ITC NARMADA

DEMAND ASSESSMENT

AMRUTHA P.V. (PG180076)

GEORGE BABY GEORGE (PG180307)

HARISH K.V.S. (PG180322)
SANJANA MEGHWANI (PG180871)
TOURISM IN INDIA
• The expeditiously growing tourism sector is one of the major donor to the countries' economy.
• India blessed with an abundance of diverse topography, culture, climate, natural resources and
ethnic groups.
• It is easily one of the choicest tourist destinations and a paradise for tourists within the country and
worldwide.
• Tourism generated Rs.15.4 lakh crore (US$220 billion) in the year 2017 that is 9.4% of India’s GDP.
The ever increasing fleshing out of tourism has also led to augmentation of the Hospitality Industry
which includes lodging, event planning, restaurants and additional features.

DEMAND ASSESSMENT

Source: World travel and tourism council

HOTELS IN INDIA
• The rich history, culture, heritage and resources aggrandizes the country’s scope of tourism and
hence the scope of the industry.

• The hotel industry is one of the key drivers of the growth of the service sector.

• The number of tourists have been steadily increasing as the years pass by.

• The government is also supporting the sector by allowing 100 percent Foreign Direct Investment
through automatic route.

• The occupancy rate of hotels have witnessed a steady growth from 59.8 % in 2014 to 65.6 in 2017.

• The net income percentage increased from 28.9% to 30.2%.

DEMAND ASSESSMENT

Source: World travel and tourism council

FACTORS

MARKET

LOCATION

EXISTING SCENERIO

DEMAND ASSESSMENT
MACRO LEVEL- INDIA

DEMAND ASSESSMENT
FACTORS
• Demand-Supply change

• F&B and Banquet Revenues

• Net Income

• Market Mix

• Utility & Manpower costs

• Source Markets

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
DEMAND-SUPPLY
CHANGE

DEMAND ASSESSMENT
TRENDS IN KEY OPERATING STATISTICS
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

No. Of Responses 515 629 551 562 658

Average Total 77 74 74 66 81
Rooms Per Hotel
Average Occupied 16864 15990 16126 17424 18543
Rooms Per Hotel
Average 60.9% 60.4% 60.4% 61..3% 62.1%
Occupancy Per
Hotel (%)
Average Rate Per 4677 4507 4729 4789 5128
Hotel (₹)

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
OCCUPANCY AND AVERAGE RATE
• Growth in Operating Performance Indicator.

• An interesting trend is the correlation between the supply and demand growth, with the supply growing at
17.8% CAGR and demand at 17.3% from 2008-09 to 2012-13.

• The occupancy levels remained generally stable during this period despite strong increases in supply is indicative
of the healthy growth in demand.

• In 2012-13, the country experienced a slowdown in growth across sectors, as reflected in GDP growth of 5%.

• Despite this slowdown, the year saw hotels maintain occupancy levels at a steady 60.4% (60.9% in 2011-12).

• HVS estimated that major cities across the country witnessed a growth of 11% in hotel room supply in 2012-13,
while demand exhibited a strong increase of 9.2% during the same period.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 Occupancy and Average Rate
(2012-13 to 2016-17)
5200 62.5
5128
5100
62.1
5000 62
61.8
4900
4789 61.5
4800
Average Rate (₹)

4729 61.3
4700
61
4600
4507 4507
4500
60.5
60.4 60.4
4400

4300 60
4200

4100 59.5
2012-13 2013-14 2014-15 2015-16 2016-17
Years

Average Rate Occupancy

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 SOURCES OF REVENUE
• The last few years had witnessed a steady decline in the contribution of the rooms division to the top line.
• However, 2015-16 did not follow this trend, with the rooms revenue showing an increased contribution
of 51.7% to the total revenue.
• On the other hand, contribution from Food & beverage and banquets declined to 41.5% from 42.6%
recorded in 2014-15.
• The contribution of the other operating departments has remained range-bound for the past five years.
• Exhibit 2 displays the contribution to total revenue by the different operating departments.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 Sources of Revenue
(2012-13 to 2016-17)
100%
6.6 6.9 6.6 6.8 6.9
90%

80%
Contribution To Total Revenue %

41.2 41.9 42.6 41.5 39.5

70%

60%

50%

40%

30%
52.2 51.3 50.9 51.7 53.6
20%

10%

0%
2012-13 2013-14 2014-15 2015-16 2016-17
Years

Rooms F&B and Banquet Other

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
F&B AND BANQUET REVENUES
• Hotels in India continue to receive a greater contribution from both F&B and the Banquets & Conference
department, as per the survey.

