Project Feasibility Study & Economic Viability Report

Proposed Mid-Scale Hotel

Karad, Maharashtra - India

FINAL REPORT, September 2019

 Table of Contents

Country & Industry Analysis Competitive Hotel Market Analysis

-India EconomicOverview - Competitive Hotel Market Profile
- India Overview - Competitive Hotel Market Performance
- Economic Overview Summary - Market Segment Mix
- Key Economic Indicators - New Proposed Supply and Market Supply Forecast
- Market Demand and Supply Forecast
- India Travel& TourismOverview - Market Occupancy and Rate Forecast
- India Tourism Overview
- Key Travel & Tourism Indicators Proposed Hotel - 10 -Year Performance Projections
- Key Demand Growth Drivers - Proposed Hotel Market & Rate Penetration Analysis
- Key Growth Product Segments - 10 –year Projections of Occupancy & ARR Estimates
- Key Growth Markets - 10 –year Projections of F&B Revenues
Market Area Analysis - Projections of Income & Expenses – Assumptions
- Maharashtra StateOverview - Hotel’s 10 – year P&L Projections – Actual Values
- Maharashtra Overview - Hotel’s 10 – year P&L Projections – Percentage Values
- Economic & Tourism Overview - Hotel’s 10 – year P&L Projections – POR & PARValues
- Key Physical Infrastructure Overview
- Demand Development – Key Growth Drivers Caveats, Statement of Assumptions & Limiting Conditions

- Pune& Hinjewadi MarketOverview

- Pune Overview
- Hinjewadi Market Area Overview
- Key Demand Drivers
- Market SCOT Analysis

Project Development Strategy and Proposed Facilities Plan

- Project Site Analysis
- Key Recommendations on Project Design & Development
- Critical Path for Project Execution & Key Timelines
- Area Allocation & Recommended Facilities Plan
Section: 1

India Economic Overview

 India Overview

About India

India, located geographically in the South Asian region, is the seventh-largest country in
the world by area, the second-most populous country in the world with over 1.33 billion
people, and also the most populous democracy in the world. Pakistan and Afghanistan
share political borders with India on the West while Bangladesh and Myanmar stand
adjacent on the Eastern borders. The northern boundary comprises the Sinkiang province
of China, Tibet, Nepal and Bhutan. Sri Lanka is another neighbouring country which is
separated by a narrow channel of sea formed by the Palk Strait and the Gulf of Mannar.

India boasts of an immensely rich cultural heritage including numerous languages,

traditions and people. The country holds its uniqueness in its diversity and hence has
adapted itself to international changes with poise and comfort. While the economy has
welcomed international companies to invest in it with open arms since liberalisation in
1990s, Indians have been prudent and pro-active in adopting global approach and skills.
Indian villagers proudly take up farming, advanced agriculture and unique handicrafts as
their profession on one hand while modern industries and professional services sectors
are coming up in a big way on theother.

India is one of the largest markets in the world with a population base of approx. 1.3
billion people. It is also one of the youngest nations in the world with a median age of Parameters India
just 27 years. In2018, India was ranked the fastest growing major economies of the
world and was also ranked as the most preferred investmentdestination. Capital City New Delhi

India aims to create the world’s largest pool of skilled management talent pool. India's Largest City Mumbai
labour force is expected to touch 160-170 million by 2020. India is also expected to be Area 32,87,263 [Link].
home to approx. 11,500 Tech-Startups by 2020.
Population 1.32 Billion (2016)
Thus, the country is attracting many global majors for strategic investments owing to the
GDP $10.401 trillion (2018)
presence of vast range of industries, investment avenues and a supportive government.
Huge population, mostly comprising the youth, is a strong driver for demand and an Per Capita Income $2,016 (2018)
ample source of manpower.
Official Language Hindi

Currency Indian Rupee

 India Economic Overview

Economic Overview Growth Rate of GDP and GVA (% at ConstantValue)

Currently, India is the world’s seventh-largest economy at USD2.2 trillion, sitting between
France and Italy. Today, India is firmly poised as the fastest growing major economy in
the world and is expected to gain its position as one of the top three economic powers
of the world over the next 10-15 years. After witnessing robust economic growth at 8.5%
- 9.0% is later years of the last decade, India's economic expansion eased to 6.7% in
2011-12, a decade-low of 4.5% in 2012-13 and a low 4.9% in 2013-14. Today, these
tailwinds causing a drag on the economy have been navigated successfully. Backed by an
aggressive economic and fiscal policy reforms, the country is back to the 7.0% - 7.5%
annualized GDP growth trajectory. India’s GDP is estimated to have increased 6.6% in
FY17 and is expected to grow 7.3% in FY18. In Q1FY18 the GDP grew by 8.2%. A report
by World Economic Forum has projected that by 2050, the Indian economy is expected Index of Industrial Production – IIP (%Value)
to be the world’s second-largest, behind only China.

Key Economic Highlights

• The growth of real GDP for the first quarter of FY18 was 8.2%, reinforcing the upswing
started since second quarter of FY17.
• IIP grew by 6.6% in July 2018, as compared to a growth of 1.0% recorded in July 2017.
IIP growth during April-July 2018-19 was 5.4%, as compared to a growth of 1.7%
during corresponding period of previous year.
• Production of Eight Core industries grew by 6.6% in July 2018, as compared to 2.9% in
July 2017. Current Account Deficit – CAD (% ofGDP)
• India’s current account deficit as percentage of GDP was 2.4% in the first quarter of
2018-19. Foreign Exchange Reserves stood at US$400.1 billion as on 31st August
2018.
• The CPI inflation decreased to 3.7% in August 2018 from 4.2% in July 2018. The WPI
inflation decreased to 4.5% in August 2018 from 5.1% in July2018.
• The budget estimate of the fiscal deficit for FY18 has been set at 3.3% of GDP, as
compared to 3.5% in FY17.
 India Economic Overview – Key Economic Indicators

GDP & GVA Growth

• The provisional estimates (PE) of national income released by Central Statistics Office
Growth Rate of GDP and GVA (% at ConstantValue)
(CSO) on 31st May 2018, estimated the growth of Gross Domestic Product (GDP) at
constant market prices for the year 2017-18 to be 6.7%.

• The growth rate of GDP at constant market prices was 7.1% in 2016-17 and 8.2% in
2015-16. The growth in Gross Value Added (GVA) at constant basic prices for the year
2017-18 is estimated to be 6.5%. At the sectoral level, agriculture, industry and
services sectors are estimated to grow at the rate of 3.4%, 5.5% and 7.9% respectively
in 2017-18.

• As per the quarterly estimates, the growth of GDP at constant prices for first quarter
(April - June) of 2018-19 was 8.2%, as compared to the growth of 5.6% recorded in
the corresponding quarter of the last year. The upswing trend of quarterly growth,
which started in the second quarter of 2017-18, was reinforced in first quarter (Q1) of
Q-o-Q Growth of GDP and GVA (% at ConstantValue)
2018-19 with higher growth as compared to third and fourth quarters of 2017-18.

• The share of total final consumption in GDP at current prices in 2017-18 is estimated
to be 70.5%, as compared to 69.9% in 2016-17. The fixed investment rate (ratio of
gross fixed capital formation to GDP) is estimated to be 28.5% in 2017-18, which is
the same as in previous two years. After a transient slowdown in fixed investment
growth in Q1 of 2017-18, it rebounded in second quarter and sustained momentum
in following quarters.

