9 5 4 5 ,4 8 7 9 ,0 4 4 2 6 ,1 1 3 1 0 ,9 0 7 1 1 0 ,7 7 8 2 0 ,4 3 5 1 6 0 ,8 8 6 3 4 ,0 2 7 4 ,2 6 9 1 9 ,6 6 3 0 6 0,60 4 4 0,86 7 M ark etin g 1 0 8 ,0 6 1 1 6 ,7 0 5 5 3 ,6 0 4 3 8 ,7 5 4 9 6 ,3 6 9 2 6 ,7 9 1 1 4 0 ,5 1 7 3 4 ,7 4 9 1 1 0 ,5 3 2 3 5 ,4 4 6 2 5 ,0 3 2 1 1 2 ,1 3 9 2 7 ,3 6 1 6 9,44 3 1 5,31 3 Fra n ch isFees e 6 ,9 28 3 2,92 7 1 2,46 6 1 2,42 8 1 6,93 5 5 ,6 93 0 3 ,5 42 4 3,68 9 2 ,9 31 1 ,2 16 4 ,5 00 5 ,7 94 0 4 ,8 03 Pro p r ty O p e r a tio &sM ain te n an ce e n 1 6 3 ,6 8 1 1 3 7 ,9 1 7 1 1 3 ,1 4 9 7 9 ,2 8 3 2 1 0 ,8 1 5 4 4 ,8 4 9 2 0 8 ,8 4 7 3 3 ,2 3 3 1 4 8 ,6 3 8 9 3 ,4 0 3 3 6 ,3 1 8 1 9 5 ,7 5 4 6 3,51 9 7 4,75 5 6 8,67 7 E n erg y 2 1 6 ,7 6 7 1 1 3 ,6 7 3 1 9 3 ,0 2 4 1 4 6 ,7 8 6 1 8 2 ,1 1 8 6 5 ,4 5 7 2 3 2 ,9 2 6 5 3 ,8 1 5 3 2 5 ,6 0 3 1 7 4 ,2 7 9 7 8 ,6 9 1 2 1 1 ,9 5 9 9 5 ,5 6 2 1 38 ,5 53 1 02 ,3 15 To tal 9 4 9 ,4 0 6 4 4 1 ,0 5 6 5 3 3 ,7 2 6 3 9 1 ,8 7 6 8 0 4 ,7 8 1 3 0 1 ,4 9 0 1 ,0 6 3 ,9 7 0 2 1 2 ,7 9 5 1 ,0 0 8 ,4 2 0 4 6 4 ,4 7 5 2 2 0 ,4 6 8 7 9 7 ,0 5 7 2 5 2 ,7 5 3 5 24 ,0 47 3 13 ,8 62 H O U SPER O F I T 2 ,0 86 ,6 30 5 49 ,2 36 1 ,3 10 ,7 80 4 96 ,6 12 8 73 ,7 35 2 22 ,9 93 1 ,2 22 ,0 80 3 23 ,7 48 1 ,8 84 ,5 80 5 61 ,1 11 1 93 ,5 90 1 ,3 98 ,1 60 3 64 ,3 38 5 65 ,1 22 5 95 ,9 93 F I X EEDX P E N S E S Pro p e ty Ta x e s r 3 5 ,2 8 7 1 1 ,5 0 1 1 0 ,8 2 4 6 ,2 2 2 3 ,1 4 0 2 ,1 4 2 1 0 ,7 9 4 8 ,3 3 3 3 7 ,0 0 1 1 0 ,3 3 0 3 ,2 8 1 1 1 ,2 3 8 4 ,5 1 3 1 0,05 3 7 ,2 48 In su ran ce 7 ,1 1 6 2 ,3 3 1 5 ,0 4 9 2 ,8 6 5 1 0 ,7 5 3 2 ,6 9 7 6 ,1 3 9 9 ,5 7 2 7 ,2 6 2 4 ,1 7 9 2 ,2 9 4 6 ,5 2 6 1 ,4 3 6 4 ,5 24 3 ,0 42 O th eF ix e C h a rg e s r d 4 0 ,5 2 1 6 ,6 3 7 1 2 ,9 6 8 6 ,0 2 0 1 4 ,1 8 2 184 1 9 ,4 0 1 1 6 ,3 0 7 7 ,6 6 9 1 9 ,0 5 2 1 ,8 0 4 1 1 ,2 5 1 2 ,6 2 9 1 8,62 7 1 6,54 0 Ren t 1 8 1 ,6 1 8 5 7 ,2 4 6 2 8 ,7 5 0 4 ,3 1 6 4 ,9 9 1 1 ,1 8 3 4 6 ,7 0 7 3 ,3 7 3 2 3 ,8 4 4 1 1 ,8 6 0 1 ,6 3 7 1 4 ,7 2 5 19 1 5,94 5 1 ,1 82 To ta l 2 6 4 ,5 4 2 7 7 ,7 1 5 5 7 ,5 9 1 19 ,4 22 33 ,0 66 6,20 6 83 ,0 41 37 ,5 85 75 ,7 76 45 ,4 20 9,01 6 43 ,7 40 8,59 6 49 ,1 49 28 ,0 13 N E TN C O M E * * I R s1 ,8 2 2 ,0 9 0 R s4 7 1 ,5 2 1 R s1 ,2 5 3 ,1 9 0R s4 7 7 ,1 9 0 R s8 4 0 ,6 6 9 R s2 1 6 ,7 8 7 R s1 ,1 3 9 ,0 4 0 R s2 8 6 ,1 6 3 R s1 ,8 0 8 ,8 1 0 R s5 1 5 ,6 9 0 R s1 8 4 ,5 7 4 R s1 ,3 5 4 ,4 2 0 R s3 5 5 ,7 4 1 R s5 1 5 ,9 7 3 R s5 6 7 ,9 8 0
* M in oorp e ra te d e p r tm e n ts c lu d e : u nry, g ift s h o p b u s in e sse n tren, e w sstan d sports, h e a lth lu b g a r a g ep, a r k in g a snod f orth a in la d , c , c , * * N e tIn c o m is b e f o r d e p re c ia tio nter e spt a y m e n a n dtax e s e e in , ts

TABLE 3-5: Indian Hotel Indust ry Seven Major Cities: Financial Report Amount Per Occupied Room (2008-2009)

C O M P O SIT IO N Num ber Responses of

Kolka ta F ive-Star F ive-S tar Fo ur-Sta r, D eluxe, F ive-Star Fo ur-Star Deluxe, T hreeD eluxe& T hree-S ta r F ive-Star T hree-S ta r D e lu x e& & T h ree- F ive-Star& & Star Fo u r & F ive-Star & Tw o-Star Fo ur-Star & Tw o-Star F ive-Star S ta r S tar Tw o-S tar 8 9 7 10 9 7 5 7 82 12,957 48.6% Rs4,877 Rs4,877 2,753 848 54 168 62 8,763 456 1,925 49 61 5 2,496 6,267 852 33 106 208 873 719 2,719 3,476 73 15 42 362 492 Rs2,984 165 39,828 65.7% Rs5,971 Rs5,971 2,847 1,222 72 185 72 10,369 839 1,733 46 89 6 2,714 7,655 481 189 222 52 470 801 2,215 5,440 45 21 54 119 239 Rs5,201 82 18,594 63.5% Rs3,106 Rs3,106 1,687 598 23 56 157 5,626 352 1,149 23 165 19 1,708 3,918 466 40 171 55 350 647 1,728 2,190 27 13 27 19 86 Rs2,104 172 38,729 66.7% Rs6,496 Rs6,496 2,672 206 24 332 442 10,172 933 1,632 17 154 0 2,736 7,435 1,207 116 427 75 934 807 3,565 3,870 14 48 63 22 146 Rs3,724 78 17,244 62.3% Rs2,504 Rs2,504 893 35 6 59 162 3,659 476 758 31 25 1 1,291 2,368 667 49 121 26 203 296 1,361 1,007 10 12 1 5 28 Rs979 167 44,360 75.0% Rs6,524 Rs6,524 3,392 1,692 54 332 194 12,189 984 2,393 29 176 0 3,582 8,606 1,396 417 529 0 786 877 4,005 4,601 41 23 73 176 313 Rs4,288 52 12,219 68.5% Rs2,556 Rs2,556 593 145 6 43 85 3,427 425 532 35 108 24 1,125 2,302 288 88 149 15 143 231 913 1,389 36 41 70 14 161 Rs1,228

B angalore

C h en n a i F ive-Star

G oa

M u m ba i F ive-Star D e lu x e& Fo ur-Star& F ive-Star T h ree-S tar 12 29 191 45,524 68.6% Rs10,333 Rs10,333 2,981 1,383 98 592 257 15,589 1,026 2,143 48 243 13 3,472 12,117 918 674 463 183 623 1,364 4,224 7,893 155 30 32 100 317 Rs7,576 62 14,144 70.6% Rs4,394 Rs4,394 1,395 321 32 55 110 6,306 667 1,019 31 74 13 1,803 4,503 546 149 156 13 410 765 2,039 2,464 45 18 84 52 199 Rs2,264

Tw o-Star & O ne-Sta r 21 34 8,927 74.9% Rs1,892 Rs1,892 346 17 18 6 83 2,361 346 353 25 21 34 781 1,580 286 16 96 5 139 300 841 739 13 9 7 6 34 Rs704

N ew D e lh i-N C R P un e P une F ive-Star F ive-Star D elu xe, D eluxe, F ive-S tar T hree-S ta r F ive-S ta r T h ree-S tar & Fo ur-S ta r & Tw o-Star 8 9 77 20,213 73.6% Rs7,990 Rs7,990 2,880 812 68 370 130 12,250 1,133 2,514 75 192 0 3,915 8,336 961 75 426 17 743 805 3,027 5,309 43 25 43 56 166 Rs5,143 52 10,196 58.3% Rs3,188 Rs3,188 1,044 463 11 47 158 4,911 520 1,164 28 40 26 1,778 3,134 307 0 139 29 323 485 1,284 1,850 23 7 13 0 44 Rs1,807 & Fo u r- & Tw o-Star 5 13 102 22,206 63.8% Rs7,043 Rs7,043 2,189 970 53 92 191 10,537 861 4,523 47 69 34 5,534 5,003 830 278 319 0 343 636 2,407 2,596 46 21 86 73 226 Rs2,370 44 10,026 65.9% Rs3,735 Rs3,735 1,290 86 42 114 185 5,451 566 771 32 83 42 1,493 3,958 356 178 67 21 299 445 1,365 2,593 32 13 72 5 122 Rs2,471

A v era g e ta lRo o m sPe r H o te l: To 197 A verage ccu pied O Room sPer H ote l: 44,172 A verage ccupancy H otel: O Per 62.4% A verage Rate Per H otel: Rs11,799 REVENUE Room s Fo o d & Beverage B anq uets C o nferen ces & Telep h o n e O th er & M in orOperated* Ren tal & O th erIncome To tal D EPA R T M E N LE X P E N S E S TA Room s Fo o d & Beverage Telep h o n e& O th er M in o r Operated* Ren ta l & O th e rIncome To tal D EPA R T M E N LI N C O M E TA O P E AT I N G X P E N S E S R E A d m in istrativ e G en era l & M anagem ent Fee M ark eting FranchiseFees Property O peration& M aintenan ce s E nergy To tal H O U S E R O F IT P F IX E D X P E N SE S E Property Tax es Insurance O th erF ix edCharges Rent To tal N E TI N C O M E * * Rs11,799 3,867 1,549 187 529 290 18,222 1,505 2,812 113 236 7 4,673 13,549 1,694 332 482 31 730 967 4,237 9,312 157 32 181 810 1,181 Rs8,131

* M inoroperated depar tments include:laundry, gift shop, business centre, news stand, spor ts, health club, garage, parkingand so for th ** Net Income is beforedepreciation, interestpayments and taxes ID : In su ffic ie nt Data