• The Banquets & Conference segment also recorded a year-on-year increase of 17% in PAR revenue in 2012-13
(Rs 2,26,793) over that in 2011-12, while F&B recorded an increase of 4.2% in the PAR revenue (Rs 5,41,494) for
the same period.

• However, revenue contribution from Rooms has seen a steady decline over the last five years, recording a negative
CAGR of 4% between 2008-09 and 2012-13.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
DEPARTMENTAL EXPENSES
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

Rooms 18.0 19.3 20.7 21.9 20.2

Food & Beverage 57.0 55.2 56.6 53.0 55.3
Telephone & Other 94.7 91.7 104.7 88.1 97.1
Minor Operated 57.4 66.0 61.6 71.2 56.1
Rental & Other Income 7.4 9.4 9.8 8.7 8.7

Total 34.1 35.4 37.1 36.6 35.8

Departmental income 65.9 64.6 62.9 63.9 64.2

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 Departmental Expenses
(2012-13 to 2016-17)
70
64.2 64 64.1 63
61.7
60
DEPARTMENTAL EXPENSES (%)

50

40
37.1 36.6 35.8
35.4 32 35.1
30.4 29.2
30 28.5 28.6

20

10 7.3 7.4 7.9 6.7

5

0
2012-13 2013-14 2014-15 2015-16 2016-17
Years

Rooms Food & Beverage Other Total Departmental Expenses

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
NET INCOME
• The survey noted that in the last five years net income as a percentage of total revenue has consistently declined
year-on-year, as witnessed by a CAGR of 5.7%.

• The year 2012-13 has seen a decline of 4.7% in Net Income as a percentage of revenue over the previous year.

• The reason is attributed to rising department costs, which are a result of rising inflation coupled with an increase in
Energy costs.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
REVENUE & NET INCOME
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

Rooms 55.2% 55.2% 51.3% 50.9% 51.7%

Food & Beverage 27.9 29.0 29.2 31.0 28.6
Banquets & Conference 10.4 12.2 12.7 11.5 12.9
Telephone & Other 0.4 0.4 0.4 0.3 0.3
Minor Operated 3.1 2.9 3.3 3.3 3.3
Rental & Other Income 3.0 3.3 3.1 3.0 3.3

Total 100.0 100.0 100.0 100.0 100.0

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 Revenue & Net Income
(2012-13 To 2016-17)
2500 30.5
2257 2257
2108 30.2 30.2
2010
Revenue & Net Income per Available Room

2000 1864 30 30

Net Income %
1500 29.5
(₹000)

29.3

1000 29
28.9
682
559 588 609 582
500 28.5

0 28
2012-13 2013-14 2014-15 2015-16 2016-17
Years

Revenue(PAR) Net Income (PAR) Net Income %

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
OPERATING EXPENSE
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

Administrative & General 10.2 9.5 9.0 9.6 9.7

Management Fee 2.7 2.0 2.0 2.1 2.3
Marketing 3.1 3.0 3.1 3.3 3.8
Franchise Fees 0.5 0.5 0.3 0.2 0.2
Property Operations & 5.6 5.9 5.4 5.2 5.1
Maintenance
Energy 8.7 9.8 10.3 10.1 10.0

Total 30.9 30.7 30.1 30.5 31.1

House Profit 35.0 33.8 32.9 32.9 33.2
Note: All India Average Data Comparison.
DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
FIXED EXPENSE
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

Property Taxes 0.7 0.8 1.3 1.0 0.9

Insurance 0.3 0.3 0.3 0.3 0.2
Other Fixed Expenses 1.5 1.4 1.1 1.7 1.0
Rent 1.1 1.3 1.0 1.0 0.8

Total 3.6 9.9 3.6 3.9 3.0

Net Income 31.4% 30.0% 29.3% 28.9% 30.2%

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
SUMMARY
Composition 2012-13 2013-14 2014-15 2015-16 2016-17

Departmental Expense 34.1 35.4 37.1 36.6 35.8

Operating Expense 30.9 30.7 30.1 30.5 31.1
Fixed Expense 3.6 9.9 3.6 3.9 3.0
Net Income 31.4 30.0 29.3 28.9 30.2

Total 100 100 100 100 100

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
UTILITY & MANPOWER COSTS
• Energy cost continue to rise and pose a challenge to the hotel industry.