• The saving rate (share of gross saving to GDP) for the year 2016-17 was 30.0%, as
compared to 31.3% in 2015-16. The investment rate (share of gross capital formation
to GDP) was 30.6% in 2016-17, as compared to 32.3% in2015-16.
 India Economic Overview – Key Economic Indicators

Index of Industrial Production (IIP)

• The general IIP grew by 6.6% in July 2018, as compared to 1.0% recorded in July
Index of Industrial Production - IIP (%Value)
2017. The growth of IIP during April-July 2018 was 5.4%, as compared to a growth of
1.7 per cent recorded in the corresponding period of the previous year.

• The production of the manufacturing sector grew by 7.0% in July 2018, as compared
to a contraction of 0.1% in July 2017. The manufacturing sector’s growth during April-
July 2018 was 5.6%, as compared to growth of 1.2% during the corresponding period
of the previous year.

• The growth in the mining sector was 3.7% in July 2018. During April-July 2018,
production of this sector grew by 5.0%, as compared to a growth of 2.0% during the
corresponding period of the previous year.

• In terms of use-based classification, all sectors have registered positive growth in July
2018. Notably, consumer durable goods production grew by 14.4% in July 2018, as Foreign Exchange Reserves (US$, Billion)
compared to a contraction of 2.4% recorded in July 2017. Infrastructure/construction
goods sector registered a growth of 8.4% in July 2018, as compared to a growth of
4.3% in July 2017.

Foreign Exchange Reserves

• Foreign exchange reserves stood at US$400.1 billion as on 31st August 2018, as

compared to US$424.5 billion at end-March 2018. In FY17, there was an accretion of
US$43.6 billion to the foreign exchange reserves, as compared to an accretion of
US$21.6 billion in FY16.
 India Economic Overview – Key Economic Indicators

Money and Banking

Y-o-Y Growth in Bank Credit (% Value)
• Growth of money supply on YoY basis as on 31st August 2018 stood at 10.3%, as
compared to a growth rate of 6.1% recorded in the corresponding period of previous
year. As regards the components of money supply, the growth of ‘currency with the
public’ was 24.7% as on 31st August 2018, against de-growth of 10.8% registered
during the corresponding period a year ago. The growth rate of time deposits with
banks was 8.2% as on 31st August 2018, as against 7.7% in recorded in the
corresponding period a year ago. On the other hand, demand deposits were 9.7% as
on 31st August 2018, as against 18.9% during the corresponding period of previous
year.

• Growth of aggregate deposits of Scheduled Commercial Banks (SCBs) as on 31st

August 2018 was 8.9% YoY basis, as compared to 9.1% recorded during the
corresponding date of the previous year. In terms of bank credit, YoY growth was
Movement of Exchange Rate (INR v/sUSD)
13.5% as on 31st August 2018, as against 6.1% in the corresponding period a year
ago. The YoY growth of investment in Government and other approved securities by
SCBs was 5.1% as on 31st August 2018, as compared to 16.4% in the corresponding
period of the previous year.

• The base lending rate as on 7th September 2018 was 8.85% - 9.45%, as compared to
9.00% - 9.55% during the corresponding period a year ago. The term deposit rates for
above one year was 6.25% - 7.25% as on 7th September 2018, as against 6.25% -
6.75% during the corresponding period a year ago.
 India Economic Overview – Key Economic Indicators
Balance of Payments Current Account Deficit (% of GDP)

• India’s current account deficit (CAD) was US$15.8 billion (2.4% of GDP) in Q1FY18, as
compared to US$15.0 billion (2.5% per cent of GDP) in the corresponding quarter of
FY17. The widening of the CAD on YoY basis was primarily on account of a higher trade
deficit.

• Net foreign direct investment in Q1FY18 was at US$9.7 billion, higher than US$7.1 billion
in Q1FY17. Portfolio investment recorded net outflow of US$ 8.1 billion in Q1FY18 as
compared to an inflow of US$12.5 billion in Q1 of last year. In Q1FY18, there was a
depletion of US$ 11.3 billion of the foreign exchange reserves, as against an accretion of External Debt (USD, Billion)
US$11.4 billion in Q1FY17.

External Debt

• India’s external debt stood at US$529.7 billion at end-March 2018, recording an increase
of 12.4% over the level at end-March 2017. Long-term debt was US$427.5 billion at end-
March 2018, as compared to US$383.2 billion at end-March2017.

Inflation

• The all India Consumer Price Index – Combined (CPI-C) inflation decreased to 3.7% in WIP & CPI Inflation (% Value)
August 2018 from 4.2% in July 2018. Food inflation based on Consumer Food Price Index
(CFPI) decreased to 0.3% in August 2018 from 1.3% in July 2018 due to decrease in
inflation of milk and products, fruits and vegetables.

• The WPI inflation decreased to 4.5% in August 2018 from 5.1% in July 2018. WPI food
inflation (food articles + food products) declined by 2.3% in August 2018 from -0.9% in
July 2018, mainly on account of fall in inflation of fruits and vegetables. Inflation in fuel
& power decreased to 17.7% in August 2018, as compared to 18.1% in July2018.
Section: 2

India Tourism Overview

Overview of Tourism Evolution in India
 India Tourism Overview – Key Performance Indicators

Key Highlights

• India was ranked 7th among 184 countries in terms of travel & tourism’s total
contribution to GDP in 2017. India’s foreign exchange earnings (FEEs) from tourism
increased by 20.8% during CY17 to reach US$27.69 billion. During January-August
2018, FEEs from tourism increased 11.8% year-on-year to reach US$19.46 billion.

• In India, the travel and tourism sector’s direct contribution to GDP is expected to
grow by 7.1 per cent per annum during 2018-28 as per estimates provided by WTTC.

• The travel & tourism sector in India accounted for 8.0% of the total employment
opportunities generated in the country in 2017, providing employment to around
41.6 million people during the same year. The number is expected to rise by 2.0% per
annum to 52.3 million jobs by 2028.

• Travel & tourism’s contribution to capital investment in India is projected to grow

6.7% per annum during 2018–28. Contribution of visitor exports to total exports is
estimated to increase 5.5 per cent per annum during2018–2028.

• Electronic tourist authorizations, known as E – Tourist Visa, launched by the

Government of India have resulted in increase in number of tourist visa issued in the
country. The facility has been extended to citizens of 163 countries as of March 2018.

• Arrivals through e-visa increasing 57.2% to 1.697 million during CY17. During January-
August 2018, arrivals through e-visa increased 49.5% year-on-year to 1.42 million.

• Indian government has also released a fresh category of visa – the medical visa or M
visa, to encourage medical tourism in India. Indian medical tourism is expected to
reach USD8 billion by 2020
 India Tourism Overview – Key Performance Indicators

GDP Contribution & Foreign Exchange Earnings

• India was ranked 8th in the world in 2017 in terms of absolute direct contribution of
travel & tourism sector’s to its GDP. It is the 3rd largest foreign exchange earner for
the country.

• The tourism & hospitality sector’s direct contribution to GDP in 2017, was Rs5.94
trillion (US$91.27 billion). This is expected to reach Rs12.68 trillion (US$194.69 billion)
in 2028, implying a CAGR of 7.23% during2012-28.

