ITM Vocational University

Ajwa Nimeta Road, Taluka Waghodia, Vadodara, Gujarat 391760

May 2022

COMPANY
ANALYSIS
PROJECT REPORT

Submitted By:
Raunak Botke
M.B.A. (MARKETING )2ND SEM 
 Enrolment no.: 160330421003

Under the guidance of

Dr. Girish Painoli
Professor and head faculty of management,
economics and commerce
 DECLARATION BY THE STUDENT

I, Raunak Deepak Botke, student of Master of Business Administration from FMEC

Department solemnly declare that the Company Analysis Project Report is on my work
carried out during the course of my study under the supervision of Dr. Girish Painoli
I assert the statement made and conclusions drawn are an outcome of my research
work.

I further certify that: -

1. The work contained in the report is original and has been done by me under the
general supervision of my supervisor.

2. The work has not been submitted to any other Institution for any other
degree/diploma/ certificate in this university or any other University of India or
abroad.

3. I have followed the guidelines provided by the university in the writing report.

4. Whenever I have used materials (data, theoretical analysis, and text) from other
sources, I have given due credit to them in the text of the report and giving their details
in the references.

Signature of the student:

Name of the student:
Roll No.:
Class with semester:
Batch: 2021-2023
ACKNOWLEDGMENT
Sr.no Title Page no.

1 Overview 1
2 History 2-3
3 Indian hotel industry 3-8

4 Laws governing hotel industry 8-10

5 Hotel operations in india 11-15

6 Indian hotel company limited 16-27

7 Cluster mapping 27-29
8 IHCL product portfolio 30-33
9 Finances 34-37
10 Organisation structure 37-39

11 PESTEL analysis 40-45

12 SWOT analysis 45-46
13 Porter five forces 47-48
14 Value chain 48-49

15 BCG model 49-50

OVERVIEW

1.2 THE HOSPITALITY INDUSTRY The hospitality industry is a large umbrella industry that contains
several different divisions of businesses:
• Food and beverage Industry
• Air and land travel Industry
• Entertainment such as movies/theatre/sports Industry, and
• Tourism Industry and medical tourism
• Hotel Industry
The hospitality industry is usually one of the largest revenue producers for countries since it deals with a
variety of businesses. Hospitality usually focuses on extra money that people have to spend on pleasurable
things and leisure, though not always. Business conventions, trainings, and meetings in different countries
also affect the hospitality industry greatly. Besides this domestic and International travellers also contribute
to it. The present analytical research broadly discusses the Indian Hotel Industry. The paragraphs below
shortly introduce the nature of other related industries as well. However, a detailed study of each of these
industries is the subject matter of our extensive research, which are is discussed below in a logical sequence.
• Food and Beverage Industry
India is among the largest producers of food grains globally. Following figure-1 shows the production of
food grains (in million tonnes) in India by 2014. It can be seen from the figure that the total increase is 34
MT with a CAGR of 2%.
• Air and Land Travel Industry
In 2018, airlines have the opportunity to take progressive steps towards defining the next generation of air
travel. Airlines are leaving behind a decade where losses surpassed many-fold. Now, bolstered by low fuel
prices, tighter capacity, new merchandizing strategies, and industry consolidation, the sector is expected to
post a consecutive run of annual profits. Indian carriers should seize the opportunity of the upswing – and
that begins with investment in critical infrastructure and technology that has been lacking behind because of
recent industry pressures.
• Entertainment Industry
The Indian media industry has tremendous scope for growth in all the segments due to rising income and
evolving lifestyles. Media is consumed by audience across demographics and various avenues, such as
television, films, out of home (OOH), radio, animation and visual effect (VFX), music, gaming, digital
advertising, and print.
• Tourism Industry
Tourism is a major engine of economic growth and an important source of employment & foreign exchange
earnings in many countries including India. It has great capacity to create large-scale employment of diverse
variety – from the most specialized to the unskilled, and hence can play a major role in the creation of
additional employment opportunities. It can also play an important role in achieving growth with equity and
sustainability.

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 HISTORY
A hotel is an establishment that provides lodging paid on a short-term basis. Facilities provided may range
from a basic bed and storage for clothing, to luxury features like ensuite bathrooms. Larger hotels may
provide additional guest facilities, such as a swimming pool, business centre, childcare, conference facilities
and social function services. The Indian Hotel Industry Survey 2013-2014 reflects a positive change
indicated by the key operating statistics, which may be an early indicator towards the end of a downturn for
the Indian hotel industry. There are over 600 hotels and resorts in India that constitute the “organized” or
modern sector. Most of these hotels are in the larger cities and major tourist or business destinations. India
has several world class domestic hotel chains. Besides several international chains have also established
their presence through franchising or entering into partnerships with Indian firms. These branded hotels are
mostly in the premium segment (5 star/5 star deluxe/heritage) and mid-range segments (4 star), which cater
to businessmen and leisure travelers. With the rise in tourism and business travel, several international
brands are exploring the possibility of entering or expanding even further in India. Hotel Industry as we
know started in the 19th century with the development of major cities, easier sea travel and coming up of
railways. During Mogul rule, the forts and their surroundings would cater to the needs of the travelers often
in exchange for no more than the story of their adventures during their travel or any news from other towns
and villages they passed by. In India, resting houses called dharamshallas were established on high ways by
kings and emperors of during the ancient and medieval periods. Movement of people both political and
pilgrimage stressed the need for better and improved facilities to cater to the varied needs of the people
coming from various classes of the society. Most of modern hotels that sprouted were managed by European
families. The Bombay hotel was opened in 1799. The British brought modern hotels to Kolkata. The Oldest
was John Spence’s Hotel. Spence’s, the first ever hotel in Asia was opened up to the public in 1830. The
credit for opening the first western style hotel under the name of British Hotel in Bombay in 1840 goes to
Pallonjee Pestonjee. Then came the ‘Auckland’ hotel by David
Wilson in Calcutta in the year 1840-41 (‘The Great Eastern Hotel’ now officially called Lalit Great ‘Eastern
Hotel’) is a colonial era hotel in the Indian city of Kolkata (formerly Calcutta) and Connemara Hotel in
Madras (now Chennai) in the year 1870 by E. A. Oakshroff. In 1971-72, a beautiful palace of Rajasthan was
linked up to the Taj, the Lake Palace in Udaipur, a marble dream, afloat lake pichola and the Rambagh
palace, originally created at the height of Rajput splendour in Jaipur. In 1903 the group, hired the best
architects and craftsmen and build the exquisitely beautiful Taj Mahal hotel in Bombay (now Mumbai) with
220 rooms. Mohan Singh Oberoi took Carlton Hotel in Shimla on Lease in 1927, renamed as Clarks hotel.
He took a building in 1933 and built Grand Hotel in Calcutta it. The India Tourism Development
Corporation (ITDC) was set up in 1966 as a corporation under the Indian Companies Act of 1956, with the
merger of Janpath Hotel India Ltd. Three Welcome Group Hotels were commissioned between 1975 and
1977; these were non-franchised hotels, inspired by the slogan “Be Indian, Buy Indian” and using Indian
expertise. Ultimately, however, these hotels adopted the Sheraton system in 1978 and used the services of
expatriates for the purposes of upgrading staff training and installing Sheraton operating systems-all without
a management contract. This gave the Welcome Group a good start. When India agreed to host the 1982
Asian Games, the Government of India granted licenses for building hotels to the Taj Palace, Asian Hotels
Hyatt Regency, India Tourism Development Corporation – Lodhi Hotel, Samrat Hotel, Kanishka, Le
Meridien, and Surya Sofitel, with the stipulation that their new hotels had to be completed in time for the
games. India hosted the Commonwealth Games in 2010, at Delhi. It was India’s most successful
Commonwealth Games to date with Indian athletes winning 38 gold, 27 silver and 36 bronze medals. This
also added to the growth of hotel industry in India. This study is specific to hotel industry only.
 In 2016, Travel & Tourism contributed US$7.6 trillion to the global economy and supported 292
million jobs.
 This revenue generation comprises 10.2 per cent of the world’s GDP.
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  1 in 10 of all jobs can be attributed to the Travel & Tourism Industry.
 At 77 per cent, leisure travel made up a chunk of people’s spending. In comparison, corporate and
business travel accounted for the rest of 23 per cent.
 Domestic travel (at 72 per cent) was higher than international travel.
 The entire contribution to the GDP was boosted by 3.1% in 2016.
 By 2027, this sector is likely to account for 11.4 per cent of the global GDP, and will support more
than 380 million jobs globally. Of course, this indicates that this sector will outperform the global
economy.

INDIAN HOTEL INDUSTRY

With opening up of the Indian economy after 1991 and the adoption of globalization, there has been a steep
rise in the operational activities of various sectors that were earlier dormant. One of the best examples of this
is the hospitality industry. The sectors in hospitality services include travel and tourism, and hotel industry.
The other industries included in this sector are food and service management, leisure, bars, night clubs,
amusement parks, motels, hostels, restaurants, self-catering accommodation, holiday centers and travel
agents. It has rapidly grown in training people for hospitality industry the last 26 years and despite the
recession in economy is determined to grow further. The sector at present employs about 2.5 million people
and provides support to other industries, like hotels and restaurants, and educational establishments. One of
the major part of this sector is the hotel industry. The economy has grown and with it has grown the personal
wealth of people. This domestic success has created greater need for more hotels, attract tourism. India is a
country with a long history, and many people visit the country for spiritual reasons, bringing in visitors from
all over the world. Additionally, the country has 32 national heritage sites bringing in history buffs, and a
wide variety of nature reserves and parks for those looking for adventure. The variety of available sites have
made India a popular choice for many foreigners. Other areas in the hospitality industry come from
businesses that have been outsourced here to India, because the wages are much cheaper over the last decade
and a half the m ad rush to India for business opportunities has intensified and elevated room rates and
occupancy levels in hotels. Even budget hotels are charging USD 250 per day. This successful growth story
of ‘Hotel Industry in India’ is second only to that of China in the Asia Pacific. This brings in business people
who are meeting and working with the international companies, thus strengthening the hotel industry. The
expanding activities of the hotel industry have turned it into a multimillion-dollar industry. Hotel industry
consists of restaurants, lodging places, theme parks, event planning etc. and includes activities such as
facility maintenance and direct operations including servers, porters, housekeepers, bartenders, kitchen
keepers, etc. Such services that are provided by the hotels constitute to be the subject matter of laws that
regulate the hotel industry.

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Domestic Market and major players
Over the years the Indian hotel industry has achieved a significant level of maturity , and most of the major
hotel chains have effectively established specific brands to target different segment of the market. For
example: East India Hotels also known as the Oberoi Group has the Trident brand of hotels targeting the
business segment and the Oberoi brand in the 5-star deluxe segment. International chains such as Six
continent, Carlson group, and Choice Hotels have adopted the strategy in India that follows globally for
entering the budget/business segment with Holiday Inn, Country Inn and suites. The following table
highlights the established brands of large hotel chains in India.

Hotel Chains Key Brands

Indian Hotel Company Taj, IHCL seleqtions
Indian tourism development Corporation Ashok
East India Hotels Oberoi, Trident
ITDC Hotels Welcome Group, Sheraton, Fortune
Six Continents Inter-continental, Holiday Inn
Hotel Corporation of India Centaur
Hyatt international Hyatt regency, Grand Hyatt
Le Meridien Le Meredien
Choice Hotels Comfort Inn
Clarks Hotels Clarks
(source: Ministry of tourism)
Another survey shows the varied average size of each of the hotel in different categories:

Category Rooms
5 star deluxe 207
5 star 125
4 star 79
3 star 58
2 star 24
Others (> 50 rooms) 71
Others (up to 50 rooms ) 31
Heritage 39

Performance highlights of 2019-20 were compared with that of data reported in 2018-19. These key
performance parameters include:

ADR-Average Daily Rate

RevPAR-Revenue per available room
GOPPAR-Gross operating profit per available room
TRevPAR- total revenue per available room

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RTS- Ratio to sales
PAR- amount per available room
POR- amount per occupied room

 Occupancy declined by 2.3 pts over the previous year due to slowdown in travel and demand across
all segment since feb-20 due to covid-19 impact.

 Occupancy of all segments except 5 star deluxe and 4 star declined compared to 2018-19.

