Introudction

The regal Jaypee Palace Hotel and Convention Centre, a glorious structural blend of red sandstone and marble is spread over an unbounded 25 acres of elegantly landscaped luxuriant greenery. Sprinkled with enormous water bodies and endless walkways, this magical creation impeccably blends Mughal and contemporary architecture with modern amenities. Leading the way to luxurious rooms and suites, the impressive interiors along the way set the tone for a majestic way.

HISTORY

History
Jaiprakash Gaur, Founder Chairman of Jaiprakash Associates Limited after acquiring a Diploma in Civil Engineering in 1950 from the University of Roorkeenow called the Indian Institute of Technology Roorkee (IITR)in Roorkee, Uttarakhand, had a stint with the Uttar Pradesh government and branched off on his own, to start as a civil contractor in 1958, group is the third largest cement producer in the country. The groups cement facilities are located today all over India in 10 states, with 18 plants having an aggregate cement production capacity of 24 million tonnes and same is poised to become 36 million Tonnes before October 2011.[4]
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A penalty of Rs1 billion was imposed on the group by the Green Bench of Himachal Pradesh High Court for setting up a cement plant and a captive thermal power station in the state.[5]

1979 Jaiprakash Associates Pvt Ltd formed and sets foot in Iraq. 1981 Commenced Hotel Business with first hotel in Delhi Siddharth 1982 Hotel Vasant Continental was set up 1986 Commissioning of first unit of 1 MTPA Jaypee Rewa Plant (JRP) in District Rewa, MP Formation of Jaiprakash Industries Ltd (JIL) 1987 JIL listed on Bombay Stock Exchange 1991 Commissioning of 2nd unit of 1.5 MTPA Jaypee Rewa Plant 1992 Jaiprakash Hydro Power Ltd established to operate 300 MW Baspa II HE Project, Jaiprakash Power Ventures Ltd established to operate 400 MW Vishnuprayag HE project 1993 JIL signs a memorandum of understanding to develop and operate 1,000 MW Karcham Wangtoo Hydroelectric Plant 1995 Bela Cement Ltd incorporated to establish third Cement Plant at Bela, Hotel Jaypee Residency Manor set up 1996 Commissioning of the third cement plant 1.7 MTPA Jaypee Bela Plant in District Rewa, MP 1999 Hotel Jaypee Palace, Agra set up 2000 Jaypee Greens Ltd 458-acre (1.85 km2) golf-centric real estate company comes into being 2001 Jaypee Institute of Information Technology (deemed University since 1 November 2004) set up at Noida. 2002 Jaypee Karcham Hydro Corporation Ltd established to operate 1,000 MW Karcham Wangtoo HE Project, Jaypee University of Information Technology at Waknaghat, Himachal Pradesh is founded.

2003 Jaypee Hotel Training Centre (JHTC) is set up at Agra to train students in hotel management. In 2007 the institute changed its program from a diploma course to a degree course and increased the length of study from two to three years.

2003 Jaypee Institute of Engineering Technology (Constituent Centre of JUIT, Waknaghat) set up at Raghogarh, Guna. Later this institute was declared first private state university of Madhya Pradesh as Jaypee University of Engineering & Technology. Also

first Captive Thermal Power Plant of 25 MW commissioned at JRP. Formation of Jaiprakash Associates Ltd (JAL) by merging JIL with Jaypee Cement Ltd

2004 Commissioning of second Captive Power Plant of 25 MW at Jaypee Bela Plant 2005 Shares of JHPL listed on BSE/NSE. First hydropower company to be listed in the country 2006 Setting up of Madhya Pradesh Jaypee Minerals Corporation Ltd (MPJMCL) in JV with MP State 2007 Signing of a joint venture agreement with Steel Authority of India Ltd for setting up a 2.0 MTPA slag based cement plant at Bhilai. 2008 Jaypee Ganga Infrastructure Corporation Ltd incorporated for implementation of 1,047 km long, eight-lane, access-controlled expressway between Greater Noida and Ballia in Uttar Pradesh, Chunar, and Dalla cement plants (UPPCL) in UP commissioned

2009 Amalgamation of four Group Companies, namely, Jaypee Cement Limited, Gujarat Anjan Cement Limited, Jaypee Hotels Limited and Jaiprakash Enterprises Limited with flagship company JAL. Acquired Sangam Power Generation Company Ltd. Signing of MOU for setting up a 2 million tonnes per annum capacity cement plant in joint venture with Assam Mineral Development Corporation Limited (AMDC). Group is setting up a Jaypee Hitech Casting Centre. Amalgamation of Jaiprakash Power Ventures Ltd. with Jaiprakash Hydro-Power Ltd.; the name of the Company i.e., Jaiprakash Hydro-Power Ltd. changed to Jaiprakash Power Ventures Ltd.

2010 Commissioning of 1.75 MnTPA Jaypee Himachal Cement Grinding and Blending Plant, Bagheri (H.P.)., 2.2 MnTPA Bhilai Jaypee Cement Ltd., Satna (Madhya Pradesh)., 1.2&nbspmillion tonnes Jaypee Roorkee Cement Grinding Unit (JRCGU) at Roorkee, Uttarakhand.

2011 Buddh International Circuit Greater Noida. 2012Yamuna Expressway-New Delhi NOIDA -Agra Express eight-lane highway. Project completed on 9 August 2012, and opened to general public

Accomodation

341 guest rooms including 15 Suites and 40 Executive Rooms.

Living Spaces

Deluxe Rooms: As the windows in the spacious 750 square feet Deluxe Rooms allow abundant natural light, one can bask in unobstructed views of the golf course, swimming pool and the lush greens landscape. Dotted with polished wooden floors, stylish rugs, artifacts and natural fabric furnishings in soothing colours, this space creates a sense of calmness. The centerpiece is the king bed with eight layered mattress and an exhaustive pillow menu that offers a unique sleeping experience. Indulge yourself with state-of-the-art entertainment marvels like an iPod docking station, wired and wireless high speed internet access, a 40-inch LCD television, well-stocked mini-bar, IP touch screen phones and generously sized work desks, all leading to give you an
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experience

beyond

words.

To provide guests with the finest levels of comfort, the luxurious five fixture bathrooms feature two marbled vanity counters, a sunken bathtub, spacious rain shower cubical and renowned forest essential amenities.

Deluxe Suites: With a refreshing view, these suites reflects the charm of a private haven. Each of these spacious suites of 1200 square feet is exquisitely designed in harmony with natures elements. As large landscaped windows soak in natural light, one can rest peacefully in the comfort of eight layered beds as an exhaustive pillow menu, a down comforter and a soft throw await you to pamper you beyond words. Make it an evening to remember as you relax by the large balconies boasting of teak furniture, the vibrant living area or the dining area that can accommodate guests. Executive Suites: Every element of the Executive Suite is designed to provide an extraordinary experience to our discerning guests. Tailored to meet the needs of long-term guests, 1500 sqft Executive Suites are serene and restful as its sophisticated interior showcases unrivaled vistas of the golf course, the finest timber finishes and fabrics in soothing colour palette. The master bedroom, living area and the dining area, all with high ceiling and abundant natural light evoke a sense of arrival. Revel in style as the glass doors separate the bedroom from the balcony furnished with a private Jacuzzi overlooking the golf course. More so, the graceful design blends supreme comfort with state of the art features like the five fixtures bathroom, 40-inch LCD, IP touch screen phones and more. Premium Suites: Blending harmoniously into its natural surroundings, every Premium Suite covering 1600 sqft offers an urban escape for discerning business and leisure travelers. Gracefully appointed with rich wooden accents, refined earthy tones, and handpicked artifacts, these suites also don the mantle of a perfect venue for celebrations and intimate moments. Subtle art installations, warm lighting, a separate living area, a fully equipped kitchen and a powder room lend a different charm to this space. Coupled with a comfortable eight layered bed, an exhaustive pillow menu along with an upholstered headboard and impeccably designed lighting. Not to forget the spacious bedroom, five fixture bathroom and a large walk-in closet, Premium Suites
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are

designed

to

offer

discreet

yet

pure

luxury.

Pampering continues with more than one private balcony and a separate bay where one can immerse into a relaxing reprieve as a private outdoor Jacuzzi welcomes the senses as it revel in the unrivaled vistas of the Golf course.

Wi-fi enabled. Central air-conditioned. Electronic door lock. Individual Safe. Iron/ Iron Board. Tea/coffee maker. Mini bar. Interactive TV with remote control. Multi-channel Music. Direct dial telephones. Weighing scale. Wake up facility. Complimentary Newspaper.

These luxury hotels provide the outstanding features that offer you a unique romantic experience. The Jaypee Hotels has established a luxury hotel at Agra which reflects the Mughal architectural brilliance of India.

OVERVIEW OF HOTEL INDUSTRY:

Hospitality is all about offering warmth to someone at a strange or unfriendly place. It refers to process of receiving and entertaining a guest with Goodwill. Indian Hospitality has gained a level of acceptance world over. It has yet to go miles for recognition as a world leader of hospitality. Availability of qualified human resources and untapped geographical resources gives great prospectus to hotel Industry. The number of tourist coming in India is growing in last years. Likewise, internal tourism is another area with great potentials. Today Hotel Industry is one of the fastest growing Industry in India. It is expected to grow to 10% between 2015 to 2020. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The 'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. According to a report, Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, hotel rates in India are likely to rise by 25% annually The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. With such growth, sources estimate, demand is going to exceed supply by at least 100 per cent in coming years. Number of Hotels 2013

Hotel categories 5 star deluxe/5 star 4 Star 3 Star 2 Star 1 Star

No. of Hotels 165 770 505 495 260

No. of Rooms 43,965 134 20 30,100 22,950 10,900

Heritage Uncategorized Total Source- FHRA

70 7,078 8,707

4,200 1,32,885

LOCATION OF THE HOTEL

Located in the main tourist district of Agra, on Fatehabad Road. 2 hours from Delhi by Train and 2 hours by Yamuna Expressway/ Road 12.4 kms. From Kheria (Agra ) Airport. 8 kms. from Agra Cantt. Railway Station.

Service of Hotel

General Guest Services:

24-hour Room Service. Signature gift and sundry shop. Guest-chosen daily newspaper delivery. Digital interactive television entertainment system. Business Phone services. Laundry and dry cleaning services. Complimentary shoeshine service. Limousine and rental car service. Car detailing. Secured & High speed elevators. Central satellite system and intercom system. Central Air conditioning. CCTV and 24 hrs security system. Gym, sauna, Jacuzzi, baby play area, party and meeting hall. Sport and activity center. Internet & Media lounge. High-Speed Internet access & Wi-Fi.
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Baggage Storage Concierge Desk Foreign Currency Exchange. Multi-lingual Staff. Express mail. Meeting Room Outdoor tented reception area. Wedding gazebo Terrace Steak House Pool bar & Grill. Ample car parking for residents and guests Large full building height central Atrium area. Shopping promenade. Sports and activity center. 5 restaurants and bars & coffee shops. Large lobby and corridors to give feeling of comfort and openness. Tennis Courts. Lounge with nightly live music. Golf Ground Swimming Pools

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Tariff

Valid From 1st April 2013 to 30th September 2013 Jaypee Palace Hotel & Convention Centre, Agra, India Room Type Standard Executive Palace Room Junior Suite Executive Suite Summit Suite Presidential Suite Extra Bed Charges: Single (INR) 9,500 10,500 12,500 16,000 20,000 30,000 ON REQUEST 1,800 Double (INR) 10,000 11,000 12,500 16,000 20,000 30,000

Note: Extra Bed Charges 1,800

All the above rates are subject to government taxes as applicable, any increase in govt. taxes will be added as applicable.
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 All INR rates are applicable for Indian nationals & Foreign nationals holding valid Indian Resident Permit only. All USD rates are applicable for other Foreign Nationals & will be charged as per the prevalent exchange rates if paid in INR. All the rates/tariffs are subject to revision as per management's discretion.