• During 2017, India earned foreign exchange of US$27.69 billion from tourism. Foreign
Exchange Earnings (FEEs) in January-August 2018 were US$19.46 billion, recording a
year-on-year growth rate of 11.8%.

• Foreign exchange earnings (FEEs) from tourism in India witnessed growth at a CAGR
of 9.97% 2006-17.

• The number of tourists from India is expected to reach 50 million by 2020, according
to the World Trade Organization. This rapid increase in outbound tourism from India is
going to benefit forex providers in the country.
 India Tourism Overview – Key Performance Indicators

Tourist Arrivals & Market Segment Contributions

• In CY17, foreign tourist arrivals in India stood at 10.18 million and

reached 6.75 million in January-August 2018, achieving a growth rate of
7.5% year-on-year.

• Growth in tourist arrivals has been due to flexible government policies,

developed rail & road infrastructure, ease in availability of e-visas to
foreign tourists. During January-August 2018, arrivals through e-visa
increased 49.5% year-on-year to 1.42 million.

• The Government of India has set a target of 20 million foreign tourist

arrivals (FTAs) by 2020 and double the foreign exchange earnings as
well.

• The Government of India is working to achieve 1.0% share in world's

international tourist arrivals by 2020 and 2.0% share by 2025.

• Domestic travel revenues are estimated at US$186 billion in 2017 and

are anticipated to further increase to US$405.8 billion by 2028.

• Share of revenues from leisure travel to the total tourism revenue stood
around 94.6% in 2017. Leisure travel spending reached US$201.7 billion
in 2017 and is expected to reach US$432.3 billion by2028.

• Business travel revenues were US$11.6 billion in 2017 and are projected
to increase to US$ 24.4 billion by2028.
 India Tourism Overview – Key Performance Indicators

Demographics, Tourist Spending & Govt. Investments

• India’s GDP Per Capita at current prices is estimated to have reached US$1,750 in 2017.
It is expected to reach US$3,274 by 2023, implying a compounded annual growth rate of
7.47% during 2012-23. Rise in disposable incomes and increased savings will provide
further impetus for growth in travel and tourism

• Domestic expenditure on tourism has grown significantly; In 2017, it reached Rs12.11

trillion (US$186.03 billion), It is expected to reach Rs26.43 trillion (US$405.84 billion),
implying a compounded annual growth rate of 7.29% between 2012-28.

• India’s tourism sector attracted capital investments of US$47.8 billion in 2017 and
expected to reach US$95.3 billion by 2028. Collective government spending in India on
travel and tourism is expected to reach Rs367.9 billion (US$5.85 billion) in 2028 from
Rs169.8 billion (US$2.81 billion) in 2017.

• India is looking to take advantage of its 7,500Km coastline to tap growth potential of the
cruise tourism segment. The construction of cruise terminal in Chennai was started in
April 2018. The cruise terminal in Mumbai has been allocated Rs1,000 crore (US$
155.55 million). India is also expected to receive around 950 cruise liners annually by
2022.

• The presence of world-class hospitals & skilled medical professionals makes India a
preferred destination for medical tourism. India’s earnings from medical tourism could
exceed US$9 billion by 2020. Foreign tourist arrivals for medical purpose increased from
427,014 in 2016 to 495,056 in 2017.
 India Tourism Overview – Key Growth Drivers

• More than half of the Ministry of Tourism’s Plan budget is channelized for funding the
development of destinations, circuits, mega projects as well as rural tourism
infrastructure projects.
Infrastructure Development
• Under Budget 2018-19, the government allotted Rs1,250 crore (US$193.08 million) for
Integrated development of tourist circuits under Swadesh Darshan and Pilgrimage
Rejuvenation and Spiritual Augmentation Drive (PRASAD).

• Based on specific themes under ‘Swadesh Darshan’, government has identified 13

circuits which includes Krishna Circuit, Buddhist Circuit, Himalayan Circuit, North East
Circuit & Coastal Circuit.
Swadesh Darshan & PRASAD Programs
• National Mission on Pilgrimage Rejuvenation & Spiritual Augmentation was
implemented by the Ministry for enhancing the facilities provided & infrastructure at
pilgrimage centers of all cities. In March 2018, total amount sanctioned by the Ministry
of Tourism for this scheme was Rs5638.87 crore (US$ 868.87 million) since 2014-15.

• Domestic expenditure on tourism is expected to rise due to the growing income of

Domestic Spending & Niche Segments households. Additionally, a number of niche offerings such as medical tourism & eco
tourism are expected to create more demand.

• 100 per cent FDI is now allowed under the automatic route in tourism & hospitality,
subject to applicable state regulations & laws.

FDI Investment & PolicySupport

• The Government of India will develop 10 prominent sites in India into iconic tourist
Initiatives
destinations, as per Union Budget 2018-19.

• Campaigns such as ‘Incredible India’ & ‘Athithi Devo Bhava’ have successfully harnessed
the Indian tourism industry’s potential in global feeder markets
 India Tourism Overview – Key Growth Product Segments

The Medical Tourism Segment consists of tourists seeking specialized medical treatments,
Medical Tourism mainly ayurvedic, spa & other therapies. The primary purpose is achieving, promoting or
maintaining good health & a sense of well-being.

A wide range of adventure sports are covered under this category with specialized packages
Adventure Tourism being offered for adventure activities include mountaineering, trekking, bungee jumping,
mountain biking, river rafting & rock climbing.

The aim under Rural Tourism Initiative is to develop tourism interest in heritage and culture.
Rural Tourism The plan is to develop & promote visits to village settings to experience & live a relaxed &
healthy lifestyle.

Pilgrimages and Spirituality are one of the biggest contributors to tourism industry. India
Pilgrimage Tourism being religious hub for different cultures attracts a large number of tourists every year and
the government plans to provide a big push to develop the potential of Pilgrimage Tourism
across various markets in India.

The vast variety of flora & fauna in various states across India is a major factor behind their
Eco Tourism growing popularity as tourist destinations. Going forward Eco Tourism is identified as a
major growth driver for tourism in India and is central to various State Government’s
tourism policies.

India is one of the oldest civilizations in the world and a number of Tourists visit India for its
cultural heritage in various cities. The country’s rich heritage is amply reflected in the
Heritage Tourism various temples, majestic forts, pleasure gardens, religious monuments, museums, art
galleries, urban & rural sites. Under the umbrella of Heritage Tourism the aim is to augment
travel to these destinations
 India Tourism Overview – Key Growth Markets

Uttar Pradesh
20.84% Share

Total 237.53 million total tourists in 2017

Domestic Tourists: 233.98 million Foreign
Tourists: 3.56 million

Maharashtra
7.40% Share Andhra Pradesh
9.87% Share
Total 124.27 million tourists in 2017
Domestic Tourists: 119.19 million Total 165.71 million total tourists in 2017
Foreign Tourists: 5.08 million Domestic Tourists: 165.43 million Foreign
Tourists: 0.27 million

Tamil Nadu
20.84% Share
Karnataka
Total 349.92 million total tourists in 2017
10.75% Share
Domestic Tourists: 345.06 million Foreign
Total 180.48 million total tourists in 2017 Tourists: 4.86 million
Domestic Tourists: 179.98 million Foreign
Tourists: 0.50 million
Section: 3

State : Maharashtra Overview

 Maharashtra State Overview

About Maharashtra

Maharashtra occupies the western and central part of the country and has a long
coastline stretching nearly 720 km along the Arabian Sea. Maharashtra is the second
largest state in India in terms of population and has geographical area about 3.08 lakh sq.
km. As per Population Census-2011, the population of the State is 11.24 cr which is 9.3%
cent of the total population of India and is highly urbanised with 45.2% people residing in
urban areas and literacy rate of 82.3%.