• The survey this year has revealed a rise of 13% in par energy cost (Rs 1,82,067) over the previous year (Rs 1,61,479).

• Similarly, employee to room ratios in India continue to be on the higher side when compared with global benchmarks,
almost twice as much.

• The all India average of employee to room ratio stands at 1.6.

• Hotels in India, the survey notes, provide services and facilities beyond their positioning

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
SOURCE MARKETS
• There has been almost 4.3% drop in visitations from two major source markets – the US and the UK.

• Although these two markets still contributes major chunk of Indian inbound (23%), there is an increasing
inbound from new markets like middle east, Russia, and the SAARC.

• The rise in visits from Asia and the middle east is attributed to improved connectivity, easier visa norms and
infrastructure development, etc.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
MARKET MIX
• The mix includes product line and quality, brand, packaging and services.

• For example, the purchase of a hotel room includes the guest room, fitness centre, pool, restaurants, valet service,
concierge, housekeeping service, etc.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
COMPONENTS 7P’s
• Product: Rooms & Restaurants.

• Pricing: Differential.

• Place: Locational Advantage.

• Promotion: Advertising.

• Physical Ambience: Theme based.

• Process: Service Environment.

• People: Employees.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
 Market Mix of Hotel Industry

Business Traveller: Domestic

Business Traveller: Foreign

4% 1%
5%
Complimentary Rooms
7%
30%
Domestic: Tourists/Leisure FIT

8% Foreign: Tourists/Leisure FIT

Meeting Participants (Less than 100

5% Attendees)
Meeting Participants (Over 100
Attendees)
8% 9%
Tour Groups: Domestic
2%
Tour Groups: Foreign
21%

Other

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2016-2017
CATEGORY OF HOTEL

DEMAND ASSESSMENT
TYPICAL ROOM PROFILE OF AVERAGE HOTEL
Five-Star Five- Four- Three- Two- One-
Composition Deluxe Star Star Star Star Star Heritage Others
Number of Responses 75 84 161 512 267 90 57 271

Air-Conditioned Rooms 179.0 138.7 87.7 48.4 31.6 19.5 21.0 25.1

Suites.... 26.4 11.7 9.0 5.3 3.3 2.4 8.5 3.5

Non -Air-Conditioned Rooms 2.6 1.3 0.5 3.5 5.9 6.9 2.3 4.7

Suites.... 0.6 0.1 0.1 0.2 0.4 0.2 0.5 0.5

Total Average rooms 208.5 151.8 0.1 0.2 0.4 0.2 0.5 0.5

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2015-2016
AVERAGE NO. OF FOOD & BEVERAGE OUTLETS PER HOTEL
Five-Star Five- Four- Three- Two- One-
Composition Deluxe Star Star Star Star Star Heritage Others
Number of Responses 71 83 151 480 232 67 53 212

Restaurant 3.2 2.7 1.9 1.6 1.3 1.3 1.5 1.3

Bars 1.4 1.3 1.0 0.7 0.5 0.4 0.8 0.5

Others 0.8 0.6 0.7 0.5 0.3 0.5 0.4 0.3

Total 5.4 4.6 3.6 2.8 2.1 2.2 2.7 2.2

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2015-2016
AVERAGE MONTHLY OCCUPANCY
Five-Star Deluxe Five-Star Four-Star Three-Star Two-Star One-Star
Composition Heritage Others

