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Real Estate Overview Residential real estate Commercial real estate Organised retail real estate Hospitality sector real estate 1 2 5 7 10
About CRISIL Research CRISIL Research is India's largest independent. global equity research. through a range of subscription products and customised solutions. No part of this Report may be published/reproduced in any form without CRISIL’s prior written approval. Risk and Policy Advisory Company. improve the efficiency of markets and market participants. Prospective investors are advised not to place undue reliance on the information sourced from this report when making their investment decisions. industries and companies.The Company had commissioned CRISIL RESEARCH to conduct a study on the Indian real estate industry (residential. retail and hospitality segments) and the relevant extracts from the CRISIL RESEARCH reports prepared during FY 2009-10 have been reproduced in this document with the permission from CRISIL and with the understanding that CRISIL is not held liable. Neither we nor any other person connected with the Issue has verified the information sourced from the aforesaid CRISIL RESEARCH Reports. Its integrated range of capabilities includes credit ratings and risk assessment. fund services. We leverage our unique. integrated research house. integrated research platform and capabilities spanning the entire economy-industry-company spectrum to deliver superior perspectives and insights to over 600 domestic and global clients. opinions and solutions that help them make better informed business and investment decisions. CRISIL offers domestic and international customers a unique combination of local insights and global perspectives. a Division of CRISIL Limited has taken due care and caution in preparing this Report. CRISIL especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of this Report. obtain information of a confidential nature which is not available to CRISIL Research. About CRISIL Limited CRISIL is India's leading Ratings. (The client is requested to reproduce the Disclaimer statement as a part of the DRHP document). commercial. . which may. and help shape infrastructure policy and projects. in its regular operations. risk management and infrastructure advisory services. CRISIL is not liable for investment decisions which may be based on the views expressed in this Report. However. CRISIL Research operates independently of. Information has been obtained by CRISIL from sources which it considers reliable. Disclaimer CRISIL Research. adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Research. CRISIL does not guarantee the accuracy. and does not have access to information obtained by CRISIL’s Ratings Division. delivering independent information. research on India's economy.
cinema theatres) industries. the real estate industry’s dynamics reflect consumers’ expectations of higher quality with India’s increasing integration with the global economy. economic services (hospitals. instead. At present. CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW . and as of today. which has led to low levels of transparency. The real estate industry’s growth is linked to developments in the retail. the real estate and construction sectors are playing a crucial role in the overall development of India’s core infrastructure. Historically. as the consequent increase in business opportunities and labour migration led to rising demand for commercial and housing space. hospitality and entertainment (hotels. the sector has not benefited from institutional capital. MARCH 2010 1 . it has traditionally tapped high net-worth individuals and other informal sources of financing. The Indian real estate sector has traditionally been dominated by a number of small regional players with relatively low levels of expertise and/or financial resources. schools) and information technology (IT)enabled services (like call centres) etc and vice versa. resorts. This scenario underwent a change with in line with the sector’s growth.REAL ESTATE OVERVIEW The real estate sector in India assumed greater prominence with the liberalisation of the economy.
growing urbanisation and a rising trend towards nuclear families. rapidly growing middle class and youth population. Source: CRISIL Research Phase I (2001-2005) was an initial growth phase with stabilising residential real estate prices following the global recovery post the “dot com” bust and 9/11 terrorist attacks in New York. 2 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW. there was steady growth in Indian economic activity. fiscal incentives on interest and principal payments for housing loans and heightened customer expectations. Phase III (2009-2010) witnessed substantial slowdown and part recovery in demand because of the global economic downturn. residential real estate industry can be divided into four growth phases. At the same time. Broadly. Phase I (2001-2005): Initial growth phase with offtake and prices picking up 2006-08 High growth 2009-10 Declining demand 2010 onwards consolidation 2. noteworthy recovery in IT/ITES industry. which led to a decline in affordability and tight liquidity. The retreat of various real estate investors. accompanied by slowdown in the capital markets. has resulted in oversupply and falling prices. Phase II (2006-2008): High growth phase with high demand and prices more than double 3. MARCH 2010 . Phase II (2006-2008) was a high growth phase where high demand for residential real estate led to doubling of housing prices. low interest rates. supply and prices gradually moving up in line with improvement in economic environment 2001 2005 Housing Offtake 2008 2010 Housing Prices 2014 Note: All years represent financial year (April-March). with demand. Demand rapidly increased due to India’s growing population.RESIDENTIAL REAL ESTATE Residential real estate industry has witnessed stupendous growth in the past few years owing to the following reasons: • • • • • • Continuous growth in population Migration towards urban areas Ample job opportunities in service sectors Growing income levels Rise in nuclear families Easy availability of finance Demand for houses increased considerably whilst supply of houses could not keep pace with demand thereby leading to a steep rise in residential capital values especially in urban areas. accentuated urbanisation. For instance. as can be seen in the chart below: Housing growth trajectory Phases 1. Phase IV (2011-2014): Consolidation phase. Phase III (2009-2010): Substantial 2001-05 Initial growth phase slowdown in demand due to dented affordability and economic environment 4. rising disposable incomes.2011 represents April 2010-March 2011.
