A

PROJECT REPORT
ON
COMPARISON OF 3/5 STAR HOTELS LOCATED
WITH THE SAME PROXIMITY

Under the guidance of:

____________________

Submitted by:
Devansh Kantha
Roll No.:

INSTITUTE OF HOTEL MANAGEMENT

PUSA, DELHI
 ACKNOWLEDGEMENT

My immense gratitude and sincere thanks to my guide Mr. Ashish Sharma

Lecturer,IHM Pusa,New Delhi for providing an opportunity to work on this project and
for indispensable and value guidance and assistance throughout the compilation of his
project.

I would also sincerely thank Mr. Alok Shivapuri, Principal, IHM PUSA, New Delhi for
providing us with a platform to exhibit our talents and for his motivating words and
encouragement throughout.

My Heartfelt thanks to Mrs. Anshu Singh, Lecturer, IHM PUSA, New Delhi and to all
my teachers who have been paramount in guiding me with material and opinion and for
their valuable time in making this research work worthwhile.

Devansh Kantha

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 AUTHENTICATION CERTIFICATE

STUDENT CERTIFICATE

The work embodied in this project entitled “Comparison of 3/5 Star Hotels Located
with the Same Proximity” has been carried out under the supervision of Mr. Ashish
Sharma, Lecturer Institute of Hotel Management Catering and Nutrition,Pusa New
Delhi. The Work Is original and has been submitted by me for the award of any other
degree to this or any other university.

Date: Signature:

Place: Name:

3
 CERTIFICATE BY PROJECT GUIDE

I hereby certify that the candidate Prashant sharma has planned and conducted the
research entitled “Comparison of 3/5 Star Hotels Located with the Same Proximity”,
under my supervision and that the report submitted here with a bona fide work done by
the candidate in New Delhi From December 2013 to April 2014.

Date: Signature:

Place: Name:

4
 TABLE OF CONTENTS
Content Page No.

Acknowledgement 2

Student Certificate 3

Certificate of Guide 4

List of Table 6

List of Charts 7

Introduction 8

Review of Literature 11

Methodology 18

Result & Discussion 19

Limitation & Recommendation 26

Bibliography 27

Annexture – Questionnaire 28

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 LIST OF FIGURES

Figure No. Page No.

1. Arrivals and overnights of tourists in India 8

2. Turnover share 8

3. Regional Rate Comparison 5 star hotels 14

4. Comparison 15

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 INTRODUCTION
Indian Hotel Industry:

Over the last decade and half the mad rush to India for business opportunities has
intensified and elevated room rates and occupancy levels in India. Even budget hotels are
charging 13.448.9 Rs. The successful growth story of 'Hotel Industry in India' seconds
only to China in Asia Pacific.

'Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4
million tourists visited India last year and at current trend, demand will soar to 10 million
in 2012 – to accommodate 385 million domestic travelers. 'Hotels in India' has a shortage
of 160,000 rooms fueling hotel room rates across India. With tremendous pull of
opportunity, India is a destination for hotel chains looking for growth. 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. Sources estimate, 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 India' room rates are most
likely to rise 30% annually and occupancy to rise by 85%, over the next two years. 'Hotel
Industry in India' is eroding its competitiveness as a cost effective destination. However,
the rating on the 'Indian Hotels' is bullish. 'India Hotel Industry' is adding about 63,000
quality rooms, currently in different stages of planning and development and should be
ready by 2012. MNC Hotel Industry giants are flocking India and forging Joint Ventures
to earn their share of pie in the race. Government has approved 300 hotel projects, nearly
half of which are in the luxury range. Sources said, the manpower requirements of the
hotel industry will increase from 7 million in 2002 to 15 million by 2012.

Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is
inextricably linked to the tourism industry and the growth in the Indian tourism industry
has fuelled the growth of Indian hotel industry. The thriving economy and increased
business opportunities in India have acted as a boon for Indian hotel industry. The arrival
of low cost airlines and the associated price wars have given domestic tourists a host of

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options. 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.

Arrivals and overnights of tourists in India

Figure No. 1

Figure No. 2

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In recent years government has taken several steps to boost travel & tourism which have
benefited hotel industry in India. These include the abolishment of the inland air travel
tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a
number of restrictions on outbound chartered flights, including those relating to
frequency and size of aircraft. The government's recent decision to treat convention
centres as part of core infrastructure, allowing the government to provide critical funding
for the large capital investment that may be required has also fuelled the demand for hotel
rooms.

