5e Consulting City Profile Hotels Hyderabad (Feasibility Study, Demand Study, etc)

8/9/2019 5e Consulting City Profile Hotels Hyderabad (Feasibility Study, Demand Study, etc).

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H derabad

H derabad

Varishta Consultants Pvt. Ltd.

5e Consulting.

Hyderabad | Mumbai | Delhi | Ahmedabad | Kolkata







IntroductionIntroduction

Parameter Description

Population (2001 census) 3.63 million

Population (2010 projected) 4.20 million

Area 621.48 sq. km

•Greater Hyderabad Municipal Corporation (GHMC): 625 sq km

•H derabad Urban Develo ment Authorit HUDA : 1905 s km includin the SCB areaAdministrative Status

•Hyderabad Metropolitan Development Authority (HMDA): 6850 sq km (Enlarged Jurisdiction of HUDA) Note: HMDA

has become the sole jurisdiction authority thus abolishing HUDA, HADA, CDA and BPPA, w.e.f 24th August 2008

Climate

Hyderabad gets about 32 inches (about 810 mm) of rain every year, almost all of it concentrated in the monsoon

months. The highest temperature ever recorded was 45.5 o C (113.9 °F) on 2 June 1966, while the lowest recorded

temperature was 6.1o C 43 F on 8 January 1946

Connectivity

Air: Rajiv Gandhi International Airport providing flight services to all major cities within India and abroad.

Road: Well connected by a road network is major National Highways, leading to Mumbai – Vijayawada (NH‐9) &

Bangalore ‐ Nagpur (NH‐7) connected to different cities in towns within the State through State Highways.

Rail: Well connected by rail network to all major cities and towns in the country.

Real Estate Outlook

Commercial ↔

Residential ↔

Retail ↔

Growth Potential

•Location advantages ‐ connected well by road, air and rail;

•The administrative status as the metropolitan city and the capital city of the State;

•Good potential for expanding its economic base as it is one of the major IT/ITeS, Pharmaceuticals, Bio‐Technology,

Tourism and Industrial hub of South India.

Constraints for

Development

Development of fringe areas which essentially constitute the Growth Corridors, are in the process of being equipped

with necessary Physical and Social infrastructure facilities. Hence, any comprehensive real estate development promulgated by Developers (Private parties) may be constrained due to the aforementioned aspect, in general.

However, the GoAP has initiated necessary steps to overcome the said constraint.



Geographical FeaturesGeographical Features

Railwa Station

Airport

Railwa Station

Airport

InternationalAirport




Hyderabad – Socio Economic &

Infrastructure Profile

Hyderabad – Socio Economic &

Infrastructure Profile

Economic Profile Hyderabad Mumbai Delhi Chennai Kolkata

GDP/Capita Rs. 23,000 Rs. 43,000 Rs. 39,000 Rs. 34,000 Rs. 33,000

Po ulation Below Povert Line 23% 27% 8% 20% 6%

Economic Disparity (% of low

and lower middle Income

households, 2002) 37% 27% 18% 42% 32%

Literacy Rate 79% 87% 83% 80% 81%

Drop Out Rate 66% 42% 52% 46% 42%

Socio Profile Hyderabad Mumbai Delhi Chennai Kolkata

Housing ‐ % of population living in slums 37% 55% 35% 40% 31%

Health ‐ Child Mortality Rate 6.9% NA 2.6% 3.7% 1.6%

Water Hyderabad Mumbai Delhi Chennai Kolkatta

Pi ed water su l er da 2 NA 2 1 NA

Per capita Availability in lpcd of

potable water 110 168 180 106 173

Household water connections 36.0% 58.0% 51.3% NA 23.0%

n rastructure y era a um a e enna o atta

Sanitation 41% NA 55% 55% NA

Average commute time (minutes) 60 30 45 NA NA

Public Transport Utilization rate 44% NA 62% 36% NA

% Area covered b roads 6% 10% 18% 10% 12%

Vehicles Density (passenger car units per KM

of road length) 723 242 NA 293 NA

Source ‐ CDP, Hyderabad, JNNURM



DemographicsDemographics

The city's population in 2001 was 3.6 million and it has reached over 4.0 million by 2009 making it among the most

populated cities in India , while the population of the metropolitan area was estimated above 6.3 million. Muslims forma majority in the city. Hindus constitute about 40% of the population, making Hyderabad's Muslim community the

largest in Andhra Pradesh. Muslims have substantial presence across the city and especially they are densely

concentrated in and around Old City (Hyderabad), where they form 70% of the population. Christians constitute a small

amount of the city's population. Churches are located across the city and the popular ones are in Abids and

Secunderabad areas.