TABLE 3-6: Indian Hotel Indust ry Seven Major Cities: Market Data
Market Segmentation
Bangalore Four-Star, Five-Star Deluxe & CO M PO SITIO N Number of Responses Airline Crew Business Traveller - Domestic Business Traveller - Foreign Complimentary Rooms Domestic - Tourists / Leisure FIT Foreign - Tourists / Leisure FIT Meeting Par ticipants (Less than 100 Attendees) Meeting Par ticipants (Over 100 Attendees) Tour Groups - Domestic Tour Groups - Foreign Other Total Five-Star 7 11.1% 18.3 49.0 0.9 1.4 2.4 2.4 12.4 0.7 0.9 0.5 100.0 ThreeStar & Two-Star 11 0.2% 43.2 12.9 1.3 10.4 6.6 6.2 4.8 4.8 2.9 6.8 100.0 Five-Star ThreeDeluxe & Star & Four-Star Two-Star 8 12 16.7% 28.5 28.1 1.5 4.9 4.4 1.7 7.9 3.0 3.0 0.3 100.0 1.1% 48.9 24.0 2.4 5.9 3.7 1.8 3.7 2.6 2.7 3.1 100.0 Five-Star Four-Star Deluxe & & ThreeFive-Star Star 9 14 2.2% 6.7 3.0 2.1 21.2 31.0 6.0 13.0 4.6 5.3 4.9 100.0 1.1% 24.0 6.2 0.9 16.2 20.9 5.1 3.6 11.4 7.5 3.1 100.0 Chennai Goa Kolkata Five-Star Deluxe FiveThreeStar& Star & Four-Star Two-Star 7 18 13.9% 41.8 18.2 5.4 3.6 3.2 5.1 5.8 0.7 2.0 0.4 100.0 1.7% 66.1 8.3 0.6 9.2 6.1 1.4 1.9 3.7 2.0 0.5 100.0 Five-Star Four-Star Two-Star Deluxe & & Three& OneFive-Star Star Star 8 34 40 7.0% 25.6 21.0 1.4 9.1 7.8 2.0 10.5 3.9 2.3 9.6 100.0 1.5% 39.1 15.6 0.9 10.9 8.3 3.3 8.4 4.1 3.9 4.0 100.0 1.2% 45.5 15.0 1.2 13.7 7.9 2.9 4.5 4.5 2.0 1.7 100.0 Mumbai New DelhiNCR Five-Star Deluxe , Five-Star Three& Four- Star & Star Two-Star 9 14 0.3% 20.8 31.0 1.4 5.0 8.8 5.1 8.8 3.2 8.1 7.5 100.0 1.4% 48.1 11.6 1.7 6.9 9.3 2.9 6.1 4.3 6.9 0.9 100.0 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 6 20 0.2% 34.0 53.0 1.0 3.8 2.7 0.0 1.3 1.3 2.3 0.3 100.0 0.0% 43.0 14.5 1.1 12.4 6.2 3.4 12.8 2.2 1.0 3.0 100.0

Country of Origin of Guests

Bangalore Four-Star, Five-Star Deluxe & CO M PO SITIO N Number of Responses ASEAN* Australia Canada Caribbean China France Germany Japan Middle East Other European Russia SAARC ** South Africa UK USA Other Total Five-Star 6 4.3% 3.9 2.3 0.0 2.8 5.5 9.5 2.9 2.4 8.7 0.5 0.5 0.6 11.7 27.6 16.8 100.0 ThreeStar & Two-Star 11 3.3% 2.3 2.2 2.4 2.6 5.8 12.0 2.4 4.7 9.5 2.3 7.1 0.7 11.7 22.0 9.1 100.0 Chennai Five-Star Deluxe , Five-Star Three& FourStar & Star Two-Star 8 13 6.1% 2.9 1.7 1.6 2.2 6.6 5.8 6.9 3.0 7.3 2.5 3.5 1.2 11.3 16.0 21.3 100.0 13.2% 1.9 2.3 0.2 1.7 2.8 2.5 3.0 1.6 6.4 0.9 7.2 3.0 6.5 9.3 37.6 100.0 Five-Star Four-Star Deluxe & & ThreeFive-Star Star 6 9 0.69% 0.6 1.8 0.2 0.5 6.3 5.4 1.4 0.2 2.7 10.7 10.3 0.2 36.7 3.5 18.8 100.0 1.4% 2.7 2.7 0.2 1.3 1.8 3.2 4.2 3.2 7.6 21.2 3.1 2.4 25.4 7.0 12.7 100.0 Goa Kolkata Five-Star Deluxe FiveThreeStar& Star & Four-Star Two-Star 6 11 4.6% 6.0 1.0 0.9 3.1 3.5 7.8 4.6 2.7 11.5 1.0 7.7 2.3 12.2 14.3 16.1 100.0 4.5% 5.5 2.7 0.6 4.1 3.4 6.8 3.0 1.2 6.2 3.0 17.0 0.7 13.1 10.4 18.0 100.0 Five-Star Four-Star Two-Star Deluxe & & Three& OneFive-Star Star Star 5 22 27 7.4% 2.1 2.3 0.3 2.5 2.1 3.3 1.3 1.3 2.9 0.6 2.4 2.0 19.9 10.9 38.7 100.0 5.2% 2.6 3.9 1.2 4.9 4.1 5.1 2.6 9.1 8.1 3.8 4.8 4.7 13.6 10.1 16.5 100.0 6.0% 3.7 2.6 1.3 3.1 2.7 4.0 1.8 6.3 11.9 1.7 10.4 4.6 17.8 9.6 12.5 100.0 Mumbai New DelhiNCR Five-Star Deluxe , Five-Star Three& Four- Star & Star Two-Star 7 7 2.7% 3.7 4.4 0.6 2.1 7.2 15.2 15.3 3.3 8.0 8.6 2.6 2.2 8.0 9.5 6.4 100.0 1.8% 4.2 3.7 1.2 4.8 5.4 5.9 6.7 1.9 14.7 2.8 7.0 2.5 9.9 8.8 18.9 100.0 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 4 10 6.3% 4.3 3.3 1.0 2.8 2.3 8.0 4.5 6.5 24.3 1.8 3.0 5.3 9.3 8.5 9.3 100.0 4.9% 3.9 4.3 0.3 7.6 4.0 8.1 7.3 5.3 11.7 1.6 7.4 1.1 7.4 14.7 10.4 100.0

* ASEAN:Association of South East Asian Nations ** SAARC: South Asian Association for Regional Co-operation - India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives

TABLE 3-7: Indian Hotel Indust ry Seven Major Cities: Monthly & Daily Occupancy
A verageM onthly Occupancy
Bangalore Four-Star, Five-Star ThreeDeluxe Star & & Five- Two-Star Star 7 18 62.4% 75.2 62.6 77.4 68.7 70.2 70.3 62.5 71.2 64.5 78.1 62.0 57.9% 63.0 53.5 62.0 61.3 58.2 55.5 52.8 55.4 50.7 62.9 49.9 Chennai Goa Kolkata Five-Star Five-Star Deluxe, Deluxe, Five-Star T hree- Five-Star Four-Star Five-Star T hree& FourStar & Deluxe & Three- & Fou r Star & Star Two-Star & FiveStar Tw o-Star Star Star 8 21 8 15 7 18 67.2% 73.3 63.8 71.9 61.3 66.8 69.0 63.1 65.6 60.8 70.0 56.6 68.2% 70.0 63.4 70.5 65.2 70.9 74.6 69.6 68.0 59.2 64.4 63.6 86.0% 87.3 80.9 78.2 62.8 57.5 47.3 56.2 58.1 59.2 79.7 72.8 80.7% 79.6 72.3 66.0 56.2 42.1 42.1 44.0 49.6 55.8 74.7 78.2 76.1% 77.5 67.4 74.9 74.8 74.2 71.6 71.1 74.4 66.4 76.1 63.6 71.6% 71.1 60.5 62.9 62.2 57.7 58.3 58.8 63.7 58.4 71.4 71.2 Mumbai New D elh i-N C R Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 5 60.1% 73.8 64.1 70.9 67.6 65.9 65.3 59.9 61.9 59.2 69.8 45.6 20 66.4% 66.3 58.2 65.9 70.5 75.5 66.5 64.7 63.1 63.3 63.0 62.5

C O M P O S IT I O N Numberof Responses January February March A pril May June July August September October November December

Five-Star Five-Star Four-Star Tw o-Star Deluxe, Deluxe & Three- & O ne- Five-Star T hree-Star & & FiveStar Star Four-Star & Two-Star Star 12 36 41 9 11 66.1% 70.5 63.2 77.1 70.7 69.1 67.9 67.1 66.1 60.6 68.6 46.7 73.2% 76.7 70.2 76.5 71.8 72.0 70.8 69.9 68.8 67.2 71.7 59.4 77.3% 75.4 69.0 65.7 66.0 65.4 69.0 69.3 65.4 65.4 66.4 63.7 64.1% 84.6 73.5 85.4 71.6 71.2 76.5 72.0 81.3 74.0 87.4 56.6 59.8% 70.2 60.4 58.3 51.0 46.1 55.3 56.5 59.4 63.7 68.6 56.3

A verageDailyO ccupancy
Bangalore Four-Star, Five-Star ThreeDeluxe Star & & Five- Two-Star Star 7 18 73.0% 71.7 73.5 61.8 47.6 44.8 57.5 48.0% 53.1 57.2 56.3 52.1 45.7 46.5 Chennai Goa Kolkata Five-Star Five-Star Deluxe, Deluxe, Five-Star T hree- Five-Star Four-Star Five-Star T hree& FourStar & Deluxe & Three- & Fou r Star & Star Two-Star & FiveStar Tw o-Star Star Star 8 20 7 13 7 15 67.5% 60.6 73.8 68.3 59.8 57.2 59.3 67.2% 66.8 68.9 68.1 64.3 53.8 55.5 71.4% 68.1 68.9 71.3 82.1 84.7 76.1 62.2% 61.5 64.2 65.9 71.3 68.4 56.9 68.9% 74.3 73.4 71.3 63.0 56.7 55.0 64.8% 68.0 64.7 61.9 51.1 45.8 46.2 Mumbai New D elhi-N C R Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 5 68.4% 75.4 72.8 63.0 52.0 40.6 44.0 21 54.4% 55.9 58.6 54.9 60.9 58.1 48.0

C O M P O S IT I O N Numberof Responses Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Five-Star Five-Star Four-Star Tw o-Star Deluxe, Deluxe & Three- & O ne- Five-Star T hree-Star & & FiveStar Star Four-Star & Two-Star Star 10 38 42 10 13 68.1% 69.6 72.8 67.8 60.7 56.9 52.0 65.3% 70.6 73.1 72.3 65.2 54.4 50.9 67.4% 69.3 70.9 70.8 69.6 62.8 56.8 72.5% 75.4 74.2 75.3 69.7 59.9 59.7 67.2% 66.2 67.7 65.4 55.9 50.3 46.0

TABLE 3-8: Indian Hotel Indust ry Seven Major Cities: Sources of Reservation
Sources of Advance Reservations

Bangalore NCR Four-Star, Five-Star ThreeStar & Deluxe & Five-Star Two-Star 8 18 2.4% 49.1 27.6 4.2 8.5 2.9 2.6 2.8 100.0 1.6% 54.1 3.1 9.8 13.9 2.7 7.9 6.9 100.0

Chennai Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 9 20 6.1% 55.3 7.9 4.1 8.7 12.4 2.1 3.6 100.0 4.6% 54.6 2.2 5.7 14.1 5.0 3.6 10.3 100.0

Goa

Kolkata

Mumbai

New Delhi-

Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 5 22 0.8% 65.4 9.2 8.2 3.2 5.0 4.2 4.0 100.0 1.3% 60.6 3.2 7.6 7.2 2.6 3.6 14.0 100.0

C O M P O SIT IO N Numberof Responses Chain CRS (CentralReservation System) DirectEnqui y / HotelRepresentative r GlobalDistribution System (GDS) H otel/ ChainWebsite Travel A gent& Tour Operator OtherOnlineReservation Systems O therWebsites Other Total

Five-Star Deluxe & Five-Star 9 9.2% 24.9 2.5 5.4 48.3 1.1 3.1 5.5 100.0

Five-Star Deluxe, Four-Star Five- Star ThreeStar & & Three- & Four Star Two-Star Star 15 6 17 2.1% 36.7 0.8 9.2 38.3 1.8 6.5 4.6 100.0 15.8% 54.6 4.8 4.4 6.8 9.0 3.9 0.7 100.0 0.41% 64.2 0.3 5.3 14.3 5.7 4.2 5.7 100.0

Five-Star Deluxe & Five-Star 10 12.3% 55.0 7.0 6.3 4.6 6.9 2.4 5.4 100.0

Five-Star Deluxe, Four-Star Two-Star Five-Star Three& Four- Star & & Three- & O neStar Two-Star Star Star 43 44 10 13 1.8% 51.7 2.0 7.2 15.9 2.7 6.0 12.6 100.0 0.68% 61.2 1.3 5.1 15.0 0.5 6.4 9.9 100.0 1.7% 41.4 8.2 7.5 20.6 5.9 4.8 10.0 100.0 1.9% 50.2 1.0 3.2 18.0 8.4 2.4 15.0 100.0