Number of Responses 71 83 151 480 232 67 53 212

January 69.1% 67.3% 69.2% 62.2% 61.7% 62.8% 55.7% 58.0%

February 75.8 73.8 72.1 63.3 60.3 61.7 57.1 57.8

March 68.7 65.8 63.1 57.8 57.7 58.2 50.3 54.8

April 68.1 65.2 63.5 57.8 60.6 61.9 44.6 54.9

May 61.4 59.0 60.8 59.1 64.5 62.3 43.0 59.0

June 60.3 60.2 59.4 56.2 60.0 56.0 39.2 59.1

July 59.5 59.5 58.7 54.0 56.0 51.3 38.3 52.1

August 64.3 62.1 60.7 54.6 55.0 54.8 40.1 50.4

September 66.3 62.8 62.4 55.8 54.8 56.8 38.5 52.5

October 67.8 65.0 65.2 59.7 62.0 65.0 47.5 58.0

November 70.8 67.7 69.0 62.8 64.1 67.5 56..6 62.2

December 72.9 71.7 74.7 68.4 67.5 70..5 56.7 56.7

Note: All India Average Data Comparison.

DEMAND ASSESSMENT
Source: FHRAI, Indian Hotel Survey 2015-2016
MACRO LEVEL- GUJARAT

DEMAND ASSESSMENT
NEED FOR HOTEL IN GUJARAT
• Gujarat which luxuriates the longest coastline of 1600 km in the country is a tourism 'tour de force' of
Western India.

• The walloping 44.8 million tourists in the year 2017 is a standing testimony for this (Source: Tourist
Corporation of Gujarat Ltd)

• There has been a 16.94 % growth in tourist arrivals in the year 2017 from the previous year.

• The warm hospitality of the Gujaratis, the well developed infrastructure well connected road and transport
facilities like the BRTS, upcoming MEGA project etc are all other favorable factors

DEMAND ASSESSMENT
 NEED FOR HOTEL IN GUJARAT
• The culture rich state of Gujarat flaunts its heritage with major tourist attractions like Sabarmati Ashram,
Adalaj stepwells, Akshardham, Sun Temple, Gir Forest National Park etc which attracts local and foreign
tourists from round the globe.

• The industrial sector comprises of over 800 large industries and 453,339 micro, small and medium
enterprises extending from sectors such as chemicals, petrochemicals, dairy, drugs and pharmaceuticals.

• The state also is the home for the most reputed educational institutes of the country like IIMA, IITG,
NID, CEPT etc.

• All these leads increased inflow of business class and professionals and tourists.

DEMAND ASSESSMENT
TOURISM POLICY
GUJARAT (2015-20)
INCENTIVES AND CONCESSIONS

DEMAND ASSESSMENT
CAPITAL SUBSIDY TO ELIGIBLE TOURISM UNITS
• Quantum of capital investment subsidy – 15% for investment above 50 crores with maximum limit
of 10 crores.

• Additional capital subsidy of 5%

• Eligible capital investment.

INTEREST SUBSIDY TO ELIGIBLE TOURISM UNITS

• Quantum of interest subsidy – 5% of loan amount with maximum limit of 25 lakhs.

DEMAND ASSESSMENT
REGISTRATION OR STAMP DUTY CONCESSION
• 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the
first transaction only.

EXEMPTION FROM TAXES

• Exemption for a period of five years from the date of commencement of commercial operations.

• The incentive was reviewed when GST was introduced.

EXEMPTION FROM ELECTRICITY DUTY

• Complete exemption from paying Electricity Duty for a period of five years from the date of
commencement of commercial operations.

DEMAND ASSESSMENT
SUPPORT FOR SUSTAINABLE TOURISM
• Assistance up to 75% of the cost of carrying out Energy Audit by a recognized
institution/consultant, and Environment-friendly practices like Green Buildings, to a maximum
token amount of Rs 50,000 per unit.

• Disbursed once during the operative period of the Policy.

DEMAND ASSESSMENT
 TOURISTS INFLOW IN GUJARAT

7%
9%
28%
2002-03
2003-04
14%
2009-10
2011-12
2012-13
2013-14
22% 20%

Source: GITCO Reports of 2002-03, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14
PURPOSE-WISE TOURIST INFLOW TO GUJARAT
Years
Purpose
2002-03 2003-04 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Business 34.71 42.12 77.58 88.01 92.41 111.85 123.46 139.94 171.01
Pilgrimage 2.93 3.19 10.35 8.42 7.61 10.89 12.16 17.5 20.48
Leisure 20.63 30.51 47.41 56.17 66.05 70.67 82.18 89.82 88.72
Others 3.36 3.97 5.89 5.47 4.04 4.71 5.84 6.83 7.67

Total 61.63 79.79 141.23 158.07 170.11 198.12 223.64 254.09 287.88

Note: All values are in Lacs.