Economy & DevelopmentEconomy & Development

Hyderabad is the financial, economic and political capital of the state of Andhra Pradesh. The city is the largest

contributor to the state's gross domestic product, state tax and excise revenues. The workforce participation is about

29.55%. Startin in the 1990s the economic attern of the cit has chan ed from bein a rimaril service cit to

being one with a more diversified spectrum, including trade, transport, commerce, storage, communication etc.

Service industry is the major contributor, with urban workforce constituting 90% of the total workforce. Hyderabad is

known as the city of pearls, lakes and, lately, for its IT companies. The bangles market known as Laad Bazaar issituated near Charminar. Products such as silverware saris Nirmal and Kalamkari aintin s and artifacts uni ue

Bidri handcrafted items, lacquer bangles studded with stones,silk ware, cotton ware and handloom‐based clothing

materials are made and traded through the city for centuries. Hyderabad is a major centre for pharmaceuticals with

companies such as Dr. Reddy's Laboratories, Matrix Laboratories, Hetero Drugs Limited, Divis Labs, Aurobindo

Pharma Limited Lee Pharma and Vimta Labs bein housed in the cit . Initiatives such as Genome Valle Fab Cit and

the Nano Technology park are expected to create extensive infrastructure in bio‐

technology.

SEC classification



Hyderabad – Growth DriversHyderabad – Growth Drivers

Knowledge Corridor and

Apparel Export Park

Apparel Park is set up by APIIC –a layout plan for 174 acre of land, with 117 plots for exporters of

apparels, made‐ups and hosiery goods. This park has facility for uninterrupted power, roads,

drinkin water draina e and effluent dischar e b i es sewera e s stem and other su ortive

Hi‐Tech City

H derabad Information Technolo

In its Vision 2020 document, the

state government has proposed to

develop a knowledge corridor

focusing on biotechnology /medical

facilities. The site for the park is located at Gundla‐Pochampally, at a distance of 18 km from

Hyderabad.

Engineering Consultancy (Hi‐Tech) City

project was developed by the state

government in association with L&T as

an integrated techno township to offer

a one‐sto solution to the business and

,

ITES. Located at Turkapally village

at a distance of 18 km from

Hyderabad, the Park is being

developed by a private developer

social needs of IT sector. Launched in

year 1997 on 158‐acre site with a

capital investment of over INR 15

billion in phases over 6 to 8 years, HI‐

Tech city has already attracted

Venture project.

multinational software giants like

Microsoft, IBM, Metamor, GE Capital,

Toshiba and Oracle and Indian

companies like Satyam Computers and

Wipro.

A sophisticated and state‐of ‐the‐art

financial district is proposed to

accelerate the speed of development

and provide multiplier effect to theeconom . The Financial District will

Hardware Park

focus on insurance sector, financial

research institutions, financial markets,

commodities exchange, banking, law

and secretarial firms, consulting firms,

etc. The site for the project comprising

Mamidipalli near the proposed International Airport. An extent of 1,565

acre has already been handed over to APIIC for this purpose. A pilothardware park of about 100 Acre catering to about 10 units is to be

created initially with an Infrastructure of world‐class standards.

of 130 acres has been earmarked at

Khanamet Village, near Hitech City. TheAPIIC is the nodal agency for the

implementation of the project.