TABLE 3-9: Indian Hotel Indust ry Seven Major Cities: Mar keting Media
Marketing Media - Percentage of Hotels Using Each Media
Bangalore Four-Star, Five-Star ThreeDeluxe & Star & Five-Star Two-Star 9 16 0.0% 100.0 100.0 88.9 44.4 77.8 77.8 0.0 100.0 100.0 77.8 44.4 33.3 0.0 0.0% 68.8 87.5 43.8 12.5 56.3 62.5 6.3 68.8 62.5 12.5 68.8 12.5 0.0 Chennai Five-Star Deluxe , Five-Star ThreeStar & & FourStar Two-Star 9 18 11.1% 77.8 100.0 77.8 0.0 66.7 55.6 11.1 88.9 88.9 22.2 77.8 0.0 0.0 5.6% 83.3 77.8 22.2 27.8 61.1 55.6 11.1 77.8 55.6 11.1 66.7 11.1 11.1 Goa Kolkata Five-Star Deluxe, Five- Star Three& Four Star & Star Two-Star 7 18 28.6% 71.4 100.0 85.7 42.9 85.7 71.4 14.3 100.0 100.0 42.9 85.7 28.6 14.3 5.6% 66.7 61.1 22.2 5.6 50.0 27.8 11.1 77.8 38.9 11.1 33.3 22.2 5.6 Mumbai New Delhi-NCR Five-Star Deluxe , Five-Star Three& FourStar & Star Two-Star 5 7 20.0% 80.0 100.0 60.0 0.0 70.0 50.0 20.0 50.0 70.0 20.0 60.0 20.0 20.0 8.3% 83.3 91.7 41.7 16.7 91.7 41.7 16.7 83.3 66.7 8.3 50.0 25.0 8.3 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 6 24 0.0% 100.0 100.0 83.3 0.0 66.7 66.7 0.0 83.3 100.0 16.7 66.7 0.0 0.0 4.2% 83.3 75.0 33.3 16.7 70.8 62.5 0.0 87.5 66.7 16.7 45.8 12.5 0.0

COM POSITIO N Number of Responses Consumer General Media (CGM) Direct Mail Hotel Web Site Loyalty card program Merchandising Other Internet site Outdoor Adver tising Pay Per Click Print Adver tising Promotions Radio Adver tising Telemarketing TV Adver tising Viral Marketing

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 8 15 0.0% 62.5 100.0 87.5 25.0 87.5 100.0 12.5 100.0 87.5 37.5 37.5 37.5 0.0 13.3% 93.3 100.0 6.7 40.0 80.0 66.7 6.7 93.3 86.7 20.0 53.3 13.3 0.0

Five-Star Four-Star Two-Star Deluxe & & Three& OneFive-Star Star Star 11 42 42 9.1% 81.8 90.9 100.0 36.4 72.7 81.8 9.1 81.8 81.8 45.5 81.8 18.2 9.1 4.8% 78.6 81.0 26.2 11.9 59.5 42.9 7.1 83.3 52.4 4.8 54.8 11.9 2.4 2.4% 73.8 76.2 11.9 0.0 57.1 38.1 0.0 73.8 42.9 4.8 40.5 4.8 2.4

TABLE 3-10: Indian Hotel Indust ry Seven Major Cities: Payment Methods
Payment Methods Used
Bangalore Four-Star, ThreeFive-Star Star & Deluxe & Five-Star Two-Star 6 16 5.7% 73.5 18.3 2.6 100.0 37.6% 43.0 16.3 3.1 100.0 Chennai Five-Star Deluxe , Five-Star Three& FourStar & Star Two-Star 7 20 24.5% 43.1 30.6 1.9 100.0 38.0% 44.6 14.5 3.0 100.0 Goa Kolkata Five-Star Deluxe, Five- Star Three& Four Star & Star Two-Star 6 15 14.4% 45.2 36.7 3.7 100.0 46.3% 42.5 9.5 1.8 100.0 Mumbai New Delhi-NCR Five-Star Deluxe , Five-Star & Three-Star Four-Star & Two-Star 8 12 10.5% 55.8 28.8 5.0 100.0 34.9% 26.3 35.3 3.5 100.0 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 4 19 13.6% 59.8 26.3 0.3 100.0 38.1% 42.1 16.1 3.7 100.0

COMPOSITION Number of Responses Cash Sales Credit Card Sales Credit Sales (Other Than Cards) Electronic Fund Transfer Total

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 7 12 15.9% 26.7 46.3 11.1 100.0 29.0% 30.8 34.8 5.5 100.0

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 8 40 17.8% 34.9 38.4 8.8 100.0 32.9% 33.6 28.9 4.6 100.0

Two-Star & OneStar 40 56.1% 28.2 13.6 2.2 100.0

Credit Cards Used

Bangalore Four-Star, Five-Star ThreeDeluxe & Star & Five-Star Two-Star 6 11 38.9% 3.4 22.4 33.8 1.6 100.0 20.6% 1.1 38.1 36.2 4.0 100.0 Chennai Five-Star Deluxe , Five-Star Three& FourStar & Star Two-Star 7 19 19.5% 4.8 30.4 39.6 5.7 100.0 12.5% 4.3 40.0 38.1 5.1 100.0 Goa Kolkata Five-Star Deluxe, Five- Star Three& Four Star & Star Two-Star 6 11 28.0% 4.5 30.9 36.4 0.2 100.0 7.3% 2.7 37.2 51.6 1.2 100.0 Mumbai New Delhi-NCR Five-Star Deluxe , Five-Star & Three-Star Four-Star & Two-Star 8 8 21.4% 1.2 29.2 40.8 7.5 100.0 13.6% 0.8 31.2 53.3 1.3 100.0 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 4 14 22.6% 3.7 32.8 40.8 100.0 14.4% 3.4 38.7 41.2 2.2 100.0

COMPOSITION Number of Responses American Express Diners club Mastercard/Eurocard Visa Other Total

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 6 12 19.8% 0.3 26.2 37.7 16.0 100.0 6.0% 4.8 43.1 42.5 3.7 100.0

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 8 39 33.0% 2.1 36.0 27.0 1.9 100.0 15.4% 2.8 33.7 42.4 5.7 100.0

Two-Star & OneStar 37 5.6% 3.0 37.7 45.9 7.8 100.0

Average Credit Card Commission

Bangalore Four-Star, Five-Star ThreeDeluxe & Star & Five-Star Two-Star 5 9 3.2 1.7 0.9 1.2 0.2 2.8 0.8 1.5 1.5 0.5 Chennai Five-Star Deluxe , Five-Star & FourStar 5 3.5 1.6 1.2 1.2 0.3 Goa Kolkata Five-Star Deluxe, Five- Star & Four Star 5 3.2 2.2 1.1 1.1 0.4 Mumbai New Delhi-NCR Five-Star Deluxe , Five-Star & Three-Star Four-Star & Two-Star 8 8 3.5 0.8 1.2 1.2 0.0 2.9 0.5 1.7 1.7 0.2 Pune Five-Star Deluxe, Five-Star Three& FourStar & Star Two-Star 4 11 3.5 1.8 1.6 1.6 0.0 2.5 0.6 1.7 1.7 0.5

COMPOSITION Number of Responses American Express Diners club Mastercard/Eurocard Visa Other
ID: Insufficient Data

ThreeStar & Two-Star 12 3.2 0.8 1.5 1.5 0.2

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 6 10 3.4 0.4 1.3 1.3 0.6 2.8 1.0 1.8 1.8 0.6

ThreeStar & Two-Star 7 2.0 0.5 1.6 1.6 0.5

Five-Star Four-Star Deluxe & & ThreeFive-Star Star 8 33 3.5 1.8 1.3 1.3 0.0 3.3 0.9 1.4 1.4 0.2

Two-Star & OneStar 34 2.7 0.6 1.7 1.8 0.3

TABLE 3-11: Indian Hotel Indust ry Seven Major Cities: Technology Management Practices
Te c h n o lo g y H o t e- ls r c e n t a g eH o t e ls s in E a c h c h n o lo g y in Pe of U g Te
C hennai G oa Ko lk a ta M um bai N e wD e l h i - N C R F iv e - S ta r F iv e - S ta r F iv e -S t a r D e lu x,e D e lu x e , D e lu x,e F iv e -S t a r F iv e - S ta Fo ur-S ta, F iv e - S ta r r r F iv e -S t a rFo ur-S ta r F iv e S t a r F iv e -S t a rFo ur-S ta r D e lu x& T h r e e - S t a r & Fo ur- T h r e e - S ta rD e l u x& & T h r e e - & Fo u r- T h r e e - S ta rD e l u x& & T h r e eTw o - S ta& e e e r & Fo ur- T h r e e - S t a r F iv e - S ta r Tw o - S t a r & S t a r& Tw o -S ta r F iv e - S ta r S ta r S t a r& Tw o -S ta r F iv e - S ta r S ta r O n e - S t a r S ta r & Tw o - S ta r 9 14 8 20 9 13 7 15 11 42 37 9 10 8 8 .9 % 7 7 .8 6 6 .7 8 8 .9 6 6 .7 1 0 0 .0 1 0 0 .0 6 6 .7 1 0 0 .0 6 6 .7 7 7 .8 8 8 .9 4 4 .4 2 2 .2 9 2 .9 % 6 4 .3 2 1 .4 5 7 .1 1 4 .3 9 2 .9 7 8 .6 5 0 .0 9 2 .9 4 2 .9 9 2 .9 7 1 .4 2 1 .4 1 4 .3 1 0 0 .0 % 7 5 .0 2 5 .0 7 5 .0 6 2 .5 1 0 0 .0 1 0 0 .0 8 7 .5 8 7 .5 7 5 .0 1 0 0 .0 1 0 0 .0 2 5 .0 2 5 .0 9 5 .0 % 6 5 .0 2 5 .0 6 5 .0 3 5 .0 9 5 .0 7 5 .0 6 5 .0 8 5 .0 5 5 .0 8 0 .0 6 5 .0 1 0 .0 1 5 .0 1 0 0 .0 % 1 0 0 .0 % 1 0 0 .0 5 3 .9 3 3 .3 2 3 .1 8 8 .9 2 3 .1 3 3 .3 7 .7 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 5 5 .6 2 3 .1 1 0 0 .0 1 0 0 .0 8 8 .9 8 4 .6 1 0 0 .0 8 4 .6 8 8 .9 7 6 .9 3 3 .3 3 8 .5 1 1 .1 7 .7 1 0 0 .0 % 5 7 .1 7 1 .4 1 0 0 .0 2 8 .6 1 0 0 .0 1 0 0 .0 8 5 .7 1 0 0 .0 1 0 0 .0 1 0 0 .0 8 5 .7 5 7 .1 1 4 .3 8 0 .0 % 7 3 .3 1 3 .3 3 3 .3 1 3 .3 9 3 .3 7 3 .3 2 6 .7 5 3 .3 3 3 .3 5 3 .3 3 3 .3 2 0 .0 0 .0 1 0 0 .0 % 9 0 .9 3 6 .4 9 0 .9 2 7 .3 1 0 0 .0 9 0 .9 6 3 .6 9 0 .9 9 0 .9 1 0 0 .0 8 1 .8 4 5 .5 2 7 .3 9 7 .6 % 6 9 .1 2 1 .4 4 0 .5 1 6 .7 1 0 0 .0 9 0 .5 2 6 .2 7 1 .4 5 9 .5 6 9 .1 3 3 .3 2 1 .4 7 .1 9 4 .6 % 5 1 .4 5 .4 2 4 .3 1 0 .8 8 3 .7 7 8 .4 1 6 .2 5 6 .8 1 3 .5 3 2 .4 1 3 .5 5 .4 2 .7 8 8 .9 % 8 8 .9 3 3 .3 4 4 .4 5 5 .6 1 0 0 .0 1 0 0 .0 5 5 .6 8 8 .9 7 7 .8 8 8 .9 1 0 0 .0 5 5 .6 1 1 .1 9 0 .0 % 8 0 .0 5 0 .0 3 0 .0 3 0 .0 1 0 0 .0 1 0 0 .0 7 0 .0 9 0 .0 7 0 .0 9 0 .0 7 0 .0 1 0 .0 1 0 .0 B a n g a lo r e Pune F i v e -S ta r D e lu x e , F i v e -S ta r & Fo ur- T h r e e - S t a r S ta r& Tw o -S ta r 6 19 1 0 0 .0 % 5 0 .0 3 3 .3 1 0 0 .0 3 3 .3 1 0 0 .0 1 0 0 .0 3 3 .3 8 3 .3 8 3 .3 1 0 0 .0 8 3 .3 5 0 .0 1 6 .7 8 9 .5 % 5 7 .9 5 .3 4 7 .4 3 6 .8 9 4 .7 8 4 .2 6 8 .4 7 9 .0 5 7 .9 6 8 .4 5 2 .6 1 5 .8 5 .3