 Occupancy for 5 star deluxe increased marginally by 1.4 points while that of a 4 star remained same

 ADR for 2019-20 was at the same level as previous year.

 GOPPAR for 2019-20 declined by almost 3% over 18-19

 EBITDA margins increased by 1 point year on year due to reduction in certain fixed charges and
ADR holding up

Revenue structure in Domestic Hotel

 Rooms have contributed about 46% of the total

revenue on all India level. Contribution for hotels
under 5 star Deluxe, 5 star and 4 star range are in about
the same level
 Primary market and leisure market have the highest
contribution about 51% followed by other 3 metros
with 50% of total revenue
 F&B and banqueting continue to remain a significant
contributor to revenue at almost 43% F&B
contribution of 5 star deluxe hotels is higher at 46%.
 Leisure market have low F&B contribution at about
32% as compared business market because leisure
market are driven by packages with limited allocation
to food & beverage revenue.

Departmental Profitability
 Overall Departmental profit are at 63% of total revenue.
 Among the star categories 5 star hotels have the highest departmental profitability at 67%
followed by 4 and 5 star deluxe at 65% and 63% respectively

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  Room profit is the highest for 4 star hotels at 81% while for 5 star deluxe and 5 star hotels ranges
between 74% and 75%
 F&B profit are highest at 52% for 5 star deluxe hotels and margins reduce at lower positioning.
 Chain affiliated hotels perform better, with 64% margin, compared to that of independent hotel at
60%

I MPACT OF COVID-19 ON H OTEL INDUSTRY

1. Hotels are expected to add 200,000 jobs but remain well below 2019 levels.

The hotel industry's greatest resource is its workforce, the members of which are the heart of hospitality. Yet
in 2020, more than 670,000 direct hotel industry operations jobs and nearly 4 million jobs in the broader
hospitality industry were lost due to the pandemic."

As the industry begins the New Year, at least two in 10 hotel employees who were working in March 2020
are still not back on the job at all, while many more are not yet back full-time. Overall, the accommodations
sector faces an 18.9% unemployment rate as of December 2020, according to the Bureau of Labor Statistics.
This figure understates a portion of the problem as there are many workers previously employed in hotels
that are exiting the industry and/or the workforce entirely. Oxford Economics projects that the direct hotel
industry jobs unemployment figure will exceed 20% in 2021,"

In 2021, employment in the industry is only expected to grow by 200,000 jobs compared to 2020, resulting
in a net loss of 478,245 hotel employees from pre-pandemic levels.

2. Hotel employment is unlikely to reach pre-pandemic employment levels until at least 2023.

COVID-19 has forced hotels to reduce staff sizes and ask team members to take on additional roles. This has
been especially difficult for urban hotels, which are major employers due to their larger average property
size.
As urban and airport hotels have faced devastatingly low occupancy rates, well below the national average, a
significant rebound in hotel employment will not occur until group and business travel returns. over the next
several years.
In 2022, the number of jobs is projected to slightly increase compared to 2021, but the total direct hotel. jobs
will remain 184,092 fewer jobs when compared to 2019, Moreover, the industry is not expected to reach
2019 employment levels until at least 2023.10 This has eliminated more than 10 years of job growth in the
accommodations sector, according to BLS."

3. Hotel occupancy is projected to average just 52%, compared to 66% in 2019.

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In 2019, the nation's nearly 56,000 hotels experienced an average annual hotel occupancy of 66%, selling
1.3 billion rooms.
The onset of the COVID-19 pandemic brought hotel occupancy to a historic low of 24.5% in April2020.
Annual occupancy in the United States fell to roughly 44% for the full year. Additionally, the total number
of rooms occupied fell by 458 million from 2019 figures.
Hotel occupancy in the United States for 2021 is expected to average 52.5%, an increase of only 8.5%)
points from 2020.7 Room occupancy is also expected to increase by 208 million rooms. While somet full-
service hotels begin breaking even at 50% occupancy, this does not account for mortgage debt service costs,
leaving most hotels still well below their break-even point.

Encouragingly, occupancy rates are projected to rebound more significantly in 2022, reaching 61.4%, and
the number of rooms sold is expected to reach 1.23 billion, nearing 2019 levels.

4. Hotel room revenue is anticipated to reach just 65% of the 2019 total in 2021.

Prior to the pandemic, the hotel industry's 5.3 million guest rooms generated $168 billion in annual room
revenue, not including the additional tens of billions generated by meeting rooms and other ancillary
revenue sources. 23 In 2020, hotel room revenue fell by nearly 50% 24 across the U.S. to just $84.6 billion.

Room revenue is anticipated to increase by only $25.9 billion this year, still 34% below 2019 levels.26 In
2022, room revenue is projected to rebound a bit further, hitting an estimated $144 billion, but still well
below 2019 numbers.

5. Direct state and local tax revenue generated from hotels fell by one-third in 2020 and will not
rebound until at least 2023.

Hotels are integral contributors to communities, cities and states across the country and support tens of
billions of dollars in tax revenue at the state and local level. In 2019, direct state and local tax revenue,
including hotel-specific occupancy taxes, sales taxes, property taxes and others, from hotels in the United
States reached nearly $41.1 billion.
COVID-19 and the resulting decline in travel has had led to significant declines in state and local tax
revenue for 2020 and beyond. Direct state and local tax revenue generated from hotels fell by approximately
$13 billion to $27.5 billion in 2020. The pandemic has been especially devastating for urban markets,
resulting in massive hotel job losses and dramatic reductions in hotel-generated tax revenues, exacerbating
budget issues for struggling state and local economies.

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In 2021, state and local tax revenue generated by hotels is expected to increase by only $3 billion to reach
$30.9 billion nationwide, which is still a 25% decline when compared to 2019 levels, 30 In 2022, this will
increase to an estimated $37 billion.

The Top Hospitality Trends in 2021

We're starting to see trends emerge that will shape hospitality throughout its recovery and
beyond. Experts predict the industry won't fully recover until 2023.The coronavirus accelerated a
trend in hospitality that had already been in motion for years workplace digitization.

One very unique trend we can expect to see in 2021 is the digitization of the frontline hospitality
workforce. We expect to continue to see companies adopting new technologies to enable these
mission-critical workers over the coming years.

Agility, resilience, and a commitment to your frontline workforce will be crucial to the recovery
process and the hospitality industry rebuilds and navigates the complexities of the new normal in
2021.

four steps companies must take to create a digitally-enabled workplace of the future:

 Reach and connect with their entire workforce with important information, company
news, real-time alerts, and facilitate two-way communication
 Digitize time-consuming, inefficient, expensive paper-based processes, and critical
documents for employees to access no matter where they are.
 Automate workflows and business processes, saving time and money
 Optimize business practices and organizational processes based on meaningful data

In 2021, hospitality companies will fast track their digital transformation, both on the customer-facing side,
and employee-facing technologies. As companies transition into the next normal, they will also continue to
make safety a vital part of their workplace culture and guest experience.

They will leverage technology and communication strategies to shift to new ways of operating and become
more resilient. This includes becoming more cost-conscious and finding new ways to go lean.

LAWS GOVERNING HOTEL INDUSTRY IN INDIA

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among
the services sector in India. Tourism in India has significant potential considering the rich cultural and
historical heritage, variety in ecology, terrains and places of natural beauty spread across the country.
Tourism is also a potentially large employment generator besides being a significant source of foreign
exchange for the country. During 2018, FEEs from tourism increased 4.70 per cent* year-on-year to US$
28.59 billion. FEEs during January 2019 was US$ 2.55 billion.

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India is the most digitally-advanced traveller nation in terms of digital tools being used for planning,
booking and experiencing a journey, India’s rising middle class and increasing disposable incomes has
continued to support the growth of domestic and outbound tourism.
During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth rate of 5.20
per cent year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30 per cent compared to 1.05
million year-on-year.
The travel & tourism sector in India accounted for 8 per cent of the total employment opportunities
generated in the country in 2017, providing employment to around 41.6 million people during the same year.
The number is expected to rise by 2 per cent annum to 52.3 million jobs by 2028.
International hotel chains are increasing their presence in the country, as it will account for around 47 per
cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent by 2022
This industry is governed by the Ministry of Tourism and Development at the Centre and under State
regulations at the State level. Hotels industry comprises of eateries/ restaurants, lodging places, amusement
parks, event management, and so forth and incorporates activities, for example, logistic operations and direct
activities including servers, watchmen, maids, barkeeps, kitchen keepers, and so on. Such administrations
that are given by the hotels establish to be the subject matter of laws that control the hotel and restaurant
business. Establishing and running a hotel or a restaurant is not a cake- walk, it requires mandatory
compliance to all the stringent requirements, protecting the customer’s interest from not only civil
wrongdoings, but also protection from activities which will bring criminal liability upon the hotel
authorities, such as gross negligence, accidents, or terrorist related threats.
The Hotel Industry is integrally related to the travel industry and the development in the Indian travel
industry has thus brought about advancement in the Indian Hotels Industry. The Government of India
expanded assets on publicizing efforts like “Unbelievable India” and “Athithi Devo Bhava” to underline the
rich spectrum of the travel industry in India.
For the four different zones- north, south, east and west various associations have been set up. The
discussion that follows will enlighten the reader about how the hotel and restaurant industry is governed and
regulated in India.
The Hotel Association of India is one central authority that regulates the hotels all over India but has under it
various sub- associations divided on a regional basis-
o The Federation of Hotels and Restaurants Association of India
o The Hotel and Restaurant Association of Eastern India
o The Hotels and Restaurant Association (Western India)
o The Hotel and Restaurant Association of Northern India
o The Southern India Hotel and Restaurant Association
The Hotel and Restaurants industry is primarily governed by the Hotel and Restaurant Approval and
Classification Committee constituted by the Ministry of Tourism. For the institution of a new hotel or
restaurant, the certification of this committee is required- the committee checks and asses the hotels based
on the facilities they intend to provide to their customers. The approval granted by the committee remain
valid for 5 years but when a hotel is in its operative stage, the same approval ceases to remain valid within
three months. The respective hotel must apply for the classification during these three months. Once the
classification is obtained, it becomes valid for 5 years.
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For establishing a hotel or restaurant, certain licenses have been made mandatory by the nodal authority at
the Centre that is the Ministry of Tourism and Development and by various other acts- Temporary License
for Awnings & covering of Terrace during monsoon, Building Completion Certificate, Copyright License
for Playing of Music, Lodging House License, Approval from the Department of Tourism, Government of
India, Registration under the Luxury Tax Act, Registration under the Sales Tax Act, Registration under the
Contract Labour Act, Registration under the Pollution Control Act, Registration under the Apprentices Act,
Registration under the Provident Fund Act, Registration under the ESI Act, Entertainment License on
Festival Occasions, License for Chimney under the Smoke Nuisance Act, Registration under the Weights &
Measures Act, Factory License for Laundry, Central Excise License for Bakery Products, etc.
Apart from the above- mentioned committee, there are various other legislation such as-
o Prevention of Food Adulteration Act, to protect customers from intake of poisonous or harmful food.
o The Air (Prevention and Control of Pollution) Act, 1981 to curb measures which lead to air
pollution.
o The Water (Prevention and Control of Pollution) Act, 1974, for prevention and control of water
pollution by hotels.
o GST
o Income Tax Act, 1961, which makes the hotels and restaurants liable to pay VAT, Service Tax,
Entertainment Tax, CENVAT, Expenditure Tax, Luxury Tax etc.
o Hotel Insurance Policies and other local laws.

Under the Indian Constitution, Hotels and Inns are subjected to state legislation. According to Entry No. 34
of List II of the 7th Schedule of the Indian Constitution, The individual States have the full right and
legitimate authority to make laws with respect to gambling and betting. Furthermore, entry No. 62 confers
authority to the States to tax gambling and betting events or activities. Thirteen states have legalized lottery,
while the States of Goa and Sikkim have legalized and regulated other forms of gambling.
Following Legal Standards are basics for the operation  of Hotel Industry
 The Approval of Project 
 Establishment and Commissioning of Industry
 The operation, management, and maintenance of Industry
 Taxation, Employment, and Contracts in  Industry

The Sarai Act, 1867 is still operating in this sector and police ask for registration under section 4 of this act
or supply information to the police.
SARAI  means any building used for the shelter and accommodation of travelers, and includes, in any case
in which only part of a building is used as a sarai, the part so used of such building i.e all hotels, lodges,
inns, guest houses, resorts come under the preview of this Act

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 HOTEL OPERATION IN INDIA
MINISTRY OF TOURISM, GOVT. OF INDIA
Approvals based on broad classifications
Approval of Convention Centres 
Ministry of Tourism has decided to grant approval to convention centers to encourage investment
and standardize facilities at the convention centers for Meetings, Incentives, Conference and Exhibitions
(MICE) etc..

