Hotel investments are capital intensive and have a long gestation period. While the investor is expected to meet 100% of the investment (via equity and debt in a ratio acceptable to the brand), very often the absence of any guaranteed return reduces the investor universe considerably. Return-focused investors are increasingly seeking fixed or operating leases in hotels.
The India State Ranking Survey by Hotelivate in association with the World Travel and Tourism Council – India Initiative (WTTC – II), is a biennial publication that assesses the relative competitiveness of the nation’s 30 states in terms of Travel & Tourism potential across 12 identified parameters. This is the sixth edition of the publication since its inception in 2009.
Hotelivate is excited to bring to you the Hotel Management Contract Survey 2020 – South Asia, entailing a comprehensive review of 85 contracts/LOIs, representing around 16,200 rooms, signed in the region over the last two decades.
As a hotel consultant, I am often asked a pertinent question: Do hotels make profits in India? The challenges in building, operating, buying and selling hotels are a plenty. Investors frequently point to the relatively lower risk associated with other commercial asset classes such as office buildings, retail developments and warehouses. The highly dynamic and perishable nature of the hotel business pushes them to question the very veracity of it.
The Hotel Volatility Index (HVI), now in its third year is released as part of Hotelivate 2019 Indian Hospitality Trends and Opportunities Report. The main report is also available on-line. The HVI tracks the performance of 80 well-established, stabilized hotels – 60 urban and 20 leisure properties – across positioning that have been operational since 2011 or earlier in the country.
Crossing milestones of any kind is always special, as it reminds us of the journey thus far and helps us look to the future optimistically. My team and I are extremely proud and excited to share that this summer marked the opening of the 105th hotel where we were involved in performing the feasibility, with many more actively under development.
As we reviewed the 2018/19 performance of hotels across the length and breadth of our country, we were pushed to wonder what was causing them to be ‘stuck in orbit’. Why was it that despite the demand-supply equation favoring growth across most markets, the nationwide numbers (both occupancy and average room rate) barely moved, yet again?
For hotels and resorts in the area, the corporate FIT segment is yet to see traction, currently forming less than 5% of the total demand, probably owing to the industrial and manufacturing nature of setups that form a majority of the current occupants of IMT Manesar. However, the leisure traveller is increasingly exploring Manesar and its vicinity as a possible getaway location over weekends, festivals and school vacations.
Ahmedabad’s hospitality industry was previously dominated by local brands; however, in recent times, several branded hotels have entered the market and many more are in the pipeline. The assemblage of new industrial and commercial developments of multi-national companies has led to a surge in demand for quality hotels in the city.
The Hospitality footprint in the city is highly reflective of the British era and unifies with the traditional philosophies of the Buddhists and other natives. With leisure tourism being at the forefront, travellers prefer spending a minimum of four to five nights in the magic of Darjeeling. At present, the city’s annual occupancy trends in the early 60’s.
Hotel openings are an elaborate affair that seek focused inputs from the ownership at a pre-opening stage. While the hotel management company and operations team are largely responsible for the pre-opening preparation, the owner also has his/her tasks cut out. Here’s a look at the very basic set of expectations from an owner of a managed-hotel at this stage.
2nd Floor, Paras Downtown Centre, Golf Course Road, Sector 53, Gurugram, Haryana 122002, India
501, 5th floor, Landmark, 136, Hill Road, Bandra (West), Mumbai, Maharashtra, 400050, India
CEO Suite, Singapore Land Tower, 37th Floor, 50 Raffles Place, Singapore 048623
CEO Suite, Sahid Sudirman Center, 56th Floor, Jl. Jendral Sudirman No. 86, Jakarta 10220, Indonesia