C O M P O S IT IO N N u m b eorf R esp o n se s A c c o u n tiny s te m Sg C a ll c c o u n tin y ste m A Sg C e n tra l Reserv a tio S y s te m R S ) n (C E le c t ro nKe y c a rd ic E n e r gM a n a g e m e n ts te m y Sy I n ten e t/ E -M ail r I n ten e t/ Web site r In tr a n Sty ste m e L o c aA r e a e tw o (LA N ) l N rk M a n a g e m e n fom a tio S y ste m In tr n Po in to f S a le y s te m o rFo o da n dB e v e ra g e S f Pro p r ty M a n a g e m e n ts te m e Sy Y i e lM a n a g e m e n ts te m d Sy O th er

4. Indian Hotel Industry Twelve Other Cities

TABLE 4-1: Indian Hotel Indust ry Twelve Other Cities: Facilities and Guest Analysis
Typical Room Profile of an Average Hotel
Ahm'bad Chandigarh Coimbatore Three-Star Four Star & & Two Three Star Star 12 Single Double Suites Single Double Suites 4.1 32.9 3.4 0.0 1.2 0.0 41.6 5 0.0 8.6 3.4 0.0 0.0 0.0 92.0 Four Star & Three Star 4 3.0 63.8 15.8 0.0 0.0 0.0 82.5 Hyderabad Five Star Deluxe, 5 Star & 4 Star 5 90.8 87.2 14.2 0.0 0.0 0.0 192.2 Three Star & Two Star 20 3.4 55.4 6.9 1.0 10.1 0.0 76.7

Indore

C O M P O S IT IO N

Three Star & Two Star 10 1.3 36.7 2.3 0.2 0.6 0.0 41.1

Jaipur Five Star Deluxe, Four Star & Three-Star Heritage & Two Star 12 1.2 36.4 20.8 0.0 0.0 0.0 58.4 9 4.4 43.8 1.7 0.0 0.6 0.0 50.4

Kochi

Ootacamund

Shimla Thiruv'puram

Vadodara

Vizag

Three-Star & Two-Star 20 2.7 35.0 4.8 0.1 3.7 0.0 46.3

Three-Star & TwoStar 6 0.0 4.0 0.8 1.5 57.2 2.5 65.2

Three Star & Two Star 14 0.0 9.8 0.8 0.1 23.4 3.4 37.6

Three-Star Four-Star & Four- Star & & Two-Star Three-Star ThreeStar 13 0.0 51.2 5.2 0.1 3.0 0.1 59.5 8 4.6 44.8 3.8 0.0 1.3 0.0 54.4 6 0.0 84.8 8.3 0.0 0.0 0.0 93.2

Number of Responses A ir-Conditioned

Non-Air-Conditioned Total Average Rooms

Average Numberof Food & Beverage Outlets Per Hotel

Ahm'bad Chandigarh Coimbatore Three-Star Four Star & Four Star & & Two Three Three Star Star Star 9 1.3 0.0 0.4 1.8 5 1.8 1.4 0.6 3.8 4 2.0 1.5 2.0 5.5

Hyderabad Five Star Deluxe, 5 Star & 4 Star 4 2.8 2.0 1.0 5.8 Three Star & Two Star 15 1.5 0.5 1.3 3.3

Indore

C O M P O S IT IO N

Three Star & Two Star 8 2.1 0.8 1.1 4.0

Jaipur Five Star Deluxe, Four Star & Three-Star Heritage & Two Star 12 2.2 1.1 0.4 3.7 9 1.3 0.6 1.1 3.0

Kochi

Ootacamund

Shimla Thiruv'puram

Vadodara

Vizag

Three-Star & Two-Star 19 1.7 1.1 1.3 4.1

Three-Star & TwoStar 5 1.2 0.6 0.8 2.6

Three Star & Two Star 14 1.3 0.6 0.4 2.4

Three-Star Four-Star & Four- Star & & Two-Star Three-Star ThreeStar 12 2.5 0.8 0.6 3.9 7 1.7 0.0 1.0 2.7 6 2.8 1.3 0.5 4.7

Number of Responses Restaurant Bars Others Total

Guest Analysis
Ahm'bad Chandigarh Coimbatore Three-Star Four Star & & Two Three Star Star 8 81.5% 18.5 100.0 70.2 29.8 100.0 3.0 2.7 3.3 1.7 54.3 5 87.4% 12.6 100.0 78.8 21.3 100.0 1.2 1.5 1.3 1.2 51.0 Four Star & Three Star 4 71.8% 28.3 100.0 84.3 15.8 100.0 5.5 2.5 2.5 1.0 47.3 Hyderabad Five Star Deluxe, 5 Star & 4 Star 4 69.0% 31.0 100.0 85.6 14.4 100.0 2.3 1.4 1.5 2.3 53.3 Three Star & Two Star 15 88.5% 11.5 100.0 67.3 32.7 100.0 3.0 2.8 2.1 2.8 49.8

Indore

C O M P O S IT IO N

Three Star & Two Star 10 96.2% 3.8 100.0 80.6 19.5 100.0 2.0 2.4 3.7 1.9 71.7

Jaipur Five Star Deluxe, Four Star & Three-Star Heritage & Two Star 11 34.4% 65.6 100.0 25.8 74.2 100.0 2.0 2.3 2.3 2.0 23.6 9 75.0% 25.0 100.0 47.1 52.9 100.0 5.5 1.7 1.9 1.8 37.2

Kochi

Ootacamund

Shimla Thiruv'puram

Vadodara

Vizag

Three-Star & Two-Star 18 76.9% 23.1 100.0 52.8 47.2 100.0 3.0 3.1 2.7 2.2 34.3

Three-Star & TwoStar 4 57.0% 43.0 100.0 24.0 76.0 100.0 2.0 2.4 1.8 2.8 22.3

Three Star & Two Star 12 92.2% 7.8 100.0 12.8 87.3 100.0 2.1 1.9 1.7 2.1 16.6

Three-Star Four-Star & Four- Star & & Two-Star Three-Star ThreeStar 11 62.6% 37.4 100.0 34.8 65.3 100.0 3.3 2.0 1.6 5.0 33.8 8 70.9% 29.1 100.0 74.1 25.9 100.0 4.2 1.9 2.5 2.1 54.6 5 61.0% 39.0 100.0 68.3 31.7 100.0 4.7 2.7 6.0 3.3 72.5

Number of Responses Domestic Guests Foreign Guests Total Total business Total leisure Total Avg. Stay of Foreign Guests (Days) Avg. Stay of Domestic Guests (Days) Avg. Stay of Business Guests (Days) Avg. Stay of Leisure Guests (Days) Percentage of Repeat Guests

TABLE 4-2: Indian Hotel Indust ry Twelve Other Cities: Staffing

A v e r a gNe u m b e r To t a E m p lo y ePesr H o t e(Pe r m a n e n C o n t r a/cFu llT im / Part T im e ) of l e l /t t e
A h m 'b a dC h a n d ig a r h o im b a t o r e C H yderabad

In d ore

J a ip u r

Ko c h i O o ta c a m u n d S h im la T h ir u v 'p u r a mVa d o d a r a

V iz a g

C O M P O S IT IO N N u m b eorf R espon ses M an ag ers S u p rv iso rs e S ta ff To ta l M ale Fe m a le M ale Fe m a le M a le Fem ale

T h r e S ta r Fo u rS ta r& Fo u rS ta r& e e e & Tw o S ta r T h r e S ta r T h r e S ta r 11 4 4 5.2 0.9 5.9 1.1 71 .4 3 .7 88 .2 2.2 6.0 1.3 1 1.0 3.0 1 55 .3 1 3.5 19 0.0 2.3 1 3.5 1.8 2 6.3 1.0 13 4.0 20 .8 1 97 .3 2.3

F iv eS ta r F iv eS ta r D e lu x e , D e lu x e , 5 T hree S ta r& 4 S t a r& T h r e S ta r Fo u rS ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r ur-S ta r& Fo ur- S ta r& e Fo S ta r Tw o S ta r & Tw o S ta r & H e r ita g e & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r T h r e e -S ta rT h r e eS- ta r 5 15 10 12 9 16 6 14 12 8 6 43 .2 10 .2 30 .0 2 .4 1 66 .0 1 7.0 26 8.8 1 .5 7 .5 0 .8 2 2.5 4 .2 7 1.5 8.9 11 5.3 1 .5 10 .1 1 .5 12 .4 1 .8 85 .1 1.3 1 12 .2 2 .8 11 .3 0.8 17 .5 1.7 64 .5 3.1 9 8.8 1.6 6.2 0.2 6.9 0.7 46 .4 1 .6 62 .0 1.3 7.6 1.2 9.1 1.8 5 3.1 10 .4 83 .1 2.0 4 .5 0 .7 6 .5 1 .3 4 5.3 10 .7 69 .0 1 .3 2 .1 0 .4 2 .2 0 .2 25 .2 0.7 30 .9 0 .9 8.5 1.0 9.7 2.8 62 .6 1 5.7 10 0.3 2.0 6.6 0.5 11 .1 1.9 74 .5 2.1 9 6.8 1.7 1 4.8 0.7 1 5.8 4.0 1 72 .3 2 1.5 22 9.2 2.8

Av e ra g N u m b e rf E m p lo y e eesrRo o m e o p

A v e r a gPe r c e n ta goef Tr a in e E m p lo y ePesr H o te l e d e

A h m 'b a dC h a n d ig a r h o im b a t o r e C H yderabad

In d ore

J a ip u r

Ko c h i O o ta c a m u n d S h im l a T h ir u v ' p u r a mVa d o d a r a

V iz a g

C O M P O S IT IO N N u m b eorf R espon ses M an ag ers S u p rv iso rs e S ta ff To ta lAv g .Tr a in e d m p lo y e e s * E To ta lAv g .U n in e d m p lo y e e s -Tra E

T h r e S ta r Fo u rS ta r& Fo u rS ta r& e & Tw o S ta r T h r e S ta r T h r e S ta r e e 5 4 4 9 0 .5 % 72 .0 50 .2 71 .0 29 .0 1 0 0 .0 % 8 0.8 4 9.5 76 .8 23 .2 8 7 .5 % 7 2.6 6 9.7 76 .6 23 .4

F iv eS ta r F iv eS ta r D e lu x e , D e lu x e , 5 T hree S ta r& 4 S t a r& T h r e S ta r Fo u rS ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r T h r e e - S ta r ur-S ta r& Fo ur- S ta r& e Fo S ta r Tw o S ta r & Tw o S ta r & H e r ita g e & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r T h r e e -S ta rT h r e eS- ta r 5 10 7 10 7 16 3 6 11 5 5 1 0 0 .0 % 94 .4 79 .1 9 1.1 8.9 8 9 .6 % 6 8.3 6 6.2 74 .7 25 .3 6 7 .9 % 53 .1 35 .2 5 2.1 48 .0 9 7 .3 % 1 00 .0 86 .1 9 4.5 5.5 1 0 0 .0 % 91 .4 77 .2 89 .5 10 .5 8 2 .5 % 8 8.0 7 3.6 8 1.4 1 8.6 6 6 .7 % 6 9.4 7 3.2 69 .8 30 .2 9 1 .1 % 91 .7 74 .6 8 5.8 1 4.2 7 4 .1 % 65 .8 62 .9 6 7.6 3 2.4 8 2 .9 % 79 .1 71 .5 7 7.8 2 2.2 7 7 .9 % 7 8.5 5 3.5 7 0.0 3 0.0

* Tra in e E m p lo y e insc lu d eth o s ew itha m in im u o n ey e a rcertific a te o u rs e a n e d u c a tio nin ls titu te ,o w e v e r m eh o tels a yh a v ein c lu d eth o s ew ithshort term (in -h o u s e ) in g d e s m c in a h so m d train

