Hospitality Industry

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HOSPITALITY
INDUSTRY
Financial Accounting & Control Group Assignment on Financial
Statement Analysis

COMPANIES

Taj GVK Hotels
and Resorts
Ltd.

Mahindra
Holidays and
Resorts India
Ltd.

Part A: Industry Analysis
The hospitality sector in India is
estimated to be Rs. 1537 billion
in 2015.

Growth rate: 8%-10% annually
Market share of major players:
Taj Group 25%, Oberoi 17%, ITC
group 1.1%, Leela group 0.6%,
Others 0.5%
contributing 2% to GDP of India

Porter’s Five Forces of
competitive power
Industry
Rivalry:
High

The
likelihood
of new
entrants
is
moderate
.
.

Thus
Buyer
power is
high.
. Supplier
power is
assessed
as
moderate
overall
.

.

Threat of
Substitut
e: LOW

S.W.O.T Analysis of Indian
Hospitality Industry

WEAKNESS
Cost of land in india is high at 50% of
total project cost as against 15%
abroadeakness
Staff to room ratio of 3:1, this ratio is
1:1 for international hotel
Luxury tax and sales tax inflate the
hotel bill by over 30%.

Wide variety of hotels
International players in the market such
as Taj and Oberoi
Low manpower costs-high margins

STRENGTHS

SWO
OPPORTUNITIE T

THREATS

Diverse topography
The inbound tourists are a mere 0.49%
of the global figures
Heritage hotels.

Guest houses
Political turbulence, Insurgency in
Jammu Kashmir
Lack of training man power in the hotel
industry
high project costs

S

Policy Procurement
In

the Hotel Industry Sector, Foreign Direct
Investment (FDI) has been permitted up to
100% under the automatic route

Make in India
A

deduction of an amount equal to 100 % of
the profit and gain for the first 5 consecutive
years to an undertaking derived profit from the
business of a hotel located in the specified
district having a World Heritage Site. If such
hotel is constructed and has started
functioning before 31st March, 2013.

Part B: Company
analysis

Part C: Interpretation of findings from analysis

Part D: Group presentation topics

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