DEMAND ASSESSMENT
Source: GITCO Reports of 2002-03, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14
 TOURISTS INFLOW IN GUJARAT

Modhera
Rani ki Vav
4% 3% Pavagadh
19% 2%
3% Chotila
1%
1%
2% Champaner
1%
1% Tithal
4% Buddhist Cave
3% Lothal
Kankaria Lake
Sardar Sarovar
14% 34%
Akshardham
Gandhi ashram
8% Gir Forest
White
Nal Sarovar

Note: All values are in Lacs.

Source: A Study of Tourism in Gujarat: A Geographical Perspective

WITHIN GUJARAT

DEMAND ASSESSMENT
MAP
The following four popular cities of
Gujarat have been analysed for deciding
the final location of the five star hotel.

1. Gandhinagar
2. Ahmedabad
3. Surat
4. Vadodara

DEMAND ASSESSMENT
AHMEDABAD
• India’s first city to be declared as UNESCO World Heritage City

• The ever-increasing business opportunities, footfall and strategic location makes Ahmedabad a hub
for business ventures and foreign investment.

• Major tourist attractions – Sabarmati Ashram, Kankaria lake

• Well connected by rail, road and airways

• Part of the golden quadrilateral project

DEMAND ASSESSMENT
SURAT
• Commercial centre for textiles in the country

• First smart IT city in India and is also known as the Diamond city of India

• Hub for various businessmen entrepreneurs and professionals

• Boasts tourist attraction with destinations like Dumas beach and Gopi talav

DEMAND ASSESSMENT
VADODARA
• Major industrial, cultural and educational centre of the western India

• Major tourist attractions - Laxmi Vilas Palace, Sayaji Baug

• Houses Maharaja Sayajirao University of Baroda, the largest university in the state of Gujarat

• Numerous institutes of national and regional importance and industries ranging from petrochemical
engineering to plastics and pharmaceuticals

DEMAND ASSESSMENT
GANDHINAGAR
• One of the foremost planned cities and the administrative centre of Gujarat

• Known for the rich traditional temples and carvings and sculptures

• Emerging knowledge hub with renowned institutes like IIT and NID

• The city attracts tourists, renowned scholars and professionals equally

• Another major development is the metro connecting Gandhinagar and Ahmedabad.

DEMAND ASSESSMENT
FACTORS-DATA
FACTORS-RANKING
AHMEDABAD

DEMAND ASSESSMENT
WHY AHMEDABAD ?
• Ahmedabad, the largest city in India before the constitution of Madras and Kolkata by the British
Empire, is currently the fifth largest city in the country.

• Ahmedabad which is the third fastest growing city of the decade according to Forbes was also
selected as India’s best city to live in by The Times of India.

• India’s first city to be declared as UNESCO World Heritage City, the city was one among the
hundred first smart city projects of the country.

DEMAND ASSESSMENT
WHY AHMEDABAD?
• The ever-increasing business
opportunities, footfall and strategic
location makes Ahmedabad a hub
for business ventures and foreign
investment..

• When the major groups like ITC

Hotels, Hyatt, Radisson etc. have
already set foot and are ruling the
market, ITC hotels are stepping up
their game with the largest, most
luxurious hotel in Gujarat so far,
ITC Narmada.

DEMAND ASSESSMENT
WHY AHMEDABAD?
• Proximity to the upscale
neighborhood and the real
estate hub the city

• Propinquity to the major

landmarks and conveniences
and amenities.

• Within a ten kilometer radius

railway station, airport and the
major enthrallment of the city
like the Gandhi Ashram,
Sabarmati Riverfront, Kankaria
Lake, IIM Ahmedabad, CEPT
etc.

