Insert Cover Image using Slide Master View Do not distort. Hotel Industry India

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1 Insert Cover Image using Slide Master View Do not distort Hotel Industry India September 2014

2 Executive Summary Market Tourism is slated to grow at 7% CAGR over e India has emerged as a favorite destination for tourists both for business as well as for leisure as it is still considered to be one with enough potential for growth Hotel sector in India, though has faced dismal figures, has still managed to post growth and is slated to grow in future Drivers & Challenges Drivers: Growth in tourism Opening of aviation sector Emergence of budget hotels Major Events Changing Demographics and Consumer Behavior Challenges: Increasing operating costs Depreciation of rupee Lack of infrastructure Socio-political concerns Trends Entry of foreign players Franchising model of business operation Rationalizing employee-to-room ratio Majors selling off properties Competitive Landscape Major Players Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 2

3 Macroeconomic Indicators Introduction Market Overview Drivers & Challenges Trends Regulations Competitive Landscape Strategic Recommendations Appendix 3

4 Macroeconomic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn d1 c1 b1 a1 d2 c2 b2 a2 c3 b3 a3 c4 b4 a4 11 Q1 Q Q Q4 Inflation Rate: Monthly 2 1 % p q r s t Jul Aug 2013 Aug Sep 2013 Sep Oct 2013 Oct Nov 2013 Nov Dec

5 Despite slowdown, India is still considered to be a major SAMPLE destination in terms of hospitality business Hotel Market in India Overview India is considered to be one of the top 10 markets that is poised to deliver 3/4 th of the global hospitality growth Hotels in India offer a wide range of options including luxury, upscale, leisure and mid-market or economy India has become a global destination with many international brands making a foray into the country as part of their expansion plans Major international events such as Commonwealth Games, Formula One Grand Prix have led to a dynamically growing hotel industry, however, recent terror attacks or even violence against women has acted negatively for the sector Branded Hotel Rooms India Unit a1 a2 a3 b1 a4 a5 a e 2015e 2016e 2017e 2018e 5

6 Drivers & Challenges Summary Drivers Growth in tourism Opening of aviation sector Emergence of budget hotels Challenges Increasing operating costs Depreciation of rupee Lack of infrastructure Socio-political concerns Major Events Changing Demographics and Consumer Behavior 6

7 Trends Summary Majors selling off properties Entry of foreign players Trends Rationalizing employee-to-room ratio Franchising model of business operation 7

8 Regulations Summary Tourism enhancement initiatives Federation of Hotel & Restaurant Association of India Key Regulations Taxation System Hospitality Development and Promotion Board 8

9 Market Competition Porter s Five Forces Analysis Threat of New Entrants Impact XX Impact XX Impact XX Impact XX Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers Impact XX Threat of Substitutes 9

10 Competitive Benchmarking Private Companies (2/5) Key Ratios of Top 3 Companies Operational Basis (FY 2014) (1/3) % m1 Operating Margin n1 Net Margin n2 o1 o m2 Hotel Leelaventure Ltd. Sterling Holiday Resorts India Ltd. The Indian Hotel Company Ltd. Text Text Text 10

11 Company Information SAMPLE Offices and Centres India Public: Domestic Company Company 1 (1/4) Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange City Products and Services Head Office Category Hospitality Products/Services P1, p2 Key People Name Designation Others P3, p4 Person 1 Person 2 Chairman President of Finance and Operations Person 3 VP of Corporate, Compliance Officer 11

12 SAMPLE Key Ratios Public: Domestic Company Company 1 (2/4) Financial Snapshot INR mn 0 y1 y Total Income Financial Summary The company incurred a net loss of INR - mn in FY 2014, as compared to net profit of INR - mn in FY 2013 It reported total income of INR - mn in FY 2014, registering a decrease of y9 per cent over FY 2013 It earned an operating margin of y10 per cent in FY 2014, an increase of y11 percentage points over FY 2013 It reported debt to equity ratio of - in FY 2014, an increase of y12 per cent over FY 2013 Financial Summary y3 y Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute) Net Profit/Loss y5 y y7 y INR mn Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Liquidity Ratios Current Ratio Cash Ratio Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover y-o-y change ( ) Improved Decline 12

13 Public: Domestic Company Company 1 (3/4) Key Business Segments Hospitality/Hotel Business Key Geographic Segments India 100% r1 100% r2 50% 50% 0% % 2014 Business Highlights Description News Overview Text Text 13

14 Public: Domestic Company Company 1 SWOT Analysis (4/4) SAMPLE text text S O W T text text 14

15 Thank you for the attention Hotel Industry India report is part of Netscribes Retail and Services Series. For any queries or customized research requirements, contact us at: Phone: About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. 15