Approval of Motel Projects [ Dhaba]

Motels are an important segment of the hospitality sector which provide budget accommodation. Motels
cater to the hospitality requirements of road travellers through the facilities and services offered by them.
With the aim of recognizing this segment as a component of the overall tourism product, and with the aim of
benchmarking the standards of facilities and services of Motels, the Ministry of Tourism has formulated
a voluntary scheme for Approval of Motel Projects

Approval of Heritage Hotels

Heritage Hotels’ cover running hotels in palaces/castles/forts/havelies/hunting loges/
residence of any size built prior to 1950.

Approval of Standalone Air Catering Units 

With the liberalization of Air Tax Services, charter policy, more International Airlines operation and also
increased domestic flights, several Air Catering Units have been set up in order to cater to the requirements
of such air passengers. Keeping in view the specialized professional inputs and outputs in this segment,
matching the international standards, the Ministry of Tourism approves and classifies Standalone Air
Catering Units in the country.

Time Share Resorts (TSR) 

Time Share Resorts (TSR) are increasingly becoming popular for leisure holidays and family holidays, etc.
With the aim of providing standardized world-class services to tourists, the Government of India, Ministry
of Tourism has a voluntary scheme for classification of fully operational Time Share Resorts.

Stand Alone Restaurants

 Guide Lines for stand-alone Restaurants, they serve only food and nothing more. Restaurants range from
inexpensive and informal lunching or dining places catering to people working nearby, with modest food

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served in simple settings at low prices, to expensive establishments serving refined food and fine wines in a
formal setting.

Incredible India Bed & Breakfast Guidelines

 To stay with an Indian family to understand Indian culture and heritage
 
 Guidelines for Approval of Guest Houses
 In order to meet the rising demand of hotel accommodation for budget tourists both domestic and foreign,
Ministry of Tourism has decided to standardize and ensure good, clean, hygienic, fair and upgraded facilities
and practices in a large number of Guest Houses and unregulated accommodation units that spring up in
cities and towns
 
Guidelines of Apartment of Hotels
 Apartment hotels are best for family holiday and staying for long time.
 To meet the increasing demand of tourists, camping facilities and tented accommodation would need to
be developed. There is, therefore, a need to promote and facilitate setting up of campsites while
ensuring adherence to quality, standards and safety norms.
Sub-classifications:-
 Adventure tourism projects; and
 Amusement parks
 Arts and crafts villages
 Caravan tourism
 Golf courses
 Health farms and SPA
 Ropeways (cable cars)
 Water parks
 Watersports complexes
 Miscellaneous Projects

Category of Hotels 
Hotels are an important component of the tourism product. They contribute in the overall tourism experience
through the standards of facilities and services offered by them. With the aim of providing contemporary
standards of facilities and services available in the hotels, the Ministry of Tourism has formulated a
voluntary scheme for classification of operational hotels.

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  Unapproved
 1 star
 2 star
 3 star
 4 star
 5 star
 5 star deluxe
 Heritage hotel

 Classification for newly operational hotels if approved by Ministry of Tourism at project stage, must
be sought within 3 months of completion of the project. Operating hotels may opt for Classification
at any stage. However, hotels seeking Re-classification should apply for reclassification at least six
months prior to the expiry of the current period of classification
 Once a hotel applies for Classification/ Re-classification, it should be ready at
all times for inspection by the inspection committee of the HRACC. No request
for deferment of inspection will be entertained
 Classification will be valid for a period of 5 (Five) years from the date of approval of Chairman
HRACC or in case of Re-classification, from the date of expiry of the last classification, provided
that the application has been received six months prior to the expiry of the current period of
classification, along with all valid documents. Incomplete applications will not be accepted.

Regional approval
Municipal Licence and Registration
New Delhi Municipal Council (Regulation of Hotels, Lodging houses and Similar Places) bye-laws
 Lodging house. For the purpose of bye-laws 4 to 8 a “lodging house” shall mean a sarai, hotel,
boarding house for the public, rest house, or unlicensed emigration depot or any other place where
the public are admitted and provided with sleeping accommodation on payment and shall include
religious and charitable institutions or “Ran Baseras” maintained and supervised by the Government
or the Council.
 Registration of a licensee. Every licensee of a lodging house shall cause his name to be registered as
such in the Office of the Council and shall also furnish to the Chairperson the following information
in writing:-(a) The postal address of his lodging house.(b)  The number of rooms reserved for lodgers
in such house, along with dimensions of each room.
Registration and licence under regional Shop and Establishment Act
Bombay Shop and Establishment Act, 1948
 SEC 41. Lighting. –
(l) The premises of every establishment shall be sufficiently lighted during all working hours.
(2) If it appears to an Inspector that the premises of any establishment within his jurisdiction are not
sufficiently lighted, he may serve on the employer an order in writing specifying the measures which
in his opinion should be adopted and requiring them to be carried out before a specified date.
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Delhi Shop and Establishment Act, 1954
 SEC-25 The premises of every establishment shall be kept clean and free from effluvia arising from any
drain or privy or other nuisance and shall be cleaned at such times and by such methods as may be
prescribed. These methods may include lime washing, colour washing, painting and disinfecting.

Hospitality ethics
Hotel Taxation
1. VAT: Value added tax is applicable on sale of food items and beverages as per state VAT act. The
VAT on restaurants serving food and beverages are governed by respective state laws. The rate of
VAT may vary from state to state.
2. Luxury tax: It is applicable on luxuries and for the matter incidental thereto as per state Luxuries Act.
The rate of luxuries tax may vary from state to state.
♥The luxury tax in DELHI under Delhi Tax on Luxuries Act, 1996  is levied on the turnover of
receipts of a hotelier at the notified rate not exceeding 15%.  The Govt. may notify different rate(s)
from time to time and for the different classes of hotels. At present the rate of Luxury Tax is on the
room tariff of Rs.750/- and above but less than Rs.1000/- and 10% on room tariff and above on per
room per night basis on residential accommodation provided by way of business in a hotel a lodging
house, an inn  a club, a resort,  a farmhouse,  a public  house or a building or part of building. In the
case of services provided in the Banquet Hall Gyms Health Clubs and Spas. The rate of tax is 3%
Services only.
3. Luxury tax: It is applicable on luxuries and for the matter incidental thereto as per state Luxuries Act.
The rate of luxuries tax may vary from state to state. It is applicable on stay charges (i.e Room Rent)
and is not applicable on food charges.
 
4. Service Tax: Service Tax is different from Service Charge levied by Hotel management. services
charges normally range between 5% to 10%.
 Restaurant Bars at Rajasthan
To promote tourism, Rajasthan Government has removed the restriction for Restaurant Bars in accordance
with the new Excise Policy 2004-05. The good quality Restaurant would be able to sell Beer, Wine and
Ready to Drink Liquor.
Gambling in Hotels etc
Goa and Sikkim are well-known gambling destinations within India.
Gambling in GOA
Goa Public Gambling Amendment Bill to amend 1976 Act.
Legal Gambling In Sikkim
Sikkim is a second Indian State that has legalized gambling:
Sikkim Casino Games (Control and Tax) Act, 2002 (4 of 2002)

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1) The Sikkim Casino Games (Control and Tax Rules), 2002 gives the Sikkim Government the authority to
grant licenses to individual and business interested in operating casinos.
2) The Sikkim Regulation of Gambling (Amendment) Act, 2005 gives the Sikkim Government the authority
to authorise gambling on certain days and to make specific gambling houses legal at their own discretion by
way of a license.
In exercise of the powers conferred by section 18 of the Sikkim Casinos (Control and Tax) Act, 2002, (4 of
2002), the State Government hereby makes the following rules further to amend the Sikkim Casino Games
(Control and Tax) Rules, 2007

Hotel Associations in India

 The Federation of Hotels and Restaurants Association of India
FHRAI is the voice of the Hospitality Industry and provides an interface between the Hospitality Industry,
Political Leadership, Academics, International Associations and other Stake Holders.
 The Hotel and Restaurant Association of Eastern India
Eastern Region comprising 12 States and a Union Territory, the association upholds common voice for
hotels, restaurants and associates for unhindered progress of hospitality industry in the country’s Eastern
Region.
 The Hotel and Restaurant Association of Northern India
Hotel and Restaurant Association of Northern India (HRANI) – a Northern outfit of FHRAI is an apex body
representing Hotel & Restaurant Industry of the 9 North Indian States.

 The Southern India Hotel and Restaurant Association

SIHRA constitutes the Southern Region of Federation of Hotel and Restaurant Associations of India
(FHRAI), the Apex Trade Association for the Hospitality industry in India.SIHRA’s Membership comprises
the smallest Restaurants to the Five Star deluxe Hotels in the Southern States of Andhra Pradesh, Telangana,
Karnataka, Kerala, and Tamil Nadu and the Union Territory of Puducherry
 The Hotels and Restaurant Association (Western India)
Since February 1951, when the Hotel and Restaurant Association (Western India) was incorporated as a
Company limited by guarantee and not having share capital, the Association has served the interests of the
hotel and restaurant industry.The Association over the last several years has taken effective steps to
encourage, promote and protect the interest of member establishments. It has been rendering professional
assistance from time to time to all its members on topics of vital importance.
 Hotel Association of India
Hotel Association of India (HAI) is the apex organization of the Indian Hospitality industry. With its
membership extending from the major hotel groups, boutique hotels, heritage hotels, large, medium sized
and smaller hotels, it represents the entire spectrum of the industry.

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 INDIAN HOTEL COMPANY LIMITED

Since the opening of the iconic Taj Mahal Palace in Bombay in 1903, IHCL has welcomed guests with
world-class refinement and warmth, while remaining deeply rooted in local heritage and strong global
values.
IHCL has evolved from an iconic hotel company to a dynamic hospitality ecosystem. By strategically
reimagining and enhancing its brand portfolio the company has successfully transitioned from a brand house
to a respected house of brands.
Each of the IHCL brands evolves from the foundational culture of Tajness, reflecting trust, awareness, and
joy, and offers an unparalleled value proposition based on deep consumer insight and an insatiable spirit of
re-imagination. From lovingly restored palaces, both original and authentic, to raw and luxurious safaris.
From rejuvenating spas to rarefied clubs and more. The IHCL offering is as varied as it is charming. IHCLs
jeweled portfolio of brands spans multiple sectors of hospitality and is built with legendary professionalism,
unmatched expertise, and genuine affection.

Indian hotel Company Limited History and evolution

1902
- The Company was incorporated on 1st April 1902 and till 1965 owned
and managed two hotels, viz., the Taj Mahal Hotel and the Green's
Hotel, with a view to construct a modern and much larger hotel on that
site. The Company started the business of hotel, restaurant, cafe,
tavern, beer house, refreshment room & loading house keepers. The
Company owns two other properties known as "Willington Mews" and
"Mandalik House" in Mumbai which are used for parking cars and
accommodating some staff members.

1972
- The hotel under the name and style Taj Intercontinental Hotel was
formally opened on 1st August, and progressively commissioned
thereafter.

1978

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- Taj Investment & Finance Co. Ltd., became a subsidiary of the Company
with effect from 7th December. The Company holds the entire capital of
2,46,110 No. of equity shares of Rs 10 each of this subsidiary.

1979
- The Company finalised negotiations with the Government of Sri Lanka
for putting up, in the first phase, a 400 room hotel of international
standards at Colombo, to be owned by Taj Lanka Hotels, Ltd.

- 20,16,000 Bonus Equity shares issued in prop. 4:5.

1980
- The Company started providing technical know-how and consultancy
services in the operation of a 186 room hotel known as Taj Sheba Hotel
at Sanaa, capital of North Yemen Republic.

- The Government of India approved the joint venture project and

permitted the Company to invest in it an amount equivalent to U.S. $4
million partly by way of subscribing to shares in cash and partly by
way of earnings from export of Indians goods like furniture, fittings,
carpets and hotel operating equipment.