You have to just name it and India has it. The tourist destinations of India are dotted with
different types of hotels. If in Rajasthan you can relax in the lap of royal luxury, in
Mumbai you have the budget hotels like Taj Mahal hotel, Le Meridian, Hilton towers,
Intercontinental The Grand Mumbaj etc. New Delhi the capital of India also has a lot of
accommodation options to choose from . It has deluxe hotels such as Ashoka, Oberoi,
Maurya Sheraton etc.

Main Features of Indian Hotel Industry:

The main features in tourism are particularly important in hotel industry since the offer
needs to follow trends closely and continually adapt to the demands and needs of the
modern tourist. The business and developmental philosophy of modern tourism on the
whole is directed mainly towards the tourist, the spender and his contentment. In that
sense, when devising plans for the development of hotel industry, the key is in
understanding long-term leading trends and features of hotel industry, resulting from the
total social, economic and technological changes of civilization. The main features of
trends in Hotel and Tourism demand and the expected trends of tourist demand in the
future.

 A complete recognizance of tourism, especially when considering the concept of

sustainable development and important issues like diminishing poverty;

 Integration of tourism in national development programs and strategies

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 To diminish poverty; • sustain successful governments by giving shareholders,
especially those on the local level, timely information and clearly defined
responsibilities;

 Mobilize domestic sources in cooperation with financial institutions, micro

creditors and providers of business services, which will stimulate further
development of the local private sector in order to aid the tourist programs of the
community and programs of small and medium enterprises in the tourist sector;

 Encourage large national and multinational companies to act in less developed

countries within the concept of sustainable development and to continuously
adopt strong measures of social responsibility towards local communities and to
undertake various measures in order to lower the rate of unemployment;

 Take care of social and cultural dimensions of tourism, implement the Global
ethical codex of tourism and keep struggling against the exploit of children in
tourist industry;

 Encourage co-operation between the public and private sectors to develop

infrastructure in order to stimulate tourism and obtain the necessary conditions for
political stability, peace and allocation of public goods;

 Give greater priorities to the development of tourism.

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 REVIEW OF LITERATURE

Le Meridian

Le Méridien is an international hotel brand with a

European perspective, formerly headquartered in
the United Kingdom, with 130 properties. It is owned
by Starwood Hotels & Resorts Worldwide, and has a
portfolio of more than 120 hotels in over 50 countries
worldwide.

History

The Le Méridien brand was established in 1972 by Air

France "to provide on a home away from home for its
customers." The first Le Méridien property was a
1,000-room hotel in Paris — Le Méridien Etoile.
Within two years of operation, the group had 10
hotels in Europe and Africa. Within the first six
years, the number of hotels had risen to 21 hotels
in Europe, Africa, the French West
Indies, Canada, South America, the Middle East
and Mauritius. By 1991, the total number of Le
Méridien properties had risen to 58.

In late 1994, Le Méridien was acquired by UK

hotel company Forte Group, which in turn was
acquired by Granada plc in 1996. Through a
merger in the summer of 2000 between Granada
Group and global contract caterer Compass
Group — and the subsequent de-merger of the
two companies in February 2001 — the
ownership of the Forte Hotels division and its

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three brands (Le Méridien, Heritage Hotels and Posthouse Forte) passed solely to
Compass.

In May 2001, Nomura Group announced the acquisition of Le Méridien Hotels & Resorts

from Compass Group plc for £1.9 billion and Le Méridien was merged with Principal
Hotels, which was acquired in February 2001. In December 2003,Lehman Brothers
Holdings acquired the senior debt of Le Méridien.

On November 24, 2005, the Le Méridien brand and management fee business was
acquired by Starwood Hotels & Resorts. The leased and owned real estate assets were
acquired in a separate deal by a joint venture formed by Lehman Brothers and Starwood
Capital.

In 2011, Le Méridien opened up its 100th hotel in Coimbatore, India.

In mid-2012, during the search conducted by Maradu Municipality, the food safety
officials seized damaged food from star hotels including Le Méridien Kochi.

Shangri – La

The Shangri-La story began in 1971 with our first deluxe hotel in Singapore. Inspired by
the legendary land featured in James Hilton's 1933 novel, Lost Horizon, the name
Shangri-La encapsulates the serenity and service for which our hotels and resorts are
renowned worldwide.

Today, Hong Kong-based Shangri-La Hotels and Resorts is Asia Pacific's leading luxury
hotel group.  We are also regarded as one of the world’s finest hotel ownership and
management companies.