Mumbai, the capital of Maharashtra and the financial capital of India, houses the
headquarters of most of the major corporate & financial institutions. India's main stock
exchanges & capital market and commodity exchanges are located in Mumbai. The State
has 36 districts, which are divided into six revenue divisions viz. Konkan, Pune, Nashik,
Aurangabad, Amravati and Nagpur.
Maharashtra
Well developed infrastructure, abundant natural resources, connectivity to all major
areas, skilled manpower and quality education make Maharashtra an ideal destination
for setting up of new industries. The State has focused on development of infrastructure
and smart cities.

The State Government has identified 10 cities—Mumbai, Pune, Nagpur, Amravati, Parameters India
Solapur, Nashik, Aurangabad, Kalyan-Dombivali, Thane and Pimpri-Chinchwad—within
Maharashtra to be developed as smart cities. Capital City Mumbai / Nagpur

Agriculture is major occupation of the people in Maharashtra. Both food and cash crops Largest City Mumbai
are grown in the State. Area 307,713 [Link].

Monuments such as Ajanta, Ellora and Elephanta caves, Gateway of India and Population 1.22 Billion (2016)
architectural structures like Viharas and Chaityas attract tourists from all over the world.
The State also has a traditional high reputation for religious tourism. The world famous GDP $390 billion (2018 est.)
film industry, popularly known as ‘Bollywood’ is located in the State.
Per CapitaIncome INR 1,80,596 (2018)

Official Language Marathi

Currency Indian Rupee

 Maharashtra Economic Overview
Maharashtra’s Contribution to Indian Economy (2017-18)
Maharashtra Key Economic Highlights Parameter Maharashtra India
GSDP as a percentage of all
• Maharashtra’s gross state domestic product (GSDP) at current prices was states’ GSDP 14.89 100.0
24.97 trillion (US$ 387.36 billion) in 2017-18 and accounted for 14.89% of GSDP growth rate (%) 10.61 10.0
India’s GDP, the highest among all states.
Per capita GSDP(US$) 3,189.09 1,977.59
• According to DIPP, total FDI in the state during April 2000 to June 2018 stood Industrial Infrastructure
at US$ 118.13 billion, also the highest among all states in India.
Parameter Maharashtra India

• Maharashtra is one of the largest producers of sugarcane and pomegranate Operational PPP projects(No) 99 720
in the country. Sugarcane production is estimated to have reached 72.64
million tonnes during 2017-18. During 2016-17 (uptill Oct), the production of Operational SEZs (No) 29 223
pomegranates was recorded to be 1.44 million tonnes. Maharashtra is among
the leading producers of cotton in India. The state produced 6.55 million bales Investments (as of June 2018)
cotton during 2017-18.
Parameter Maharashtra India
• Maharashtra is the second largest exporter of software with annual exports of
Rs.18,000 cr and accounts for more than 30.0% of the country's software Cumulative FDI equityinflows
(US$ billion)* 118.13 389.72
exports, with over 1,200 software units based in the state.
Physical Infrastructure in the State
• Maharashtra is the most industrialised state in India and has maintained the
Parameter Maharashtra India
leading position in the industrial sector in the country. The state is a pioneer
in small scale industries and boasts of the largest number of special export Installed powercapacity 43,254.59 346,047.57
promotion zones. The state has 19.3% of overall manufacturing GSDP. (MW)

• As on date, the state has 29 operational SEZs in the state across diversified Wireless subscribers(No) 131,611,141 1,166,895,904
sectors which include IT/ITES, Electronics, Engineering, Power, multi-product,
Pharma etc. And 99 operational PPP projects. Internet subscribers(million) 65.30 512.26

National highway length(km) 17,759 1,22,432

Major and minor ports(No) 2 + 48 12 + 200

Airports (No) 16 125

 Maharashtra Economic Overview

Maharashtra Economic Overview

• Maharashtra is India's leading industrial state contributing 13.0% of national industrial output. 64.14% of the people are employed in agriculture
and allied activities. Almost 46.0% of the GSDP is contributed byindustry.

• Industrial development in the state is largely concentrated in the Pune Metropolitan Area, Nashik, Aurangabad and Nagpur. The six important
industries in the state are cotton textiles, chemicals, machinery, electricals, transport and metallurgy.

• After successes in the information technology in the neighbouring states, Maharashtra has set up software parks in Pune, Mumbai, Navi Mumbai,
Nagpur, Nasik, Aurangabad and Latur.

• Over 2017-18, the tertiary sector contributed 54.50% to the state’s GSDP at current prices, followed by the secondary sector with a contribution
of 33.6%. The tertiary sector grew at a CAGR of 15.12% between 2011- 12 and 2017-18. Growth was driven by trade, hotels, real estate, finance,
insurance, transport, communications and other services.

• The secondary sector grew at a CAGR of 15.50% between 2011-12 and 2017-18. The growth in secondary sector was driven by growth in
manufacturing, construction and electricity, gas & water supply industries.

• The primary sector expanded at a CAGR of 6.25% between 011-12 and 2017-18. Agriculture is the major contributor in the growth of the primary
sector followed by forestry and fishing.

• Total exports from the state stood at US$ 69.73 billion during 2017-18. During 2018-19 (Uoto Sept), exports stood at US$ 36.69 billion. Major
items exported from the state are pearls, precious and semi precious stones, gold and other precious metals, drug formulations and biologicals,
motor vehicles and cars, iron and steel, and ship, boats and structures

• Coca Cola, a major soft drink producing giant will be procuring oranges from Vidarbha, Nagpur for producing juices, that would be sold
worldwide. The production would take place at its Butibori plant.

• Maharashtra ranks first nationwide in coal-based thermal electricity as well as nuclear electricity generation with national market shares of over
13.0% and 17.0% respectively.
 Maharashtra Economic Overview

Maharashtra Economy Overview (Cont’d)

• The physical infrastructure of the State includes rail, airports, road, power, telecom and ports. Four International and seven Domestic
airports, 2 major and 53 minor ports, a well developed power supply grid are all boosters to the economy.

• Five airports -- Nanded, Latur, Osmanabad, Yavatmal and Baramati -- were awarded to Reliance Airports Developers Private Limited
(RADPL) by MIDC to develop, upgrade, operate, manage and maintain for 95 years of lease in November 2009. Only non-scheduled
flights operate from these airports. Maharashtra's infrastructure sector has grown significantly over the last decade, with a substantial
rise in the number of industrial clusters and public-private partnership (PPP) projects.

• Central Government has launched the 'Make in India' campaign with the goal of making India a global manufacturing hub. India's GDP
can grow at the rate of 8.0% only if Maharashtra grows at 10.0%. With this objective, government has taken up a mission to increase
the 'ease of doing business' in the state.