- The Company borrowed an offshore loan of U.S. $1.50 million from the
Hongkong & Shanghai Banking Corporation for the purpose of making the
cash investment in the equity share capital of Taj Lanka Hotels, Ltd.

1981
- The Company undertook to set up a hotel of international standards at
Calcutta. The hotel was commissioned during 1988-89.

- 18,14,400 Bonus Equity shares issued in prop. 2:5.

1982
- Delhi Development Authority (DDA) accepted the Company's offer of
collaboration for the construction of a 500 room hotel in Delhi for use
by the delegates and visitors to the ASIAD '82 to be conducted towards
the end of the year.

- In the second quarter of the year, the Company made a

rights-cum-public issue of secured convertible bonds of the total value
of Rs 15 crores. Each bond of Rs 100 comprised a convertible portion
of Rs 25 and a non-convertible portion of Rs 75. It was proposed to
increase the rate of interest to 16% and to extend the redemption date
to 15th July, 1999.

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- 55,000 - 9.3% Preference shares redeemed at par on 31st December.

1983
- The Company signed an agreement with Spencer International Hotels, Ltd. a wholly owned
subsidiary of Spencer and Company, Ltd., to get
licence to operate Connemara Hotel at Chennai, West End Hotel at
Bangalore and Savoy Hotel at Ootacamund.
1984
- During December, the Company issued 12,00,000-15% secured
non-convertible debentures of Rs 100 each at par aggregating Rs 12
crores on `Rights' basis. These debentures were issued under two
schemes viz., Non-cumulative interest payment and Cumulative interest
payment. These debentures are redeemable at a premium of 5% on the
expiry of seven years from the date of allotment.

1985
- 15,00,000 No. of equity shares issued on 1.8.1985 at a premium of Rs
15 per share on part conversion of 13.5% bonds.

1986
- The Company had taken over Hotel Chandela at Khajuraho on leave &
licence basis with effect from 18th December.

- The Company commissioned the Jai Mahal Palace Hotel at Jaipur during
the year with 103 rooms.

1987
- During April-May, the Company offered 15,70,000-12.5% convertible
debentures of Rs 135 each to equity shareholders as rights in the
proportion 1 debenture for every 5 equity shares held. This issue was
over-subscribed and additional 3,92,500 debentures were allotted to
retain over-subscription. Thus a total of 19,62,500 debentures were
allotted to equity shareholders on 15th June, 1987. Another 82,000 -
12.5% convertible debentures were offered to employees of the Company
during April-May 1987. Only 43,621 debentures were taken up. The
Balance of 38,379 debentures were allowed to lapse.

- As per the terms of debenture issue, a portion of Rs 35 of each

debenture was compulsorily converted into one equity share of Rs 10
each at a premium of Rs 25 per share on 15th December, 1987. The
non-convertible portion of Rs 100 of each debenture would be redeemed
at par at the end of seven years from the date of allotment.

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- 20,06,121 No. of Equity shares issued on 15.12.1987 at a premium of
Rs 25 per share on part conversion of 12.5% debentures.

1989
- An agreement was signed with the USSR state committee for foreign
tourism to establish a joint venture to start hotels in Tashkent,
Samarkand and Bukhara.

- It was also proposed to start another joint venture in India with

Club Mediteranee Group of France known as `Club Med', to set up beach
resorts in India.

- In addition, it was also proposed to set up a joint venture with

Maharashtra State Tourism Development Corporation to establish beach
resorts and hotels in Government owned lands in Maharashtra to be
operated by the Company.

- 49,28,261 bonus equity shares were issued in prop. 1:2.

1990
- The hotel operations were adversely affected due to political
disturbances within the country and abroad.

1993
- 49,28,261 Rights Equity shares issued (Prop. 1:3, Prem. 450) Another
2,46,413 shares of Rs 10 issued at a prem. of Rs 50 per share to
employee (all were taken up).

1994
- The 110 room Taj Luxury Hotel at Lucknow was commissioned. The hotel
was promoted by Taj Kerala Hotels and Resorts Ltd. at Kumarakom in
Kerala.

- A joint venture Company with Government of Karnataka viz. Taj

Karnataka Hotels & Resorts, Ltd., was incorporated for undertaking
development of tourism. Taj Mumbai would operated all the hotels that
would be commissioned by the new Company.

- Another joint venture with Oriental Hotels Ltd., viz "Taj Chennai
Flight Kitchen Pvt. Ltd., Singapore, Malaysian Airline System Berhad,
Kayla Lumpur are the foreign partners. The joint venture would set up
an Air Catering Unit initially in Chennai to be operated by the
Company.

19 | P a g e
- The company issued 51,95,783 GDRs at a price of US $ 16.60 per GDR.
Including 15% retention of oversubscription. The 13.5% secured
non-convertible bonds of Rs 75 each issued on 15th July 1982 and the
15% secured non-convertible debentures of Rs 100 each issued on 1st
April, 1982 were due for redemption on 15th July, 1992 and 1st April,
1992 respectively.

- 199,59,456 bonus equity shares issued in prop. 1:1.

1995
- Two new hotels of associated companies were commissioned viz., a 50
rooms Taj Garden retreat at Varkala (new Trivandrum) located on a cliff
overlooking the sea and a 100 rooms business class hotels, Taj
residency at Nashik, Maharashtra.

- The Company undertook to set up (i) Two new luxury hotels in Mumbai
and one in Chennai; (ii) Land admeasuring 11 acres was acquired at
Calcutta for setting up a hotel of International Standard; (iii) Taj
residency in Calicut scheduled to be opened in 1996-97.

1996
- The Company has entered into a business profit sharing agreement with
H.E.H. Nizam of Hyderabad to develop Falaknuma Palace as a 5 Star delux
Heritage Hotel.

- The Company executed a Memorandum of Understanding with Rajah Muthiah

Chettiar Charitable and Educational Trust for the construction of a
first class international standard hotel on an area of 5 acres which is located in Adyyar in the
vicinity of Chettinad Palace.

- The Company was declared the successful bider for the MMRDA's
Hotel-Cum-Convention and Exhibition Centre Project at International
Finance-Cum-Business Centre, Bandra-Kurla Complex, Mumbai.

- The Company entered into a technical assistance agreement with

Covelong Beach Hotel (India) Ltd. which was putting up a beach resort
to be known as "Fishermen's Cove" at Covelong, about 20 miles from
Chennai. This hotel was to have about 80 rooms with all related
facilities.

- KTC Hotels Ltd. became a wholly owned subsidiary of the Company. KTC
is owning a newly constructed Taj Residency Hotel at P.T. Usha Road,
Calicut.

20 | P a g e
1997
- The Reserve bank of India (RBI) has condoned Indian Hotels Limited
(IHL) for certain financial transactions which were conducted by its
international subsidiary.

- The Indian Hotels Company Ltd (IHCL) has formally called off its
proposed Rs.1,000 crore hotel-cum-convention centre project at the Bandra-Kurla complex in
Mumbai.

- The Indian Hotels Company or the Taj Group of Hotels has launched its
second major organisational restructuring exercise.

- The documents also reveal that on the same day (July 5, 1974), ARRA
entered into a technical and consultancy services collaboration with
IHCL.

1998
- Indian Hotels Company Ltd, an off-shoot of the Tata Group which owns
the Taj Group of Hotels, has signed a joint venture with the Pune-based
Dynamic Logistics for setting up a 125-room five star hotel in Pune
christened `Taj Residency.

- Indian Hotels has become the first hospitality company to begin

offering stock options to its top employees.

- Taj Palace Hotel was the only Indian hotel to win the `Best Business
Hotel in Asia 1998' award.

- IHCL, is 100 per cent subsidiary of Taj International hotels (Hong

Kong) Ltd.

1999
- Indian Hotels & Health Resorts (IHHR) is setting up a destination
resort and spa called `Ananda-in the Himalayas', in Narendra Nagar near
Rishikesh.

- The company, set up to develop health resorts, spas and city centre
luxury boutique hotels in India and the rest of south-east Asia, is
planning to set up a series of destination spas on the lines of the
famous Chiva Som of Thailand.

- In one of the major developments in the history of Indian hospitality

industry, Indian Hotels Company Ltd (IHCL), part of the Tata group, has
entered into a strategic business alliance with the Hyderabad-based GVK
group to consolidate their respective hotel businesses in Hyderabad
into a new corporate entity under the name of Taj GVK Hotels and

21 | P a g e
Resorts Ltd (Taj GVK).

- The company is also looking for a joint venture with an international

partner to manage and run the group's London-based St. James Court.

- Indian Hotels to buy 6.3% stake in Oriental Hotels Indian Hotels

Company Ltd (IHCL) proposes to buy 6.28 per cent stake in the
Chennai-based Oriental Hotels Ltd from its wholly-owned subsidiary, TajInvestment and Finance
Company Ltd (TIFCO).

2000
- The NCD programme of Indian Hotels Ltd. has been assigned an `LAAA'

rating by ICRA, indicating highest safety to the Rs 150-crore

non-convertible debenture programme.

- The Company has introduced a Voluntary Retirement Scheme to

rationalise employee deployment and made payments aggregating to Rs.
28.80 crores upto 30th September.

- The Company has to set up a joint venture with a local partner for
its foray into South East Asia.

- The Company has shortlisted a strategic investor which will acquire a

50 per cent stake in Taj Asia, a newly formed holding company.

2001
- The Company introduced a Voluntary Retirement Scheme to rationalise

employee deployment and made payments/provisions, including additional

gratuity, aggregating to Rs 36.30 crores upto December 31, 2000.

- Indian Hotels Company Ltd has informed BSE that the members of the

Company at the AGM held on August 31, 2001 had approved the

transfer/sale of the Air Catering Division of the Company to a

subsidiary (to be known as "Taj Air Caterers Ltd") to become the Joint

Venture Company (JVC) in which the Company would hold 51% of the equity

and the balance 49% of the equity would be held by Singapore Airport

Terminal Services Ltd (SATS).

22 | P a g e
- Close on the heels of opening the Taj Palace in Dubai, the Taj group

led-Indian Hotels Company Ltd (IHCL) has signed another management

contract for a 320-room 5-star business hotel in Dubai.

2002
-The Indian Hotels Company, planned to re-enter the budget hotel categories
in Gateway Name.

-Indian Hotels company has announced for the investment of $75 million to
acquire international hotel chains abroad.

-Indian Hotel Company has passed a resolution to raise the long term debt funds
for the company's modernnization and expansion programme.

-Indian Hotel Company has informed BSE regarding its completion of

planned borrowing programme of Rs.3000 million.

-Indian Hotel Company has returned back its 8 acre hotel site in the city to
Kolkota Municipal Corporation.

-Indian Hotel Company Ltd is in talks with Chaudhary group of Nepal and an African
company to make its debut in environmental/wildlife tourism in India.

-Mr.Raymong Bickson has been appointed as the director on the board of the

Directors of the company.

-Indian Hotel Company has informed the exchange that it had entered into an agreement

with Citibank NA, Newyork for fungibility of GDS.

2003
-Indian Hotels Company Ltd.has informed BSE that it has been decided to defer
the consideration of the item relating to sale of the two hotel properties of the company.

-Indian Hotels Company has decided to sell off two of its hotel properties to its sister
firm -PIEM Hotels.

-The Indian Hotels Co. Ltd has embarked upon major renovation and upgradation of its

leading leisure hotel properties in Kerals, Goa, Rajasthan and Tamil Nadu, which costs
around Rs.100cr

-Mr Shapoor Mistry, son of construction baron Pallonji Mistry, has been appointed as

23 | P a g e
non-executive director of Indian Hotel Company which owns the Taj group of Hotels.

-IHCL mulls up to kick off new firm, inorder to push its spa business under the head Taj.

-The Confederation of Indian Industry(southern Region) has initiated a pilot project

to encourage linkages between self-help groups and Institutional Consumers.

- Board approved a resolution pertaining to sale of the hotel property of the company located at,
Chiplun, Maharashtra and alteration of the object clause of Memorandum of Association of the
company to permit the company to carry out the activities of Registrar and share transfer agents.