With 82 hotels and resorts throughout Asia Pacific, North America, the Middle East, and
Europe, the Shangri-La group has a room inventory of over 34,000. 

In addition, new hotels are under development in Mainland China, Ghana, Hong Kong,
India, Indonesia, Italy, Mongolia, Myanmar, Philippines, Singapore, Qatar, Sri Lanka and
United Kingdom.

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The Royal Plaza

Mr. Ashok Mittal, Founder of the Litolier Group

and Chairman & Managing Director of Hotel The
Royal Plaza New Delhi, is a business leader with
great initiative and vision. He has gone from
success to success and strength to strength,
establishing a number of diverse enterprises. He
started the renowned Litolier Group in 1969 and
built it up as one of Mumbai's most sophisticated
businesses, with the widest range of exquisite and
ornate lights and chandeliers. Under his leadership,
the Group diversified to other interior-related
industries and was the first in India to import a wide
variety of Italian marble. As the pioneer in the
import of Italian/European marble in the country, the Group boasts of a collection of over
150 varieties of marble, from around the world.

Over the last two decade, The Litolier Group has ventured into the field of construction
and has its own portfolio, a landmark corporate building, The Litolier Chambers at
Andheri-Kurla road. In the area of finance, within a year of being admitted as a member
of premier stock exchanges, The Bombay Stock Exchange and the National Stock
Exchange, it emerged as one of the leading brokerage companies. The Litolier Group,
down the years, has been privileged to be associated with a prestigious clientele.

Presently the Litolier Group, is not only making aggressive forays in the field of real
estate, but has entered the hospitality sector with Hotel The Royal Plaza New Delhi,
which has become synonymous worldwide with the right blend of service, luxury and
efficiency. The Hotel is strategically located in the heart of the business and commercial
hub of New Delhi, at 19, Ashoka Road, close to Connaught Place. It is on the way to
becoming the best 4-star boutique hotel in town.

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The Chairman, Mr. Ashok Mittal, has invested finances, effort and style to decorate the
hotel, with French frescoes done by Italian artists, Italian antique marble and Bronze
statutes, classical Italian furniture, sparkling Austrian / venetian chandeliers, hand inlay
work of semi precious stones, Onyx and marble layouts.

Hotel The Royal Plaza New Delhi offers 419 Luxury Guest Rooms and Suites, catering
to varying needs, which combine warmth, exceptional service and state of the art
technology in an attractive ambience. It also boasts of multi-cuisine restaurants and All
day dining, bar, Night club and lounge for dining and entertainment options.

According to Mr. Ashok Mittal, the Litolier Group plans to open four new hotels, Two in
Mumbai, Goa and Bangalore with an investment of Rs.1,500 crore. The construction of a
deluxe 5-star hotel has already started in Andheri Kurla Road in Mumbai. Under his
inspiring leadership, the future of the Group is truly bright in the hospitality sector.

Regional Rate Comparison 5 star hotels

Figure No. 3

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 Comparison of Le Meridian, Shangri – La and The Royal Plaza

Le Meridian Shangri – La The Royal Plaza

65% 67%
60%

50%
45%
40%
35%
30% 30%
25% 25% 25%
20% 22%
18% 18%
15%
10%

lu
e ge ice ce m es
Va era rv ir en oo niti
& n Se pe t R e
ng Be Ex es Am
ri ci & Gu &
P od es
Fo c
iil ti
Fa

Figure No. 4

Right now I am looking at Le Meridian on the New Delhi. We would like to stay under
$215 but would like a fireplace if possible, outdoor hot tub and walk to restaurants, etc.
The main difference is that Le Meridian on the Delhi has traditional and deluxe rooms
which vary a bit in cost. If this is your choice, are the deluxe worth the cost difference?
This is our first time in Le Maridian and want to make a good choice but location is the
key. Le Meridian batter then Shangri-La and The Royal Plaza.

we are thinking of staying at either the Le Meridian or the Shangri La. Ive noticed from
some of the reviews that the Le Meridian was having some major works done late last
year? Does anyone know if this has been completed? Also - out of the 2 hotels which one
is better located?? The Le Meridian is offering a great 'family package' deal at the
moment so its quite tempting.

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“Meridien - a great place to stay in Dehli.”