• The State Government has prepared a special policy for setting up industries related to Aerospace and Defence sector, under Make in
India. ‘Defence Hubs’ will to be established in Nagpur, Pune, Ahmednagar, Nashik, and Aurangabad.

• Maharashtra can count on a strategic location and strength in ports, logistics, connectivity and skilled manpower to continue attracting
industries.
 Maharashtra Tourism Overview

Maharashtra Tourism Overview

Maharashtra is located in the Western part of India which is far more ancient
than the magnificent snow-capped Himalaya. Situated on the Deccan plateau of
India, the state of Maharashtra has a unique location of being situated between
the Arabian Sea and the Western Ghats. This makes the state a biodiverse region
rich in flora and fauna thus extending itself to a high potential forTourism.

The state has 720 km long coastline, which is one of the highest for any state in
India and Maharashtra State Tourism is promoting tourism along the entire
coastal belt of Sindhudurg as an integrated beach and coastal tourism circuit.
Further, the districts of Nagpur, Aurangabad and Sindhudurg have been
earmarked as Special ‘Tourism’ districts where MTDC will develop high priority
projects under JV and/or PPP model. Apart from the regular destinations, MTDC
is also promoting untapped locations like Vengurla, Amboli, Malwan, Phaltan,
Dapoli, Harihareshwar, Tarkali, Kunkeshwar and Ganpatipule to garner attention
to its virgin white-sand beaches in the state which is also plentiful in natural
beauty, exciting culture and rich heritage.
Maharashtra is known for its world-renowned centers like Ajanata and Ellora
caves which are part of the acclaimed Buddha circuit, Jyotirlingas, the
AshtaVinayaks and other famous temples at Shirdi, Pandharpur, Kolhapur, etc.
Special pilgrim circuits will be promoted through various marketing efforts and
tour operators in the recent Tourism Policy.
The policy lays special focus on rural and agriculture tourism to cover sectors like
wine (Nashik), mango (Ratnagiri) and oranges (Nagpur) and development of
caravan tourism and theme tourism including fort circuits, beach, heritage,
religious, culinary, coastal and medical tourism. There are also plans to promote Key Tourist Destinations of Maharashtra
the state as an adventure sports destination.
Three regions in Maharashtra will be developed as geographical indicators (GI)
tourism circuits to promote the native agriculture produce consisting of
Mahabaleshwar-Ratnagiri, Sindhudurg and Nashik.
 Key Physical Infrastructure Overview

AIR
Domestic Passengers Aircraft movement Freight
• Maharashtra has 3 International Airports at Mumbai, Pune & airport (‘000 thousand) (‘000) (‘000 MT)
Nagpur. PM Modi laid the foundation stone for the Navi
Mumbai Airport near Ulwe, in Panvel a Rs16,000cr project. As a 2017-18 2018-19* 2017-18 2018-19* 2017-18 2018-19*
part of the first phase, one terminal building of the airport and
Mumbai 34,849.78 17,767.00 234.61 119.91 258.32 140.58
runway will be completed by Dec 2019. Aviation think-tank,
says the Navi Mumbai airport will be ready only by 2024. Pune 7,891.73 4,444.10 53.71 29.62 41.51 27.29

• The proposed international airport is being built at Mopa in Nagpur 2,080.01 1,265.83 15.52 10.28 6.99 4.33
Pernem taluka of Goa over 2,271 acres. The new airport at
Mopa will provide seamless connectivity to entire coastal belt Aurangabad 340.1 170.13 3.73 1.85 1.73 1.15
of Sindhudurg. Currently, the project is expected to be delayed
from it’s original timeline of Sept. 2020 owing to the status quo
and the stay on tree-cutting ordered by the Supreme Court in
Jan 2019. Internati Passengers Aircraft movement Freight
onal (’000 (‘000) (‘000 MT)
• The proposed new Pune International Airport once again did Airport thousand)
not get any fund allocated in the new budget.
2017-18 2018-19* 2017-18 2018- 2017-18 2018-19*
19*
• Ten other airports are being developed at Kolhapur, Shirdi,
Amravati, Gondia, Nashik, Jalgaon, Nanded, Solapur, Ratnagiri
Mumbai 13,646.65 6,963.96 86.08 44.06 647.97 342.97
and Sindhudurg. They are all under the Centre's Regional
Connectivity Scheme (RCS), part of the ambitious National Civil
Aviation Policy, 2010. Pune 273.12 111.13 2.32 1.05 0.05 0.01

• In April 2018, the Government of Maharashtra announced Nagpur 106.12 53.95 1.36 0.62 0.87 0.42
plans to formulate a comprehensive civil aviation policy for the *Upto Sept2018
next 10 years which will boost regional connectivity by allowing
public-private partnership for construction of airports and Ten other airports are being developed at Kolhapur, Shirdi, Amravati, Gondia,
helipads. Nashik, Jalgaon, Nanded, Solapur, Ratnagiri and Sindhudurg.
• As of September 2018, Mumbai airport handled 6.96 million
international passengers. International aircraft movement at
Mumbai airport stood at 44,006.
 Key Physical Infrastructure Overview
RAIL

• The Railway network spanning 5,983 km between four Railways. This accounts for approx.8.7% of the entire rail route network coverage in India.
The state also consists of 205 railway stations.
• Maharashtra also has suburban railway networks in Mumbai and Pune that carry around 6.4 million passengers everyday.
• Maharashtra also has metro rail and mono rail networks. Currently Mumbai Metro is operational while metro at Nagpur, Navi Mumbai, Nashik
and Pune are under construction.
• The Centre has sanctioned construction of at least 7 new railway lines in Maharashtra, including the Chhatrapati Shivaji Terminus (CST)-Panvel fast
elevated corridor, collectively worth Rs.31,196 crore. These seven new lines will be 3,123kms.
• An improved suburban network in the state’s capital, Mumbai has also been announced. The suburban network will cost Rs 51,000 crore and it
will have line doubling of 90 km with additional lines of 150 km.

ROADS

• The Bharat Mala project, road network project will garland the entire country. Modi government is planning to finish the 5000-km road project in
5 years. This project has a lot in store for Maharashtra. Of the 44 economic corridors to be built across the country, 12 will pass through the state,
giving a major boost to inter-state connectivity.
• Pune, Nagpur & Amravati will be included in the 28 outer ring roads proposed under the Bharat Malaproject.
• Mumbai Trans Harbour Link (MTHL) will be country’s longest sea bridge at 22.5 km. It will connect Mumbai’s eastern suburbs with the mainland
across the harbour through a 16.5 km sea bridge and a viaduct. The project will cost around Rs18,000 cr and be completed by 2019. It will
connect Sewri in central-east Mumbai with Nhava Seva across the harbour.
• The Rs.50,800-crore Sethu Bharatam project aims to ensure highways without railway crossings by 2019 and overhaul of 1,500 British-era
bridges. 208 railway crossings will be replaced by rail over bridges (ROBs) by 2019. 12 no. of ROBs have been identified under Maharashtra.