-Board approved acquisition of a hotel property in US

2004
-Mr Franz Zeller, having over 30 years of experience in various international hotel operations
including at Hilton International, Millenium and Copthorne International, has been appointed as
Senior Vice-President & Chief Operating Officer (Luxury Hotels Division). Mr Rajiv Kaul,
earlier with the Oberoi Group, has been appointed as Vice-President (Mumbai Hotels) & General
Manager of the city's Taj Palace & Tower.

The third appointment was that of Mr John Gerrard, formerly an independent hotel consultant in
Malaysia designated as Director (Sales & Marketing), Luxury Hotels Division. Mr Maneck Patel,
Vice-President & General Manager of the Taj Palace & Tower, has been made Senior Vice-
President (Business & International Consular Corps Relations).

-American Express, the travel-related services company, has tied up with Taj Hotels Resorts and
Palaces for a money-saver programme for holders of the AmEx corporate card.

-Taj Hotels inks pact with CC Africa to promote wildlife tourism in India

-Taj Hotels partners with Denis Island

2005

-Indian Hotels enters into an agreement to purchase "W" Hotel, Sydney

-Taj Hotels joins hands with ETA Star Property Developers

2006
-The Companys delists shares from Madras Stock Exchange Ltd (MSE) w.e.f. October 13, 2006.

-Indian Hotels to set up three hotels in S Africa

24 | P a g e
-Indian hotel may tie up with EMKE Group

-Company has splits its Face value of Shares from Rs 10 to Re 1

2007
-Indian Hotels buys 10-pc stake in Orient-Express for Rs 850 cr

2008
- Indian Hotels Company Ltd has informed that Mr. Anil P Goel, presently the Chief Financial
Officer of the Company and Mr. Abhijit Mukerji, presently the Chief Operating Officer - Luxury
SBU India, have been appointed as Whole-Time Directors of the Company with immediate
effect.
- Indian Hotels Company Ltd has appointed Ms. Anu Aga and Mr. Nadir Godrej as Additional
Independent Directors of the Company with immediate effect.
-The company has issued rights in the ratio of 1:5 at a premium of Rs. 69/-Per Share.
-Dun & Bradstreet - American Express Corporate Awards 2007 - India's Top 500 Companies
2007 - in the "Hotels" category - The Indian Hotels Company Ltd.

-Indian Hotels launches the Gateway Hotel Chain

2009
-Apart from featuring in the Guardian Newspaper's Top 10, the Bombay Brasserie has also been
awarded during the British Curry Awards 2009. The Bombay Brasserie got the most coveted
award of the night as the BEST RESTAURANT in London.

-Jiva Spa is nominated for the award of ‘Best Spa Treatment – Ventoz’ Asia Spa India Awards
held on 8th April 2009 held at Delhi

2010
-Taj Hotels Resorts and Palaces is proud to receive 'Gallup Great Workplace Award 2010'. The
Gallup Great Workplace Award was created to recognize excellent companies for their
extraordinary ability to create an engaged workplace culture.

-Taj Hotels Resorts & Palaces wins Gallup Great Workplace Award 2010 - Among 25
distinguished organizations that will receive the 2010 Gallup Great Workplace Award at a gala
during the Gallup Summit 2010, April 27-29 to be held at Omaha, Nebraska, US.

2011
-Mr. Beejal Desai has been appointed as the Vice President - Legal & Company Secretary of the
Company.

25 | P a g e
-Mr. Mehemosh S. Kapadia has been appointed as an Executive Director - Corporate Affairs of
the Company.

2012
-Shares of Tata Group owned Indian Hotels Company tanked over 5 per cent on Bombay Stock
Exchange after the company made higher-than-expected USD 1.86 billion offer to acquire the
US-based international luxury hotels operator Orient Express.

-Tata Group-led Indian Hotels Company Ltd (IHCL) has made an unsolicited bid of USD 1.42
billion for Orient-Express Hotels, a US-based luxury hotels group.

2013
-The Delhi Development Authority (DDA) has renewed the lease of Taj Palace Hotel for another
25 years

-The Taj Mahal Hotel, New Delhi has been awarded the 2013 certificate of Excellence by
Tripadvisor

-Taj Falaknuma Palace, Hyderabad won 2nd place in the 'Best Overseas Holiday Hotels in Asia
and India' category at the Conde Nast Traveller UK Readers' Travel Awards 2013. It also ranked
37th on the list of the 'World's Top 100 Hotel

-Taj Hotels Resorts & Palaces won the award for the Best Hotel Chain in India at the UK
Business Traveller Awards 2013.

2014
-The Taj Mahal Palace, Mumbai was named the Best Overseas Business Hotel with a score of 91
at the Conde Nast Traveller UK Readers' Travel Awards 2014.

-Taj Falaknuma Palace, Hyderabad ranked 5th on the list of World's Best Hotels in Asia & India
with a score of 89.72 at the Conde Nast Traveller UK Readers' Travel Awards 2014

-Rambagh Palace, Jaipur ranked 11th on the list of World's Best Hotels in Asia & India with a
score of 84.11 at the Conde Nast Traveller UK Readers' Travel Awards 2014.

-Souk at The Taj Mahal Palace, Mumbai earned the Wine Spectator Award 2014

-Taj Mahal Hotel, Delhi's iconic restaurant Varq has been voted 36th on the San Pellegrino's list
of 50 Best Restaurants in Asia.

-Indian Hotels Company has announced Rights in the Ratio of 9:40

2015
26 | P a g e
-Thai Pavilion at Vivanta by Taj - President, Mumbai, was declared the best Fine Dining Thai
Cuisine Restaurant in South Mumbai at the Times Food & Nightlife Awards 2015

-Konkan Cafe at Vivanta by Taj - President, Mumbai, was declared the best Casual Dining South
Indian and Coastal Restaurant in South Mumbai at the Times Food & Nightlife Awards 2015

-Trattoria at Vivanta by Taj - President, Mumbai, was declared the Best Casual Dining 24-hr
restaurant as well as Best Italian Restaurant in South Mumbai at the Times Food & Nightlife
Awards 2015

2017
-Taj Hotels Takes the Lead at the First Edition of Top Restaurant Awards by Conde Nast
Traveller.

-Taj Hotels Palaces Resorts Safaris, A Firm Favourite at the Conde Nast Traveller Readers'
Travel Awards 2017.

-Taj Hotels Palaces Resorts Safaris Launches Taj Wedding Studio.

-Taj Hotels Lead Conde Nast Traveler US Readers’ Choice Awards; Only Hotel Group with
Three Hotels in 50 World’s Best.

CLUSTER MAPPING FOR IHCL

27 | P a g e
The above given cluster of the function of the IHCL and other hospitality companies in general which
provides us with an “at glance” idea of the function chain and the interaction of the industry with other
sectors of economy.
For better understanding the hospitality industry is divided into four parts which are the
Hotels(accomodation), Attraction and Activities (theme parks, casinos and sport centres), Restaurants(food
and beverages)and Airlines and Cruise ships. All of these are supported through different ways like the
general public, through agents and tour operators and through institutions like companies and colleges. The
chain of functioning is started from the supplier these suppliers are what provide resources to the hotel
industry and aid there functioning.

The Suppliers
The major supplier in term of volume and frequency of materials is that of food and beverages these are one
of if not the most important supply and the quality of these products is what drives most of the business in
the hotel. Hence great care and importance should be given to select the suppliers to provide quality and
satisfaction to the customers.
After the food and beverage supply comes the supply of chemicals and other toiletries which helps to
provide proper hygiene which is a very necessary thing to maintain in a place with huge amount of people
coming in and out every day. These supplies are both for the guest and the housekeeping staff which cleans
the hotels from the rooms to the public areas.
The next supply is that of all the linens and beddings which are in continuous use and wear and tear by the
guests. These are to be kept in proper inventory and needed to be taken care of to minimise waste. These
supplies are one of the most expensive buys for the hotels.
The next supply needed is of cutlery and crockery which are used in the restaurants they are not needed in
frequent use but are sure to be in ready supply, with a healthy inventory in stock.
Next comes the maintenance of the infrastructure and machinery in the hotel which is done by skilled
professional to provide long lasting operations of the machines and proper flow of operations. These
maintenance task include maintenance of kitchen equipment to that facilities used by the guest in there room
to laundry machines. All of these things are used daily and to a great extent and thus there proper working
should be ensured.

Public relation and market research services

Public relations in the hotel industry means cultivating meaningful relationships with movers and shakers
who can influence purchasing decisions by helping tell your brand’s story and selling the unique experience
you offer. PR specialists can not only promote your brand, they can also be a key figure in crisis
communications should any negative press come up around your hotel, helping to overcome challenges.
With demand changing in the hotel industry due to the rise of new ways of traveling such as the sharing
economy – namely Airbnb – the hotel industry has become more and more competitive. PR can be a key
form of communication in order to propel your brand beyond the competition. 
A hotel needs public relations to boost business in low season and to be successful year-round. Having a
good PR strategy could make the difference in catapulting you ahead of the competition through media
coverage, which creates a buzz for your brand through focused messaging for your target audience.
Furthermore, through increased communication, you can build relationships with potential or regular guests
and help influence their purchasing decisions by having a planned set of targeted messages throughout the
buyer journey. 
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Conducting market research is important, especially when making decisions in the hospitality
industry. Market research involves analyzing data, evaluating possible options, and understanding what
trends are happening in an industry. Research is also valuable when seeking capital or investors to purchase
a business or expand your current operations.
Let's imagine you've become aware of a hotel for sale in your area and are interested in purchasing it.
However, you are not sure if there is enough business to keep the hotel full and ensure that you earn a profit.
After doing some research of your own and reviewing other available research, you decide to pursue
purchasing the hotel. You must find an investor to help you raise enough funds to buy the property. The
market research helps you build a solid case for potential investors and find someone who is willing to
partner with you in getting the hotel. Some important functions which are enabled by market research are as
follows.

To Create Better Marketing Campaigns

When you understand your target market, you’ll understand which marketing channels can best reach them.
If your business is a cruise line for seniors, for instance, you wouldn’t have much luck trying to promote
your brand on platforms with young userbases, such as Instagram and TikTok.

To Assure Product Feasibility

Businesses cannot expect to secure loyal customers without understanding what these customers want.
In 1992, a poor understanding of market needs led to the initial failure of Disneyland Paris, which was
Disney’s European  theme park project. After assuming that a theme park in Europe would be as successful
as their American projects, Disney forgot to take into account the cultural differences between America and
Europe. It also failed to understand create an accurate profile of its targeted customers.

To Understand Brand Reputation

Established businesses can also use market research to determine how their customers perceive them.
By gathering data on customer satisfaction and reviews, businesses can determine which aspects of their
establishment need changing, and what they can do to improve their customers’ experiences. Businesses can
gather this data by conducting customer satisfaction surveys or compiling online reviews.

IHCL PRODUCT PORFOLIO

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Taj, India’s Strongest Brand across industries and sectors*, is an iconic hospitality brand from the Indian
Hotels Company Limited. The brand continues to be one of the most revered and loved hospitality brands
with a legacy of over 116 years of impeccable service and genuine warmth. Embodying the spirit of
“Tajness”, authentic original palaces, landmark hotels, idyllic resorts and natural safari lodges interpret the
tradition of hospitality in a refreshingly modern way to create unique experiences and lifelong memories.
Forming a major part of IHCL, Taj Hotels are renowned worldwide for their extraordinary commitment
towards providing luxury hospitality. Each of the luxury hotels sets an example of opulence—born from
flavourful local culture and world-class amenities. At Taj, guests from around the world find comfort in the
stately, tastefully designed rooms, offering unhindered views of the destination, while providing convenient
in-room facilities.
Another discerning aspect of Taj is their ability to provide a culinary experience unlike any other. Many of
our award-winning restaurants serve both, as well as the essentially global cuisine; providing guests with a
masterfully balanced taste.
Fulfilling the purpose of a guest’s visit takes top priority at Taj. Be it a significant meeting, a crucial
conference, a much-awaited get-together, or an affair of a lifetime—a wedding; at Taj, occasions turn into
memories. Plush banquets adapt seamlessly to the nature of the event, while functioning with incredible
efficiency and poise, displaying Taj’s spirit of hospitality at its peak.