TABLE 4-3: Indian Hotel Indust ry Twelve Other Cities: Financial Report Percentage of Revenue (2008/09)
A h m 'b a d C h a n d iga rh C oim b a tore H yd erab ad Ja ip u r Kochi O o ta ca m u n d Shim la T h ir u v 'p u r a m Vad od a ra V izag In d o re F iv e S tar F iv eS tar D eluxe, D eluxe,5 S tar & 4 T h reeS tar T h reeS ta r Fo u rS ta r& T h ree-S tar T h ree-S tar T h ree-S tar T h ree-S tar T h ree-S tar Fo ur-S tar& Fo ur- S ta r& S ta r & Tw o S ta r & Tw o S tar H eritage & Two- S ta r & Tw o-Star & Tw o-Star & Tw o-Star & Tw o-Star T hree-S ta r T h ree-S ta r 4 5 9 6 9 9 4 6 7 4 ID 168 33,699 55.4% Rs6,707 55.1% 22.8 19.4 0.5 0.5 1.8 100.0 13.2 46.9 84.5 991.2 20.2 32.5 67.5 7.0 5.6 2.9 0.1 3.0 6.5 25.0 42.5 0.7 0.2 3.1 0.6 4.6 37.9% 84 19,243 65.6% Rs2,115 71.2% 23.9 2.1 0.4 1.7 0.8 100.0 12.3 82.1 187.4 77.9 0.0 32.0 68.0 6.1 1.6 1.5 0.5 8.7 9.4 27.8 40.2 0.8 0.2 2.3 2.4 5.7 34.5% 41 9,833 70.3% Rs1,554 41.0% 43.6 11.3 0.1 0.1 3.8 100.0 32.0 68.0 852.0 587.6 0.0 52.3 47.7 3.3 1.3 1.1 0.1 3.9 10.6 20.2 27.5 0.9 0.4 0.4 0.2 1.9 25.6% 74 15,618 57.4% Rs7,792 59.9% 23.8 10.7 0.2 1.1 4.4 100.0 32.8 44.4 138.8 59.1 14.5 36.5 63.5 16.0 4.9 2.3 0.3 1.9 8.8 34.1 29.4 0.8 0.4 0.2 0.5 1.9 27.6% 50 11,829 64.6% Rs1,793 64.4% 27.8 5.9 0.4 0.8 0.7 100.0 18.5 68.6 342.0 142.8 28.3 37.7 62.3 7.4 0.9 2.4 1.4 5.5 9.4 26.9 35.4 0.4 0.3 0.4 2.9 4.1 31.3% 56 12,926 69.6% Rs1,798 40.9% 46.8 10.1 0.2 1.3 0.7 100.0 17.7 60.1 213.6 82.9 254.9 44.7 55.4 6.4 1.9 1.6 0.1 4.6 10.5 25.1 30.3 0.4 0.2 1.8 0.9 3.3 27.0% 72 13,420 58.1% Rs2,069 67.1% 26.2 1.7 0.2 3.1 1.7 100.0 34.6 73.6 84.7 44.6 0.0 45.3 54.7 8.2 4.3 1.9 0.4 9.0 13.1 36.8 17.9 1.6 0.4 0.0 0.0 2.0 15.9% 42 7,832 52.7% Rs1,459 57.7% 32.5 6.0 0.0 0.3 3.4 100.0 21.2 45.1 0.0 150.0 0.0 30.2 69.8 18.2 0.4 2.0 0.8 6.9 8.7 37.1 32.7 0.6 0.6 0.8 0.1 2.1 30.7% 67 14,922 58.7% Rs1,459 52.0% 37.5 5.4 0.4 0.6 4.1 100.0 20.6 59.9 60.5 23.2 2.2 36.8 63.2 10.3 1.1 3.4 2.2 9.0 11.9 37.9 25.2 1.0 1.6 2.9 0.0 5.4 19.8% 58 16,065 77.9% Rs2,779 54.9% 34.0 4.9 0.5 0.2 5.5 100.0 10.3 30.3 206.9 382.0 0.8 19.4 80.6 5.8 3.6 1.3 0.1 5.8 5.6 22.1 58.5 0.7 0.3 2.4 2.0 5.4 53.1%

C O M P O SIT IO N Num ber Responses of A v era g e ta lRo o m sPer H o te l: To A verage ccup ied m sPer H o tel: O Roo A verage ccup ancy H otel: O Per A verage te Per H o tel: Ra REVENUE Room s Fo o d & Beverage B anquet Conferences & Telep h o n e O th er & M in orOperated* Ren tal & O th erIncome Total D EPA R T M TA LE X P E N S E S EN Room s Fo o d & Beverage Telephone O th e r & M in o r Operated* Rental& O th er Income To tal D EPA R T M TA LI N C O M E EN O P E AT I N G X P E N S E S R E A d m in istrativ e G en era l & M anagem ent Fee M ark eting FranchiseFees Property O p eratio n & M ain ten an ce s E nergy Total H O U SE R O F IT P F IX E D X P E N SE S E Property Tax es Insurance O th erF ix edCharges Rent To ta l N E T C O M E ** IN

T hree-S ta r Fo u rS ta r& Fo u rS ta r& & Tw o S ta r T h reeS tar T h reeS tar 4 4 4 52 9,635 57.5% Rs2,514 68.9% 14.8 14.2 0.2 0.0 1.9 100.0 31.8 69.4 443.1 0.0 75.4 31.8 68.2 2.9 0.9 2.6 0.0 11.9 6.7 24.0 44.2 1.5 0.2 0.5 0.1 2.4 41.8% 108 26,654 83.2% Rs2,673 53.7% 16.6 24.5 0.3 0.0 4.9 100.0 8.5 40.2 163.9 0.0 5.8 38.9 61.2 6.5 0.0 1.2 0.0 3.2 5.7 16.4 44.7 0.1 0.0 3.8 0.2 4.1 40.6% 83 22,085 73.8% Rs3,429 49.2% 33.4 8.8 3.6 1.8 3.2 100.0 12.6 28.9 12.7 90.1 0.1 20.5 79.5 4.5 0.6 0.6 0.0 3.3 5.1 14.1 65.5 0.2 0.2 0.2 0.4 1.0 64.1%

* M inoroperateddepartm entsinclude: laund gift shop, businesscentre,new s stand, spor ts, healthclub,garage,parkingand so fo r th ry, ** Net Incom eis beforedepreciation, interestpaym entsand taxes

TABLE 4-4: Indian Hotel Indust ry Twelve Other Cities: Financial Report Amount Per Available Room (2008/09)
J a ip u r Ko chi O ota ca m u n d S h im la T h ir u v 'p u r a m Va d o d a r a V iz a g F iv eS ta r D elu xe, u r Fo F iv eS ta r T h re e-S ta r Fo u rS ta r& Fo u rS ta r& D elu x e, S ta r T h r eeS ta r& T h r ee ta r 5 S S ta r& T h ree-S ta r T h r ee-S ta r T h ree-S ta r T h ree -S ta r T h r ee-S ta rFo ur-S ta r& Fo ur- S ta r& & & & & Tw o S ta r T h re e ta r T h r e e ta r & 4 S ta r S S Tw o S ta r & Tw o S ta r H eritag e Tw o-S ta r & Tw o -S ta r Tw o-S ta r Tw o -S ta r & Tw o-S ta r T h r ee-S ta r T h re e- ta r S 4 4 4 4 5 9 6 9 9 4 6 7 4 ID 52 9,635 5 7 .5 % Rs2,514 108 26,654 8 3 .2 % Rs2,673 83 22,085 7 3 .8 % Rs3,429 168 33,699 5 5 .4 % Rs6,707 84 19,243 6 5 .6 % Rs2,115 Rs4,856 162,962 14,088 2,418 11,322 5,650 682,071 59,739 145,270 4,531 8,820 0 218,360 463,712 41,674 10,627 10,498 3,578 59,282 64,143 189,802 273,910 41 9,833 7 0 .3 % Rs1,554 74 15,618 5 7 .4 % Rs7,792 50 11,829 6 4 .6 % Rs1,793 56 12,926 6 9 .6 % Rs1,798 72 13,420 5 8 .1 % Rs2,069 Rs384,265 149,972 9,689 1,143 17,834 9,543 572,446 132,938 117,517 969 7,945 0 259,368 313,078 46,727 24,308 10,796 2,114 51,730 74,966 210,641 102,437 8,985 2,264 0 0 11,249 Rs91,189 42 7,832 5 2 .7 % Rs1,459 67 14,922 5 8 .7 % Rs1,459 58 16,065 77 .9 % Rs2,779 A h m 'b a d C h a n d ig a r hC o im b a to r e H yderab ad

In d or e

C O M P O S IT IO N N u m b er Responses of A v e r a g To ta lRo o m sPer H o tel: e A v era g O ccu p ie Ro o m sPer H o tel: e d A v er a g O ccu p a n cy H o te l: e Per A v era g Ra te Pe r H o te l: e REVENUE Room s Fo o d & B e v era g e B anq uet C o n fe re nc e s & Te le p h o n & O th e r e M in o O p erated* r Re n ta l& O th e rIn c o m e To tal D E R T M TANLE X P E N S E S PA E Room s Fo o d & B e v era g e Telephone O th e r & M in o O p erated * r Ren tal& O th e rIn c o m e To ta l D E R T M TANLI N C O M E PA E O P E AT I N G X P E N S E S R E A d m in is tra tiv eG e n e ra l & M anag em ent Fee M a rk e tin g Franchise Fees Pro perty O p e ratio n& M a in te n a n c e s E n e rg y To tal H O U SP R O F IT E F IX E D X PE N SE S E Pro perty Tax es Insurance O th e rF ix e d h a rg e s C Rent To ta l N E T C O M E ** IN

Rs468,048 Rs662,644 Rs917,888 Rs1,343,270 100,516 205,521 623,473 556,325 96,705 302,267 164,291 472,606 1,032 4,167 67,173 12,192 0 0 34,258 11,539 1 3 ,1 3 2 60,202 59,206 44,340 679,432 1,234,800 1,866,290 2,440,270 64,614 136,919 4,570 290 9,897 216,290 463,142 19,976 5,773 10,763 0 81,005 45,420 162,937 300,205 56,186 204,079 6,830 209,079 3,488 479,663 755,140 79,735 33 14,302 0 38,886 70,019 202,974 552,165 115,180 227,359 8,552 30,852 45 381,987 1,484,300 83,615 10,606 10,512 30 62,055 95,302 262,120 1,222,180 177,042 482,048 10,296 114,379 8,936 792,700 1,647,570 170,887 135,575 69,918 2,340 72,536 158,707 609,964 1,037,600 17,431 5,817 73,037 14,896 113,181 Rs924,424

369,726 Rs1,604,220 393,494 637,098 102,355 285,049 1,196 4,212 1,075 29,258 34,640 117,638 902,487 2,677,470 118,198 337,366 10,192 6,318 0 472,073 430,414 29,290 11,399 10,259 806 35,197 95,500 182,450 247,963 526,847 409,236 5,846 17,289 17,079 976,296 1,701,170 427,480 130,399 62,605 8,153 49,787 234,755 913,179 787,995 21,422 10,126 4,371 13,938 49,857 Rs738,138

Rs420,489 Rs415,099 181,755 475,545 38,801 102,827 2,321 2,363 5,515 12,643 4,280 6,593 653,160 1,014,980 77,879 151,293 7,938 7,878 1,212 246,199 406,961 48,061 5,573 15,467 8,865 36,190 61,677 175,832 231,129 73,294 347,561 5,048 10,484 16,808 453,194 561,786 64,551 19,359 16,603 1,389 46,556 106,159 254,617 307,169

Rs272,000 Rs326,257 Rs769,695 153,127 235,211 476,445 28,175 33,691 69,207 0 2,697 7,181 1,587 3,711 3,216 16,186 25,826 77,295 471,075 627,394 1,403,040 57,564 81,691 786 2,381 0 142,421 328,655 85,945 1,865 9,305 3,968 32,357 41,071 174,512 154,143 67,126 79,304 160,944 165,424 1,631 14,858 862 12,285 561 582 231,124 272,452 396,270 1,130,590 64,858 6,913 21,312 13,720 56,253 74,814 237,869 158,400 80,685 50,060 18,349 797 81,271 78,372 309,534 821,052

10,478 1,430 4,264 1,623 537 3,606 3,623 47,056 2,727 415 1,916 7,576 16,410 50,940 18,173 Rs284,065 Rs501,226 Rs1,204,010

5,759 8,079 1,575 3,675 15,523 3,656 16,186 1,559 39,043 16,969 Rs234,867 Rs230,994

2,758 3,770 2,035 2,304 2,577 18,341 19,231 8,663 26,601 33,077 Rs204,528 Rs274,091

2,778 6,110 9,927 2,679 9,954 3,922 3,857 18,020 33,536 445 0 28,254 9,758 34,084 75,640 Rs144,385 Rs124,316 Rs745,412