PORTS

• Sagarmala Project aims to promote port-led direct and indirect development and provide infrastructure to transport goods to and from ports
quickly, efficiently and cost- effectively.
• A total of 13 port projects (Rs 410.51 cr) have been sanctioned under Sagarmala forMaharashtra.
• Steps have been taken by the government of Maharashtra for the development of Rewas port, Vijaydurg port, Redi port, Vadhavan port, Trombay
port and Karanja port through private sector participation.
• As part of the National Perspective Plan, 14 CEZs (Coastal Economic Zones) have been proposed across all Maritime States & Union Territories
and their perspective plans have been prepared. Two CEZs – Northern Konkan & Southern Konkan will be developed inMaharashtra.
• 29 potential port-linked industrial clusters have also been identified across Energy, Materials, Discrete Manufacturing and Maritime sectors.
• One Power Cluster in Northern Maharashtra and one Steel cluster in Southern Maharashtra / Goa have beenidentified.
 Maharashtra Industrial Development – Key Growth Drivers

• Mumbai is the financial capital of India.

• It is home to 3 stock exchanges (BSE, NSE and MSE) and 3 commodity exchanges (ICEX,
MCX, NCDEX). The market capitalization of BSE and NSE has increased at a CAGR of 19.5%
and 14.5% to US$ 2.3 trillion and US$ 1.8 trillion, during FY12 to FY17, respectively. The
market capitalization of BSE and NSE for 2017-18 is US$ 2,297.55 billion and US$ 2,179.09
billion respectively.

• The number of companies listed on NSE and BSE have increased to 7,501 in FY18 as
compared to 6,779 in FY12. The number of companies listed on NSE and BSE during 2018-
19 (Upto Aug) are 1,916 and 5,363 respectively.

Finance • As of May 2018, the state government of Maharashtra is all set to give approval to the
master plan of International Financial Services Centre (IFSC) which will coexist with the
proposed terminal for the Mumbai-Ahmedabad bullet train at Bandra Kurla Complex
(BKC).

• At current prices, the contribution of the financial sector to the GSDP of the state
increased at a CAGR of 10.51% between 2011-12 and2016-17.

• Aggregate deposits and credit of scheduled commercial banks in Maharashtra stood at

US$ 338.60 billion and US$ 359.22 billion respectively, in 2018-19 (Upto Jun).

• As of June 2018, out of 226,452 ATMs in the country, Maharashtra accounted for 28,624
ATMs making it the state with the highest number of ATMs deployed.
 Maharashtra Industrial Development – Key Growth Drivers

• IT is one of the top growing sectors in the state, with maximum thrust, development and
investment. The Government of Maharashtra is focusing on providing IT-related
infrastructure, fiscal incentives to IT units and an institutional framework for the IT sector.

• The prime IT/ITeS clusters are in Greater Mumbai, Pune, Thane, and Nasik. Pune is the
leader in Business Process Outsourcing (BPO) services.

• The government has launched WiFi services, which will connect 500 hotspots across
Mumbai, under the smart city project.

• During 2017-18, Maharashtra Industrial Development Corporation (MIDC), CIDCO and

Software Technology Park of India cumulatively developed 37 public IT parks and
IT / ITes and Electronics approved 506 private IT parks. Of the total 506 IT parks, 185 parks are already operational
with an overall investment of Rs.4,738 crore (US$ 735.14 million and remaining 321 with
an investment of Rs .2,828 (US$ 1.99 billion), which is expected to generate 17.10 lakh
opportunities. Amongst the prominent Parks in Pune & Mumbai, the Nagpur IT Park is also
worth a mention.

• The state government has announced plans for the setting up of brown and green field
projects to facilitate environment friendly processing standards in the textile units of the
state.

• During 2016, the Govt came up with the ‘Electronics Policy 2016’ which aims at achieving
a turnover of $12 Billion for the ESDM industry with targeted expansion of the sector to
cross $2 Billion by 2020.
 Maharashtra Industrial Development – Key Growth Drivers

• Maharashtra contributes about 10.4% to India’s textiles and apparels output. The state
contributes about 25.0% of India’s cotton production. The textile industry is the largest
employer in Maharashtra and contributes around 28.0% to India's total exports. Maharashtra
state is the pioneer in the powerloom industry in India.

• Textile parks are being set up in Maharashtra with the focus of providing world-class
infrastructural components for the textile sector and enhance productive capacity. This will
assist the state to maintain its leadership position in textile exports and production. Some of
the textile parks are the Nardhana Textile Park in Dhule, Butibori (Nagpur) Textile Park and
Ambernath Textile Park.
Textiles

• The State Government approved a new textile policy for a tenure of 2018-23 with an aim to
attract investment of Rs. 36,000 crore (US$5.6 billion) and increase employment.

• The state has estimated production of 6.55 million bales of cotton in 2017-18. In 2017-18, the
state has also produced 184 MT of raw silk.

• The State government allows 100.0% FDI in the textile sector under the automatic route. The
main products exported from the State are textiles, readymade garments, cotton yarn.

• Gems and Jewellery Industry is considered as one of the key sectors of the State which
includes pearls, precious semi precious stones, gold and other precious metal jewellery.

• Mumbai is India’s most important diamond cutting and polishing centres. The Gems &
Gems & Jewellery
Jewellery Hubs in Maharashtra are Mumbai, Aurangabad, Nanded and Kolhapur.

• Maharashtra is one of the key exporters of Gems and Jewellery in the country. During 2017-
18, out of the total exports, Maharashtra contributed about US$ 27.34 billion which was about
70.69% of India’s total.
 Maharashtra Industrial Development – Key Growth Drivers

• Maharashtra is one of the fourth most visited states in India by both Domestic and
International travellers. Tourism is designated as a priority sector since it holds the potential to
usher in economic development and generate high employment opportunities in the state.
Tourist arrival estimates in the state of Maharashtra in 2017(P) stood at 119.19 million domestic
tourist and 5.08 million foreign tourists.

• It is home to the largest inventory of tourism products that the country has to offer – five
UNESCO World Heritage Sites, over 900 caves, and 350 forts, with splendid wildlife and beaches
to adorn.

• The state boasts of Konkan as one of the chief tourist regions of Maharashtra. The beautiful
beaches, greenery, world famous Warli art and sea forts of Konkan magnetize a constant flow of
visitors and tourists in the region.
Tourism
• The state is home to the Hindi film industry Bollywood, which produces the largest number of
films globally.

• The Tourism Policy 2016 has some key objectives like:

• Achieve sector growth of 10.0% and share of 15.0% in GSDP through tourism and
tourism related activities.
• Generate fresh investments in the tourism sector to the tune of US$ 4.58 billion by
2025.
• Create 1 million additional jobs in the tourism sector by2025.

• The following measures have been taken to boost the Tourism industry in Maharashtra:
• Maharashtra Tourism Development Corporation (MTDC) to work as a single window for
clearance of tourism projects
• Tax exemptions, electricity supply at industrial rates and ease in land allotment process
 Maharashtra Industrial Development – Key Growth Drivers

• Maharashtra accounts for approximately 35.1% of the country’s output of

automobiles by value.

• Pune is the largest auto hub of India with over 4,000 manufacturing units in the Pimpri-
Chinchwad & Chakan region alone. Pune is home to large players like Bajaj Auto
Limited, Daimler Chrysler Limited, Tata Motors, where as Nasik is home to one of
India's largest multi-utility vehicle manufacturers – Mahindra & Mahindra Limited.