Large well equiped room. Wireless remote control at bedside which turns individual
lights on and off' also controls AC. Bath tub, always loads of hot water. Toilettrie and
hair dryer provided. Complimentary water, well stocked and replaced daily.
Fridge with mini bar. Prices resonable 350 rupees for small bottle of Kingfisher. Internet
first half hour free then hourly or daily rate. UK power sockets. Large flat screen TV with
BBC world, HBO etc. Noobviously accessable A/V connections but may work wirelessly
with Samsung tablets. Good selection of Indian and continental food at breakfast buffet.
Evening meal buffet 2,000 rupees. Nice pool terace on the 4th floor. Continually ringing
telephone at life guard station and Delhi drivers always honking horn spolied and "quiet
relaxing time". Take the lift to the 20th floor to "Harrys Bar" and enjoy a cocktail with a
view (of the not very spectacular) Dehli city scape. There is also two restraunts on this
floor including Chinese. Hotel is locate in center of new Dehli outside "Old Dehli" area.
Its within 10 minute walk of Presidential Palace and India Gate. No other restraunts or
bars near by.

“Shangri-La (Overall experiance was very good)”

Overall experiance was very good.The top management of hotel is very prompt in
attending complaints/suggestion.Food was very good sevice in restaurant was
excellent,restaurant stall was very coutious.

Best Experience: Food and Stay.Due to busy schedule i could not avail leisure
activity,but observed other are enjoying a lot.

Worst Experience: During check out i was billed for one executive file,i asked for then i
was told the file is missing in from room.I felt very much insulted and clarified i have not
used any such thing,nor checked weather it was available during Check in,then i offered
them to re check the room even my luggage,then lobby Manger intervaned and appoliged
and allowed me to check out .On my return to home I took out the matter with Hotel
Mangement,i got prompt reply and the management regrated for the Incovinience.In my

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view during check in the Hotel staff shall inform thr Guest about all accessories available
in the room and confirm it is available as per there standard list.

“The Royal Plaza – Overall rating was good”

Hotel The Royal Plaza is a boutique hotel located at the heart of the business and
commercial hub in New Delhi. It offers easy access to most corporate and financial
centres, ministries, diplomatic missions and the International Trade Fair grounds. Hotel
The Royal Plaza is an ideal accommodation choice for business and leisure travellers in
Delhi.

Hotel The Royal Plaza boasts 415 luxurious guestrooms combining warmth and
exceptional service. These rooms have been designed with guests comfort in mind. They
are equipped with state of the art amenities.

The lobby is decorated with a beautiful fresco made by Italian artists, precious and semi
precious stones inlay work, 24 carat gold art work as well as Onyx and marble layouts.

Hotel The Royal Plaza has several dining venues to suit all tastes. Guests can relax and
sip a favourite drink at the bar, dance the night away at the discotheque, get pampered in
the beauty salon, swim or exercise at the gym. In this stunning Delhi hotel, guests can be
sure to have a unique and memorable experience.

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 RESEARCH METHODOLOGY

Research Methodology:

Primary Data: Primary Sources are those sources from which the information is
gathered for the first time. Information is gathered by the researcher himself. It will be
collected through questionnaire.

Secondary Data: The relevant data that would be collected through secondary research
will be collected from published articles in the newspapers, company brochures,
magazines, journals, and Books.

Sampling Design: - Sampling design consists of:

Sampling unit: Customers of 3/5 Star Hotels

Sample Size: It was taken sample size of 60

Sampling Area: DELHI/NCR

Sampling Procedure: - Stratified Random sampling procedure was followed

Tools and Techniques used (Qualitative or Quantitative or both) – Descriptive Study

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 RESULTS & DISCUSSION

Q.1 What is your age group?

35%

30%

25%

20%
32%
15%
22% 21%
10%
15%
5% 10%

0%
20 yrs-25yrs 25yrs-30yrs 30yrs-35yrs 40yrs-45yrs 45 yrs and
above

The above mentioned graph shows that 22% respondents are from 25yrs-30yrs age group
and 32% respondents are from 30yrs-35yrs age group.

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Q2. What is your gender?

Female
10%

Male
Female

Male
90%

The above graph mentioned that 90% respondents are male.

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Q3.  Which Hotel company are you aware of?

60%

50% 52%

40%

30%

25%
20% 23%

10%

0%
Le Meridien Shangri - La The Royal Plaza

52% respondents replied that they are aware about Le Meridien but 25% respondents
replied that they are aware about Shangri-La

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Q4. Which Hotel is best according to you?