Taj Palaces
One of the very few things that represent the bygone, royal era are the magnificent structures in their regal
stance—the Grand Indian Palaces. Taj, makes accessible the great Indian culture and heritage with the
restoration of these majestic structures, thus turning them into perhaps the most authentic, and intimate
experience of Indian royalty. Taj Palaces are present across destinations in India, and bear history dating
back as far as 1700 AD.
Residing at Taj Palaces is an experience unlike any other. The arrival of guests is marked by a unique
ceremonial welcome. The sheer magnificence of the architecture of these palaces transforms even the most
casual stroll into an experience encompassing eras. Kingly suites offering unhindered views of the palace
exteriors are adorned with antiques, and restored masterfully to suit the needs of the modern traveller. For
special occasions, these suites can be completely personalised to the guest’s preferences.
Dining at Taj Palaces is more than just a special culinary experience, it is a journey through time.
Encompassing restaurants that serve dishes made from recipes dating back to the times of the Nawabs,
Rajas, and their royal kitchens; to authentic European cuisine reminiscent of the many influences India has
had upon her.
Taj Resorts
Resorts ensure that a holiday is spent in relaxation, tranquility, and well-being. Taj’s luxury resorts around
the world are uniquely designed, bearing in mind the destination—its ecology, climatic conditions, and
culture heritage. The architecture brings out the essence of the destination to provide an intimately enriching
holiday experience. From villas offering mesmerising sea views, to traditional aromatic spa therapies, and
suites attached with personal plunge pools; Taj Resorts redefine the meaning and experience of a relaxing
holiday.
The signature Jiva Spa is a temple of physical, mental, and spiritual well-being. Relieving guests from stress
caused due to demanding lifestyles through one of the many ancient healing techniques. From body scrubs
and wraps, to Ayurveda therapies, yoga, meditation, and beauty treatments; Jiva Spa offers authentic
therapies that enrich the body, mind, and soul, thus revitalising guests with a positive energy.

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Luxury accommodation is just the beginning of the delightfully relaxing feeling that Taj Resorts stimulates
in its guests. Presidential villas, garden-view suites, rooms with a sunset view and private pools make for a
stay that is refreshing.

Taj Safaris
India has one of the world’s most biodiverse regions, and is home to a great diversity of wildlife in its four
hotspots—the Western Ghats, the Himalayas, the Indo-Burma region, and the Sundaland, along with
wildlife in protected habitats. As a homage to this natural gift, Taj’s Luxury Safaris Lodges are designed to
provide guests, enthusiasts, or simply seekers of nature with an enthralling experience of the wild. Located
across India and Nepal, these lodges are situated in National Parks or at close proximity to them. The
philosophy of Taj Safaris is to provide a thrilling wildlife experience while maintaining sustainability by
operating on a lighter carbon footprint. Uplifting the local community while doing so, remains a key aspect
of the philosophy.
Highly trained naturalists and local experts guide guests on a journey of trails, animal-spotting, and other
similar adventures. Breakfast is served in the woods in a different location every day, while other unique
fine-dining experiences with farm-to-fork concepts make this holiday unforgettable.

IHCL Selqtions

Spanning signature city hotels and extraordinary leisure resorts, SeleQtions provides distinct experiences for
travellers who seek unforgettable stories. Celebrating a legacy of time, a sense of place or a specific theme
these unique properties bring to life experiences through their location, décor, service, cuisine and more.
Feel the solitude of great open spaces, get a whiff of age old traditions or re-discover a metropolis you
thought you knew everything about; a SeleQtions stay is as exclusive and personal as it gets.

Pet Friendly Hotels

Discover pawfect vacations! All your family members, and we mean pets too, are in for a treat at
SeleQtions. Believe us when we say leave no one behind on a family vacation with in-room amenities for
you and your furry baby
Slices In Time
Our top-of-the-line SeleQtions holidays present you with the golden opportunity to travel in time. If you
like your vacations soaked in nostalgia and romance, we give wings to your fantasies at our most classic
heritage hotels. These beacons of hospitality in their respective cities promise grandeur, period
architecture, vintage decor and a wealth of stories. Whether it’s a 1000-year old traditional Indian
heritage, Thirties-style European-inspired glamour or the free spirit of the Swinging Seventies, you can
choose to escape to an era that attracts you. Our cultural curators at each hotel have hand-picked,
authentic retro experiences that gently transport you to another world. Feel like royalty as you glide across
grand staircases, stay in imperial suites, feast on princely meals in jaw-droppingly grand dining rooms and
delight in stories of valour and adventure. From the historical significance of a simple hotel suite to the
centuries-old culture that seeps into every moment of your stay, these experiences are designed for
romantics and storytellers. Like old wine, they get more flavourful and richer with age, offering you legend,
nostalgia and timeless allure, all in a single vacation.

Sense of Place
Some hotels are so integrated in their landscapes that they define each other and also tell a compelling
story. Our unique destination-led SeleQtions holidays get you the insider experience of the city/location,
curated by the best guides in the business. Often, the setting of the hotel is magical, placing you right in the
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midst of the action. You can feel the call of the wild while ensconced in luxury at a jungle lodge or smell the
tea/coffee as you wake up in a colonial-era suite in the midst of a farm estate. At other times, the hotel has
a history – cultural, political and social – that aligns perfectly with the city. This gives our Concierge an
inherent knowledge of the city's secrets, far beyond tourist traps and Internet searches. Whether it’s the
local artwork displayed in the hotel's public spaces or the architecture, design elements or regional home-
style cuisine which bring a whiff of the city streets right into your room, these destination-led experiences
are part of a world-wide trend for travellers looking for an expansive and meaningful holiday, one that
adds an extra dimension to leisure and travel.

Vivanta
A smart collective of business and leisure hotels, Vivanta celebrates the uniqueness in one’s individuality.
Disruptive in their purpose and persona, these destinations hold inside them many hints, of surprises that
make one feel special.
24X7 check-in/check-out
Now enjoy the convenience of checking into or out of our Vivanta hotels at any time 24X7 and personalize
your stay just the way you like it.
Wellness In Your Room
Be energised and refreshed with amenities such as detox water, fruits, acupressure boards, and Yoga mats,
all placed in the comfort of your room when you stay at a Vivanta.

TajSATS
A collaborative venture of IHCL and SATS (formerly Singapore Airport Terminal Services), TajSATS
combines expertise and warmth that delights customers through every interaction. Its state-of-the-art
kitchens ensure hygienic food production and handling, while meticulously serving an assortment of
cuisines. Living by its quality and delivery commitment, TajSATS is India’s leading airline caterer and a
leading institutional player.

Jiva
Number of spas - 43
Brand style - Ancient Indian Wellness
Target audience - Wellness seekers
Nature of arrangements - Owned

Khazana
Number of boutiques - 15
Locations - 10
Brand style - Indian luxury
Target audience - Global traveller
Nature of arrangements - Multi-product retail outlet

Salon
Number of salons - 34
Brand style - Beauty with Care
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Target audience - Discerning luxury
Nature of arrangements -Owned

Food & Beverages

IHCL has some of the most distinguished fine-dining and multi-cuisine restaurants and lounge bars in its
portfolio. With more than 380 restaurants and bars around the world, it offers a multitude of speciality
cuisines flavoured with tradition and innovation through its signature brands such as Bombay Brasserie,
Golden Dragon, Wasabi, Thai Pavilion and House of Ming.

EIH Indian Hotels Sapphire Foods Chalet Hotels Westlife Dev

Mar '22 Mar '22 Mar '22 Mar '22 Mar '22

Sales Turnover 860.86 2,003.34 1,398.15 480.80 0.45

Other Income 49.90 149.08 34.09 20.67 --
Total Income 910.76 2,152.42 1,432.25 501.47 0.45
Total Expenses 880.88 1,615.07 1,160.56 383.61 0.87
Operating Profit -20.02 388.27 237.59 97.19 -0.42
Profit On Sale Of Assets -- -- -- -- --
Profit On Sale Of Investments -- -- -- -- --
Gain/Loss On Foreign Exchange -- -- -- -- --
VRS Adjustment -- -- -- -- --
Other Extraordinary Income/Expenses -- -- -- -- --
Total Extraordinary Income/Expenses -14.18 -56.93 -- -11.00 --
Tax On Extraordinary Items -- -- -- -- --
Net Extra Ordinary Income/Expenses -- -- -- -- --
Gross Profit 29.88 537.35 271.68 117.86 -0.42
Interest 33.79 304.50 66.73 139.95 --
PBDT -18.09 175.92 204.96 -33.10 -0.42
Depreciation 114.85 203.03 180.15 109.09 --
Depreciation On Revaluation Of Assets -- -- -- -- --
PBT -132.94 -27.11 24.81 -142.19 -0.42
Tax -14.73 7.34 -- -72.04 --
Net Profit -118.21 -34.45 24.81 -70.15 -0.42
Prior Years Income/Expenses -- -- -- -- --
Depreciation for Previous Years Written
-- -- -- -- --
Back/ Provided
Dividend -- -- -- -- --
Dividend Tax -- -- -- -- --
Dividend (%) -- -- -- -- --
Earnings Per Share -- -- 3.90 -- --
Book Value -- -- -- -- --
Equity 125.07 142.04 63.54 205.02 31.19
Reserves 2,683.16 7,957.73 978.09 1,164.36 454.47
Face Value 2.00 1.00 10.00 10.00 2.00

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 IHCL sales in 2022 compared to domestic competitors

Premium Indian hotel brand Taj Hotels has emerged as the strongest brand in the global hotels industry in
2021. As per the latest report by the UK-based brand valuation consultancy Brand Finance, Taj beat some of
the most coveted names in the industry like Hilton, Shangri-La and Marroitt to top the chart of strongest
brands this year.
Taj, a brand owned by Mumbai-headquartered Indian Hotels Company, scored 89.3 out of 100, USA’s
Premier Inn followed with a score of 88.9. Two hotel brands from Spain – Melia and NH Hotel Group –
grabbed the third and fourth spot, while Hong Kong-headquartered Shangri-La ranked fifth.
Brand Finance’s evaluation, based on factors such as marketing investment, customer familiarity, staff
satisfaction, and corporate reputation, determines the relative strength of a brand. According to these criteria,
Taj (with a brand value of $296 million or Rs 2,200 crore) is the world’s strongest hotel brand, with a
corresponding AAA brand strength rating.
“Taj’s successful implementation of its 5-year plan, which focuses on selling non-core assets, becoming less
ownership driven and reducing dependence on the luxury space, followed by speedy adoption of its new
2020 strategy, which provides a transformative framework to help the brand overcome the challenge of the
pandemic, has contributed to the brand’s re-entrance into the ranking for the first time since 2016 (38th
spot),” the report noted.

“Taj being rated as the World’s Strongest Hotel

Brand is a testament to the unwavering trust our
guests have consistently placed in us and the
warmth and sincere care our employees have
embodied day-after-day. We will continue our
endeavor to elevate the world class experiences of
luxury hospitality and deliver the magic of
Tajness to all our stakeholders”, said Puneet
Chhatwal, managing director & CEO of Indian
Hotels Company.
On the valuation front, the top five positions were
captured by leading hotel group’s from the US.
Virginia-based Hilton topped the chart with a
valuation of $7.61 billion (Rs 56,300 crore),
followed by California-based Hyatt ($ 4.7 billion
or Rs 34,800 crore), Holiday Inn from Denham
($3.8 billion or Rs 28,100 crore), Hilton’s sister
brand Hampton at the fourth spot ($2.9 billion or Rs 21,200 crore) and Washington DC-based Marriott ($2.4
billion, Rs 17,800 crore).