7 million units at the end of Phase II. the segment is highly influenced by economic cycles. According to CRISIL Research. the residential real estate market in India too witnessed an astounding fall in demand and capital values. especially for population below poverty line. Recent industry trends Despite strong fundamentals backing the residential real estate. Two Million Housing Programme.4 million units at the end of 2008. The government’s continuous focus on improving the housing situation.7 million units by the end of 2014.8 million units by 2013-14 from 59. housing shortage in India is estimated at 78. Rural housing shortage is expected to decline to 53. is expected to reduce housing shortage in rural areas. Housing shortage in urban areas is estimated at 19. However.5 million units by the end of Phase IV. CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW . under schemes like Indira Awaas Yojna. Residential projects across cities saw several new mid-income housing projects being launched by developers to attract potential buyers.1 million units at the start of 2005. MARCH 2010 3 . However. Housing shortage in urban areas is likely to touch a walloping 21. Owing to global meltdown.3 million units at the end of 2008.1 15 10 5 0 2001 2005 2008 2010 2014 18. between first half of 2008 and first half of 2009. the sector experienced a pickup in demand during the second half of 2009 across major cities mainly attributed to improvement in economy. substantial housing shortage is still prevalent in India.7 Urban Rural Source: CRISIL Research CRISIL Research expects housing shortage to decrease due to the government’s thrust on improving rural housing by providing houses to the homeless under various development schemes and by enabling slum redevelopment programmes in urban areas under Jawaharlal Nehru National Urban Renewal Mission (JNNURM).5 34. up from 15. Demand for houses mounted as the global economy improved bringing back financial confidence to the home buyers along with low interest rates. who had put their purchasing plans on hold due to the fall in affordability levels and job-related uncertainties.Phase IV (2011-2014) is expected to remain a consolidation phase after slowdown. End-users. Demand is expected to remain strong with capital values witnessing modest rise. housing shortage in urban areas will continue to rise owing to migration towards urban areas and increasing trend of nuclear families.4 19. The overall housing shortage in India is likely to decline to 75. will witness a reduction in housing shortage due to migration and conversion of kutcha houses into pucca houses. In spite of the stupendous growth witnessed in the past 10 years. This period is expected to witness substantial supply of housing especially in urban areas. Rajeev Gandhi Aawaas Yojna.3 20.1 26.0 30. Housing shortage in India 40 35 30 Million units 25 20 15. on the other hand. started booking houses.7 26 21. Rural areas.7 19.
These top 10 cities account for around 15-20 per cent of overall supply in urban India. Absorption levels are also expected to remain strong during the economic recovery. CRISIL Research expects around 668 million square feet of residential supply to be constructed between 2009-11 in top 10 cities (Mumbai. Ahmedabad. Bengaluru. 4 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW. Kolkata. MARCH 2010 . strong underlying demand would continue to aid an improvement in absorption levels in major cities. capital values are further expected to witness a modest increase backed by better job security owing to higher growth in the economy in 2010 and 2011. Chandigarh. Chennai. Outlook Going forward. According to CRISIL Research. Average residential capital values which declined by 18-20 per cent in March 2009 from the highs witnessed during the first half of 2008.Improvement in demand also brought back the construction activity to back on track. Mumbai led the recovery and witnessed an 11 per cent spurt in residential capital values between March-November 2009. NCR. Pune and Hyderabad). Kochi. remained more or less stable between March and November 2009 in most of the places.