Jaypee Palace Hotel, Agra Valid from 1st April 2013 to 30th September 2013

Classic Retreat Package Duration 1 night/2 Days Tariff

Rs.6000+ Taxes (applicable taxes) (for a couple/Double room) Including Breakfast for two. Games coupon worth Rs. 200/= can be redeemed only against leisure mall games. Classic Retreat Premium Package Duration 2 nights/3 Days Tariff Rs. 11000 + Taxes (applicable taxes) (for a couple/Double room) Including Breakfast for two. Half day local sight seeing once during stay. 15 % discount on Spa Services. 10 minutes foot massage to one lady guest at Spa. Leisure mall Games coupon worth Rs. 500/= can be redeemed only against leisure mall games.
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Spa Indulgence Package Duration 2 nights/3 Days Tariff

Rs. 18500 + Taxes (applicable taxes) (for a couple/Double room) Including Breakfast for two adults. Health drinks in the room (choice of juice and light snacks) Spa treatments (rejuvenation package) for two adults , which includes Sansha royal facial, Foot bath ritual, Abhyangam, Skin exfoliation with almond sea shell polish, Sughanda Lepam ,Hot oil head & shoulder massage and Steam bath. Half day local sight seeing once during stay. ** Extra bed charges do not include Spa Treatments. Extra Bed Two children below 5 yrs are free if sharing the same room with parents without an extra bed. Extra bed charges for Children between 05-12 yrs. Inclusive of breakfast Rs.1500+ Taxes per night. Extra bed charges for Adult inclusive of breakfast Rs.1800 + Taxes per night. The above packages (Agra) includes:

Welcome Drink (Non Alcoholic) on arrival. In room Tea/Coffee Maker. 20% discount on Food & Beverages (Indian Brands Only) and Laundry Services On request use of Gymnasium & Swimming pool. On request use of Steam/Sauna once during the stay. Entry to Leisure mall & Discotheque. Pick-up and drop from/to Agra Cantt. Railway station on request.

Rates/Tariffs are subject to change as per managements discretion. Extra Bed Charges are Per Person per night.

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NOTE :Package rates in INR are applicable to all Indian nationals & Foreign nationals.

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Restaurants & Bars

The hotel will be having restaurant, a lounge and a coffee shop, which will be offering a choice of continental, Chinese and variety of food from Indian cuisine, with live piano, music. The bar will be stocked with best of spirit and wine where guests can spend their time gossiping and watching television.

Cest Chine, the launched fine dining restaurant, open for lunch and dinner serves authentic Chinese cuisine in the backdrop of design that will make the dining experience simply unforgettable. Timings: Lunch: 12 Noon to 3pm Dinner: 7: 30 pm to 11: 30 pm

The Grand Buffet, an elaborate spread of Indian and continental soups, salads, main courses and desserts make the Grand Buffet a perfect place to indulge. Open for breakfast, lunch and dinner, the aesthetically designed restaurant can accommodate upto 228 guests. Timings: Breakfast: 07:00 am to 10:00 am Lunch: 12:30 pm to 03:00 pm Dinner: 07:30 pm to 11:00 pm

Paatra, the new fine-dining restaurant at Jaypee Palace Hotel, Agra takes you on a culinary journey from Amritsar to Lahore. Different paatras or utensils determine the unique cooking methods that conserve the unique flavor of your food. An elegant restaurant that promises to deliver an unforgettable food experience. Timings: Dinner: 07:30 pm to 11:00 pm

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Pavilion Caf, the 24-hour resto caf for all day dining offers an eclectic selection of Indian and continental delicacies. Along with an array of alcoholic and non-alcoholic beverages. Timings: All day dining

Tapas, the stylish and elegant Lounge bar offers the finest domestic, imported spirits and wines along with a range of stimulating cocktails and appetizing snacks. Timings: Noon to midnight

Tea Lounge's majestic interiors, overlooking stately gardens and water-bodies provide the perfect setting for a cup of choice of teas brewed to perfection, accompanied by delectable snacks. Timings: 11:00 am to 08:00 pm

Aqua Grill, the picturesque poolside hosts the bar-be-que in flourishing environs of aesthetically landscaped gardens. A selection of vegetarian and non-vegetarian grills and tandoori delicacies, prepared on live counters in a festive environment makes it an ideal place to spend a relaxed evening during the winters. Timings: 07:00 pm to 11:00 pm (winters)

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Suits

Presidential Suite Menu of Services: Personal Valet for unpacking and packing on arrival and departure. Breakfast in suite included complimentary in room bar with refreshments and cocktails to suit your personal taste. Hamper of dry snacks, fresh fruit, chocolate, herbal teas, teas and coffee. Morning coffee and afternoon tea served at your request. Fresh cut flowers adorning vases throughout. Be a President for a Night Indulge in the epitome of luxury and comfort in our truly exceptional Presidential Suite. It holds a unique status in the exploration of innovative and
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ultimately luxurious lodgings. Architecturally, it is stunning. The rectangular shaped drawing room with its style is a unique space to be enjoyed. Windows cover more than half the wall space around the room with its own walk out balcony, looking out on a panoramic view that encompasses the Swiss Hills Garden, its colour contrasting with the dark wood floor. Pamper yourself with best of beauty treatment and massages at our spa and personal yoga instructor, shopping at your doorstep on request. 9 hole golfing experience at Agra Golf Club. The private bar area is stylishly incorporated into the room, the perfect location to entertain or to seep in its elegant grandeur as you sip on a glass of Crystal which awaits your arrival, all the while listening to gentle music. A lavish bouquet of seasonal flowers adorns the room and lush handmade chocolates await your arrival. The evening is spent enjoying a Gourmet Six course menu specially designed by our Head Chef with accompanying fine wines especially chosen for you. Total package price Rs.75, 000. Price includes transfers to and from and sightseeing of the City by personal escort in our chauffeur driven Mercedes. Bedroom features in the Presidential Suite: Specially commissioned premium deluxe Bertram Italian Bed linen. Large balcony overlooking the Swiss Hills Gardens. A beautiful writing desk from the Regency period decorated with specific ornaments of beauty and intrigue. Custom made suite furniture from Malaysia with simple use of classic silks.100% pure silk curtains, Handmade, deep pile Persian rugs made from silk and the finest wool thread. Spacious walk in wardrobe decorated woods. A selection of books carefully placed in the room by our Librarian. Personal Safe turndown and shoe cleaning service. Twenty-four hour room service. Same day dry cleaning and laundry service. Bathroom features in the Presidential Suite:

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Very large Italian marble bathroom with twin vanity. Spacious separate shower cubicle. A two-person Jacuzzi bath. Customised monogrammed bathrobes and towels, exclusive to this suite. Herbal body products. Room features in the Presidential Suite: The Presidential Suite can be accessed by private, security gates and by its own private entrance. Large entrance hallway with guest cloakroom and guest bathroom ensuring maximum privacy for the occupants of the Suite.2140 square feet of space to enjoy. An especially commissioned dining table and chairs made of walnut with the use of black walnut and ebonised detailing for a contemporary feel. A magnificent dark wooden floor. Custom made suite furniture from Malaysia with simple use of classic silks. 100% pure silk curtains. Handmade, deep pile carpet made from silk and the finest wool thread. The carpets throughout are made of 100% Irish wool and were woven in Ireland with a deep velvet pile for maximum comfort. Video's, music CD's and DVD's are available on a complimentary basis from the hotel reception desk. Complimentary beverages and snacks. Free Internet Access available. Three telephones throughout the suite. ISDN and facsimile can be made available with prior notice.

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urrender to the sublime and invigorating experiences at the Six Senses Spa, a unit of the globally renowned Six Senses Spa (Thailand) in India. Spread over 90,000 sq. ft, it offers a mesmerizing array of holistic therapies administered by professionals, with every visit promising complete harmony for the mind, body and soul. The Six Senses Spas' philosophy of balancing all the senses is creatively represented in the spa menu, which features nurturing and soothing treatments as well as results-oriented therapies and personalised programmes administered under the guidance of expert therapists. The space is dotted with beautiful inner courtyards, water features and various therapy and relaxation areas

5.9 Kids Arena

The Hotel will be having Kids arena for children to have fun and play.

CHAPTER 8

The departments are classified on account of its function. They are as follows:20

8.1 Core Functioning Department

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Food & beverage (F&D) Department:-

F & B deals mainly with food and beverages service allied activities. Different divisions are there in F & B like Restaurants, Specialty Restaurants, Coffee Shop (24 Hrs), Bar, Banquet, Room Services etc. Apart from that they have Utility services (Cleaning).

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The food and beverage department is made up of the food and beverage manager who directs the work of the department, the purchasing steward who, buys, receives and stores food and beverages for the department, the executive chef who decides on the items on the menus and coordinate the preparation of the food and beverage, the chief steward who is in charge. Of sanitation, the headwaiter who is responsible for serving the food and beverages to the guests and the food and beverage controller who maintains control over the system, prepare statements for the management and analyzes all stages of the food and beverage operation. Under these people are storekeepers, pantrymen, icemen, chefs, chef assistants, butchers, pastrymen, bakers, waiters and waitresses, busboys, bartenders, porters and barboys. The food and beverage department is a very important division of a hotel. It is often one of the foremost income earners for the hotel. Food and beverage can account for two fifth to one half of a hotel's profit. In fact, food and beverage is such an indispensable part of a hotel that in Saujana . A Saujana hotel can boast many food and beverage outlets. It may, for instance, have an outlet for two or three of the following national cuisines; French, Chinese, Italian, Japanese or American in addition to the local cuisine. Usually it also has a coffee shop (snack bar), a lobby bar, a poolside bar, a night club and a disco where both food and beverages or one of the two is served. The restaurant service in a Saujana hotel is expected to be fast, polite, very professional and of top quality. Everything, from the delicacy, taste and sanitation of the food to the stock of wines, the serving skills of the waiters and waitresses, the decor and the atmosphere and even the music and the entertainment must be on a par with that of the best of eating establishments in the city. This is because that the food and beverage outlets are an important part of a guest's overall experience with the hotel. Therefore, a guest usually demands the same standard of
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service as he or she finds in other areas of the hotel's service. If the service quality of these food and beverage outlets does not matched the standard in other departments, it will fall short of the guest's expectation and thus spoil his or her otherwise pleasant and satisfactory experience with the hotel. The service quality of a restaurant like that of a hotel is graded by experts in the trade. The excellence of the service and food and beverage-of a restaurant is indicated by the number of good eating stars it has earned. A three star rating in the restaurant trade corresponds with the five star rating in hotel business. In a three star restaurant only the very best food and wines are served. A two star restaurant is like a four star hotel. In a two star restaurant you can find first rate cuisine. A one star restaurant is comparable to a three star hotel. In a one star restaurant the meals are carefully prepared and sold at a reasonable price. There are mainly five kinds of restaurant services. They are gueridon service, silver service, plate service, buffet (self-catering) service and takeaway service. The first three kinds of services are sit-down services and a buffet service can be both a sit-down one and a stand-up one. Takeaway service is usually associated with snack bars and fast food outlets. In gueridon service, the waiter must always be well-trained and skilled for he has to perform such things as filleting, carving and cooking special dishes in front of the guest. In silver service, the food is prepared in the kitchen and brought to the guest's table Food and beverage outlets are the areas in a hotel where food and beverage are sold to both inhouse and outside guests. The following types of food and beverage can be seen which may or may not attach to a hotel.