* M in or perateddepartm entsinclude: ry, gift shop,businesscentre,new sstand,spor ts, h ealthclu b ,garag e,p ark in g so fo r th o laund and ** N etIn com e befored ep reciatio n, terest is in paym ents taxes and

TABLE 4-5: Indian Hotel Indust ry Twelve Other Cities: Financial Report Amount Per Occupied Room (2008/09)
A h m 'b a d C h a n d ig a r h C o im b a to re T h r ee-S ta r Fo u rS ta r& Fo u rS ta r& & Tw o S ta r T h r e e ta r T h r e e ta r S S 4 4 4 52 9,635 57 .5 % Rs2,514 Rs2,514 540 519 6 0 71 3,649 347 735 25 2 53 1,162 2,488 107 31 58 0 435 244 875 1,612 56 9 19 2 87 Rs1,526 108 26,654 8 3.2 % Rs2,673 Rs2,673 829 1,219 17 0 243 4,980 227 823 28 843 14 1,935 3,046 322 0 58 0 157 282 819 2,227 6 2 190 8 205 Rs2,022 83 22,085 7 3.8 % Rs3,429 Rs3,429 2,329 614 251 128 221 6,972 430 849 32 115 0 1,427 5,545 312 40 39 0 232 356 979 4,566 16 13 10 28 68 Rs4,498 H y d era b a d J a ip u r Kochi O o tac a m u n d S h im la In d o r e F iv eS ta r F iv eS ta r D elu xe, 5 D elu xe, u r Fo S ta r& 4 T h r eeS ta r& T h r e e ta r S S ta r& T h re e-S ta r T h r ee-S ta rT h re e-S ta r T h ree -S ta r & S ta r Tw o S ta r & Tw o S ta r H erita g e & Tw o- S ta r & Tw o -S tar Tw o-S tar & Tw o-S tar 4 5 6 6 9 9 4 6 168 33,699 5 5.4 % Rs6,707 Rs6,707 2,778 2,360 61 58 221 12,184 884 2,407 51 571 45 3,958 8,226 853 677 349 12 362 792 3,045 5,181 87 29 375 74 565 Rs4,615 84 19,243 6 5.6 % Rs2,115 Rs2,115 710 61 11 49 25 2,970 260 633 20 38 0 951 2,019 181 46 46 16 258 279 827 1,193 25 7 68 70 170 Rs1,023 41 9,833 7 0.3 % Rs1,554 Rs1,554 1654 430 5 5 146 3793 470 1418 43 27 0 1984 1809 123 48 43 3 148 401 767 1042 34 15 15 7 71 Rs971 74 15,618 5 7.4 % Rs7,792 Rs7,792 3,094 1,385 20 142 571 13,005 2,559 1,988 28 84 83 4,742 8,263 2,076 633 304 40 242 1,140 4,435 3,827 104 49 21 68 242 Rs3,585 50 11,829 6 4.6 % Rs1,793 Rs1,793 775 165 10 24 18 2,785 332 645 34 34 5 1,050 1,735 205 24 66 38 154 263 750 986 12 9 11 82 113 Rs872 56 12,926 69 .6 % Rs1,798 Rs1,798 2,060 445 10 55 29 4,397 318 1,506 22 45 73 1,963 2,434 280 84 72 6 202 460 1,103 1,331 16 10 79 38 143 Rs1,187 72 13,420 5 8.1 % Rs2,069 Rs2,069 807 52 6 96 51 3,082 716 633 5 43 0 1,396 1,686 252 131 58 11 279 404 1,134 552 48 12 0 0 61 Rs491 42 7,832 52 .7 % Rs1,459 Rs1,459 821 151 0 9 87 2,526 309 438 4 13 0 764 1,762 461 10 50 21 174 220 936 827 15 14 21 2 52 Rs774 T h ir u v 'p u r a m Va d o d a ra V iz a g

C O M P O S IT IO N N u m ber f Responses o A v e r a g To ta lRo o m sPe r H o tel: e A v era g O ccu p ied m sPer H o te l: e Roo A v erag O ccu p a n cy H otel: e Per A v era g e te Pe r H o te l: Ra REVENUE Room s Fo o d & B e v e ra g e B an qu et C on fe re n c e s & Tele p h o n e O th er & M in o O perated* r Ren ta l& O th e r c o m e In Total D E R T M TANLE X P E N S E S PA E Room s Fo o d & B e v e ra g e Telephone O th e r & M in o O p era te d * r Rental& O th e rIn c o m e To tal D E R T M TANLI N C O M E PA E O P E AT I N G X P E N S E S R E A d m in istrativ eG e n e ral & M anagem en t Fee M ark etin g Franchise Fees Property O p e ra tio n& M ain te n a n ce s E n erg y Total H O U SP R O F IT E F IX E E X P E N S E S D Property Ta x es Insurance O th erF ix e d Charges Rent To tal N E TN C O M E** I

T h r ee-S ta r Fo ur-S ta r& Fo ur- S ta r& & Tw o-S tar T h re e-S ta r T h r ee- ta r S 7 4 ID 67 14,922 58 .7 % Rs1,459 Rs1,459 1,052 151 12 17 115 2,805 300 720 7 4 3 1,033 1,772 290 31 95 61 251 334 1,063 708 27 45 81 0 152 Rs556 58 16,065 7 7.9% R s2,779 Rs2,779 1,721 250 26 12 279 5,067 286 597 54 44 2 984 4,083 291 181 66 3 293 283 1,118 2,965 36 14 121 102 273 Rs2,692 0 0 0 .0 % R s0

* M in o op erated r departm entsinclude: laund gift shop, businesscentre,new s stand,spor ts, healthclub,garage,parking so fo r th ry, and ** N etIncom e beforede preciation, is intere st paym ents taxes and

TABLE 4-6: Indian Hotel Indust ry Twelve Other Cities: Market Data
M a r k eSegm entation t
H yd erab ad In d o r e J a ip u r Ko ch i O o tac a m u n d S h im la T h ir u v 'p u r a m Va d o d a ra V iz a g F iv eS ta r T h ree F iv eS ta r Fo ur-S ta r 5 S t a r& D elu x e, u r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta rFo ur-S ta r& Fo & T h reeT h r e e -S ta r Fo u rS ta r& Fo u rS ta r& D elu x e, S ta r T h r e e ta r S & S S & 4 S ta r & Tw o S ta r Tw o S ta r S t a r& H e r ita g e & Tw o -S ta r & Tw o -S ta r Tw o -S ta r & Tw o -S ta r & Tw o -S ta r T h r e e -S ta r S ta r & Tw o S ta r T h r e e ta r T h r e e ta r 5 2 2 4 10 10 9 7 13 4 10 11 8 5 A h m 'b a d C h a n d ig a r hC o im b a to r e 4 .0 % 43.6 5.4 1.6 16.4 3.4 2.0 10.0 5.6 1.6 6.4 100.0 0.0% 65.0 12.0 0.0 12.5 4.0 0.5 0.3 4.0 0.3 1.5 100.0 1 .0 % 40.0 32.5 0.5 6.0 2.0 1.5 10.5 5.0 1.0 0.0 100.0 6.5% 43.0 21.5 1.3 3.5 1.0 6.0 12.8 1.8 1.5 1.3 100.0 0.6% 50.4 6.0 1.1 8.2 4.1 7.7 6.8 6.6 3.6 5.0 100.0 0 .5 % 65.0 2.9 4.0 8.0 1.1 2.9 8.3 5.5 0.1 1.7 100.0 0 .9 % 10.3 9.1 1.6 18.6 18.9 1.9 3.9 4.4 29.7 0.8 100.0 1 .6 % 28.7 3.9 1.3 13.4 8.4 14.9 9.1 6.7 10.9 1.1 100.0 0.5% 32.9 11.2 1.7 15.2 11.8 4.8 5.9 10.1 4.6 1.4 100.0 0 .0 % 8.5 2.0 5.8 32.5 16.3 8.0 7.0 10.0 7.3 2.8 100.0 0 .2 % 2.7 2.0 1.9 58.4 5.2 3.8 6.2 18.1 0.8 0.7 100.0 3 .7 % 16.7 6.3 1.3 15.9 20.0 4.5 3.8 14.5 9.4 3.9 100.0 1.3% 44.0 9.6 0.9 10.0 5.8 6.9 16.5 1.4 1.5 2.3 100.0 0.0% 25.6 20.2 3.8 17.4 3.2 3.2 14.6 6.0 0.0 6.0 100.0

C O M P O S IT IO N N u m b er f Responses o

A ir linC rew e B u sin e ssTrav eller D o m estic B usiness v e lle-r Fo reign Tra C o m p lim e n taRoom s ry D o m estic Tourists/ L eisu re I T F Fo re ig n To urists L e is u re IT / F M e e tin Par ticipan ts essthan100 A ttend ees) g (L M ee tin g tic ip a n ts v e 100 A tten dees) Par (O r Tou rG ro up s D om estic To u r G ro u p-sFo reign O th e r To ta l

C o u n t o f O rig in G uests ry of
H yd erabad In d o r e J a ip u r Koch i O o ta ca m u n d S h im la T h ir u v 'p u r a m Va d o d a r a V iz a g F iv eS ta r T h ree F iv eS ta r Fo ur-S ta r S t a r& D elu x e, u r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta r T h r e e -S ta rFo ur-S ta r& Fo T h r e e -S ta r Fo u rS ta r& Fo u rS ta r& D elu x e, S ta r T h r e e ta r 5 S & & T h reeS ta r & Tw o S ta r T h r e e ta r T h r e e ta r S S & 4 S ta r & Tw o S ta r Tw o S ta r S t a r& H e r ita g e & Tw o -S ta r & Tw o -S ta r Tw o -S ta r & Tw o -S ta r & Tw o -S ta r T h r e e -S ta r 2 2 3 5 4 4 7 6 10 3 3 5 4 4 A h m 'b a d C h a n d ig a r hC o im b a to r e 2 .3 % 4.3 1.6 0.4 2.5 13.7 6.6 2.4 0.8 5.7 0.5 2.2 1.8 14.8 11.1 29.5 100.0 5 .0 % 6.7 5.0 0.3 2.8 5.7 3.5 14.2 0.3 5.0 3.2 8.5 2.0 11.2 12.0 14.7 100.0 3 .6 % 6.2 6.2 0.9 2.4 8.2 6.2 3.7 8.7 11.2 1.1 9.9 7.0 12.1 8.4 4.5 100.0 6 .0 % 5.7 0.4 0.0 0.0 10.6 1.5 0.3 1.8 4.1 1.1 6.6 6.2 13.6 7.7 34.2 100.0 0 .0 % 5.0 6.7 0.3 0.3 2.7 4.7 3.3 6.0 9.7 2.7 13.7 7.7 29.7 7.7 0.0 100.0 5 .6 % 2.8 6.6 0.2 0.6 7.0 11.4 1.8 2.6 13.2 3.2 2.4 2.6 23.8 13.0 3.2 100.0 1 3.5% 1.5 4.0 0.0 4.3 5.5 7.5 3.3 0.8 9.5 0.0 3.3 0.0 27.3 17.5 2.3 100.0 2.3% 2.4 1.4 0.3 5.7 1.1 1.2 0.3 0.3 10.3 24.0 1.3 1.0 4.3 13.0 31.4 100.0

C O M P O S IT IO N N u m b er f Responses o

A SEA N* 5 .0 % 2 .5 % 3 .7 % 2 .4 % 5 .8 % 6 .0 % A us tra lia 2.0 3.5 2.0 2.1 3.0 4.3 C an ad a 4.0 1.5 2.0 1.6 6.8 3.8 C arib b ean 0.0 1.0 0.0 0.6 0.8 0.0 C hin a 3.0 2.5 6.7 3.4 13.8 11.3 Fran ce 1.5 6.0 1.7 2.0 5.3 3.0 G erm an y 5.0 5.0 8.7 6.6 7.5 3.0 Japan 2.0 4.5 11.3 3.2 2.5 5.5 M id d le east 2.0 1.5 4.3 2.5 2.5 0.0 O the r u rop e a n E 16.0 29.0 15.3 1.4 5.8 6.5 Russia 0.5 1.5 0.3 1.2 3.0 3.0 S A A ** RC 11.5 6.5 7.7 1.0 5.0 2.3 S o u thA fric a 2.5 2.0 4.7 1.4 1.3 0.0 UK 16.0 16.5 5.7 8.4 15.0 18.8 USA 25.0 13.5 9.0 24.8 18.0 11.0 O th e r 4.0 3.0 17.0 37.4 4.5 21.8 To ta l 100.0 100.0 100.0 100.0 100.0 100.0 * A S E A N :sso ciatioo f S ou th astA sianN atio n s A n E ** S A A : S o u thA sianA sso ciatiofo r Reg io n al o -o p era tio nIn d ia Pakistan, B a n g lad e s h ,riL a nk aN e p a l, h u ta n, a ld iv es RC n C , S , B M