Expected demand during the same period is 70 million square feet Supply in the top 10 cities account for approximately 70-75 per cent of total office space supply in the country.COMMERCIAL REAL ESTATE The commercial office space in India has evolved significantly in the past 10 years due to change in business environment. It resulted in multifold development of city outskirts and suburbs like Gurgaon near New Delhi. Hyderabad. companies hold their expansion plans leading to lower demand for office space. commercial development started moving towards city suburbs. The demand for commercial real estate was on an upswing between 2005 and early 2008. limited supply of quality office space led to a sharp increase in lease rentals for commercial office space in most micro-markets. CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW . Ahmedabad. Pune. driven by exceptionally high employee additions in the IT/ITeS sector. Previously commercial properties were concentrated towards CBD (Central Business District) areas in large cities. A healthy domestic economy coupled with aggressive corporate expansion plans led to strong demand from sectors such as Banking. Kolkata and Pune have established themselves as emerging destinations for commercial development. demand for commercial real estate dropped sharply leading to sharp correction in lease rentals since the second half of 2008. with an average increase of 108 per cent between 2005 and early 2008. Lease rentals have corrected in the range of 25-50 per cent during the first half of 2008. especially IT-ITeS. which are competing with traditional business destinations such as Mumbai and Delhi. Gurgaon. with the emergence of IT-ITeS. over the last 10 years. However. according to CRISIL Research. In addition. Chennai. locations such as Bengaluru. which had huge office space requirement. Bandra and Malad in Mumbai. CRISIL Research has estimated supply of office space at around 172 million square feet in 10 major cities (Mumbai. and the Electronic city in Bangaluru. Recent trends During the economic slowdown. Tax sops on the profits of IT-ITeS companies also led to stupendous development of IT Parks and SEZs. most of the urban cities are faced with a humungous oversupply of office space. Subdued demand and rentals has impacted the execution adversely in addition to cancellation of many projects. Chennai. MARCH 2010 5 . With demand slowing substantially. Financial Services and Insurance (BFSI) and media and entertainment. primarily from the US and European markets. Chandigarh and Kochi) during 2009-11. Hyderabad. The growth of commercial real estate has been driven largely by service sectors. The strong demand from domestic IT/ITeS companies and captives of large global players was a result of increased business. NCR. Furthermore. Kolkata. Demand for office space is directly linked to addition in number of employees. When economy slows down. Bangaluru. which in turn is dependent on economic growth.
increased utilisation rates of existing commercial space by increasing the number of shifts. commercial office lease rentals are expected to decrease by an additional 3 per cent at most of the micro markets. continued during the second half of 2009. in view of the considerable oversupply across cities and lack of adequate demand. According to CRISIL Research. which had commenced during the second half of 2008. which adversely impacted demand for office space. MARCH 2010 . in 2010. IT/ITeS. 6 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW.Average lease rentals across 10 cities (indexed to 2005) 300 250 Lease Rentals (Rs/sq ft/month) 200 150 100 50 0 2005 2006 2007 2008 H1 Q1 2009 Avg 2009 2010P Source: CRISIL Research Downturn in the commercial real estate market in India. which had been a major demand driver for the sector in the last 2 years. The resultant drop in demand for commercial office space led to correction of lease rentals in the range of 25-50 per cent since the peaks touched during the first half of 2008. The sustained decline was largely the result of postponement of expansion plans by corporates.