50%

45%
44%
40%

35%

30%
30%
25% 26%
20%

15%

10%

5%

0%
Le Meridien Shangri - La The Royal Plaza

44% respondents replied that Le Meridien is best but 30% respondents replied that
Shangri-La is best

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Q5. In comparison with Shangri-La & Royal Plaza how will you rate Le Meridien in
terms of facilities?

25

20

15
23

10
12
9
5 6

0
Excellent Good Average Poor

23% respondents replied that Le Meridien is good in terms of facilities comparison with
Shangri-La & Royal Plaza however 9% respondents replied that Le Meridien is excellent
in terms of facilities in comparison with Shangri-La & Royal Plaza.

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Q6. Which hotel suits you as per your budget?

45%

40%
40%
35%
34%
30%

25% 26%

20%

15%

10%

5%

0%
Le Meridien Shangri - La The Royal Plaza

40% respondents replied that Le Meridien suits them as per their budget but 34%
respondents replied that Royal Plaza suits them as per their budget

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Q7.   If you have to choose another hotel which one do you prefer?

36%

35%
35%
35%

34%

34%

33%
33%
33%

32%
32%
32%

31%

31%
Le Meridien Shangri - La The Royal Plaza

32% respondents replied that they will choose Le Meridien but 35% respondents replied
that they will choose Shangri - La

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 LIMITATION & RECOMMENDATION

Limitation:

The study is restricted only to hotel guests, travel agents and decision makers for the
present moment at Delhi due to logistics, time and cost factor etc. there is no specific tool
to measure the effectiveness of the study of the guest preference for choice of hotel and is
basically the views of guests, decision makers for the corporate sector travel agents for
groups and FITs.

Recommendation:

In this era of globalization where ‘Customer is the King’,customer expectations are going
up which is making the situation more and more competitive. As the product is becoming
generic in nature, the hotel industry an no longer rely on the traditional marketing
strategies to retain the customers.

1. Surveys: Conducting monthly guest/customer surveys, club surveys, room comment

cards, toll free guest assistance centers can help in getting customer feedback and to
improve in the areas where there is alag as suggested by the feedback.

2. Maintaining suggestion boxes at every touch point/point of interaction with the

customers.

3. Taking feedback not only from external customers but also the internal customers i.e.,
the employees.

4. Proper check on the hotel staff’s and processes’ efficiency by the management, say by

employing Mystery Customers.

5. Keeping regular track of the sales data for further leads and follow-up

6.Having Guest History programskeeping a databank of customer profiles along with suc
h details as room preferences, amenities preferred, special requests, meal preferences,
wallet services, sending birthday cards to the loyal guests and even their spouses and
giving them a hassle-free check-in procedure-like sending them pick-up and drop
facilities.

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 BIBLIOGRAPHY

Books:

1. Wade, William Cecil (1898). The Symbolisms of Heraldry. London: G. Redway.

pp. 31, 67.

2. Lower, Mark Anthony (1845). The Curiosities of Heraldry. London: J.R. Smith.

p. 73.

3. C. Lewis, Elementary Latin Dictionary (Oxford Univ. Press, 2000), p. 371.

4. Charles MacKinnon, Scottish Highlanders (1984, Barnes & Noble Books); page

76

5. Danny Meyer (2006) Setting the Table : The Transforming Power of Hospitality
in Business

6. Christine Jaszay (2006). Ethical Decision-Making in the Hospitality Industry

7. Karen Lieberman & Bruce Nissen (2006). Ethics in the Hospitality And Tourism
Industry

Website:

 www.google.com
 www.LostHorizon.org
 www.hoteltheroyalplaza.com

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 ANNEXTURE
QUESTIONNAIRE
Q.1 What is your age group?

20 yrs-25yrs
25yrs-30yrs
30yrs-35yrs
40yrs-45yrs
45 yrs and above

Q2. What is your gender?

Male

Female

Q3.  Which Hotel are you aware of?

Le Meridien
Sangri-La
The Royal Plaza

Q4. Which Hotel is best according to you?

Le Meridien
Sangri-La
The Royal Plaza

Q5. In comparison with Le Meridien how will you rate the Shangri-La & Royal Plaza in
terms of facilities?

Excellent
Good

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Average
Poor

Q6. Which hotel suits you as per your budget?

Le Meridien
Sangri-La
The Royal Plaza

Q7.   If you have to choose anotherhotel which one do you prefer?

Le Meridien
Sangri-La
The Royal Plaza

Thanks for your support

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