Auto & Auto components • ARAI, India's premier automotive R&D, testing and certification organisation is in Pune.
It is India’s first Auto Cluster Development and Research Institute is in Maharashtra.

• The Government of Maharashtra is finalising a policy to encourage manufacturing of

electric vehicles. Manufacturing of 100,000 electric vehicles per year in the next 3 to 5
years has been envisaged under the policy. Incentives offered may include a 15.0%
subsidy to buyers, which is expected to boost demand, and refunding of SGST to
manufacturers.

• During 2017-18, exports of motor vehicles and cars stood at US$ 2.4 billion
 Maharashtra State VISION

Establishing technicaluniversities
for skill development.
Focus on growth of the manufacturing
Providing scholarships to pursue
sector.
professional courses.
Creating conducive growth environment.

Industrial sector Skill development

Promoting sustainable development in
agriculture by integrating schemes of
water shed development, use of US$ 50.6 billion allocated to
technology, enhancing processing accelerate economic growth by
capacity and skill development. Vision implementing specially
Agriculture GSDP growth
designed growth oriented
Promotion of agri-business through policies.
PPP for Integrated Agricultural
Development (PPP-IAD) and develop Tourism Infrastructure
market linkages of horticulture.

Promote religious,
adventure and
heritage tourism. 6,026 km of national highway projects.
Training workers in the Developing ports by investing
organised and unorganised approximately US$ 2.4billion.
sectors related to tourism.
Section: 4

Karad Market Overview

 Karad Overview
Karad Overview

The city of Karad is located in the Satara district in the southern part of Maharashtra. It
lies at the confluence of Koyna River and the Krishna River. Karad is economically a very
affluent town and is well known for its agriculture, animal husbandry and sugar
production businesses. Popularly, Karad is known as the sugar bowl of Maharashtra
owing to the presence of many prominent sugar factories in and around Karad.

It is also an important educational hub in Maharashtra due to the presence of many

prestigious educational institutes and medical colleges. Karad is also politically significant
and the town has had two of its residents elected as state chief ministers. As of 2011
India census, Karad town had total population of 74,355. Males constitute 52% of the
population and females 48%. Karad has an average literacy rate of 76%, higher than the Karad
national average of 59.5%: male literacy is 80%, and female literacy is 72%.

Karad has a railway station that is located 4 km from city center. The town is connected
from Mumbai to Miraj, Sangli, Kolhapur, and Bangalore. Recently, the Ministry if Railways
has allocated funds for a plan to build a new 112 km railway line between Karad and
Chiplun. Once commissioned it will connect Karad to the important Konkan Railway line.

The Indian National Highway 4 goes through Karad city. NH 4 is a major National Highway
route in Western and Southern India linking Mumbai, Pune, Bangalore, and Chennai. The
State Highway SH 78 also goes via Karad.

Currently, the closest domestic and international airport connecting Karad is at Pune.
Pune is located at a distance of 180km from Karadcity.
 Karad – Key Industrial Areas & Key Demand Drivers

Taswade MIDC

Karad is economically a very affluent town and is well known for its agriculture, animal husbandry
and sugar production businesses. Karad has the Taswade MIDC in its vicinity, which boasts many
small and mid scale industries. Karad is famous for its Jaggery and Cattle markets in entire
Maharashtra. Jaggery of very high quality is traded here. Karad is well known for sugar
production and is known as the sugar bowl of Maharashtra owing to the presence of many sugar
factories in and around Karad.

Trading & Education

There is a big commodities market and the geographical location of the city adds to its benefit
since it’s known as the gateway to Konkan region from Western Maharashtra. Karad is an
important educational hub in Maharashtra due to the presence of many prestigious educational
institutes and medical colleges. During the entire year, the town gets significant visitations from TaswadeMIDC
various students, family members of resident students and visiting teachers and doctors.

Tourism

Karad is an important transit destination on the Mumbai- Goa road route and also connects the
Konkan belt with the key markets of Western Maharashtra. With the operationalization of the
Chipi airport and future plans to shift the Goa airport to Mopa is close proximity to the
Maharashtra – Goa border, the Konkan belt is likely to witness exponential growth in tourist
inflows. In the following slides we have provided a detailed overview of key tourism projects
underway in the Konkan region that will positively impact the Karad hotel market.

Krishna Medical College

 Konkan Tourism Overview & Key Demand Drivers
Tourism Overview

Sindhudurg district is the southern part of the greater tract known as the 'Konkan' which is
historically famous for its long coast line. This is the first district in Maharashtra to be declared as
the Tourism District. Famous for its serene and beautiful beaches, temples, historical forts and
folk art forms like Dashavtar, Chitrakathi, Pangul, Keertan, Dhangiri dance, Sindhudurg has a great
potential for earning foreign exchange as an international tourism destination, if marketed well.
Malvan region along the Sindhudurg fort, Tarkarli beach, Mobar point, Chivla beach, Tondavali
beach all attract tourists and have near-white sands, sparkling seas and jungle-fringed
backwaters. Due to its relatively clear sea waters, Malvan serves as a perfect spot for scuba
diving and snorkeling. Near the outer walls of Sindhudurg fort one can see lots of live corals and
colorful marine life under the sea. Karad

Sindhudurg currently is a staging point for traffic driving along the Konkan belt, between Mumbai
to Goa. It’s a short stop for food and maybe a night’s stay. The popular beaches are Vengurla,
Shiroda and Boghave . Vengurla town has many tourist attractions like temples (Rameshwar,
Sateri, Mauli, Navadurga, Rampurush,etc.), forts, beaches and good cuisine. Pansal in the Shiroda Sindhudurg
village is a must see as this is the village where Gandhiji had done the Salt Satyagrah during the
1930’s and thus this place was of immense importance in our freedom movement. The
Mochemad beach and Sagareshwar beach are the other tourist attractions here. Most of the
district area is covered by dense rainforests.
Tourism Map of KonkanBeaches
Vengurla due to its proximity to both Konkan and Goa has emerged as one of the major tourist
attraction places in Sindhudurg in recent years. Its clean beaches, historical monuments, tasty
food/sea food options, various affordable water sports and affordable accommodation options
are attracting domestic tourists, mostly from the State and neighbouring districts, especially April
– May & Nov to Dec.

Further, the Amboli hill station, another attractive eco-hot spot has proved to be a most suitable
habitat for wild animals and flora and fauna. At an altitude of 2,260 ft it is the last hill station
before the coastal highlands of Goa. It’s sea view points offer you panoramic view of konkan
coast. The main attraction for tourists is the incredibly-high rainfall (7 m average, per year) and
the numerous waterfalls and mist during the monsoons.
Devgadh Beach at Sindhudurg
 Konkan Tourism Overview & Key Demand Drivers

Sindhudurg Airport
Sindhudurg Airport is a new airport recently commissioned at Chipi – Parule in Sindhudurg district.
The airport has been built by IRB Sindhudurg Airport Pvt. Ltd. on a BOT basis for the Maharashtra
Industrial Development Corporation (MIDC). The airport will initially commence operations with a
3,170 metre long runway is able to accommodate aircraft like the Airbus A320 and Boeing 737. The
airport terminal building will has a capacity to handle 200 departing and 200 arriving passengers
during peak hours. It is located continently at a distance of 27 kilometres from the Mumbai - Goa
highway and just 12 kilometres from Malvan coast. Construction was completed by the second half of
2018 and a familiarisation flight from Mumbai Airport landed on 12 September 2018. The airport was
formally inaugurated on 5 March 2019. Alliance Air, an Air India subsidiary has secured permissions to
operate flights from Mumbai. Commercial flights are expected to start soon. The development of this
Sindhudurg Airport
new airport will result in significantly improved connectivity to all key feeder markets across India and
will provide the necessary impetus to tourism growth in the entire Konkan region.