TABLE 4-7: Indian Hotel Indust ry Twelve Other Cities: Monthly & Daily Occupancy
A v e r a gM o n t hO c c u p a n c y e ly
J a ip u r Ko c h i O o t a c a m u n d S h im laT h ir u v 'p u r a m d o d a r a Va V iz a g F iv eS ta r F iv eS ta r D e lu x e , u r Fo Fo ur-S ta r T h r e e -S ta r u rS ta r& Fo u rS ta r& D e lu x e , S ta r T h r eS ta r T h r e e -S ta r Fo 5 e S t a r& T h r eS ta r T h r e e -S ta r T h r e e - S ta r T h r e e -S ta r T h r e e - S ta r ur- S t a r e Fo & & T h reeC O M P O S I T I O N & Tw o S ta r T h r e S ta r T h r e S ta r e e H e r ita g e & Tw o S ta r & Tw o -S ta r & Tw o - S ta r & Tw o -S ta r & Tw o - S t a r T h r e e -S ta r S ta r & 4 S ta r & Tw o S ta r & Tw o -S ta r N u m b eorf R espo n ses 9 5 4 4 16 8 11 9 16 4 11 9 8 6 In d ore Ja n u ray Fe bru ary M arch A p ril M ay Ju ne Ju ly A ug ust S ep te m b er O cto b er N ov em b er D ece m b er 6 8 .3 % 6 6 .6 5 6 .8 5 5 .2 5 5 .9 5 6 .8 6 3 .8 6 7 .9 6 8 .1 6 7 .2 7 6 .5 7 2 .1 6 5 .8 % 7 1.5 7 3.8 8 1.4 8 0.1 7 0.1 7 0.1 6 4.9 7 7.5 7 9.2 8 6.9 8 1.2 6 4 .5 % 7 8.8 7 1.3 7 7.8 8 1.3 7 7.0 7 5.3 7 3.3 7 5.8 6 6.8 7 1.3 5 8.0 5 3 .8 % 5 2.6 5 4.0 5 7.7 5 4.1 5 4.1 5 2.4 5 8.4 5 6.1 5 1.3 5 3.9 4 0.8 5 6 .1 % 5 8.3 5 0.2 5 8.9 5 8.0 5 2.4 5 6.0 5 5.3 5 4.1 5 5.7 6 1.6 5 6.9 7 2 .4 % 7 4.8 6 3.8 6 3.9 6 9.1 6 8.0 6 0.9 5 8.3 6 0.4 6 3.6 7 5.4 7 2.4 7 2 .4 % 7 7.8 6 5.3 5 4.6 3 3.7 2 6.1 3 8.2 4 7.1 4 6.9 6 4.4 7 5.1 6 3.1 7 3 .2 % 7 3.8 6 4.0 6 4.0 5 0.0 4 6.2 5 9.8 6 3.3 6 1.2 6 4.6 7 7.0 7 5.0 7 3 .9 % 6 4 .6 5 8 .5 5 6 .8 5 7 .1 5 1 .9 5 3 .1 6 1 .7 5 9 .0 6 1 .7 7 1 .4 7 3 .7 5 4 .8 % 4 7.3 4 5.0 6 3.0 9 0.5 6 6.3 4 7.5 5 0.5 5 7.8 4 8.8 4 7.5 5 5.5 3 9 .0 % 3 2.8 3 6.3 4 9.1 7 8.8 8 2.5 4 4.7 3 5.2 3 0.9 4 5.0 3 8.2 5 3.0 7 4 .1 % 6 6.9 5 0.0 5 0.6 4 6.3 3 6.8 3 9.1 5 0.9 4 7.1 5 6.8 7 1.4 7 8.7 6 5 .9 % 6 7 .4 6 1 .1 7 0 .2 7 0 .3 6 7 .6 6 5 .4 6 3 .0 6 2 .0 6 1 .1 7 2 .3 7 1 .5 7 0 .0 % 7 6 .3 7 1 .8 8 1 .3 8 1 .7 7 5 .0 7 0 .5 7 5 .8 7 3 .0 7 5 .8 7 6 .3 7 8 .8 A h m 'b a d h a n d ig a r C o im b a to r e C h H yderabad

A v e r a g e a ily c c u p a n c y D O
J a ip u r Ko c h i O o t a c a m u n d S h im laT h ir u v 'p u r a m d o d a r a Va V iz a g F iv eS ta r D e lu x e, u r Fo F iv eS ta r Fo ur-S ta r T h r e e -S ta r u rS ta r& Fo u rS ta r& D e lu x e , S ta r T h r eS ta r T h r e e -S ta r Fo 5 e S t a r& T h r eS ta r T h r e e -S ta r T h r e e - S ta r T h r e e -S ta r T h r e e - S ta r ur- S t a r e Fo & & T h reeC O M P O S I T I O N & Tw o S ta r T h r e S ta r T h r e S ta r e e H e r ita g e & Tw o S ta r & Tw o -S ta r & Tw o - S ta r & Tw o -S ta r & Tw o - S t a r T h r e e -S ta r S ta r & 4 S ta r & Tw o S ta r & Tw o -S ta r N u m b eorf R espo n ses 8 5 4 3 16 10 2 6 15 4 10 9 7 6 A h m 'b a d h a n d ig a r C o im b a to r e C h In d ore M o nd ay Tu e s d a y Wed n esd ay T h u rsda y Fr id a y S a tu rd ay Sun day 5 2 .1 % 5 6 .3 6 0 .9 6 0 .6 5 8 .1 4 9 .3 4 6 .3 7 8 .6 % 8 0.9 8 4.3 8 3.0 7 5.8 6 2.6 5 7.0 6 3 .8 % 7 6.5 7 9.0 7 6.0 7 1.5 5 3.3 5 0.8 7 1 .7 % 7 6.0 7 9.3 6 9.0 6 5.0 5 6.3 5 3.3 5 0 .6 % 5 2.4 5 3.1 5 6.8 5 3.1 4 9.2 4 2.6 6 3 .9 % 7 1.5 7 3.5 7 2.0 6 0.0 4 7.9 4 1.8 6 2 .8 % 5 2.9 5 6.2 5 2.4 7 3.8 8 2.2 6 1.6 5 4 .3 % 5 2.1 5 5.2 5 7.8 6 5.2 6 2.8 4 7.5 5 6 .6 % 6 2 .6 6 2 .9 6 1 .2 5 2 .0 5 2 .9 4 8 .9 5 0 .0 % 4 8.3 4 2.3 4 7.5 6 5.5 7 7.3 6 4.3 3 4 .0 % 2 9.9 3 0.3 3 4.7 5 3.0 6 8.1 5 3.5 5 6 .9 % 5 6.2 5 8.3 5 4.8 5 3.3 5 6.3 5 2.8 6 0 .6 % 6 5 .6 6 6 .9 6 8 .3 5 4 .1 4 6 .6 4 6 .1 7 1 .7 % 7 4 .3 7 4 .5 7 4 .2 7 4 .8 6 8 .2 6 0 .7 H yderabad

TABLE 4-8: Indian Hotel Indust ry Twelve Other Cities: Sources of Reservation
S o u rc e o f A d v a n cReserv a tio n s s e
A h m 'b a dC h a n d ig a r h C o im b a to r e J a ip u r Ko c h i O o ta c a m u n d S h im laT h ir u v 'p u r a m Va d o d a ra V iza g F iv eS ta r F iv eS ta r D e lu x e , D e lu x e5 , Fo u rS ta r S ta r& 4 T h r e e ta r T h r e e -S ta r S & T h r e e ta r T h r e e -S ta r T h r e e -S ta r T h re e -S ta r T h r e e -S ta rFo ur-S ta r& Fo ur-S ta r& S S ta r Tw o S ta r & Tw o -S ta r H e r it a g e & Tw o S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r & Tw o -S ta r T h r e e -S ta r T h re e -S ta r & 4 14 10 11 9 17 3 12 11 8 7 Ind ore 0 .8 % 67.0 6.0 1.9 3.3 5.0 2.3 13.8 100.0 3 .6 % 56.8 2.5 4.8 17.6 4.8 2.3 7.6 100.0 0 .0 % 69.1 0.0 8.0 11.2 1.0 3.0 7.7 100.0 9 .4 % 17.9 1.4 4.9 53.9 6.4 2.4 3.7 100.0 2 .8% 45.1 0.4 12.4 25.2 2.7 2.6 8.8 100.0 0.2% 44.0 0.1 5.9 29.5 1.8 4.4 14.1 100.0 3 .3 % 13.3 0.0 13.3 38.3 6.7 7.3 17.7 100.0 0 .1 % 35.3 0.4 11.4 43.1 1.7 5.1 3.0 100.0 3 .6 % 27.0 1.0 11.1 46.5 2.5 3.0 5.4 100.0 2 .8 % 68.1 2.3 5.8 9.1 3.9 4.1 4.0 100.0 1 .3 % 76.0 0.7 4.5 8.5 1.5 2.8 4.7 100.0 H yderabad

C O M P O SIT IO N N u m b er f Responses o C h a in R S (C e n tra l atio nS y stem ) C Reserv D ire cE n q u i / H o te Rep re s e n ta tiv e t ry l G lo b aD istrib u tio n s te m(G D S ) l Sy H o te / C h a in s ite l Web Tra v e A g e n& To u rO p e ra to r l t O th e r n lin Reservatio nS ystem s O e O th e Websites r O th e r To ta l

T h r e e -S ta r Fo u rS ta r& Fo u rS ta r& & Tw o S ta r T h re e ta r T h r e e ta r S S 7 5 4 0 .7 % 60.7 0.7 5.1 15.0 0.0 2.9 14.9 100.0 2 .2 % 63.4 3.0 2.8 15.2 0.6 4.4 8.4 100.0 0 .5 % 74.8 0.0 6.3 12.3 1.0 3.3 2.0 100.0

TABLE 4-9: Indian Hotel Indust ry Twelve Other Cities: Mar keting Media
Marketing Media - Percentage of Hotels Using Each Media
A h m 'ba d Chandigarh Coimbatore H yderabad Five Star Deluxe,5 S ta r & 4 Star 4 0.0% 100.0 75.0 75.0 25.0 50.0 25.0 0.0 75.0 100.0 50.0 75.0 50.0 0.0 Jaipu r Five Star Deluxe, Fo ur Star T hree-Star & Three & Two-Star H eritage Star & Two Star 10 12 6 Indore 0.0% 100.0 90.0 20.0 10.0 40.0 50.0 0.0 90.0 80.0 60.0 40.0 10.0 0.0 33.3% 100.0 100.0 41.7 41.7 66.7 66.7 33.3 100.0 91.7 8.3 50.0 8.3 25.0 22.2% 100.0 88.9 22.2 11.1 88.9 66.7 22.2 88.9 66.7 44.4 77.8 0.0 22.2 Kochi Ootacamund Shimla T h iru v 'p u ram Vado dara Vizag

C O M P O S I T IO N

Three-Star Four Star & Three & Two Star Star 8 12.5% 100.0 75.0 25.0 0.0 62.5 50.0 12.5 87.5 75.0 37.5 87.5 25.0 25.0 5 40.0% 100.0 100.0 80.0 20.0 60.0 60.0 20.0 100.0 60.0 80.0 80.0 40.0 40.0

Four Star & Three Star 4 0.0% 75.0 75.0 0.0 0.0 75.0 0.0 0.0 50.0 50.0 0.0 50.0 0.0 0.0

Three Star & Two Star 13 15.4% 100.0 84.6 61.5 53.9 69.2 61.5 30.8 100.0 53.9 37.5 76.9 30.8 30.8

T hree-Star T hree-Star T hree-Star T hree-Star Four-Star& Four-Star& & Tw o-Star & Tw o-Star & Two-Star & Two-Star T hree-Star T hree-Star 18 5.6% 72.2 88.9 33.3 44.4 61.1 88.9 5.6 94.4 72.2 16.7 83.3 22.2 16.7 4 0.0% 75.0 100.0 50.0 0.0 50.0 75.0 0.0 100.0 100.0 0.0 50.0 50.0 0.0 10 0.0% 90.0 90.0 10.0 10.0 50.0 70.0 0.0 90.0 70.0 0.0 50.0 20.0 0.0 11 0.0% 100.0 81.8 27.3 9.1 54.6 63.6 0.0 72.7 81.8 18.2 36.4 27.3 9.1 8 0.0% 87.5 87.5 50.0 12.5 62.5 75.0 0.0 87.5 75.0 12.5 75.0 62.5 0.0 6 16.7% 83.3 83.3 83.3 33.3 66.7 50.0 0.0 83.3 66.7 0.0 50.0 33.3 0.0