DEMAND ASSESSMENT
DEMAND GENERATORS

DEMAND ASSESSMENT
BRAND STRENGTHENING
• Having already had 11 luxury hotels across India, ITC looks to spread their brand to Ahmedabad,
currently the country’s 5th largest city

LOCATION
• Vastrapur an upscale area is famous for various shopping malls, gardens, hospitals, bungalow and
educational institutions

DEMAND ASSESSMENT
BUSINESS GROWTH
• With an increased FDI from foreign countries for the bullet train projects there is a spike in entry of
foreign businessmen to the state

• Also the city hosts headquarters of major public sector banks

TOURIST INFLOW
• First city in India to be declared as UNESCO world heritage site

DEMAND ASSESSMENT
URBAN POPULATION
• Denotes the extent of development and urbanization

• Shows the capability of population associated with the business sector

PER CAPITA INCOME

• Due to flourishing business the increase in per capita income has led to increased demand for
luxurious hotels by business men

DEMAND ASSESSMENT
 TOURISTS INFLOW IN AHMEDABAD
5000000
4599488
4500000 2002-03
2003-04
4000000
2008-09
3500000 3246987 2009-10
3100558
3000000 2010-11
2689971
2011-12
2500000 2213750 2012-13
2000000 1895777 2013-14
1479648
1500000 1362231

1000000
500000
0
2002-03 2003-04 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

Source: GITCO Reports of 2002-03, 2008-09, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14
SUPPLY
Ahmedabad had a total inventory of 4,500 keys as of 2014, with the organised* segment comprising 85
percent of the total inventory.
The total organised inventory increased by 10 percent over 2013.
• There are no luxury hotels in the city
• There are 31 branded hotels existing in the city with a total inventory of over 3,200
• Out of the total branded hotels, 49 percent belong to midscale, 28 percent to upscale, 14 percent to
economy and 9 percent to upper upscale.

DEMAND ASSESSMENT
Source: JLL Hotels and Hospitality Group
 Supply Segmentation

9%
28%
14%
Upper Upscale
Upscale
Midscale
Economy

49%

DEMAND ASSESSMENT
Source: JLL Hotels and Hospitality Group
LIST OF BRANDED HOTELS IN AHMEDABAD
S. No. Hotel Name Category Segment Inventory
1. ITC Narmada 5 star deluxe Luxury 307
2. Hyatt 5 star Upper Upscale 178
3. Radisson Blu 5 star Upper Upscale 116
4. Courtyard By Marriott 5 star Upscale 164
5. Park Plaza 4 star Upscale 90
6. Royal Orchid Regenta 4 star Upscale 129
7. Pride Hotel 4 star Upscale 164
8. Crowne Plaza Hotel 5 star Upscale 200
9. Eastin Hotel 4 star Upscale 156

DEMAND ASSESSMENT
Source: JLL Hotels and Hospitality Group
LIST OF BRANDED HOTELS IN AHMEDABAD
S. Hotel Name Segment Inventory
No.
10. Cambay Grand 4 star Midscale 120
11. Fortune Landmark 4 star Midscale 95
12. The Fern 5 star Midscale 96
13. The Gateway Hotel – Ummed 4 star Midscale 91
14. Eastin Easy Hotel 4 star Midscale 52
15. Four Points by Sheraton 4 star Midscale 103
16. Ramada 4 star Midscale 92
17. Formule 1 3 star Economy 132
18. Tune Hotel 3 star Economy 100

DEMAND ASSESSMENT
Source: JLL Hotels and Hospitality Group
 Inventory Growth
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000

2020 660 1796 1077 1181

2014 469 1576 903 294

2013 469 1576 547 294

2012 369 1164 547 294

2011 237 949 547 0

2010 237 804 457 0

2009 88 613 293 0

Economy Midscale Upscale Upper Upscale

DEMAND ASSESSMENT
Source: JLL Hotels and Hospitality Group
MICRO LOCATION
1. Asarwa
2. Navrangpura
3. Vastrapur
4. Sola

Source: Google Map

DEMAND ASSESSMENT
ASARWA
• Situated on the old city side along the
airport road, development here could
provide ease of access to the airport,
thereby saving travel time for businessmen
and tourists.

• Due to this reason, the airport road has

been considered among the list of probable
areas for the five star hotel construction.

Source: Google Map

DEMAND ASSESSMENT
NAVRANGPURA
• Navarangpura is one of the major
educational hubs in Ahmedabad,
comprising of a plethora of institutions like
CEPT, Gujarat University, LD University,
HL College of Commerce, etc.

• The Ashram Road, a key road of the area,

runs parallel to the Sabarmati. The road is a
major financial hub of the city with the
offices of the Reserve Bank of India and the
Income Tax department located on the
road.