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While Hilton continued to hold on to its position at the top, it lost a massive 30 per cent of its valuation in
the last one year. Among the top 10 hotels in the world, its loss was the second highest, down from $10.83
billion or Rs 80,170 crore in 2020. Marriott, at the fifth spot, lost the most – $3.6 billion or Rs 26,800 crore
since last year. It was ranked as the second most valued hotel brand in 2022.
Planning for the millennial Indian Planning for the millennial Indian
They talk about keeping in touch with the needs of the contemporary traveller, even while retaining old
values, and how the pandemic has thrown up a new segment in luxury travel — of the millennial Indian,
with his family, ready to pay higher than before (while still looking for value); and one whose patronage will
be important going forward, even when dollar-paying high-fliers return.
“The domestic leisure market is not going away anywhere,” says Chhatwal, “People have been travelling
with their parents and families, and this behaviour will stay on.” When it comes to luxury experiences, the
Indian traveller is steadily evolving in terms of exposure “and if helped by policy decisions like reducing
taxes on quality wines”, this market will come of age.
Cognisant of this new demand, global luxury hospitality chains such as Six Senses and Raffles as well as the
Indian ITC hotels (with its new brand Mementos) have all launched/signed new hotels — managed
properties offering luxe experiences. While the new Six Senses Fort Barwana near Ranthambore has been
in the news for the super-private wedding of actors Katrina Kaif and Vicky Kaushal, Raffles in Udaipur has
been talked about for experiences customised to the Indian context, including dining that delves not just into
Rajput royal kitchens but “culinary masterpiece(s) made especially for you, with an amalgamation of your
horoscope, individual dosha and health”, according to its website.‘ All competition is good’
Does this competition faze my guests today, both with considerable interests in Rajasthan that seems to be
at the epicentre of the new hospitality tug-o-war? Chhatwal smiles, “You should not be alone at the top”,
and elaborates, “all competition is good in the long run because different brands bring different customer
sets, whose cost of acquisition may otherwise have been too high. This helps us because new customers get
a chance to see your brand”. He proceeds to highlight the Tata legacy: “Just see the iconic properties we
have… Lake Palace, Falaknuma [Hyderabad], 51 Buckingham Gate [in London, where he is staying as we
speak], who can match these?”
As the new India story unfolds, IHCL’s relationship with the Udaipur royal dynasty that owns HRH hotels
(the only chain of palace-hotels in India under private ownership) is significant. “It is not a marriage,
marriages can be complicated, this one is not,” says Singh of the 50-year-old ties between the two legacy
businesses. “Through the pandemic, the Tatas have stood firmly behind us; I only had to pick up the phone
and there was immediate help instead of being told to refer to page xyz of the contract,” he adds. It is a
relationship built on shared values, but as Chhatwal adds drily, “every relationship must have investment
too, both emotional and capital”.
For IHCL, it not only means better access to a pool of premium prestigious properties but also leverage
when it comes to other aristocratic owners who may look up to the Udaipur royals. For HRH, growth and
modernisation with the heft of such a large chain is an obvious advantage. Hospitality insiders have been
talking about IHCL signing on HRH-owned Gorbandh Palace in Jaisalmer recently and Fateh Prakash
Palace in Udaipur last year, two interesting heritage spaces.Unique food experiences also play a big role in
the hoteliering journey forward, says Chhatwal. Singh, meanwhile, assures me that “of course you should
have laal maans while at Lake Palace [a recipe his gourmet father, Arvind Singh Mewar, specialises in] but

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there are other dishes too”. His favourite “hand to my heart” is the unlikely spaghetti Bolognese which he
vouches is as good as in Italy!
100 Taj hotels coming up Chhatwal ponders the “paradox of life” where time has stood still at some places,
as it should, but where modern tastes and needs must be attended to nevertheless. “That is the tightrope you
have been walking everywhere,” I muse, remembering breakfast at the refurbished Machan in Delhi, a
beloved coffee shop, now stripped of its striped carpet and old air. It is lighter, brighter and with options like
a Japanese ‘trail’ menu, Delhi’s pop street dishes like chole bhature , served alongside a scoop of old Bull’s
Eye (cake and ice cream dessert, that Delhiites from 1990s are still nostalgic about), and old-style Taj
service.

The mention of Machan brings forth nostalgia from Chhatwal too, who is moved to exclaim, “That is the
reason I became a hotelier!” He tells us how he would sit at the coffee shop watching people for hours as a
young hospitality student — over the single cup of coffee he could afford then. Now, however, his eyes are
firmly on the future. Chhatwal, who played cricket in his younger days, is looking forward to a fresh
century: 100 Taj hotels in the next three years (the tally is 85 currently), a feat that would make it one of the
top three luxury hotel chains in the world.

Man-power and Organisational structure in IHCL

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Financial
The financial department’s role is to record financial transactions, prepare and interpret financial statements,
and deal with cost accounting and cost control.

Front Office
The front office (room management) department handles customer service including front desk service,
reservation, laundry, concierge, telephone, and housekeeping service. A hotel’s front office is where guests
are greeted when they arrive, where they get registered and assigned to a room, and where they check out.
It’s almost the most important department as it often offers contact with customers.

Human Resources
The human resources department is given the responsibility to handle employee recruitment, arrange staff
training, make promotion and disciplinary decisions, and check staff attendance.

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Sales
The responsibility for the sales department is to sell the hotel facilities and services to individuals and
groups. They sell rooms, food, beverage or special services such as massage and laundry to potential
customers through advertising or direct contacts.

Workforce
There are two lakh eighty thousand people working under the IHCL in 2022, these people include the staff
from all over the world from one hundred and ninety six hotels across the world. This company has taken an
initiative to enforce 1:1 sex ratio in there workforce by 2024 and is looking to employee 25,000 more
women in there hotels by 2025 to do so. The average salary in this company is 22lakhs rupees, but we can
see a huge gap in the range from lower to the upper level. The company also focuses on supporting local
workers in the places where there hotels are situated one such example is that the IHCL provided training to
women in weaving clothes to support self-employment in the reason of Banaras.

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Importance of PESTEL Analysis in Strategy Management & Planning Process
Strategy planning process often requires five steps –

1. Choosing the vision, mission and the reason of existence for Palaces Taj.

2. Analyze the Palaces Taj external competitive environment to identify opportunities and threats. PESTEL
analysis is critical to understand the external threats & opportunities arising because of the macro
environment developments. Changes in macro environment forces can impact the Porter Five Forces &
industry attractiveness. Thus significantly impacting the ability of Palaces Taj to build sustainable
competitive advantage

3. Analyze Strengths and Weaknesses of Palaces Taj.

4. Developing strategies that can capitalize on Palaces Taj strengths and help mitigate weaknesses and
impact of threats of macro-environment.

5. Execution of the strategy and building a feedback loop, using which managers at Palaces Taj can fine tune
processes and strategies going forward.

The Industrial Organization (I/O) approach advocates that for sustainable competitive advantage external
factors are as important as internal factors of the Palaces Taj. According to Michael Porter organizational
performance is to large extend determined by various industry forces.

What are Political Factors in PESTEL / PEST Analysis

The political factors play a huge role in not only investment decision by transnational corporations but also
by companies such as – Palaces Taj. Political environment and other factors not only impact the cost of
doing business but also long term sustainability. Some of the political factors are – governance system,
democracy & institutions, military coup chances, probability of armed conflict, law and order in market etc.

Political Factors that Impact Taj Hotels, Resorts and Palaces

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- Unrest within the Country & Chances of Civil Unrest – We don’t think that Palaces Taj business
operations are facing any dangers from any kind of civil unrest or internal militant operations in the country.
- Regulatory Practices - The regulatory practices are streamlined with global norms which have helped the
country to improve its “ease of doing business” ranking.
- Segregation of Political Responsibilities between Different Government Agencies – There are numerous
government agencies which reduces the risk of overwhelming pressure by one agency. But on the flip side it
does increases both time and cost of doing business and getting certifications and clearances.
- Size of Government Budgets – both Local Governments and National Government – The government at
both national level and local levels are running deficit budgets which is boosting growth in the short term
but may lead to increase in inflation over medium term. The bond rating of national government is
investment grade.
- Democracy & Other Democratic Institutions – According to Rohit Deshpande, Mona Sinha the democratic
institutions are needed to be strengthened further so that business such as Palaces Taj can thrive in an open,
transparent and stable political environment. Strengthening of democratic institution will foster greater
transparency and reduce the level of corruption in the country.
- Role of Non-Government Organization, Civil Society & Protest Groups – The country has a vibrant civil
society community and Palaces Taj should build bridges with them and seek out areas of co-operations.
Civil society groups are influential not only in policy making but also in building a society wide narrative.
- Threat of Terrorist Attacks – We believe in the world of post 9/11, corporations such as Palaces Taj have
to live with operating under the shadow of a terrorist attack. The prudent policy should be to take insurance
and other types of hedging instruments to mitigate the losses occurring because of the terrorist attacks.
- Judiciary Independence – In the matter of commercial and business decisions, judiciary of the country is
independent to a large extent. Business do face problem when the conflict is between public interest and
proprietary technology similar to ruling in South Africa where government & judiciary allowed generic
AIDS drug irrespective of patents of global companies.

What are Economic Factors in PESTEL / PEST Analysis

Economic factors of a country and region have a direct impact on the potential attractiveness of a given
market. Some of the economic factors that Palaces Taj should evaluate both in the present market and one in
which it wants to enter are – inflation rate, GDP growth rate, disposable income level etc.

Economic Factors that Impact Taj Hotels, Resorts and Palaces

- Inequality Index / Ranking on Gini Index – Gini Index and level of inequality are a great barometer for
harmony and development of a society. If there is huge income inequality in the society then the likelihood
of conflict and crime increases. It can lead to uncertainty and suppression of consumption in both short term
and long term.
- Price Fluctuations in both Local and International Markets – Compare to the level of quantitative easing in
last decade the prices of Palaces Taj products and prices of overall products have remained sticky in the US
market. Palaces Taj should consider the fact that at deficit levels of United States in an emerging economy
can lead to rampant inflation and serious risks of currency depreciation.

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- Fiscal and Monetary Policies – The Republican government tax break culture has increased the deficit and
it can lead to fiscal trouble for the economy in coming years.
- Work Force Productivity – Work force productivity in US has grown by 25-30 % in last two decades even
though the salaries are not reflecting those gains. It can enable Palaces Taj to hire skilled workforce at
competitive salaries.
- Level of Household Income and Savings Rate – Increasing consumption and stagnant household income in
United States had led to credit binge consumption. It has decimated the culture of savings as people don’t
have enough to save. Palaces Taj needs to be careful about building marketing strategy that is dependent on
“Purchase on Credit” consumer behavior.
- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of forex
risk in – Venezuela, Brazil, and Argentina. Palaces Taj should be careful about the history of forex risk
before entering new market. Many US companies have incurred losses in Mexico in regular forex crisis in
that country.
- GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals growing demand in the
economy. Palaces Taj can leverage this trend by expanding its product range and targeting new customers.
One way to start is by closely mapping the changes in – consumer buying behavior and emerging value
proposition.

What are Social Factors in PESTEL / PEST Analysis

Social factors such as demography trends, power structure in the society, women participation in workforce
etc have immense impact over not only the country's economy but also on workforce talent availability and
level of consumer demand.

Social Factors that Impact- Taj Hotels, Resorts and Palaces

- Attitude towards Authority – Various cultures in different part of the world have different attitude towards
authority. In Asia authority is respected while in west it is something to rebel against. Palaces Taj should
carefully analyze the attitude towards authority before launching a marketing campaign for its products and
services.
- Birth Rate – Birth rate is also a good indicator of future demand. USA has avoided the European Union
style stagnant economy on the back of slightly higher birth rate and higher level of immigration.
- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society often
result higher consumer activism and pressure from non-governmental organizations, & pressure groups.
- Education Level in Society – Education level of the society impacts both the quality of jobs and level of
income. High level of education often results in better jobs, higher income and higher spending on complex
and aspirational products.
- Attitude towards Leisure – Palaces Taj should conduct an ethnographic research to understand both
attitude towards leisure activities and choice of leisure activities. Experience economy is one of the fastest
growing segments both among millennials and among baby-boomers.

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- Types of Immigration & Attitude towards Immigrants – Given the latest developments such as Brexit and
Immigrant detention on Southern border of United States. Attitude towards immigration has come under
sharp focus. Palaces Taj should have capabilities to navigate under this hyper sensitive environment.
- Demographic Trend – The demographic trend is one of the key factors in demand forecasting of an
economy. For example as the population of USA and EU is growing old the demand for products mostly
catering to this segment will grow. Palaces Taj should consider demographic trends before new product
developments and integrate features that cater to this segment. As population is ageing it will require less
tech intensive products.
- Immigration Policies and Level of Immigration – What are the immigration policies of the country, what is
the level of immigration, and in which sectors immigration is encouraged. This will enable the Palaces Taj
to determine – if required can it hire talent globally to work in that particular market.