high disposable incomes and a propensity to spend. A sector that was riding high on the economic boom until recently found itself grounded by the economic slump.9 trillion 5.1 trillion 5. In addition. The sudden downturn not only forced developers to postpone the launch of new projects but also delay those under construction. which was mainly concentrated in Tier I cities until a few years back.3 per cent Note: ORP . which is further expected to increase to about 7. lavish lifestyles.5 trillion 2009-10 P Rs 19.7 trillion 2012-13 P Rs 27. in turn. This. the planned supply in the retail real estate market is much higher than the demand.3 per cent by 2012-13. spread to Tier II and Tier III cities as well. the concentration of such developments rose given the supply of multiple malls in cities. This resulted in shrinking catchment areas and lower footfalls for the existing malls. The industry is expected to increase at a CAGR of 14 per cent in the short term and 19 per cent over the next 5 years.0 trillion 7. which indicated a large amount of supply coming up in 2008. the retail real estate market recorded an increase in demand. The supply of organised retail real estate. MARCH 2010 7 .5% ORP Organised retail ORP Rs 0. developers in most cities announced new malls. created an excess supply in the existent weak demand scenario. India’s organised retail industry has posted high growth rates given improvement in key driving factors namely. India’s retail market was mainly unorganised until early 2000.6 per cent 18.Organised Retail Penetration Source: CRISIL Research Demand–supply situation Keeping in step with growth in the organised retail market.9% ORP Rs 2. In the past few years. A number of plans went back to the drawing boards to avoid coming on-stream in this weak market. The real estate sector was significantly hit with the downturn in late 2008.5 per cent Rs 1. a resultant of the economic slowdown. Going forward. organised retailing is expected to grow with revival in economy and a strong growth outlook.6 per cent in 2009-10.9 trillion 13. The total planned supply across 10 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW .ORGANISED RETAIL REAL ESTATE The retail industry in India has witnessed a slowdown in the past year after increasing at a CAGR of 28 per cent in the 2005-08 period. Cashing in on the retail real estate market boom. however. Organised retail penetration has grown to about 5. Retail market sizing 2007-08 E Total retail Rs 15.
In spite of rentals reducing to realistic levels in malls. However. lease rentals increased by 95 per cent (average across 10 major cities). Going forward. demand for retail space was higher than the supply. MARCH 2010 . 2009 witnessed a sharp decline in lease rentals (average 45 per cent decline) given the economic slowdown. leading to an increase in lease rentals on account of increase in footfalls and penetration of organised retail. absorption is expected to be lower than the supply with the oversupply situation likely to continue in most of the cities. Concentration of malls in several areas of NCR gave rise to a skewed demand-supply scenario. CRISIL Research expects retailers to remain cautious about their expansion plans despite the industry showing signs of revival. Considering the large number of upcoming malls. considering rentals in these areas have corrected notably following reduced demand. During the period. witnessed the sharpest fall in retail lease rentals at 31 per cent. Post the crash of late 2008. after 4 consecutive years of rising lease rentals. Retailers are now eyeing prime high streets and mall spaces for expansion plans. Hence. Lease rentals declined at an average of 14 per cent in 2009 with the National Capital Region (NCR). 8 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW. 2005 to 2008. the Indian retail real estate market retailers revaluated expansion plans and renegotiated with developers in an attempt to bring down lease rentals in malls. Average lease rentals across 10 cities (Rs per sq ft) 250 50% 40% 200 30% 20% 150 10% 0% 100 -10% -20% 50 -30% -40% 0 2005 2006 2007 Lease rentals 2008 2009E Growth % 2010P -50% Source: CRISIL Research Lease rentals to skid further by 6 per cent in 2010 The retail industry has seen a marginal recovery in the recent past due to the economic revival. retailers are tweaking the size of stores to ensure viability. we expect retail lease rentals to fall further in 2010 on an average by 6 per cent in view. better job prospects and higher disposable income given the sharp rise in equity markets.major cities (constituting 75 per cent of the pan India market) for 2009-2011 is 115 mn square feet. This impacted the development of new retail malls and most of the developers delayed their construction plans. leading to relatively high vacancy levels. specifically Noida and Greater Noida. CRISIL Research estimates the actual supply for 2009-2011 to be 50 mn square feet with the larger share of supply (about 27 per cent) expected to come up in Mumbai. Absorption to be lower than supply The organised retail industry is expected to increase at 14 per cent CAGR over the short term whereas the total retail space available is expected to increase at a CAGR of 36 per cent from the current 60 mn square feet to 110 mn square feet by 2011. Trends in lease rentals In the 4-year period.