Source: Google Map

DEMAND ASSESSMENT
VASTRAPUR
• Vastrapur is an area in Ahmedabad
district in the Indian state of Gujarat.
The Indian Institute of Management
Ahmedabad is located in this area.

• This area is famous for the Vastrapur

Lake where many renowned personalities
from the field of music have also
performed.

Source: Google Map

DEMAND ASSESSMENT
SOLA
• Sola is an area along the S.G. Highway,
which connects the city of Ahmedabad with
Gandhinagar.

• It is a major road for commercial and public

transport and is witnessing a major
construction boom along its route towards
Gandhinagar.

Source: Google Map

DEMAND ASSESSMENT
FACTORS-DATA

DEMAND ASSESSMENT
FACTORS-RANKING

DEMAND ASSESSMENT
LOCATION

Source: Google Map

DEMAND ASSESSMENT
SURVEY NO. 104-A, JUDGES BUNGLOW ROAD, VASTRAPUR, AHMEDABAD.
LOCATION
CONNECTIVITY ECONOMIC NEIGHBORHOOD ECOLOGICAL

Land Road
Land Cost Attractive Micro Cleanline
Road Railway Airport Area Land Use Security Acesss to
(per sqft) View Climate ss
Demand site
Vastrapur
Very Commerc Very
Vastrapur Good Good 10084.32 Very High High Lake Dense High
Good ial Good
Garden

Along the Along the

9 km 14.5 km
two lane Posh two lane
away away
Judges Area in Judges
from from SVP
Remarks Bunglow the heart Bunglow
Kalupur Internati
Road , of the Road ,
Railway onal
50m from city 50m from
Station Airport
NH 228 NH 228

DEMAND ASSESSMENT
LOCATION
PROXIMITY

Tourist Entertainment/ Educational

Industries Business Centres Town centre Hospitals
Destination Shopping Centres Institutions

Very Good Good Very Good Very Good Very Good Very Good Very Good

Vastrapur Lake
New Mac Synthesis The First
Garden - 2km
Chemical - 0km
Vikram Sarabhai Ahmedabad One -
Industries - 2km GCP Business IIMA - 1.5 km Sanjivini Hospital -
Space Exhibition - 2km Along the town
Synergy Centre - 4km CEPT - 3.3 km 2.5 km Parth
2.3 km Sundarvan Himalaya Mall - centre
Pharmaseuticals - BSQUARE NID - 5.7km Hospital - 1.8 km
- 1.9 km 3km
1.9km Piplaj - 10 Business Centre -
Lalbhai Dalpatbhai
km 4.5 km
Museum - 3km

DEMAND ASSESSMENT
WHAT ITC NARMADA HAS IN STORE
• ITC Narmada is aiming to synchronize the “Grand” traditional language with the classic
contemporary style.
• The five star luxury hotel building consists of 3 level basement + ground floor + mezzanine floor +
18 floors with building height of 78 m.
• The design reflects the cultural vernacular architecture of the ancient villages that surround the city
• The stepping architecture of the walls and the intricate stone carvings provided a rich vein of
patterns and textures.
• ITC Narmada will look to achieve LEED Platinum certification to comply with the highest
environment standards.

DEMAND ASSESSMENT
Source: ITC Hotels
 CONT..
The hotel has total BUA of 636,186 sq ft. and consists of:
• 307 rooms (294 guest rooms and suites)
• All-day dining restaurant
• 3 other specialty restaurants
• Pub/bar
• 2,000-square-metre ball room
• Banquet hall
• Spa
• business centre
• 8 meeting rooms

DEMAND ASSESSMENT
Source: ITC Hotels
SITE SURROUNDINGS

DEMAND ASSESSMENT
SITE SURROUNDINGS

DEMAND ASSESSMENT
CONCLUSION
• From the demand studies, 5 star hotels have market potential in Ahmedabad.
• ITC Narmada has major edge over other competitors in terms of inventory & features.
• It would lead to increase in employment opportunities, cater to ever increasing flow of tourists.

DEMAND ASSESSMENT
REFERENCES

 ITC Hotel Portal

 JLL Hotels and Hospitality Group Survey
 FHRAI, Indian Hotel Survey 2015-2016
THANK YOU