Specialty restaurant These restaurants deal in a particular type of cuisine like Chinese, Italian or French etc. Each and every aspect of the restaurant is typical and related to the area of region of community whose food is being served. The food, service, uniform, dcor etc. are ethnic and authentic of the area whose cuisine the restaurant specializes upon. When one enters into such kind of restaurant one can feel the culture and tradition of that area. These restaurants may be attached to a hotel or may independently exist. They have specific hours of function and normally more expensive than ordinary restaurants.

Multi cuisine restaurant These restaurants deal with more than one cuisine like Indian, Chinese and Continental etc.
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They are not as exclusive as the specialty restaurants. There is no emphasis on adherence to the culture and tradition of a particular area of region or community. They may be attached to a hotel or may independently exist. They generally have specific time of operation when attached to a hotel. They may be operating on a straight shift from morning till night when independently existing. They are not as highly priced as a speciality restaurant.

Bar These food and beverage outlets deal with the alcoholic beverages only. They may be attached to a hotel or independently existing. They have certain specific hours of operation and the law strictly governs the operation. Their hours of operation, inventory, location and client to whom they should serve etc are governed and regulated by the law-enforcing agency.

Room Service This food and beverage outlet is attached to a hotel and caters to the F and B requirements of the guests who are staying in the hotel only. These F and B outlets cannot independently exist. The service in room service is always in trays and trolleys. In a five star hotel the room service operates round the clock. The prices in the room service are generally more than the coffee shop.

Banquets This is generally attached to a hotel of restaurant. This outlet generally caters to a huge gathering of people who assemble in the banquet hall for events like reception, marriage party, birthday, conference, seminar etc. The service is generally from a buffet when a lot of guests have to be served within a short span of time. Sometimes formal lunch, dinner etc also takes place in banquet halls. This is the highest revenue producing F and B outlet in any commercial hotel. Sometimes banquet halls can independently exist where an outside contractor does the catering part.

Coffee Shop This is generally attached to a hotel. In a five star hotel the coffee shop operates round the clock. It cannot independently exist. The service is very informal and emphasis is on pace of service. Service is generally snacks and very light meals. The meals part is not as elaborate as the restaurant. Prices are not as exorbitant as the
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restaurants. Although the coffee shop is operational round the clock there are meal timings when the certain items are available which are not available at other times. There are some dishes, which are available all 24 hours.

Pub A pub generally independently exists, which serves only beer. The atmosphere in a pub is generally very informal most pubs have a very informal seating arrangement and generally designed to suit the likings and requirements of the youth. They also have specific hours of operation and the law like a bar governs operations. Books of inventory and accounts are maintained as per the government regulation and are supposed to produce them before the concerned authority as and when required.

Discotheque This may be attached to a hotel or may independently exist. The ones, which independently exist, are open to anybody who can pay but most allow only couples. The ones, which are attached to the hotels, are not only opened to the members but guests accompanied by members are also allowed. They also have specific hours of operations and are normally attached with a bar.

Pastry shop They may be attached to a hotel or may independently exist. They deal with only pastry or pastry related products. Those, which are attached to hotels, deal with pastry prepared in the same hotel. The ones, which are not attached to hotels, have their own bakery either in the same premises of outside the premises. Service is done across the counter. Very limited seating arrangements may be provided if space permits.

Cafeteria These generally independently exist and are found in railway stations and airports etc. The service is generally self-service. Food is displayed in the counter and the guests helps himself in picking up the food as per his liking as he moves along the counter and finally pays the bill at the end of the counter. Sometimes payment of the bill may be through coupon also. Very informal atmosphere exists in these outlets and prices are not very high.

Poolside barbeque
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These are generally attached to the hotels and operate near the poolside. They generally operate for lunch and dinner only. There are adequate lighting arrangements to take care of the dinnertime. The menu is not very elaborate and comprises a lot of grilled and barbequed items. Some light meals are also available. These outlets are generally attached with their own kitchens, which are more often than not makeshift. A bar may be attached to the outlet or alcoholic beverages may be served from the service bar. Once again the dcor is very informal like a coffee shop. Service is very much similar to the coffee shop as well.

Grill Room These kinds of hotels are generally attached to the star hotels although they can be found independently existing also. They specialize in grills and barbequed items only. The kitchen is separated from the service area by a glass partition so that guest can see the chef preparing the food. This give rise to impulse buying. The guests are normally assured of better hygienic condition as they can see the actual food preparation.

Permit Room They are generally found in restaurants and in hotels existing in the dry states like Gujarat. In a restaurant there is a specific area where one can serve alcoholic beverages. The restaurant cannot pour alcoholic beverages an area outside this. Same set of rules and regulations are applicable to the permit room as applicable to the bar. Prior license have to be secured from the appropriate authority before starting a permit room.

Night Club They are generally attached to hotels and are open to members only. The operation starts late in the evening and goes on till late in the night. Stripes, cabarets and floorshows etc. are performed as a part of the entertainment. These are not seen in recognized star and commercial hotels. An elaborate menu is offered and the service is quite formal and extensive. It opens only for members. Alcohol is served to the members.

Fast Food Outlets They are generally not attached to a hotel and are found independently existing. They serve fast foods, which are easy to prepare to easy to carry and eat. These outlets provide very limited seating arrangements and people are not encouraged to sit and pass time in these places. Service is done in disposable plates and packets. Patrons are supposed to get their food
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from across the counter. There may be one person to look after the clearance and cleanliness of the place. Very limited service is provided.

Coffee Bar: This is a very recent development and becoming very popular. These outlets deal with only coffee. They specialize in different types of coffee. Both alcoholic and nonalcoholic coffees are served here. The alcoholic coffees are commonly called as speciality coffee.

Cyber Caf These are also very recent developments and fast growing in popularity. Each outlet provides computers with Internet facility and the guest can surf the Internet for a specific period of time paying certain amount of money. The outlet also provides light refreshments like tea, coffee and snacks to keep the people engaged when there are two different sessions with the computer.

Vending machine Such kind of a service involves service from a machine is requiring a coin or token of a particular denomination and the product comes out through an outlet in the machine itself. These machines are not extensively used in India and the use is still confined to tea, coffee and packed milk etc.

Pizza outlets These are outlets that mostly stand-alone. These outlets have been a recent development in India over the past decades. Their food mainly deals with pizzas. They also offer food & beverage like pasta, garlic bread, soft drinks, ice-tea etc. In India chains like Pizzeria, U .S pizza, Pizza hut, Smoking Joes etc are very popular. This trend has given rise to the franchising business, hence making pizza a youth food trend along with family and office treat zones. Basically covering all age groups of people. These outlets also deal with home delivery
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and take away. They usually have a moderate or minimum seating arrangement in an informal manner or tables are attached to walls with high chairs. Here one can enjoy hot & fresh food. One also has the optional at most places to plan their own pizza as per the available ingredients in the menu.

Home delivery/ take away This has been a recent trend over the past few years. As the name suggests, these outlets deal with delivery of food till your doorstep. These are stand-alone restaurants (kitchen only) that emphasize only on quick preparation of food & its delivery. There is no seating arrangement available here. The staff may contain chefs, order taker, cashier and delivery boys. The order taker takes orders over the phone or of walk in guest, notifies the kitchen and hands over the food packets to guest or delivery boys. He also might take the cashiering responsibilities at the counter, which might be overlooked by the manger. Normally such outlets do not charge for home delivery. Food is provided in plastic containers, aluminum foils, plastic bags etc. These outlets must not be confused with restaurants, which provides services of home delivery.

Drive-Inns These are developing outlets, which have not yet made a strong base in India. In places like U.S, U.K etc they have already make their mark and are best accepted. Mc Donald has stared this type of service in few of its outlets. This kind of restaurant may be attached to a hotel or stand-alone. They are normally situated at highways or near petrol pumps etc. This kind of outlet has no seating arrangement only a path around the outlet for vehicles to enter and exit. It has one or two counters where the attendant takes your order and payment, at the other counter if any pick up / delivery of the food is order is done. These outlets are time saving and economical.

Chai- bars Just like coffee bar these outlets also deals with only one kind of beverage i.e. tea. In India, tea in the Hindi language is known as chai. These outlets may mostly have an informal atmosphere and seating arrangement. The menu here includes variety of tea based on different regions, method of preparation etc. These outlets may also provide light snacks on the menu to go along with the beverage. These outlets may be stand-alone or may be attached to a restaurant. If attached to a restaurant the same premises is used for service with a different menu card or tent card only for tea.
29

The interior design is clean, unique, friendly and warm. Antique cupboards and traditional farmer equipment is used to recreate this authentic atmosphere, which is enhanced by the service and kitchen staff interacting among themselves and the guests.

AREA Smoking (A La Carte)

QUANTITY 2 9

SEATS 2 4

TOTAL 4 36

Kitchen Counter

Non Smoking (A La Carte)

32

Sushi Counter

11

11

Teppanyaki Counter

16

Tatami Rooms

24 ---

TOTAL

130

Lunch/Day

: 60% Covered by Japanese and Local companies : 40% Local visitors mostly Company Executive.

30

Dinner/Night

: 40% Japanese : 60% Local visitors

LUNCH Business community at Subang areas and Klang Valley are the largest group to dine in the restaurant during lunch. During the week most of the guests are club members or

businessmen and at the weekends a large majority of the guests are families with their children and golfers after tournaments. Saujana Golf club members consist of 20% of the diners in the restaurant after using the clubs facilities and the remaining 10% are the hotel guests.

DINNER Business community and families from Saujana Villa Condominiums and Bunga Raya Condominiums are the largest group to dine in the restaurant during dinner followed by hotel guests. Members of the Saujana Club often use Kogetsu for entertaining clients or after golf tournaments event.

A steady increase in businessmen from down town Kuala Lumpur has been noted with several private diners for politicians being held in the Tatami Rooms

THE MARKET The market comprises of club members, hotel guests, local business community from Klang Valley and resident community around the hotel and social group comprises 75%, hotel guests 10% and Saujana Golf Club members 15%.

OPERATION PHILOSOPHY
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The design of the restaurant gives a friendly, relaxed and warm village atmosphere. Waiters and waitresses are dressed in traditional farmer attire to enrich the concept.

Kogetsu offers a large variety of typical country favourites ranging from Udon soba, Donburi and Bento Box. All of which are prepared in the open kitchen enabling guests to admire the swiftness and style in which the dishes are prepared. Teppanyaki and sushi menus are also available for both lunch and dinner. Swiftness is a vital factor for lunch hence a menu offering set lunches.

Over the weekend Kogetsu offered an authentic buffet lunch which comprise of all specialties such as Teppanyaki, Sushi, Noodles counter and hot items being prepared ala minute at open kitchen.

Food presentation is our reputation in maintaining the best quality product. Therefore the colour, textures, contrast and freshness as well as authenticity are of great importance to Kogetsu. The freshness of food plays a vital role, so great emphasis is given to the

consistency and freshness of each product. A pot of hot Japanese green tea is brewed and served throughout every meal.

From the moment you enter Kogetsu the Hostess, barman, waiters and Cooks will greet you in the typical Japanese country style manner and throughout the meal voices will be heard either greeting fellow customers or firing orders in the kitchen.

OPERATION HOURS

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Monday to Friday

Lunch Dinner

: 12.00PM 03.00PM : 06.30PM 10.00PM

Saturday to Sunday

Lunch Dinner

: 12.00PM - 03.00PM : 06.30Pm - 10.00PM

Last order for lunch is 15 minutes before closing and last order for dinner is half an hour before closing.