Economy & DevelopmentEconomy & Development

Medhchal

Growth Pattern Ring Roads

Shamshabad

The growth regions in suburbs, Source: Market Survey, Map source:HUDA

MRTS Proposed Infra

TOTAL HUDA

Area: 1865 Sq Km

Population: 62 L

DGR: 36.8%

Proposed600 AcreTownshi

CDAEstablished

SingaporeTownship &

GENOME Valley – Biotech Park@ Shamirpet – 150 Acre

Apparel Park on 175 Acres

TOTAL HUDA

Area: 1865 Sq Km

Population: 62 L

DGR: 36.8%

TOTAL HUDA

Area: 1865 Sq Km

Population: 62 L

DGR: 36.8%



CDAEstablished

SingaporeTownship &

GENOME Valley – Biotech Park@ Shamirpet – 150 Acre

Apparel Park on 175 Acres

FinancialDistrict

130 Acres

ConventionCenter

@ Tellapur

Hardware park &

ORR – Upcoming& proposed 22

Townships alongORR

Park

FinancialDistrict

130 Acres

FinancialDistrict

130 Acres

ConventionCenter

@ Tellapur

@ Tellapur

Hardware park &


Townships alongORR


Townships alongORR

Park

Golf Course250 Acres

EmmarTownship550 Acres


Proposed 600

Acre Township@ Maheshwaram

ORR – Phase 18 Lane Express way

Golf Course250 Acres

EmmarTownship550 Acres



Proposed 600

Acre Township@ Maheshwaram





CBD & Commercial AreasCBD & Commercial Areas

The Hyderabad CBD comprising the areas of Abids, Nampally, Koti, etc. is the oldest CBD of the city. This is more popular as a retail destination

rather than office destination. With increased population and traffic problems, the CBD has expanded into adjacent areas of Himayatnagar and

Basheerabagh. The characteristics of the areas falling under the Hyderabad CBD are detailed below.

CBD ‐1: Himayatnagar, Abids, Basheerabagh

CBD‐2: SD Road, SP Road, Secunderabad

CBD‐3: Begumpet,

Rajbhavan

Road,

Banjara

Hills,

Jubilee

Hills

Cyberabad: Madhapur, Gachibowli, Kondapur

Peripheral: Kukatpally, Bachupally, Uppal, Nacharam & Shamshabad

Table

5.1‐

1:

Characteristics

of

Commercial

Market

NH – 7

Pune Highway

CBD ‐1 No such prominent tenants

This is more popular as a retail

destination rather than office

destination.

Satyam, Sonata Software, Wipro,

This is the area in the northern part

of the city connects Begumpet and

Cyberaba

d

CBD - 2CBD - 3

CBD ‐2 NCR,Airtel, Brigade software, GFC,

Coramandal corporate office

.

road is mostly commercial with

several banks and governmentoffices and corporate offices.

This area is in the northern part of

the city located between the CBD of

CBD ‐3

Graphics, Satyam, APPlabs,

ATI, Dhanalakshmi Bank, Tuch, Mars

Telecom, American Express,

International, Madhucon

corporate office,

Somajiguda. With the domestic

airport being located in this area and

with the railway station in the

vicinity this area has several

locational advantages, including acatchment population of high‐

CBD -1

income group.

Cyberabad

Dell, 24/7, GE, Microsoft, Patni

ComputersGE., Concesco,Boston

Technologies, Bank of baroda,

Microsoft, Market Tools, Google,

Computer Associates, Cognizant

Ameerpet, along with Somajiguda

and Banjara Hills forms the new CBD

area of the city. Located in the

north‐western part of the city, this

area has developed as a natural

NH – 7

Bangalore

Highway Upcoming International Airport

Technologies, Zenzar, Yash

Technologies, Oracle, TCS, HSBC (bpo)

response to the growth of the city in

this direction particularly in the last

Three decades.

Peripheral Not yet DecidedAll the projects are in Planning &

Excavation stage.



Residential Real estate Residential Real estate

Zones Important Locations Profile

I Prime: Residential Banjara Hills, Jubilee Hills, Red Hills, etc

This area reflects the cosmopolitan culture of the city and the

catchment of this area consists of mostly higher income groups.

's e upmar e s e o own an s w ness ng a rap ncrease

in the number of malls.

II Secunderabad, Padma Rao Nagar, A.S Rao Nagar,

Malakajigiri, Trumalgiri

No new developments are happening since most of the land

belongs to railways & Cantonments. , Mettuguda, Sitafalmandi,

Malkajgiri & Chilkalguda are the major residential catchment.

III Western Suburb

Madhapur, Gachibowli, Kondapur,

Kukatpally, Miyapur, Tellapur, Gopanpally,

etc

,

independent homes /villa as well as residential apartment

developments is more in these areas.