Expected change in retail lease rentals during Dec '09 to 2010 City Ahmedabad Mumbai Metropolitan Region (MMR) NCR Hyderabad Bengaluru Kolkata Chennai Pune Chandigarh Average Source: CRISIL Research Change 0% 0% 0% -3% -4% -6% -6% -14% -25% -6% CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW . MARCH 2010 9 .
097 32. This was accompanied by large additions in supply across all major destinations.440 97.357 116. the market size decreased by around 4 per cent due to decline in revenues.200 122.506 10.284 43.290 40.730 49. MARCH 2010 2007-08 .703 45.000 0 29. in 2008-09. However.supply gap assessment Higher growth in demand than supply led to higher ARRs and ORs Due to the robust demand growth.746 2.783 2.974 2. Hotels – market size (Rs billion) 200.119 2.423 2.823 8% 12% 10% 31.000 27.000 20.861 2.646 49.783 2.000 80.694 179.107 2.719 28. having a significant negative impact on hotel revenues.000 58. Rising incomes.000 180.728 61.689 40.611 37.722 -2% 2003-04 26.334 29. the market size of the hotel sector has more than doubled from Rs 77.719 77.321 7. registering an impressive CAGR of 15 per cent.238 -4% -6% 2008-09 12% 38% 32% 45% 37% 34% 30% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -5% 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 56.130 9% 112.885 7.854 98.712 105.457 28. During the same period.982 6% 10 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW. Demand.HOSPITALITY SECTOR REAL ESTATE India’s hospitality industry has enjoyed robust growth over the past few years buoyed by a benign economic and political environment.209 8.706 24% 28% 26% 105.440 186.121 76. Increase in domestic.000 120.816 95.368 109.000 140.951 33. higher weekend trips and increased access to travel-related information over the Internet have propelled growth in hospitality.000 160.543 102.258 29.018 34.13 billion in 2003-04 to Rs 179. As a result ARRs and ORs fell considerably.351 37.515 3% 2004-05 27.586 64.2 billion in 2008-09.783 19% 101. supply grew at a much lower rate of 6 per cent CAGR leading to increase in average room rates (ARRs) and occupancy rate (OR).818 7% 2007-08 31. business and leisure travel has benefited hotels in India.747 100.241 24. Premium segment hotels are more prominent in major business destinations in India and are dominant in popular tourist destinations like Goa.678 28.392 4% 2006-07 31. which attracts a lot of foreign clientele.492 30.720 129.094 9.971 7.070 7% 2005-06 29.408 35.788 10.001 10.044 -5% 2005-06 2006-07 5-D/5-star mkt size y-o-y (5-D/5-star) Total mkt size y-o-y (Total mkt size) Source: CRISIL Research Number of hotel rooms by category Category Premium segment Mid-market segment Budget hotels Heritage hotels Others (unregistered etc) Total rooms Growth (y-o-y) 2001-02 2002-03 24.800 167.698 132.297 30. The hotel industry faced a fall in room demand in the wake of the global financial crisis and the 26/11 terror attacks in Mumbai.979 5% 2008-09 32.000 60.567 31.