SPECIAL FEATURES Typical Japanese jazz with crystal/water background effects are played throughout every meal period, using the restaurants individual multi compact disc player.

Bamboo fenced walkway leading to the restaurant.

Combination of wood and stone converting the restaurant into a countryside style restaurant.

Restaurant location - set along side the lake surrounded by a Japanese garden and bamboo fence.

33

Waiters and waitresses dressed in traditional farmer attire, specially designed to match the restaurants theme.

Japanese greeting by staff upon guest arrival and departure liven up the restaurants atmosphere and can be heard by all guests through out the entire meal.

The view overlooking the lake from the main dining area as well as sushi bar.

The view from the two Teppanyaki counters and three Tatami rooms of the Japanese garden, as well as the kitchen counter with an open kitchen concept where one is able to watch the cooks at work.

The restaurant construction with heavy timber beams, wooden flooring and white cream colours combined with long hanging lanterns create a warm, cosy, friendly and homely atmosphere.

All table top settings are clean and simple with very minimum operating equipment such as tea cups with under liner, chopsticks with ring, napkins with different colour strings, pebble stones as chopsticks rest and a table top tray with condiments.

The rustic countryside chinaware in various colours and forms are all imported from Japan ensuring authenticity.

Focused menu selection for both lunch and diner keeping the country / farmer concept in mind all the time.

34

A La Carte

Lunch

: Single sided menu insert on a light green cover with restaurant logo in black colour.

Dinner

: Double folded light green cover with restaurant logo and individual menu insert.

Sushi

Lunch/ Dinner

: Single sided menu insert on a light green cover with the restaurant logo in black colour.

Teppanyaki

Lunch/ Dinner

: -Same as Sushi-

Beverage List

Lunch/ Dinner

: -Same as Sushi-

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Promotion Menus

Dinner

Menu card with print on a light mint green paper with

restaurant logo in green colour.

EMPLOYEE FASHION The uniforms for all staff are geared towards the traditional country farmer design with Japanese characteristics. All uniforms are unique due to the fact that they designed solely for and by the specialist designer.

Male employees wear dark blue baggy pants and lighter blue Japanese shirts. The male employees also wear a small black apron and coloured sash (yellow or red).

Female employees wear dark blue baggy pants and lighter blue Japanese shirts with a coloured sash around their waist (yellow or red).

All employees wear Tabi shoes that are imported from Japan and all uniforms are designed and fabricated by local fashion designer, Awan Indah based in Kuala Lumpur.

PERSONNEL The criterion for the selection of personal is towards a pleasant and energetic personality, initiative and enthusiastic attitude with specified level of education. Training is a priority, ensuring to develop employees further by increasing their expertise of certain skills preparing them for their future career. A little Japanese language is credibility.
36

PRICING POLICY A competitive approach is presently the basis for establishing the price structure for Kogetsu and at the same time, great care has been taken in order to keep all prices in line with other restaurants in the Klang Valley and Kuala Lumpur region. Kogetsu is known for its excellent value for money especially when compared to some of the restaurants down town.

Members of the Saujana Golf Club are entitling to 10% discount for food and beverage and 50% discount of food and beverage will be given to Directors.

TABLE TOP Each table is set without any tablecloth or centrepiece. Pebbles are used as chopstick holders, Japanese chopsticks and teacups with wooden underliners are simple and attractive when set on the table. Condiments are also set on a wooden condiment tray. Napkins are rolled and tied with colour strings (blue, red, yellow and black).

The hotels main lobby, Saujana Golf and Country Club are consistently visited by members and clients from high ranking officers, from various private and government sectors thus providing free advertising.

Advertising is also placed on a monthly basis via hotel collateral such as:
37

Monthly newsletter Room collateral Guest passport Guest check Local newspaper and magazine International magazine Conference area Employees bulletin board Fajaria television screen

Joint promotions were held with major credit card companies, in order to promote the restaurant and to attractive potential clients from various markets. Front Office Department: The front office is the command post for processing reservation, registering guests, settling guest account (cashiering), and checking out guests. Front desk agents also handle the distribution of guestroom keys and mail, messages or other information for guests. The most visible part of the front office area is of course the front desk. The front desk can be a counter or, in some luxury hotels, an actual desk where a guest can sit down and register.

In a hotel , the department , where guest are checked in and out , payment on accounts are made and messages are exchanged is known as front office . It is the department
38

which is responsible reservation , followed of rooms means the when a guest leases

for the sale of hotel rooms through systematic method of by registration and assigning rooms to the guest . The term sale use of hotel rooms at a price . A room is sold for the day the room for the stay in hotel.

The front office in a hotel holds prime importance in view of the basic nature of the business of a hotel to sell rooms. Revenue collected from the sales of room contributes more than the 50% of the hotel sales . This department is has the prime role of image building which is the first and the last point of contact of every guest. Thus the role of front office is to reserve , receive , register , assign rooms to the guest and act as a continuous source of information to guest during their stay of the hotel.

THE FOLLOWING SERVICES ARE HANHLED BY THE FRONT OFFICE .

Airline information. Allotment of rooms. Check-in / check-out. Credit card acceptance. Courtesy call. Room reservation. Car rental. Currency exchange. Doctor on call. Information. Mails. News paper Guest relation. Sight seeing. Secretarial services. Taxi service. Transportation. Wake up call Safe deposit locker.

39

ORGANIZATIONAL HIERARCHY OF FRONT OFFICE DEPARTMENT.

EXECUTIVE ASSISTANT ACCOMODATION MANAGER

ASSISTANT FRONT OFFICE MANAGER

DUTY MANAGER

BUSINESS CENTER MANAGER

RECEPTIONIST

CONCIERGE

RESERVATION ASSISTANT

CASHIER

BELL CAPTAIN

TELEPHONE SUP.

BELL BOY

OPERATOR

THE FRONT OFFICE OF THE TAJ WESTEND HAS EIGHT SUBSECTIONS

40

Reservation Reception Cash & bill Information Telephone Bell desk Business center Travel desk

MODES OF RESERVATION

Telephone Telex Fax Letters Personal E-mail Telegram

SOURCES OF RESERVATION

Free individual travelers Company guest Travel agents Walk in By sales and marketing office By tour operators

THE RESERVATION IS FIRST RECORDED ON RESERVATION FORMS , WHICH CONTAIN THE FOLLOWING DETAILS.

NAME :
41

TYPE / ROOM NO :

COMPANY : ARRIVAL DATE / TIME : DESIGNATION : DEPARTURE DATE / TIME:

ADDRESS :

DURATION OF STAY :

CITY : COUNTRY :

PIN CODE : FAX :

RATE CODE / RATE :

PAYMENT MODE : E MAIL ADDRESS : CARD NUMBER :

TELEPHONE NUMBER :

EXPIRY DATE :

DATE OF BIRTH :

ANNIVERSARY DATE :

PASSPORT AND OTHER DETAILS

ARRIVED FROM :

PROCEEDING TO :

NATIONALITY:

PASSPORT NO :

DATE OF ISSUE :

PLACE :

REG. NO .:

BILLING INSTRUCTIONS :
42

CASH REMARKS :

RESERVATION REMARKS :

The information is fed into the system . This transfer helps in rechecking if all the important details are obtained. This is the most important to provide the guest service to the best of his satisfaction.

A confirmation letter stating the reservation and mode of settlement or payment has to be send by the person who is making the reservation . Letter , telex or fax depending on the urgency confirms every reservation inturn by reservation department.

These reservation forms with the corresponding letter is filed date wise for the current month for the following month . The next day arrivals , reservation forms and letters are placed in a follow up file in an alphabetical order. These details can be cross checked from the registration card in case of clarifications.

Every day , V.I.P list is made which states the arrivals for the next day. The duty manager authorizes this. Then these copies are distributed to General manager , Lobby manager , Front office manager , Guest relation executive , Cashier , Executive housekeeper , Executive chef and security incharge.

43

THE FRONT DESK HAS FOUR MAIN SUBSECTION :

RECEPTION : Situated in main lobby. Which takes care of all check in / check or etc CASHIER : Situated in lobby next to reception which takes care of all guest resident and non resident bills. CONCIERGE : It is the desk for handling all guest baggages , mails and other extra services. Travel desk : It handles of guest transportations according to the guest request like airport pick up and drop etc

PROCESS FOR CHECKING IN AND CHECKING OUT A GUEST

CHECKING IN A GUEST Some time normally elapses between making a reservation and his actual time of arrival in the hotel . During this period the may deal with hundred of other visitors . However , the hotel must be ready to receive each and every guest an the day and time of arrival . there must be a room ready for him and there are various necessary formalities to be gone through when the guest arrives . This is referred as Check in process :-

44

THERE ARE FIVE STEPS FOR CHECKING IN PROCEDURE :

STEP 1

Receiving and Registration. Receive a guest in front of house.

Registering of guest.

STEP 2 STEP 3 STEP 4 STEP 5 -

Allocate room. Secure advance payment. Information service. Complete check in. CHECKING OUT A GUEST :

When a registered guest leaves the hotel room he has rented , after settling his bills , the guest is said to be checking out.

THE FOLLOWING ARE THE PROCEDURES INVOLVED IN A CHECK OUT :

Guest calls to inform he is checking out to front office. Front desk assistant has to obtain the following : 1. What time the guest is checking out.

45

2. Would he need a bell boy to carry his baggage. 3. If yes , how many pieces of baggage. 4. Would the guest need a transportation to be arranged to take him to airport / railway station. Then inform the bell desk: 1. Room number of guest 2. Number of baggages to be brought down. Inform cashier to close the bill of the respective room number. Sign departure card after checking. 1. If the key is in the slot. 2. If the cashier has signed ( proof of settlement ). 3. Then inform the bell boy to arrange the baggages in the respective transport vehicle. Then the check out procedure is complete. GROUP CHECK IN PROCEDURE

The arrival of large groups of people at the same time will always mean there is pressureon the reception staff to get all guests checked in as quickly and efficiently as possible. If the group happen to be a large number of guest with individual bookings just happen to arrive at the same time then the receptionist will have to process eacg guest in turn as quickly as possible. However , if the group arrival is a tour or a special partythen the receptionist will know in advance of the arrival and can plan accordingly.

A standard procedure for the registration of group might include :

46

Group members can register in the usual way by each individual completing a separate registration form. However , with large groups this could cause chaos. Individual registration forms can be given to the tour operator for completion by the guests en-route to the hotel. On arrival the receptionist has only to check them and file accordingly. A list of the group members names , nationality and passport details could be given directly to the hotel by the tour operator.

GROUP CHECK OUT PROCEDURE :

If a group of people check-out at the same time , e.g., a tour group , pre-planning and special procedures will ensure that the operation runs smoothly.

The general procedure for handling a group check-out are :-

Set aside an area for the luggage to be left before it is loaded into the coach. Group member are informed via the tour leader of the procedure for paying extras charged to individual room accounts. If the amount involved are likely to be substantial, find out in advance how each person will be paying and the required authorization can then be obtained in good time. If the main bill for the group will be sent to the tour operator for paying , obtain any necessary authorization from the tour leader in good time.

MAIL HANDLING

All the letters are received at the front desk . Firstly it is segregated into guest mail and staff mail. The staff mail are sent to personnel department.

Using the computer system the guest mails are sorted into :

Mails of in house guest.

47

Mails of expected guest. Mails of departed guest.

The mail of in house guests is sent to the bell desk to be delivered to the guest.