What are Technological Factors in PESTEL / PEST Analysis

Technology is fast disrupting business models across various industries. Some of the technology trends that
are impacting the macro environment are – developments in artificial intelligence, use of machine learning
and big data analytics to predict consumer behavior, growing importance of platforms over service providers
etc.

Technological Factors that Impact Taj Hotels, Resorts and Palaces

- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Palaces Taj business
model. It should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new
market.
- Preparedness for 5G Related Infrastructure – Countries across the world are trying to prepare themselves to
install 5G infrastructure. Palaces Taj should assess to what level the local market is prepared to roll out the
5G connectivity.
- Intellectual Property Rights and Patents Protection – Before entering new market Palaces Taj should focus
on the environment for intellectual property rights.
- Cost of Production and Trends – Palaces Taj should assess - What are the cost of production trends in the
economy and level of automatization. We at EMBA Pro believe that in near future the sector most disrupted
by technological innovation is manufacturing and production.
- Mobile Phone & Internet Penetration – Palaces Taj should assess the level of internet and mobile phone
penetration in the country as it will it in building a requisite business model based on local needs and
realities.
- Empowerment of Supply Chain Partners – Palaces Taj should analyze areas where technology can
empower supply chain partners. This can help Palaces Taj to bring in more transparency and make supply
chain more flexible.
- Likelihood of Technology Disruption – If the country is hub of technology companies then there is a high
chance of technology disruption among various industries. Palaces Taj has to assess whether it can live with
the fast pace of technology disruption in its industry.

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- Research and Development Investment Levels – If there is high level of investment in technology
development sector then there are high chances of building a self sustaining ecosystem that drives
innovation. Palaces Taj can leverage such a situation to hire the best people in business.

What are Environmental Factors in PESTEL / PEST Analysis

Environmental factors are fast gaining traction not only among consumers but also among regulators and
policy makers. Climate change and changing ecosystem is leading to the extinction of more than 20% of
species on the planet by the turn of this century.

Environmental Factors that Impact Taj Hotels, Resorts and Palaces

- Level of Consumer Activism Regarding Environmental Concerns – Palaces Taj needs to know the level of
consumer activism regarding environmental concerns is. It will help Palaces Taj in both developing
environmentally friendly products and thwarting PR stumble blocks.
- Influence and Effectiveness of Environmental Agencies – The role of environment standards enforcement
agencies is critical in safeguarding norms. But often in emerging countries these agencies delay the process
as a tactic to extract bribes. Palaces Taj should be aware of presence of such practices in a country.
- Per Capita and National Carbon Emission – What is the per capita carbon emission of the country and what
is the overall level of carbon emissions of the country. This will help in better predicting the environment
policy of the country.
- Paris Climate Agreement and Commitment of National Government under the Agreement – What are the
commitments of the country under the Paris Agreement and what is the general level of consensus regarding
Paris Climate Agreement in the country. For example Trump not standing by US commitments created an
environment of uncertainty.
- Environmental Standards and Regulations both at National & Local Levels – Often the environment policy
at national and local level can be different. This can help Palaces Taj in numerous decisions such as plant
location, product development, and pricing strategy.
- Waste Management – What is the policy of waste management in the prospective market and how Palaces
Taj can adhere to the waste management requirements in that market.
- Influence of Climate Change – How climate change will impact Palaces Taj business model and supply
chain. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from one part of
the world are delayed because of sudden climate shift.

What are Legal Factors in PESTEL / PEST Analysis

Legal factors often govern – conditions to enter the market, laws to operate in the market, and procedure to
resolve any dispute with other stakeholders. If the legal system is not strong then Palaces Taj can face
numerous challenges – from consumer petitions to shakedowns from authorities.

Legal Factors that Impact Taj Hotels, Resorts and Palaces

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- Employment Laws – What are the employment laws in the country and are they consistent with the
business model of Palaces Taj. For example Uber employment system is not consistent with French laws
and it is facing challenges in the country.
- Data Protection Laws – Palaces Taj needs to assess what are the data laws in the country and what it needs
to do to comply with them. For example most of EU countries now want the EU citizen data to be saved in
EU countries only.
- Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t mean much if they
can’t be enforced in a timely manner. Palaces Taj should do a primary research regarding how much time it
often takes to conclude a court case in the country given the sort of legal challenges Palaces Taj can face.
- Securities Law – What are the securities law in the country and what are the conditions to list the company
on national or regional stock exchange.
- Business Laws – Before entering into new market – Palaces Taj has to assess what are the business laws
and how they are different from home market.
- Intellectual Property Rights Protection – Palaces Taj should assess the level of protection that intellectual
property rights get under the legal system of the country.
- Transparency in Judiciary System & Processes – Transparency is essential for fair and consistent decision
making. If the process is consistent and transparent then Palaces Taj can plan ahead with greater conviction.

SWOT ANALYSIS OF IHCL

Strengths in the SWOT analysis of Taj Hotels

Strengths are defined as what each business does best in its gamut of operations which can give it an upper
hand over its competitors. The following are the strengths of Taj Hotels & Resorts :

 Catering to multiple segments: The Taj Group of Hotels has something that caters to all
segment. While the TajVivanta caters to the upper upscale segment, Taj the luxury segment,
Gateway the upscale and Ginger the economy segment. This ensures that irrespective of
income status all customers choose a Taj Hotel for their stay.
 Business Philosophy: The business philosophy of the Taj has primarily based on the premise
that not everyone is the same. Thus through clearly segmenting the market the hotel has been
able to clearly differentiate their offering not just to cater to different income segments but also
to different cultures.
 Amenities: The Taj Group of Hotels has a host of facilities in all their hotels. Their hotels
have a host of facilities for guests like rooms, spas, jacuzzi, multi-cuisine restaurants,
swimming pools, pubs, resto cafes, fitness centers and banquet hall. Some of the their hotels
also have mega convention centers with facilities to host conferences for a huge gathering.
 Customer Loyalty programs: Quite unlike other hotel chains who look at loyalty programs
in the Taj Group the customer is given a chance to earn points from all stays in all properties
of the group. The key feature of their loyalty program is the automatic upgrade to a higher
class hotel within the group. For example, a customer who has been frequently staying in a
Ginger Hotel may get an upgrade to the TajVivanta or Taj if they have sufficient loyalty
points.

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  Service Differentiation: The Taj research team has identified around 155 touch point of
customer service from the moment a customer enters into their property till the time they leave
from there where there is a face to face interaction. The hotel chain has ensured that in each of
these points there is a clear service difference.
 Focus on the business class: The hotel chain realized the scope for growth in business class
travel and thus opened Taj Residency a business class hotel. The hotel chain also moved out to
smaller towns and cities and this expansion has helped to increase the customer base of the
business.

Weaknesses in the SWOT analysis of Taj Hotels

Some of the key weaknesses of  Taj Group of Hotels are:

 Customer Relationships: Hotels today need to be on their toes in terms of customer

relationship management. The key to success today is a compilation of information of
customers which enables them to understand them better and give personalized services. This
is proving to be extremely costly for Taj.
 Unequal growth across segments: While the economy and upper upscale segment were
registering good growth, the luxury segment was still lagging. However, the maintenance and
upkeep costs of the luxury hotels are relatively higher and the returns low. The hotel has been
pumping money from their medium segments for the upkeep of their luxury hotels.
 The high cost of maintenance: The maintenance costs of hotels are growing and with a
network of almost 100 hotels across India and other properties in countries like Bhutan,
Malaysia, Maldives, Nepal, South Africa, Sri Lanka, UAE, UK, USA, and Zambia the cost of
maintenance is becoming unaffordable.

Opportunities in the SWOT analysis of Taj Hotels

 Growth in smaller towns: The Taj Group of Hotels is an established player in the Indian
market and the hotel chain is expanding into smaller towns and cities a task which is
impossible for the multinational hoteliers.

Threats in the SWOT analysis of Taj Hotels

 Competition: The main competitors of Taj Group of Hotels are  Oberoi, Sheraton, Radisson,
Hilton, Wyndham Worldwide, and Intercontinental Hotels.

Taj Mahal Palace Hotel, the symbol of Indian Hospitality industry was opened on 16th December 1903, and
is considered to be Asia' largest hotel founded by Mr. Jamsetji Nusserwanji, the founder of Tata Group. The
interesting story leading to the formation of this iconic brand is that Mr. Jamsetji was once denied entry at
the Watson's Hotel in Mumbai, as non-white Indians were not allowed to enter there at the time of British
government which inspired him to create a master piece of his own.

PORTER FIVE FORCES THEORIES

The Indian Hotels Company Limited (IHCL) and its subsidiaries are known as Taj Hotels Resorts and
Palaces. There are more than 60 hotels in 45 locations in India under the banner of Taj Hotels Resort and
Palaces with an addition of 15 international hotels in Malaysia,

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Faster Procurement, Shorter Lead Time United Kingdom, United States of America, Bhutan, Sri Lanka,
Africa, the Middle East and Australia
Following is a detailed Porter Five Forces Model Analysis of Taj Mahal Palace Hotel:
Competitive Rivalry - High
The level of competition is quite high in the hospitality industry. Huge players in the market are attracted
towards hotel and real estate industry. Although Taj Mahal Palace Hotel holds a great market repute and
heritage if the buyer finds an opportunity to shift to substitute options on cheaper rates they will prefer it as
the normal user would not go for an apple to apple comparison when it comes to services offered (Linda,
n.d.). Main competitors of Taj are Oberoi Hotel, Leela Hotel, and others.
Moreover, by diversifying the customer experience such as restaurants, coffee shops, and casinos many
large operators are attracting customers towards them.

Threat of New Entrants - Moderate

The hospitality industry is never short of new entrants as it depends on travel and tourism and with India
having a rich heritage attracts a lot of tourist from around the world gives a lot of new entrants the
opportunity to enter into the hospitality business (UKEssays, 2015). Having said that level of services varies
from organization to organization and requirement of the end user. For example, people who prefer or in
other words can afford Taj Hotels are the cream of India which is no more than 20% of the population,
remaining would go for other cheaper options available in the market. If new entrants plan efficiently
keeping in view the need of customer they can bring a serious competition in the market.
The new entrants can enter the market by opening smaller hotel and motels, however on the larger scale, the
industry is capital intensive and requires a huge amount of investment to operate on a lager set up as the
upfront investment in buildings, décor, furnishings, infrastructure, and staff are costly.

Bargaining Power of Suppliers - Low

Given Taj Mahal Palace Hotel strategic advantage most significant of which is their brand name they enjoy
a great bargaining power over their suppliers, Taj being a huge name in industry attracts a lot of potential
suppliers who would want to work with them on their terms which gives Taj an extra advantage when they
sit on the negotiation table (Vijaywargiya, 2014). Since most of the suppliers are land owners, developers,
architects and consultants they do not have a significant muscle to change terms and conditions of such a
huge name.

However, suppliers providing sophisticated technology and systems related to property management,
applications, databases, and networks do have a relatively high negotiations power than suppliers of another
category due to their strategic importance and limited number.

Bargaining Power of Buyers - High

Hospitality industry is all about satisfaction of the customer, if the customer is satisfied with the services he
or she would come continue to visit that particular hotel or restaurant for life and one bad experience can
take the customer away for life time which shows that the buyers have a relatively strong bargaining power
in hospitality industry. There is no switching cost for the buyers. Although losing a single customer may not
be a big threat but since India rely heavily on tourism if the groups start exiting from their customer base it
will impact the profits significantly.

Threat of Substitutes -Low

The potential substitutes for the hospitality industry could be other forms of leisure accommodation like
camping facilities, guest houses, or recreational vehicles. None of these compare the services and facilities
that Taj has to offer. They are not up to the mark of five star hotels. Therefore, the threat of substitution is
low for Taj Hotel.

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 VALUE CHAIN ANALYSIS
Due to absence of clear flow of activities, an alternate value-chain for the hotel industry is drawn below.

The Guest Feedback Management system in IHCL helps develop new products and services. It also
measures guest perception of the Brands through inclusion of Brand specific parameters. IHCL
continuously renovates their hotels and introduces various state of the art facilities such as Jiva Spa,
Wildlife Lodges, etc. “Service-Providing” refers to the value addition from the core operations of the
hotel. Direct Enquiries and In-house reservation system are the most profitable channels of marketing due
to the absence of third party commissions.

BCG MODEL

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