Numberof Responses C onsumerGeneratedM edia(CG M ) D irectM ail H otelWeb Site Loyaltycard program Merchandising OtherInternet site O utdoorA dvertising Pay Per C lick Print A dvertising Promotions Radio A dvertising Telem arketing T V A dvertising V ira lMarketing

TABLE 4-10: Indian Hotel Indust ry Twelve Other Cities: Payment Methods
Pay m e nM eth o dU sed t s
J a ip u r Koch i O o ta ca m u n d S h im la T h ir u v 'p u r a m Va d o d a r a V iz a g F iv eS ta r D elu x e, F iv eS ta r T h r e e -S ta r Fo u rS ta r& Fo u rS ta r& D e lu x e5 T h r e e ta r& T h re e -S ta r Fo u rS ta r T h r e e ta r T h r e e -S ta r T h re e -S ta r T h r e e -S ta r T h r e e -S ta r Fo ur-S ta r& Fo ur-S ta r& , S & S S S Tw o S ta r Tw o -S tar & H e r ita g e & Tw o S ta r & Tw o-S ta r & Tw o -S tar & Tw o-S ta r & Tw o -S tar T h re e -S ta r T h re e -S ta r & Tw o S ta r T h r e e ta r T h r e e ta r S t a r& 4 S ta r 9 5 4 4 14 10 12 9 12 4 9 9 8 5 A h m 'b a d C h a n d ig a r hC o im b a to r e In d o r e 3 7.2% 4 3.2% 3 3.2% 34.4 29.6 59.4 26.4 22.8 4.9 E le c tro n ic n dTra n s fe r Fu 1.9 4.4 100.0 100.0 100.0 3 4.0% 36.3 28.5 4.4 9.4 100.0 3 6.6% 31.9 26.1 2.6 100.0 4 5.2% 34.0 18.5 100.0 1 7.4% 29.9 51.8 1.2 100.0 5 0.0% 24.7 24.1 5.4 100.0 4 0.2% 34.6 20.9 2.3 100.0 2 3.8% 41.3 17.5 0.8 100.0 4 2.2% 23.3 24.7 1.2 100.0 42.1% 35.2 18.9 4.3 100.0 3 3.4% 40.4 21.9 17.5 100.0 4 1.6% 29.0 20.0 9.8 100.0 H yd era ba d

C O M P O S IT IO N N u m ber f Responses o C ashS ales C re d it ardS a le s C C re d it a le s(O the T ha nC a rd s) S r 3.8 To ta l

C r e d it a r d U sed C s
J aip u r Koch i O o ta c a m u n d S h im la T h ir u v 'p u r a m Va d o d a r a V iz a g F iv eS ta r D e lu x e , F iv eS ta r T h r e e -S ta r Fo u rS ta r& Fo u rS ta r& D e lu x e5 T h r e e ta r& T h re e -S ta r Fo u rS ta r T h r e e ta r T h r e e -S ta r T h re e -S ta r T h r e e -S ta r T h r e e -S ta r Fo ur-S ta r& Fo ur-S ta r& , S & S & Tw o S ta r T h r e e ta r T h r e e ta r S t a r& 4 S ta r S S Tw o S ta r Tw o -S tar & H e r ita g e & Tw o S ta r & Tw o-S ta r & Tw o -S tar & Tw o-S ta r & Tw o -S tar T h re e -S ta r T h re e -S ta r 7 5 3 2 11 10 12 8 12 4 8 7 5 5 A h m 'b a d C h a n d ig a r hC o im b a to r e In d o r e 4 .1 % 2.4 47.6 V isa 46.6 2.6 100.0 4 .2 % 6.4 39.2 43.3 10.8 100.0 8 .4 % 1.1 29.2 39.4 3.0 100.0 4 2.0 % 2.5 27.5 58.3 100.0 9 .1 % 2.7 38.9 28.0 11.6 100.0 3 .1 % 1.6 33.9 37.7 3.0 100.0 1 9.3 % 2.9 31.1 58.4 1.7 100.0 4 .6 % 0.3 34.4 45.1 1.4 100.0 3 .9 % 0.6 36.9 59.4 1.7 100.0 6 .8 % 0.5 35.8 56.9 11.3 100.0 6 .3 % 4.4 30.0 45.8 10.6 100.0 9 .3 % 3.9 29.6 48.8 9.4 100.0 1 1.4% 16.0 29.8 47.9 4.0 100.0 1 0.0% 1.4 36.0 38.8 6.0 100.0 H y d er a b a d

C O M P O S IT IO N N u m ber f Responses o A m e ric an x p ress E D in e rs lu b c M astercard /E urocard O th e r To ta l

A v e r a g C r e d it a r d om m ission e C C
J a ip u r Koch i O o ta ca m u n d S h im la T h ir u v 'p u r a m Va d o d a r a V iz a g F iv eS ta r D elu x e, F iv eS ta r T h r e e -S ta r Fo u rS ta r& Fo u rS ta r& D e lu x e5 T h r e e ta r& T h re e -S ta r Fo u rS ta r T h r e e ta r T h r e e -S ta r T h re e -S ta r T h r e e -S ta r T h r e e -S ta r Fo ur-S ta r& Fo ur-S ta r& , S & S & Tw o S ta r T h r e e ta r T h r e e ta r S t a r& 4 S ta r S S Tw o S ta r Tw o -S tar & H e r ita g e & Tw o S ta r & Tw o-S ta r & Tw o -S tar & Tw o-S ta r & Tw o -S tar T h re e -S ta r T h re e -S ta r 5 4 2 4 7 9 10 6 9 3 7 3 5 5 In d o r e 3.7 1.0 1.4 1.5 0.4 3.5 1.7 1.4 1.4 0.8 4.0 2.0 1.4 1.4 1.5 3.4 1.8 1.3 1.3 0.5 1.9 1.4 1.8 1.7 0.4 2.3 0.5 1.6 1.6 0.2 3.5 1.4 1.5 1.5 0.0 2.2 0.2 1.5 1.5 0.2 3.3 0.9 1.7 1.7 0.2 1.2 0.0 1.9 1.9 0.6 2.3 0.4 1.6 1.6 0.9 2.7 0.9 2.2 2.0 0.5 3.1 2.6 1.6 1.6 0.0 2.8 0.9 1.5 1.5 0.8 A h m 'b a d C h a n d ig a r hC o im b a to r e H yd era ba d

C O M P O S IT IO N N u m ber f Responses o A m e ricaE xp ress n D iners b clu M astercard /E urocard V isa O th e r

TABLE 4-11: Indian Hotel Indust ry Twelve Other Cities: Technology Management Practices
Te c h n o lo inyH o t e - Pe r c e n t a o feH o t e U s in E a c Te c h n o lo g y g ls g ls g h
J a ip u r Ko c h i O o t a c a m u n d S h im l a h i r u v ' p u r a m d o d a r a T Va V iz a g F iv e ta r S D e lu x Fo, u r e T h r e e - S taFo u rS t a r Fo u rS t a r F iv e ta r e lu x eT h r eSe ta r T h r e e - S &a r r & & S D , & t S ta r & T h r eSe ta r T h r e e - S t a rT h r e e - S &a r T h r e e - S ta r h r e e - S t a Fo ur-S t a & Fo ur- S t a & t T r r r & Tw oS ta r T h r eSe ta r T h r eSe t a r 5 S t a r 4 S ta r Tw oS t a r & Tw o - S t a r H e r it a g e& Tw oS ta r & Tw o - S t a r Tw o - S t a r & Tw o - S t a r& Tw o - S t a r T h r e e - S t a r h r e e - S ta r T 8 4 4 5 11 10 9 9 15 3 9 10 8 6 In d ore 8 7 .5 % 6 2 .5 5 0 .0 2 5 .0 2 5 .0 8 7 .5 8 7 .5 5 0 .0 7 5 .0 2 5 .0 6 2 .5 3 7 .5 1 2 .5 0 .0 1 0 0 .0 % 7 5 .0 0 .0 5 0 .0 7 5 .0 1 0 0 .0 1 0 0 .0 7 5 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 5 0 .0 0 .0 1 0 0 .0 % 7 5 .0 2 5 .0 5 0 .0 5 0 .0 1 0 0 .0 1 0 0 .0 7 5 .0 7 5 .0 5 0 .0 1 0 0 .0 2 5 .0 2 5 .0 0 .0 8 0 .0 % 1 0 0 .0 6 0 .0 1 0 0 .0 2 0 .0 1 0 0 .0 1 0 0 .0 8 0 .0 1 0 0 .0 8 0 .0 1 0 0 .0 1 0 0 .0 4 0 .0 0 .0 1 0 0 .0 % 7 2 .7 5 4 .6 4 5 .5 3 6 .4 9 0 .9 6 3 .6 6 3 .6 6 3 .6 5 4 .6 8 1 .8 7 2 .7 5 4 .6 4 5 .5 1 0 0 .0 % 6 0 .0 0 .0 3 0 .0 0 .0 1 0 0 .0 9 0 .0 5 0 .0 8 0 .0 3 0 .0 9 0 .0 2 0 .0 1 0 .0 1 0 .0 1 0 0 .0 % 7 7 .8 6 6 .7 6 6 .7 6 6 .7 8 8 .9 1 0 0 .0 8 .9 1 0 0 .0 7 7 .8 1 0 0 .0 7 7 .8 4 4 .4 1 1 .1 1 0 0 .0 % 7 7 .8 4 4 .4 4 4 .4 3 3 .3 8 8 .9 8 8 .9 5 5 .6 8 8 .9 8 8 .9 1 0 0 .0 8 8 .9 4 4 .4 1 1 .1 1 0 .0 % 6 0 .0 2 0 .0 4 0 .0 3 3 .3 9 3 .3 8 6 .7 4 6 .7 8 6 .7 8 0 .0 7 3 .3 3 3 .3 4 0 .0 0 .0 1 0 0 .0 % 1 0 0 .0 6 6 .7 6 6 .7 6 6 .7 1 0 0 .0 1 0 0 .0 1 0 0 .0 1 0 0 .0 6 6 .7 6 6 .7 6 6 .7 6 6 .7 0 .0 8 8 .9 % 3 3 .3 1 1 .1 1 1 .1 2 2 .2 1 0 0 .0 1 0 0 .0 5 5 .6 7 7 .8 3 3 .3 7 7 .8 1 1 .1 0 .0 0 .0 9 0 .0 % 3 0 .0 3 0 .0 4 0 .0 2 0 .0 9 0 .0 9 0 .0 3 0 .0 6 0 .0 7 0 .0 5 0 .0 3 0 .0 3 0 .0 0 .0 1 0 0 .0 % 1 0 0 .0 6 2 .5 3 7 .5 7 5 .0 1 0 0 .0 1 0 0 .0 7 5 .0 8 7 .5 8 7 .5 7 5 .0 6 2 .5 1 2 .5 1 2 .5 1 0 0 .0 % 6 6 .7 1 6 .7 5 0 .0 0 .0 8 3 .3 1 0 0 .0 5 0 .0 8 3 .3 6 6 .7 8 3 .3 5 0 .0 5 0 .0 3 3 .3 A h m 'b a C h a n d ig a rCho im b a t o r e d H yd erabad

C O M P O S IT IO N N u m b o fR es p o n s e s er A c c o u n tinygs te m S C a ll A c c o u n ti n te m Sys g C e n trRel s e a ti oS y s te m R S ) a rv n (C E l e c t r o n ic c a rd Ke y E n e rgM a n a g e mSeynst te m y I n trn e t/ E - M a il e I n trn e t/ We b s ite e I n tr a nS y s te m et L o c aAl r e N e tw o(LA N ) a rk M a n a g e mI e nrm a tioS y s te m n fo t n Po i n o fS a l e y s t e mo rFo o da n dB e v e r a g e t S f Pr o p rty M a n a g e mSeynst te m e Y i e lM a n a g e mSeynstte m d O th e r

W e , the inheritors of Earth, need to come together and protec t it from ou r own excesses. This repor t is dedicated to and symbolic of our pledge to give our future generation s a happier , healthier planet.