The mail of expected guest is printed with the date of guest arrival . If its todays arrival the mail is attached to the registration card.

The mail of departed guest are sorted out to be given if they requires or if they check in at later date.

MESSAGE HANDLING

All the incoming guest calls are connected to the rooms through the telephone operator . The exchange is so designed to give only three rings in a guest rooms . If the guest does not respond with in three rings the call bounces to the respective telephone desk.

The reception on receiving the call must ascertain if the guest is in the room by checking the key rack . If the guest is not in his room check for guest locators .

If the guest is in another part / outlet of the hotel the call can be connected to him . Otherwise the message , the caller name and contact number are taken down . The same is typed into the computer system , which gives a print out at the printer place at the bell desk.

The two copies are placed in two envelopes one copy is given to the reception to be placed along with the key . The other copy is taken to the room and is slipped under the door by the bell boy .
48

The time of receiving and delivering the message is recorded at the bell desk . It is always seen that if the message is delivered in five minutes.

HANDLING RESERVATION

The reservation section works only between 9 :am to 6 : pm . During other times the reception has to take down the reservation. The procedure remains exactly the same as for reservation staff except feeding into computer system. The reservation slip as simply handed over to the next day to the reservation personnel.

FIRST SHIFT ( 7 am to 4 pm )

As soon as the morning shift personnel reports to duty at 6:45 am he / she has to check the following before proceeding further:

Check the log book for any important work pending. Check the arrival list and note down the following : 1. 2. 3. 4. 5. 6. Room occupancy. Average room rate. Occupancy percentage. Number of arrivals. Number of departure. Room position.

Check the function list to get the information regarding the various functions and conferences taking place in the hotel , locations and timings. Check the computer system for the V.I.P and Handle with Care guest name and room number.

49

Request for the early release of the room from housekeeping for early morning arrival.

Then the Duty manager takes the briefing of all the front office staff in morning shift . The staff is required to have a personal proper grooming . apart from that the person is required to know :

The general lay out of the hotel to guide the guest. The cuisines and timings of different food and beverage outlets. V.I.P arrival for the day.

The duty manager gives the staff special instructions if any.

SECOND SHIFT ( 1 pm to 10 pm ) The second shift works remains exactly the same as the first . shift.The first shift assistant has to handover all the details of the shift to the second shift for a smooth transaction.

NIGHT SHIFT ( 10 pm to 7 am )

The following are the main task :

50

To print registration card : The computer lists all next days arrivals with details . The print out of this is taken on a formatted registration card . These cards are segregated according to room wise. Helps in compiling the night manager report : he has to find out the following for compiling the report : 1. 2. 3. 4. 5. 6. 7. Total occupancy. Sleep outs. Key count. Extension provided. Skippers. V.I.P and Handle with care guest. Allowance passed.

Key count : The keys have to be count in order to find out sleep outs , skipper and missing keys . If the check out guest takes the key he has to be contacted at the earliest. Arrival list : The next day arrival list is taken from the reservation department . The arrival list details of guest name , arrival time and flight details , category of room booked and special remarks if the guest is frequent to the hotel. BELL DESK / CONCIERGE

Bell desk work in three shift . Each shift is under a bell captain except the night shift. His main duty apart from check in and check out being newspaper distribution to the guest . Guest preference of newspaper are also provided by bell desk.

This section of front office is also responsible for the handling of message on behalf of guest and conducts paging and all stationery and postal work.

It also provides all information regarding the TAJ WESTEND facilities offered by the hotel.

51

CASHIERS

The front office cash work 24 hrs a day in a shift of :

First shift : 7 am to 4 pm. Second shift : 1 pm to 10 pm. Third shift : 10 pm to 7 am.

This section is a part of the reception . Before checking out , the guest calls , then the cashiers compiles all the bills ( from the different outlets ) and the master folio is made. The cashier hands out the master folio and bills ( of all outlets )and guest settles the bill.

There are various mode of payment :

1. Travelers cheque. 2. Credit card. 3. Cash. Various function of cashier section :

1. The cashier controls the facility of safety deposit locker given to guest to keep their valuables. 2. Foreign currencies are exchanged. 3. Cash and bills from various outlets of the hotel are received and tallied.

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TELEPHONES

In TAJ WESTEND there is a separate room for the telephone exchange. Two telephone operator are there to deal with all incoming and outgoing calls.

THE DUTIES OF TELEPHONE OPERATOR INCLUDES :

1. Receiving all incoming calls and connecting them to required number. 2. Outgoing calls for the hotel and the guest.

3. All long distance calls and overseas calls.

REGISTERS , BOOKS AND FILES MAINTAINED :

1. 2. 3. 4. 5. 6.

Log book. Complaint register. Handing over register. Guest trunk call book. Staff trunk call book. Wake up call register.

53

TRAVEL DESK

A travel agent should have an exact knowledge of flight and railways details . He should also posses good knowledge on the important tourist knowledge in an around city. The travel agent job involves booking the tickets for flight , train or any other transportation and confirms the same , arrange for airport transfers , arrange sight seeing tours for group or individual guest.

BUSINESS CENTER

The TAJ WESTEND 24 hr business center is fully equipped with one office room and a board room . It offers :

1. 2. 3. 4. 5. 6. 7.

Internet connectivity. Portable printers. Colour copier. Scanning facilities. Photocopy facility. Incoming and outgoing fax facility. Lamination and secretarial services. ( secretarial services are available from 9 hrs to 18 hrs )

BUSINESS CENTER TARIFF IS AS FOLLOWS :

FAX INTERNET XEROX BINDING PRINTOUT P.C CHARGES STATIONERY MEETING

54

International _ Rs Domestic _ Rs 100 250 Rs 187 for half hour. ( inc. tax ) Per page Rs 9 More than 100 pages Rs 7 Rs 150 for 150 pages. B & W Rs 40 COLOUR Rs 100 One hr Rs 200 Half day - Rs 750 Floppy Rs 80 C.D Rs 150 Rs 13224

Local _ Rs 50

ROOM AND BOARD ROOM CHARGES L.C.D PROJECTOR COMMITTEE ROOM VIDEO CONFERINCING

Rs 5950 Rs 10580 Rs 10000 for first 2 hrs Rs 2000 for every hrs

REGISTERS MAINTAINED IN THE CENTER :

1. OUT GOING AND INCOMING FAX AND E-MAIL REGISTER : The following details are noted down :

Name of the sender. The department to which it has to be send. The time at which it was received. Number of pages. The room number if any.

2. BUSINESS CENTER BOOKING DAIRY : Here the booking of the board room and the interview room are noted down . The following details are mentioned : Duration booked for. Name of the guest or the company. Booking made by Rate. Billing. Requirement.

3. LOG BOOK : In this register any message that are to be left for the staff taking the next shift are noted down.
55

3. LEDGER BOOK : In this register all the income of the day is mentioned. That is the amount of internet used for the day , photocopies made , printouts taken etc..

MACHINES USED IN THE CENTER

ONE SCANNING MACHINE FOUR COMPUTERS ONE LASER PRINTER ONE COLOUR PRINTER ONE PHOTOCOPY MACHINE ONE BINDING MACHINE TWO FAX MACHINE ONE PAPER SHREDDER MACHINE

Hewlett Packard scanjet 5200 c . 3 Ibm Aptiva and 1 Ibm personal computer. Hewlett Packard laserjet 2100 tn. Hewlett Packard deskjet 550 c. Xerox 5837. Cannon fax b155 and Samsung sf4200.

ROOM RATES AND TARIFFS

ROOM TYPES LUXURY LUXURY GRAND TAJ CLUB* EXECUTIVE SUITES** LUXURY SUITES** PRESEDENTIAL SUITES**
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INR RATES SINGLE DOUBLE 19,000 20,500 21,000 22,500 24,500 26,000 35,000 35,000 100,000 100,000 195,000 195,000

Government taxes applicable. * Buffet breakfast and one-way airport transfers. ** buffet breakfast and two way airport transfers.

MENU OF FIDELIO AT THE TAJ WESTEND :

Reservation. Registration. Flight details. Guest history. Information. Type of billing and accounting. Messages. Arrival and departure data. Room rates. Special and promotional rates. Room rates. Corporate rate. Tour rate. Rack rate.

Housekeeping Department:The housekeeping department is another department in hospitality world. Housekeeping is responsible for cleaning the hotels guestrooms and public areas. This department has the largest staff, consisting of an assistant housekeeper, room inspectors, room attendants, a house person crew, linen room attendants and personnel in charge of employee uniforms. They may also have there laundry and valet services. Hotels with laundry and valet equipments may use it only for hotel linen and uniform and send guest clothing to an outside service where it can be handled with specialized equipments.
57

 Food Production Department:Food Production deals with the preparation of food items. It basically engaged in preparing those dish, which are ordered by the guest and afterwards is catered by the F&B department. Cuisine like Indian, Continental, Thai, Italian, Konkani (Costal Sea Food), South Indian, Chinese, Mexican, etc. Different chefs are appointed for the specialty cuisine.

8.2

Support Department (Cost Centre) Marketing & Selling Department:Sales and marketing has become one of the most vital functions of the hotel business and an integral part of modern hotel management. It includes packaging for selling, sales promotion, advertising and public relations. The marketing division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests. Engineering & Maintenance Department:The energy crisis throughout the world has given a great importance to the engineering department of a hotel. This department provides on the day-to-day basis the utility services, electricity, hot water, steams, air-conditioning and other services and is responsible for repairs and maintenance of the equipment, furniture and fixture in the hotel. The engineering department has an important role in satisfying the guestdemand and helping to maintain the profit level of hotel. The cleaning, up-keep, repair, replacement, installation and maintenance of property and its furnishing, machinery and equipment are the joint responsibilities of Engineering/ Maintenance and the Housekeeping Department. Finance, Accounting & Control Department:A hotels accounting department is responsible for keeping track of the many business transaction that occur in hotel. The accounting department does more than simply keep the books-financial management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concern with the cost control guidelines by way of reducing in investment, reduction in operating cost, control of food service costs, control of beverage cost, labour cost control etc. Safety & Security Department:The security guest, employees, personal property and the hotel itself is an overriding concern for todays hoteliers. In the past, most security precaution concentrated on the prevention of the theft from guests and the hotel. However, today such violent

58

crimes as murder and rape have become a problem for some hotels. Unfortunately, crime rates in most majors cities are rising. Hence today security department also concentrate on these additional criminal activities too. Administrative Department:Top organizational members usually supervise the Administration Department in a hotel. This department is responsible for all the work connected with administration, personnel, manpower, employees welfare, medical health and security. Human Resource Department:This department has newly taken step in hotel industry and within a short span of time it has become very important part of the organizations. It plays the role of facilitator between the bargain able cadre and non-bargain able cadre. Key Control Department Types Of Keys: Room Keys: Different keys are issued to guest for their rooms. Have a heavy key (key tab) discussion guest taking it away. Bells bay will take the key from the guest at the time of check out. Section Keys These keys will be issued to room alter dents. Will open doors of one section /floor. The will not open the double lock rooms. Room attendants will carry their key bundles, tied around so that they dont loose. Floor Master Key: Will open all rooms on the floor. Will not open double locked room. General Master Key: Will be used by Deputy House Keeper. Issued to night duty housekeepers also. Will be enabling to open only floor as the hotel expect the double locked room. Grand master key: Will open rooms of all room, even the double locked rooms. Will be issued to Executive General Manager and Duty Manager (extreme case must be taken in opening a double locked room i.e. only in case of emergency)