Most of the foreign developers are coming forward in these

areas with township projects in the Joint Venture mode. Demand

, , .

IV Northern SuburbKompally, Medchal, Shameerpet, Yamjal,

Gajularamaram, and Jeedimetla

The real estate activity in these areas is in the form of layout

developments with a combination of independent houses and

apartments (Township Development)

Most of the developments in these areas are coming along and

between startin from Jedimetla Shamir et and .

V Eastern Suburb

Habsiguda, Uppal, Nacharam, Pocharam

Nagaram, Bogaram, Rampally, Ghatkesar,

Koremula, Chengicherla, Boduppal, and

Maidpally

Development in this region is not as prominent as in the western

and northern suburbs.

An area known for high profile national science institutes and a

growing cluster natural cluster for biotech research, training and

manufacturing activities. In this zone, the development of

residential apartments is more.

VI Southern Suburb

L.B Nagar, Rajenderanagar, Shamshabad,

Pedda Amberpet, Tukkuguda,

Maheshwaram, Mamidipally,

The Southern suburbs have gained prominence with the

commencement of work for international air port in this region.

Also attracting a lot of attention because of the proposed

developments such as , Fab city, , Infosys Campus, ring roads and

Kottur etc link roads etc. Moreover, several residential plots are being sold

in the site region.



Residential Real estate Residential Real estate

High end Villas &Independent Homes

High end Apartments &Integrated Townships

Small & Medium ScaleApartment

Developments

Large Scale Layouts(Plotted

Developments)



Retail Real estate Retail Real estate

Zones

Major

Market

Areas

Remarks

-

NH – 7

Pune Highway CBD‐1

Himayatn

agar,

Abids,

Basheeraba h

Part of old CBD area o the city. Retail

showrooms of jewellery, ready made

garments and saree. Jewellery shops

are mostly ground floor level. Retailand commercial activit is observed

Suburb

on station road connecting Nampally

and Abids

, ,

Secundera

Part of Secunderabad CBD with

intensive retail activity in Parklane,

CBD -1

CBD - 3

‐

complex, CMR building are prominentshopping centres here.

Begumpet

, , Banjara

Part of new CBD area of the city. Prime

locality with high end retail,

NH – 7

Suburb CBD ‐3Hills,

Jubilee

Hills

commercial activity, restaurants and

pubs. Prime locality for retail and

commercial with Three star and Five

star hotels.

MadhapurBangalore

Highway

Subur

bs

,

Gachibowl

i,

Kukatpally

ommerc a ac v y on e er s e o

the main road (NH) Major activity:

Cinema theatres and educational

institutions. Commercial development

is along the main road in the form of ,

Dilsuknag

ar

shopping arcades and commercial

complexes.



Tourists & Business VisitorsTourists & Business Visitors



Overview of hospitality sectorOverview of hospitality sector

Hyderabad is emerging as a potential market, driven by

the growth of the IT, ITES, and financial services

industries. The entry of new companies, typically,

generates significant room night demand during the

start‐up period, for extended periods. Since there are

very few branded extended stay products, the demand is

absorbed by hotels. A new and interesting trend is that

Hyderabad has seen substantial improvement in the

performance in terms of occupancy, growing at 83.31%

with an average rate per hotel is INR 6,400, an 8.5%

growth over the previous year’s level has witnessed and

Average rates grew by 23.1%.

Hotels are now able to guarantee a specific level of usage

‐ ,

has enabled them to substitute business from airlines

and group bookings that usually negotiate deeply

discounted room rates. Hotels across Hyderabad are now

commercial clients as opposed to the traditional fixed‐

rate allotment model. They have also aligned the process

of commercial rate contracts to fill periods of low

,

higher‐rated non‐contracted business offers better

potential.