NCR. Supply additions hamper hotel revenues despite a revival in room demand Buoyed by improving macroeconomic conditions and international tourist arrivals. Demand is expected to increase at a CAGR of 15 per cent while room availability is expected to record a CAGR of 9 per cent across premium segment.000 RevPAR (Rs per day) 14. demand is anticipated to outstrip supply growth. Gurgaon.000 ARRs decline OR (per cent) 100 90 80 70 60 50 40 30 20 10 0 Feb Mar Apr May Jun OR: Feb 07 Jan 08 OR: Feb 09 .Jan 10 2. Ahmedabad.E: Estimate Source: CRISIL Research. Pune. will see the maximum room additions. tops the growth in room inventory with a CAGR of 31 per cent and 27 per cent.000 10.Jan 09 Room demand: Feb 08 .000 10.Jan 09 Jul Aug Sep Oct Nov Dec Jan OR: Feb 08 . Room demand shows a recovery Room demand (rooms per day) 20.000 14. Bengaluru.Jan 10 ARR: Feb 08 . Business destinations are poised to see higher growth in room inventory compared to leisure destinations Gurgaon.000 6. However.Jan 08 RevPAR Feb 09 . CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW . Goa. Jaipur. Ahmedabad and Pune to witness the highest growth in room inventory The premium segment room inventory is expected to increase at a CAGR of 9 per cent from 2008-09 to 2013-14 across Mumbai (North and South). Kolkata. ORs stood at 57 per cent for the current year compared to 64 per cent in 2008-09. respectively.000 8.Jan 08 Room demand: Feb 09 .000 8.000 8.Jan 10 RevPAR: Feb 08 .000 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Room demand: Feb 07 .000 4.000 2. between 2009-10 and 2013-14. Chennai.000 4. Due to lower occupancy levels and considerable cuts in room rates across destinations.000 16.000 4. Agra and Kerala.Jan 09 RevPAR: Feb 07 . there was a 10 per cent y-o-y increase in room supply.Jan 09 ARR: Feb 07 Jan 08 ARR: Feb 09 .000 6. closely followed by Bengaluru. followed by Ahmedabad. In absolute terms. thereby increasing competition amongst players. as a result ARRs declined by 22 per cent y-o-y. Overall room demand across destinations has recovered to pre-crisis levels.Jan 10 ARR (Rs per day) 16.000 12.000 6.000 18.000 - Source: CRISIL Research Source: CRISIL Research Outlook Supply growth to be higher than demand growth Going forward.000 12. the premium segment hotels have witnessed a revival growing at 8 per cent y-o-y during the period October-December 2009. MARCH 2010 11 . Hyderabad. North Mumbai.000 2.000 12. FHRAI Please note that the sections below refer to the premium segment hotels that constitute about 60 per cent of the hotel industry revenue. revenue per available room (RevPARs) fell by 30 per cent y-o-y in 2009-10.000 10.000 14.
998 1.393 2.000 4.000 6.558 2.221 2.649 1.000 2.601 1. Room Demand and OR 50.000 15.000 5.000 35.210 3.799 1. Room availability.249 1.000 8.000 5.142 Supply growth in descreasing order 4.000 30.954 1.500 in 2009-10.000 45.000 3.000 6.000 4.000 12.000 2.000 20.829 1. MARCH 2010 2012-13P 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 4.000 930 578 282 1.982 3.188 7.Supply growth in key destinations (nos/day) 6.300 in 2013-14 from the current levels of Rs 7.380 8.000 4.000 80 70 60 50 40 30 20 10 2009-10E 2010-11P 2011-12P Room availability Room demand Occupancy rate (%) ARR RevPAR Occupancy rate (%) Source: CRISIL Research Source: CRISIL Research 12 CRISIL RESEARCH: INDIA REAL ESTATE OVERVIEW.000 25.400 in 2013-14 from Rs 4.832 6.900 as a result pushing up RevPARs to Rs 5.000 3.812 8. Average ARRs are expected to shoot up to Rs 8.000 Supply growth in descreasing order 7.890 (nos/day) 10.411 9.000 5.255 2013-14P Goa - Delhi Kolkata Agra N Mumbai 2008-09 2009-10P 2010-11P 2011-12P 2012-13 P 2013-14 P 2008-09 2009-10P S Mumbai 2010-11P 2011-12P 2012-13 P Jaipur 2013-14 P Source: CRISIL Research With demand growth exceeding addition of supply.000 2.000 2010-11P 2011-12P 2012-13P 2009-10E 2013-14P 1999-00 2004-05 2005-06 2000-01 2006-07 2001-02 2007-08 2002-03 2003-04 2008-09 ARR.000 4.447 1.000 10.045 .000 40.000 1.489 1.613 1.000 10. RevPAR and OR 80 70 60 50 40 30 20 10 2.000 3. hotels are expected to see higher ORs between 59 per cent and 65 per cent over the next 5 years compared to 57 per cent in 2009-10.000 Pune Chennai Ahmedabad Hyderabad Gurgaon Bengaluru Kerala 536 2.