8.3

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60

CHAPTER 9

9.1 Past Supply and Present Demand A comparison between increase in supply and demand in 2010-11 as compared to 200910 for the major markets in India and two levels of positioning namely mid-market and luxury/first class. Figures has been calculated by using performance of each hotel in these market for 2009-10 & 2010-11 and then comparing the total of accommodated rooms for all hotels to the increase in supply in the market during the same period. Demand Supply Comparison (2009/10 2010/11)
Mid-Market 2010-11 Supply Bengaluru Chennai Delhi NCR Goa Hyderabad Jaipur Mumbai Ahmedaba d* Kolkata* Pune* 6.1% 9.9% 20.7% 4.3% 16.6% 14.6% 18.3% 23.7% 10.5% 30.8% Demand 16.5% 14.4% 30.3% 7.6% % 30.1% 11.8% 16.7% 18.0% 14.5% 23.3% 2009-10 Supply 21.3% 3.6% 34.0% 0.0% 9.0% 14.0% 25.4% 30.6% 3.7% 39.2% Demand 26.8% 4.1% 23.4% 5.2% 4.0% 33.1% 22.1% 16.0% 2.0% 31.0% Luxury/ First class 2010-11 Supply 16.5% 2.0% 7.1% 11.9% 27.6% 1.2% 16.1% 23.7% 10.5% 30.8% Demand 33.9% 15.0% 8.8% 14.3% 29.0% 6.0% 14.8% 18.0% 14.5% 23.3% 2009-10 Supply 42.5% 13.8% 15.0% 1.2% 10.5% 0.0% 4.2% 30.6% 3.7% 39.2% Demand 29.9% 1.5% 16.4% 6.7% 0.7% 2.0% 2.9 % 16.0% 2.0% 31.0%

The study also forecast the estimated demand for hotel rooms per annum assuming that past track in tourist traffic continues in future.
All India Estimated Demand for Hotel Rooms 2011 & 2016 Category 2011 Classified 342,053 Others 240,680 Total 582,733 2016 868,913 515,095 1,384,008

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9.2 Occupancy Rates The hotel sector benefits from both holiday and business travel. Holiday travel in India is generally seasonal in nature. Historically, over 60% of total tourist arrivals into the country is during the period between September-May. On the other hand, business travel is a factor of various factors.

9.3 Average Room Rates There are three classes of rooms in a hotel i.e. business, leisure and luxury. It is important to understand that room rates are less elastic to a fall in price at the higher end of the
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segment (luxury) than at the lower end of the spectrum (business/leisure).Currently, the big hotels have average occupancies of 60%.

Nationwide performance Year Occupancy Rate % change Average Room Rate % change Revenue Per Room % change 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Source: HVS 71.5 71.4 68.8 60.3 65.0 68.0 3.6 -0.1 -3.6 -12.4 7.8 4.6 Rs 5,444 Rs 7,071 Rs 7,989 Rs 7,837 Rs 6,426 Rs 6,800 26.6 29.9 13.0 -1.9 -18.0 5.8 Rs 3,892 Rs 5,049 Rs 5,496 Rs 4,726 Rs 4,177 Rs 4,624 31.2 29.7 8.9 -14.0 -11.6 10.7

9.4 Government Measures Benefiting the Project Various policy measures undertaken by the Ministry of Tourism and tax incentives have also aided growth of the hospitality industry; some of them include:

Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts, and recreational facilities) through the automatic route

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Introduction of Medical Visa for tourists coming into the country for medical treatment Issuance of visa-on-arrival for tourists from select countries, which include Japan, New Zealand, and Finland Promotion of rural tourism by the Ministry of Tourism in collaboration with the United Nations Development Programme Elimination of customs duty for import of raw materials, equipment, liquor etc Capital subsidy programme for budget hotels Exemption of Fringe Benefit Tax on crches, employee sports, and guest house facilities Five-year income tax holidays for 2-4 star hotels established in specified districts having UNESCO-declared 'World Heritage Sites'.

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CHAPTER 10

10.1 FOREIGN DIRECT INVESTMENT IN HOTEL INDUSTRY

100 per cent FDI is permissible in the sector on the automatic route. The term hotels include restaurants, beach resorts, and other tourist complexes providing accommodation and/or catering and food facilities to tourists. Tourism related industry include travel agencies, tour operating agencies and tourist transport operating agencies, units providing facilities for cultural, adventure and wild life experience to tourists, surface, air and water transport facilities to tourists, leisure, entertainment, amusement, sports, and health units for tourists and Convention/Seminar units and organizations.

10.2 REASONS FOR LOW FDI IN FHOTEL INDUSTRY

The following are the some of the reasons for low foreign direct investment in this sector. They are: 10.2.1 Multitude of taxes Ours is the highest tax structure on tourism projects in the Asia Pacific region. Multitude of central and state taxes is the fundamental problem plaguing the tourism sector. Expenditure Tax of 10% is charged in hotels wherein room charges for any unit of residential accommodation are Rs.3000 or more per day while, simultaneously, States levy Luxury Tax ranging from 5% to 25% on the hotel tariff. Taking into account heavy administrative costs of collection of HET by Central Govt. and Luxury Tax by State Govt.s, the net benefit to the economy is considerably smaller and is not compatible with the loss in revenue accruing due to diversion of tourists to lesser-taxed estinations. The problem has got magnified due to increase in the threshold limit, which used to be Rs.2000 per day per individual to Rs.3000 per day during Union Budget 2002-03. With the removal of the words per individual, the benefits of raising the threshold limit were nullified and therefore benefits could not be passed on to tourists. The revenue stream that the Union Government shall have to forego on abolishing Expenditure Tax would not be substantial, and would be more than matched by the benefits that could accrue from the increased flow of tourists who are currently diverted to other less taxed destinations. There is no national wide tax policy there by some international hotel chains are hesitating to establish their subsidiaries in the India. 10.2.2 High Taxes One of the fundamental problems plaguing the Indian tourism sector is a multitude of Central and State level taxes, which lead to an increased cost to the tourists. A comparison of the Corporate Tax level in India, which affects the hospitality sector, in comparison with our neighbors, shows Indias poor competitive positioning. On the indirect taxes front also, India fairs poorly as compared to competing destinations. The following table and figure showcases tourism related major indirect taxes benchmarked across comparable locations.
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Airport Related Cities/Taxes Kuala Lumpur Bangkok Hong Kong Singapore New Delhi Mumbai Lowest rates Highest rates 1.70% 1.26% 0.72% 0.94% 0.94% 0.90% 0.53% 7.66%

Accomadation Related 4.76% 6.54% 2.91% 3.85% 16.67% 13.79% 0.25% 20.00%

Food & Beverages Related 4.76% 6.54% 0.00% 3.85% 6.54% 19.03% 0.00% 20.00%

Car Rentals Total Related Taxes 4.76% 6.54% 0.00% 4.38% 4.76% 4.76% 0.00% 33.22% 6.46% 7.86% 2.18% 4.98% 13.18% 13.90% 0.97% 24.25%

Rank 7 8 2 3 19 21 1 52

10.2.3 Delay in FDI Approvals & Govt. Policies Huge delay in Foreign Direct Investment approvals in Hotel & Tourism sector. Due to delay in approvals and lack of guidelines in the tourism policy, the Alfred Fords proposed Himalayan Sky Village is pending since last three years. If it is approved it is one of the highest FDI in the country in tourism sector with US$ 300 million which also provides employment to around 3000 people. 10.2.4 Highest import duty on imported liquor used in hotels: Under the WTO Negotiations for Market Access under the Agreement of Agriculture (AOA), India had bound its tariffs at 100% for primary products, 150% for processed products (this is the relevant category for liquor) and 300% for edible oils, except for certain items (comprising about 119 tariff lines), which were historically bound at a lower level in the earlier negotiations. With the additional duties and sales tax levied by the State Governments the cost of alcoholic spirits sold in hotels to bonafide guests is exorbitant. The international precedence for liquor related levies also do not substantiate the current level of taxes. Rationalization of the tax on liquor is therefore important to make Indian hotels competitive internationally and enable them to extend facilities, considered important by tourists, on par with the hotels in competing destinations.

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10.3 MAJOR REASONS TO INVEST IN HOTEL INDUSTRY

Economic liberalization has given a new impetus to the hospitality industry. The Indian hospitality industry is growing at a rate of 15 percent annually. The current gap between supply and demand expected to widen further as the economy opens and grows. The government forecasts an additional requirement of 200,000 rooms by the turn of the century. The travel and hospitality industry continues to be the sector, which has largely profited from the fast growing economy of India. This has largely been due to the 3.9 m tourist arrivals in FY06 (15% growth) over the previous period. The compounded growth in tourist inflow over the last ten years (FY00-FY10) has been 8.2%, while in the last five years, growth stands at 9.1% per annum. This increase in the number of tourist arrivals in the country lifted the countrys standing in the world of tourist destinations. The country is ranked fourth among the worlds must see countries. The sector continues to face certain problems. The country continues to be marred by poor infrastructure facilities like poor road management, rail, air and sea connectivity. However, the present government in its endeavor has taken a few initiatives like opening of the partial sky policy. This allows private domestic airline operators to fly on the Indian skies. Some states continue to be in political uncertainties. As per the 2009 findings, the total number of approved rooms by the Government of India stands at around 99,000 (estimated). These rooms are further classified into various segments out of which, Five star and Five star deluxe hotels account for around 27% of the total capacity, three star hotels (22%), four star (8%), two star (9%), one star and Heritage hotels (2% each) and the rest is divided between unclassified and unapproved hotels. A rapidly growing middle class, the advent of corporate incentive travel and the multinational companies into India has boosted prospects for tourism. India's easy visa rules, public freedoms and its many attractions as an ancient civilization makes tourism development easier than in many other countries. The five star hotel segments have grown the fastest during the last five years at a CAGR of 12%. Further, this segment can be divided into 3 sub-segments Luxury, Business and Leisure. The growth in this segment indicates the genre of travelers coming into the country. Over the last few years the country has witnessed a large influx of business travelers in the country owing to relaxation of the governments stand on Foreign Direct Investments (FDI) for most of the sectors in the country. Many foreign companies have already tied up with prominent Indian companies for setting up new hotels, motels and holiday resorts. The entry of McDonalds, Pepsicos Kentucky Fried Chicken, Dominos and Pizza Hut has given an international glitz to the hospitality sector. It costs an average of US$50-80 million to set up five-star hotels with 300 rentable rooms in India. The gestation period is usually between three and four years.

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10.4

OTHER GOVERNMENT INITIATIVES

Government has undertaken following initiatives to attract both inbound and outbound tourists: Incredible India -Under this program the Government promotes India through various integrated marketing programs. Atithie devo bhava (guests are equal to god) -Under this program the Government create awareness among Indian people who come in contact with the tourist. Various Infrastructure building initiatives Encourage religious tourism for instances promote various places in India as Buddhist abodes. Other projects are the Rs. 5,400 million National Highways Development Project, the 5,846 km Golden Quadrilateral and the 7,300 km north-south and eastwest corridors. Sagarmala project which intends to create a network of seaports, which will change the way people discover and experience real India. Eco-tourism - The government is considering various fiscal and policy measures to promote ecological and adventure tourism in the country including formulating uniform ecological guidelines to conserve nature and waiver of service tax charged on adventure tours. 924 Infrastructure projects worth Rs.1440.86 crore sanctioned during the 10th Plan. The government has already okayed plans to substantially upgrade 28 regional airports in smaller towns. The upgradation of national highways connecting various parts of India has opened up the way for the development of budget hotels in India.