Overview of hospitality sectorOverview of hospitality sector





Major HotelsMajor Hotels

Name Location CategoryNumber

of

rooms

Tariff

(INR )

ITC Kakatiya Sheraton Somajiguda ‐Begumpet 5 Star Deluxe 188 INR 5,400 ‐ INR 6,500

Taj 1 5 star Deluxe 257 INR 14,220 ‐ INR 19,800

Taj Residency Or 1 7 star 140 INR 9,570 ‐ INR 11,425

Taj Banjara 1 5 star Deluxe 118 INR 9,570 ‐ INR 11,426

The Manohar Begumpet 5 star 135 INR 8,200 ‐ INR 10,000

Hotel Viceroy Tankbund 5 star 180 INR 6,500 ‐ INR 8,000

Ameerpet 5 star 148 INR 5,015 ‐ INR 7,250

Secretariat Road, Saifabad 5 star 97 INR 4,000 ‐ INR 4,500

Fortune Katriya 4 Star 132 INR 5,800 ‐ INR 8,500

Hotel Golconda Masab Tank 4 Star 150 INR 8,300 ‐ INR 12,700

Quality Inn Residency Nampally 3 Star 95 INR 3,750 ‐ INR 4,250

Central Court Lakdikapool 3 Star 77 INR 2,795 ‐ INR 3,500

Aditya Park Inn Ameerpet 3 Star 88 INR 4,800 ‐ INR 5,700

Comfort Inn

Woodbridge AC Guards 3 Star 55 INR 4,800 ‐ INR 5,701

Kamat Lingapur Hotel Begumpet Business 77 INR 2400 ‐INR 3400

Hotel Aditi INN Ameerpet Business 127 INR 2200 ‐ INR 2300



Proposed hotels as per market

intelligence

Proposed hotels as per market

intelligence

Name/Project Location

Supply

(number of

Rooms)

Category

Status

(Estimated

opening)

.

HillsNA 2009‐10

Hotel Leela NA 150 Super Deluxe 2008‐09

The Park 150 Super Deluxe End 2007

Hilton Hotel NA NA 5 star deluxe 2010

e er en star

Mind space Hotel hi‐tech city NA 5 star End 2007

Taj Falaknuma Manikonda 80 5 star 2009

Taj GVK Begumpet 120 5 star 2009

Taj GVK ‐ Taj Expansion Banjara Hills 125 5 star 2009‐10

IVRCL Hotel Gachibowli 300 5 star End 2007

Taj GVK

‐Taj

Expansion Banjara Hills 65 Service Apartment 2008‐09

Taj GVK ‐ Taj Residency / Expansion Banjara Hills 120 Service Apartment End 2007

Taj GVK ‐ Taj Banjara Hills 100 Service Apartment 2008‐09

The Manohar – Expansion Begumpet 160 Service Apartment 2008‐09



Demand Supply GapDemand Supply Gap

Antici ated StockAnticipated Anticipated Demand Supply

(number of Rooms)Deman

(number of Rooms)

Supp y

(number of Rooms)

Gap num er o

Rooms)

Current FY 06 2,064 7,335 286 4,985

Projected FY 07 2,350 7,555 470 4,735

Projected FY 08 2,820 7,933 1,633 3,480

Projected FY 09 4,453 8,329 3,584 292

Projected FY 10 8,037 8,996 455 504

Projected FY 11 8,492 9,715 980 243

, ,

star categories. The Existing HICC and the upcoming international airport in Shamshabad, which is expected to be commissioned in

early 2008, will keep room occupancy rates high for five‐star hotels for in near future. Despite all the interest generated by mid‐market

and budget hotel development, around 53% of the development is still concentrated in the luxury and first class (Five‐star Deluxe and

Five‐star) segment.



Future OutlookFuture Outlook

With an upcoming supply of over 8,000 rooms by 2012 there is a possibility of an over supply in the market. While on

one hand, this is likely to increase the level of competition among the hotels, on the other hand, the surge in supply is

ex ected to reduce occu anc levels and ARRs with most of these hotels becomin o erational in the next few ears. At

present, many developers who had planned projects are now postponing construction activity due to the slowdown in

the market. Since the existing hotels would have an advantage in the market, the upcoming ones would need to

formulate a new stratagem to compete and create a niche for them in the market.

With the recent terrorist attacks in Mumbai, the hospitality industry in Hyderabad has seen a considerable effect on its

business. There has been an incremental cancellation of 15% seen in the week post the attacks and a decrease of 10% in

the occupancy rates.



Documents

5e Consulting City Profile Hotels Hyderabad (Feasibility Study, Demand Study, etc)