10.5

GOVERNMENT OPEN SKY POLICIES

The Governments Open Skies policy, permission for domestic airlines to commence international flights, start-up of various low-cost carriers, and fleet expansion by domestic players has created a huge incentive for domestic travelers to explore far-off destinations within and outside India. The booming aviation business is bringing an ever increasing number of passengers to India, and pulling Indians out of their homes and into hotels. Moreover, the governments decision to substantially upgrade 28 regional airports in smaller towns and privatisation and expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. Government has taken several steps to boost travel and tourism which have benfited to hospitality industry in the country. These includes the abolishment of inland air travel tax by 15%. Hotel Industry- Worlds Largest Industry Share of world: % of Total(2010) GDP 11.0 Employment 8.0 Exports 7.9 Capital Investment 9.4

10.5.1 KEY THINGS BEFORE INVESTING INTO A HOTEL PROPOSAL 1. What is the strategy and the capex plans of the company over the next 5-10 years? As mentioned earlier, hotels are capital intensive in nature having long gestation
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2.

3.

periods, which not only has a bearing on the free cash flows of hotels but also affects the return on capital employed (ROCE) for a period of time. So the bigger the capex plan, the more caution one should exercise. This criteria is favorable for established hotel chains. Economic cycles also determine earnings prospects (during a downturn, properties are cheaper and hotel chain generally tend to increase capacity). Moreover, in tough times like September 11, hotel stocks take a beating. It is at this time that the established players should be looked at, for when the concerns fade away; these will be the first ones to benefit from an economic upturn. A hotel chain should not be leveraged on any specific segment i.e. luxury or leisure. Though elasticity is lower at the premium end, when tourist flow is affected, this player could be the worst hit. Diversification reduces volatility in earnings, to an extent.

10.6

TAX BENEFITS TO HOTEL INDUSTRY

10.6.1 Direct Taxes Section 80IA: Infrastructure status for the hotel industry All new hotel projects will be able to avail the benefit of deductions of 100 per cent with respect to profits and gains for a period of 10 years. This will lead to many new hotel projects being set up, with companies re-investing their profits in the hotel sector. Further, it will help in channelling huge investment about Rs 50,000 crore (Rs 500 billion) in the tourism sector in next 3-4 years and quickly bridge the shortfall of hotel accommodation. Section 80HHD: Deduction in respect of earnings in convertible foreign exchange Section 80 HHD gives tax exemption from the export profits to exporters. If this is granted to the hotel industry, it would help companies to reinvest profits for building additional capacity.

Section 32 Hotel buildings are considered as plants for the hotel industry as they are utilised for 24 hours. The industry is required to make heavy investments in renovation, upgradation and upkeep of the hotel buildings at all times to keep it in pristine condition. Section 32 of the IT Act should be amended to restore the depreciation rate to 20 per cent.

10.6.2 Service Taxes Hotels and other tourism related service providers who earn foreign exchange have been included as the 13th sector in the Service Export Promotion Council set up by the ministry of commerce, government of India. As such, they may be granted exemption to the extent of foreign exchange earned for the following services provided by the hotels, ie banquet rentals, rent-a-cab, dry
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cleaning services, health club or fitness centre services, beauty parlour services, internet cafe services, club/association service, business support services, business auxiliary services, management consultant services, renting of immovable property, etc. 10.6.3 Custom Duty The customs duty structure should be rationalised for hotels and restaurants in tune with the international practices, to enable the Indian service sector to compete with their international counterparts. This is specially so for import duty payable by small sized hotels and restaurants who do not earn substantial foreign exchange and therefore, are not eligible for any of the Export Promotion Capital Goods schemes. 10.6.4 Exise Duty Seeks excise duty exemption on supply of food preparations (as part of their food and beverage services) by hotels or restaurants to their by guest (staying in the relevant hotel). Also, hotels and restaurants with turnover less than Rs 1.50 crore (Rs 15 million) should be exemption from paying central excise duty on the products produced and consumed within the premises. 10.6.5 Interest subvention to employment intensive sectors The 2 per cent interest subvention extended to employment-intensive sectors like textiles, leather, marine and handicrafts as announced in the relief package announced by the government of India on December 8, 2008, should be definitely extended to the hotel sector as their employment generation capacity is much more than these sectors. 10.6.6 Luxury Tax Luxury tax varies widely across services and states. Also, in the most of sales it is charged on the published tariff by not considering the commissions paid to agents and discount offered to walk-in clients. So the industry seeks exemption of luxury tax on the room tariff less than Rs 2,500 and to charge a uniform rate of 4 per cent on the actual tariff where room rent is Rs 2,500 or more per day. 10.6.7 VAT/ Sales Tax & Other Taxes Vat/Sales tax on food & beverage are different for each state and it should be uniform over the country. It will help in many hotel projects coming up all over the country which leads to lowering hotel tariffs and generating employment.

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CHAPTER 11

Although there are signs of a favorable comeback for the industry, lenders have not returned to the go-go days of 80% loan-to-value and easy construction financing. What we see today is debt financing for acquisition and refinance projects. While there are a few exceptions, construction financing is not projected to return in earnest for another three to four years. Loan-to-value ratios are between 50% and 75%, with the sweet spot between 60% and 65%. Lenders want equity to remain in properties and debt service coverage around 1.40x. Interest rates have fallen between 7% and 8%, although lower rates are available on lowerleverage projects. Borrowers need to be financially strong, with all sponsors willing to personally guarantee the loan. While money is available for hotel projects, there is a smaller pool of lenders. Banks have failed, lenders have distressed assets on their books, and even those with performing loans dont have room to do additional hospitality deals. 1. Low leverage We expect loan-to-value ratios to remain low as lenders continue to be selective with their underwriting. This will lead to a significant decline in supply growth in the short-term. On refinance projects, many owners will be required to contribute additional equity in order to meet loan-to-value requirements. If additional cash isnt available to do this, borrowers will need to take on additional equity partners or work to convince their lenders to extend the terms on existing loans. 2. No cash out Equity partners will need to be patient about getting money out of their hospitality investments. No longer can hotels be viewed as piggy banks. Owners need to get used to making money on the performance of the property rather than through its sale or refinance. 3. Strong borrower financials Borrowers will continue to need to have strong personal financials with ample liquidity and high net worth. Personal guarantees by all sponsors will remain a requirement. According to an April 2010 HVS Career Network survey, financial stability, good cr history, capital, access to equity and high net worth are critical borrower characteristics and ones we believe lenders will require in the future as well. 4. Higher interest rates With still much economic volatility and declining hotel values, lenders will continue to require a premium on hotel investments. Interest rates will remain in the 7%- to 8-plus % range, with lower rates available on low leverage (50% loan-to-value) deals. Projects with high cash equity; owners with hotel experience and a proven track record; a strong management team; risk strategies and policies; and a respected brand will have the best chance at securing competitive rates. 5. Fewer lenders There will continue to be a more limited number of banks and private lenders making hotel loans. Lenders are watching their existing hotel loans decline in value, others have loans on their books that will need to be refinanced during the next three to five years, and still others are preserving their capital for different uses. These factors will continue to limit the availability of debt financing in the hospitality sector. CHAPTER 12

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Public sector involvement in hotel projects is becoming increasingly common as the high cost of development and limitations on the availability of capital for new hotel investment limits the feasibility of conventional financing. The presence of a hotel property in a community may stimulate local economic activity by attracting new visitors and events as well as accommodating business travel in the region. As most communities desire the economic impact of group events and the spending of the visitors they attract, many are providing public subsidies to projects that are not feasible on a purely private basis. Public involvement in hotel development may be divided into two general categories: 1) Public/private partnerships, and 2) Public financings. In a public/private partnership, the hotel is typically owned and developed by the private partner, and public involvement takes the form of a public subsidy or bridging the gap between the cost of constructing and financing a hotel project and the combination of equity and loans a private developer is able to secure for the project. In the category of public financing, the sponsoring municipality issues tax-exempt debt to cover the cost of constructing and financing the hotel project, accessing the municipal bond market rather than conventional sources of hotel debt and equity. The net operating revenues of the hotel are pledged as the first source of funds for the repayment of the bonds. 12.1TRENDS IN PUBLIC/PRIVATE PARTNERSHIPS The amount of public support required to finance a hotel through a public/private partnership is dependent upon the gap between the capital cost of the project and the amount of debt and equity that can be raised in the capital markets. The financial feasibility of a hotel depends on several factors, including: Estimated net operating income Construction cost Interest rate levels Availability of equity Seasonality and volatility of the local hotel market Other factors that affect the allocation of investment risk and return

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Comparison of Hotel Financing Approaches Issue Public/Private Partnerships Ownership A privately owned single purpose entity,typically a limited liability corporation ("LLC") holds title to the hotel. This owner is responsible for engaging the developer and operator.

Operation

A hotel management company is engaged to operate the hotel. It may be managed by a major hotel brand company (e.g. Marriott, Hilton, Hyatt or Starwood) or by a third party operator with a franchise agreement to brand the property. Compensation is typically based on a percentage of gross revenue, net operating income or both.

Financing

Privately owned hotels are financed with a mix of debt and equity. In the current markets, lenders will only provide debt for 50% to 60% of the project cost, and equity investors must provide the balance of funding. Typically the developer obtains a variable rate construction loan which is later taken out with a permanent Financing at the time hotel operations stabilize.

Public Financing A publicly controlled entity, that may be an agency of the sponsoring municipality or a not-for-profit corporation, holds title to the hotel. Through the ownership entity, the sponsoring municipality is responsible for engaging the hotel developer and operator. Various forms of non-profit ownership are possible under IRS rules, including a "63-20 corporation" under Section 115 of the IRS code or a 501(c)(3) under IRS Ruling 57-128. A hotel management company is engaged to operate the hotel under a Qualified Management Agreement ("QMA") that conforms to Internal Revenue Service regulations. The maximum length of a QMA is 15 years, which is shorter than the term of operating agreements for privately owned hotels. Compensation to the operator must be on a fixed fee basis rather than as a percentage of revenue or net operating income. Most publicly financed hotel deals have been managed by a major hotel brand company. Franchise agreements are less common because hotel brands are reluctant to agree to fixed franchise fees as is required in a QMA. Publicly owned hotels are all debt financed through the issuance of municipal bonds. Some of the bonds may be "non-recourse." That is, the revenues of the project are the only source of payment and cr for the bondholders. To be rated as investment grade, debt service coverage on nonrecourse debt must exceed 2.0 times debt service. Typically, net operating income is not sufficient to secure enough nonrecourse debt to pay for the

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Cost of funds

Equity investment is obtained by selling stock in the LLC, and the development group may have a controlling interest in the LLC. In public/private partnerships a governmental entity may also provide an equity contribution to the project with little or no expectation of getting a cash return on that equity investment Interest rate levels on permanent debt may range from 8% to 10% in the current financial markets. Private equity investors may require from 10% to 15% cash return on equity.

project. Consequently, the sponsoring municipality may provide cr enhancement. This usually involves some form of pledge to pay debt service in the event that hotel revenues are insufficient. The development team may be required to hold some subordinated debt, but this debt is typically less than 10% of the total financing. In today's financial markets, nonrecourse debt carries interest rate levels of 7% to 7.5%. Interest rate levels on the cr enhanced debt depends on the cr of the sponsoring municipality. A AAA-rated municipality may achieve an interest rate level of 4.5 to 5.5%. Subordinated debt carries negotiated interest rate levels in the range of 9% to 12%. Consequently, the cost of funds for a publicly developed hotel are substantially less then from privately financed hotels. As in public/private partnership deals, public subsidies may take the form of land contributions, infrastructure and parking development, tax abatements, tax turn-backs, and cash subsidies. In addition, cr enhancing debt is a form of local public subsidy. Typically one objective of of a public financing is to reduce the level of public equity contribution as compared to a public/private partnership.

Forms of Public Public subsidies may take the subsidiaries form of land contributions, infrastructure and parking development, tax abatements, tax turn backs, and cash subsidies.

Claim on The investors in the LLC The sponsoring municipality owns the income & the typically claim the residual residual project income from asstes project income from operations operations and the sale of the asset. and the sale of the asset. Municipalities mass negotiate a share of project income in
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exchange for providing public subsidies. Developers often negotiate a "preferred return." Public/private partnerships in hotel development are more frequently used in smaller projects in which a reasonable amount of public equity investment can make the difference between a feasible and infeasible project. For many smaller projects the potential benefit of new economic and fiscal impacts are modest and only justify a limited investment on the part of the sponsoring municipality. Public Private Partnerships in India In Hospitality Industry Emaar MGF has collaborated with Government of Uttranchal to Develop an International Standard Branded 5 Star Hotel and State of Art Convention Centre in Dehradun. Emaar MGF has tied up with Intercontinental Hotels Group for the management of the hotel and convention centre. The international standard up-market hotel comprising 200 guest rooms will be managed under the 'Holiday Inn' brand. The state-of-the art convention facility, with collapsible seating and hi tech projection facilities, will be spread over 35,000 sq ft. and will be designed to accommodate over 1,200 people.

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CHAPTER 13

Joint ventures are popping up everywhere in the hotel industry. The biggest players in the hotel industry are using the joint venture structure to seize opportunities for acquisitions and expansion. In recent months, Starwood Capital and Hersha Hospitality Management announced their joint venture to expand Hersha's hotel management platform, and Thayer Lodging Group and Jin Jiang Hotels formed a joint venture to acquire Interstate Hotels & Resorts. Joint Ventures Offer an Alternative to Traditional Financing - and Have Different Risks and Rewards. Using a joint venture model for hotel acquisitions offers the benefits of increased access to capital, sharing of risks and rewards with a partner, access to greater resources, such as specialized staff, technology and expanded relationships. Particularly in the current economic environment where traditional lenders are reluctant to invest new capital in the hotel business, a joint venture with partners already active and committed to the hotel business offers an alternative means of financing potential future business expansion. Hotel investors hoping to seize buying opportunities for prime assets may find that the only way they can finance the cost of acquisition is by bringing in joint venture partners. However, a joint venture also creates its own risks, and these risks are best be addressed by the parties at the time the joint venture is formed, rather than waiting until problems develop later. The Essence of a Joint Venture. A joint venture is, essentially, a partnership between two or more partners who intend to be active in the business. In many joint ventures, the parties intend that the partners will be co-equal in making key decisions for the joint venture, including such key decisions as when to contribute more capital to the joint venture, and when to buy or sell an asset. A joint venture is often created through the formation of a new entity, most often either a general partnership, limited partnership or limited liability company. The rights and obligations of the parties to the joint venture are governed by the partnership or limited liability company ("LLC") agreement entered into by the parties as investors in the partnership or LLC. Four Keys to Success in Hotel Joint Ventures Here are four of the most important ways that the internal risks of a joint venture can be assessed and minimized: 1. Know Your Partners - Do a thorough assessment of the relative financial strength of the partners, their past history with other business partners, their management style and philosophy, and the personal chemistry between the management of both partners. 2. Pick the Bus Driver - Pick the party or the person who is going to run the venture, and vest that entity or individual with the power and ability to get things done. As Peter Connolly advises, "Someone has to drive the bus, and that role has to be made clear at the outset or, when the negotiating process gets to the difficult points, nothing will get done." That obviously requires that the venture partners have a great deal of trust in the person or entity who holds the primary power in the venture, but without that, the joint venture will not be able to act decisively when it is necessary to make decisions and take actions.
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3. Decide All the Important Issues in Advance and in Writing - Create a thorough partnership or LLC agreement that provides the full details of each party's specific obligations, with timelines for performance, as well as specific steps that can be taken by the aggrieved party when the other party fails to fulfill its obligations. The partnership or LLC agreement is what the parties have to protect them when things go wrong, and the more detail there is in the document, the easier, faster and cheaper it will be to resolve any problems if and when they arise or, if need be, unwind the joint venture if it is not possible to continue. 4. Deal with Conflicts of Interests Up Front- If there are inherent conflicts between ventures (i.e., a manager/owner conflict) get those out on the table at the beginning and resolve them or resolve the method for resolution before engaging in any serious negotiations. For this process to work, the partners have to understand and agree that they cannot have secrets from each other on matters that involve the venture. If there are issues that likely will cause parties to distrust each other's motivations, set up a process that forces conversation and resolution within a specified time period. 5. Joint Venture Hotel Projects in India: Maharaja Hotel Resort Limited: Maharaja Hotels Resort Limited has an ownership interest of 50% InterContinental Hotels Group, the world's top hotelier, signed a joint venture partnership with Duet India Hotels Group to develop its Holiday Inn Express brand in the Indian market.

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CHAPTER 14

In the year 2000, hospitality in India was primarily dominated by the domestic players, namely Taj Group of Hotels, Oberoi Hotels & Resorts, ITC Hotels, and the government owned ITDC (The India Tourism Development Corporation Ltd) Hotels, with only a handful of international brands having a token presence in the form of marketing alliances in India. Also, while some of today's home-grown hotel chains like Leela, Bharat Hotels, Sarovar and Asian Hotels were around at that time, they were for the most part single-asset owners. There was a perception that India was a tough place for foreign companies to do business in and that a strong local presence with excellent contacts was required to be able to penetrate this market. Additionally, several businesses and consequently most international brands were more focused on fast-growing markets in the Middle East and China, which offered more opportunities for growth at that time. The economic downturn, at the beginning of the decade, led to a paradigm shift among these businesses as they could no longer depend solely on the more mature economies and they started gauging the vast opportunities that a country like India had to offer. The fact that India was less impacted by the global downturns - one at the beginning of the decade and the other at the end of it - as compared to the rest of the world has emphatically proven the inherent strength of the Indian economy and its consumer base of over a billion people. As Indians travelled more frequently around the world, they experienced international hotel brands firsthand, as a result of which these brands enjoyed greater recognition and acceptance in India. Additionally, as international visitation to India increased, the foreign brands were better placed to attract these visitors due to their strong reservations networks around the world. With the continued growth in India's GDP, improvement in the per capita income, and increased aspirational spending, the Indian hospitality sector is expected to grow faster than most countries around the world. Most major hotel brands such as Starwood, Hilton, Marriott, Hyatt and Accor already have a growing presence in India and they have an even stronger pipeline. Additionally, the emergence of a branded budget and economy segment presents tremendous opportunities and will attract many new players to an India going forward. Key Game Changers: Entry of most major international brands

Changing perception of Indian markets as a lucrative opportunity among international brands Growth of the Indian middle class offering a large consumer base of more than 1 billion people Educated and well exposed Indian audiences, likely to accept global brands wholeheartedly Expected emergence of branded budget and economy hotels

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CHAPTER 15

In the past ten years most commodity prices have gone up. Development costs have always been a challenge for anyone looking to build a hotel in India. The land cost has increasingly become a significant portion of the development cost for any project, accounting for 30-50% of the total development cost, while the same equates to about 15-20% internationally. The high density of development within Indian cities and the shortage of vacant land parcels suitable for hotels had led to aggressive bidding wars among prospective buyers and forced prices upwards. With the increased pace of construction activity around the world, especially in the Middle East and China, the price of construction material such as steel and concrete increased steeply in recent years. While this was offset by sourcing furniture and fixtures from China by several recent hotel projects, the additional concern regarding the quality of Chinese goods is one that now needs to be addressed. HVS observes that hotels built in India very often exceed the brand specifications that might exist for these brands internationally and that developers often tend to spend more money on their hotels than required. A typical mid-market business hotel in the US or Europe, thus, does not cost nearly as much to construct as it does in India. The lengthy cumbersome process of obtaining licenses and permits and construction delays serves to increase costs even more. Given the time and expense involved in working through all these issues and finally opening a hotel, developers who managed to do so were not interested in selling their hotels or asked for prices that were far in excess of replacement cost. As we look into the next ten years, we believe that as long as asking prices remain significantly higher than the replacement cost for the product, developers and investors will choose to build rather than buy. Positioning Luxury Upper Upscale Upscale Mid Market Budget Economy Typical Development Cost per Key (INR) 12,500,000 and above 8,500,000 to 12,500,000 6,000,000 to 8,500,000 3,500,000 to 5,500,000 2,500,000 to 3,500,000 2,500,000 and below

Key Game Changers: Likely rationalization of land costs, due to the recent economic conditions
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Increased import of material from global sources, as long as quality goods are available Expected rationalization of costs, with government intervention in relaxing the license process Expected rationalization of per key development costs, with entry of brands across all positioning

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CHAPTER 16

The 4 Ps of marketing are Product, Price, Place, and Promotion. Think of each of these as a variable which you control. The idea is to set these variables in such a way so that sales will take place. You cannot "make" a customer pull out her cr card, but you can certainly help her in coming to a decision by setting the "right" price, the retail location, the level of advertising and even product attributes such as color or perceived quality. You control everything but the customer herself. These variables are all interdependent. Taken together, they constitute a certain mix. PRODUCT: In the hospitality industry the service that the hotel provides and the other products that the hotel provides are the facilities the rooms the restaurants the hotel has It's fully refurbished guest rooms and highly personalized services, make you feel comfortable and cared for, miles away from home the product that the armadas is into is always to keep the guests happy who enter and leave their premises PRICE Price is not just the sticker price or the price invoiced. It goes deeper. the Ramada is one of the only 5 star hotels in Goa that has prices that even a common man can avail of on grand occasions they have a price tag which varies for different persons requirements may from any walk of life Ramada is a good price package that fits every ones budget due to which they do not face competition from other hotels PLACE: Exclusive international 5 star deluxe hotel located in Shimla with 370rooms PROMOTION: The year 2010 is a different story as the consumer is well educated, travelled, experienced and looks beyond the gloss of the brand to the value proposition and the actual delivery of brand promises. Thus, in the Year 2010, the marketing mantras are differentiation, consistency, customer satisfaction, delivery of brand promises and customer retention. Today, Brand 2010 has evolved from a one-way communication stream to a two-way one that is more flexible and accommodates the customer's needs and wants. Hence, Brand 2010 is a product of the External Stakeholder the needs and wants of the Customers accented by experience led, sustainable Brand Promises which now translates into the Purchase Decision of 2010. The state of economic flux wherein each dollar spent is being analyzed, renegotiated and then minimized, the marketing dilemma of marketing spend vs. incremental revenue assumes more importance. How do marketing resources of the Indian Hospitality sector continue to build their brand and market their product successfully? Consistent delivery of a superior and differentiated product experience that offers a greater perceived value will result in the acquisition and retention of customers. The pressure on consistent delivery of brand promises is further maintained by online customer feedback which impacts the attraction quotient of the product for other prospective customers. Customers in the coming decade will want to 'Find Even Before they seek' and the advent of social networking has given a new power to customers like none other before.
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Key Game Changers: Broadening of the playing field with entry of many domestic and international hotel chains Well educated, travelled and experienced customer base Evolution of the brand from a one-way communication stream to a two-way one that accommodates customer needs and experiences Consistent delivery of brand promises and customer experiences Marketing equations changing in favour of the customer with online channels like Web 2.0 and social networking

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