Konkan Costal Sea Road Project

The Konkan belt of Maharashtra will soon be connected by a coastal highway named ‘Konkan Costal
Sea Road Project’. The project is part of the Maharashtra government’s grand plan for the state’s west
coast infrastructure development. The highway will connect areas along Maharashtra and Goa via
Konkan. While the final alignment of the coastal highway is yet to be finalised, currently the project is
expected to start from Uran near Navi Mumbai and connect Goa via the entire west coast of
Maharashtra passing Uran-Alibaug-Kihim-Murud-Harihareswar-Jaigad-Ganpatipule-Ratnagiri-
Kunkeshwar-Malvan-Panjim. The project is expected to be around 550-600 km long. Once the
highway is ready, it will promote tourism in the Konkan belt, and will also greatly reduce travel time Konkan Costal Sea Road Project
along the entire Konkan stretch.

Sea World Project at Malvan

Maharashtra government has approved a project to build India's first oceanarium at Tondawali village
in Malvan, Sindhudurg. A simulated sea will be created along with that of a real lake. The proposed
airport at Chipi, is just 12 km away and can be reached within 20 minutes. Apart from the required
land of 250 acres, some 1,000-acre plain plateau land is available to develop the project. Official
estimates indicate that the project will attract 13 lakh visitors in the first year itself, and the figure will
cross 43 lakh by the tenth year.

Sea World Project at Malvan

 Konkan Tourism Overview & Key Demand Drivers

Swadesh Darshan Programme

The Maharashtra government’s proposal to promote Sindhudurg as a coastal tourism circuit, under
the Central government’s Swadesh Darshan programme which promotes integrated development of
theme-based tourist circuits, has got in-principle approval since 2015, with a Rs.82.17 cr. sanction in
2015-2016. However, one doesn’t see too much visible activity around the same. The coastal belt has
been split into four sub-circuits, Vijaydurg, Devgadh, Tarkarli and Shiroda-Sawantwadi. Destinations like
Vengurla, the Vijaydurg Beach, Vijaydurg Creek, Devgadh Fort, Devgadh Beach, Mithbav Beach,
Tarkarli, Tondavali, Nivati, Fort Shiroda, Sagareshwar, Mochemad will be the highlights of the circuit.

Deccan Odyssey
The Deccan Odyssey is an ultra-luxurious train and hotel on wheels that makes sightseeing in
Maharashtra a sheer delight. One can choose from six different itineraries (across the country), each
of 7-nights starting on a Saturday. The Maharashtra Splendour itinerary starts in Mumbai going to
Nasik, Ajanta and Ellora Caves, Kolhapur, Goa, Sindhudurg – Sawantwadi / Tarkarli backwaters and
back to Mumbai. The Day 7, and the last stop on the journey is Sindhudurg, that includes a visit to the
Sawantwadi Palace where one is hosted by the royal family for lunch, served a delicious Malwani thali,
followed with a cultural folk performance and an offer to adorn local clothes complete with
accessories making for a very fun afternoon. Deccan Odyssey is also a gateway to the little known
cultural secrets of the country. The capacity of the train is 88 passengers. The Deccan Odyssey has
won Asia’s Leading Luxury Train for the last 5 years at the World Travel Awards (WTA) in May2019. Sindhudurg Tourist Circuit

Shilpagram

Three projects that are shaping up in Sindhudurg district under the Government initiatives are:
Shilpagram – Artists’s Village, Environmental Awareness Center at Narendra Dongar and an Ayurveda-
based Health Center. An Artists village, Shilpagram is a replica of the ancient Raghunath market built in
1891. Government considers it an important project taken up by the municipality of Sawantwadi to
introduce tourists to the cultural heritage of Sindhudurg district. Similarly, performances of local folk
art, sculptural skill as well as the decorative hand craft models are also performed here. The various
folk art and music 'Dashavatar', Koli Dance, Dhangar Dance, Wooden mask Dance & Puppets, Jogva &
'Kadak Laxmi' demonstrated at Shilpgram also reflect the cultural heritage of Sindhudurg. If well
marketed, the above initiatives have the potential to attract many tourists to Sindhudurg who will get Sindhudurg Fort
to see the rich culture of the state.
Section: 5

Project Site Analysis

 Project Site Analysis

Site Location Analysis

The Site for the proposed hotel develeopment project is located on the main NH4, in close
proximity to the Kolhapur Naka Junction. The site orientation is rectungular in shape and
provides direct connectivity to the main highway via a service road.

The Site also enjoys prominent visibility due to its location and its proximity to Krishna
Hospital and the main city junction are added advantages for the project.

The proposed site measures 30,000 square feet and allows for an FSI of 1.4. Highway – NH4

We have been advised that currently the owners of the site are in discussion to also acquire
a land parcel adjoining the current site to further expand the foot print of the development.
For the purpose of our analysis however we have not taken the additional land development
FSI into consideration.

Currently the site houses a Tata Motors Service Station that belong to the promoters. Based
on the information provided to us we understand that for the proposed development plan to
to relocate the service station to a different location and use the site for planned hotel
development.

Site Location
 Executive Summary – Overall Development Potential of Site
Location

Average Executive Summary

Poor Excellent • The total site FSI and the overall location on NH4, proximity to key demand areas within the Karad &
Kolhapur market areas, the visibility and orientation of the site, allows for a good opportunity for
development of a mid-scale business hotel with a reputed brandassociation.

• We are of the opinion that the overall site parameters support the development factors planned for the
project. A key constraint on the site however is the narrow funnel approach road that connects the site
Accessibility
to the main road. The irregular shape of the site is also likely to impact the overall development efficiency
of the site.
Average

Poor Excellent
• Our recommendation is that the proposed project be positioned as a mid-market business hotel. Offering
of F&B and banqueting provide a good revenue opportunity and therefore the restaurants and banquets
planned for the project should be authentic and should appeal to the local demographics of the micro-
market.

Orientation
Caveat and Note of Caution

Average The project needs to obtain all necessary permissions and clearances in terms of clearing and expanding
the road accesses to the site. Both the development of the primary access road and obtaining of all
Poor Excellent necessary permissions has to be made a condition precedent to the commissioning of theproject.

It is advised to undertake a thorough traffic and vehicular movement study for the site prior to finalizing
the size and scale of development. Factors such as local municipal clearances, pollution permissions,
restrictive development norms, permissible FSI and CLU certificate should also be obtained based on the
Neighborhood
overall project development plan.

The obtaining of all necessary permissions and clearances in terms of land and its development has to be
Average made a condition precedent to the commissioning of the project. In our opinion, it is imperative that the
various asset classes such as rooms, F&B, Banquets etc. considered for the project are complimentary in
Poor Excellent
nature and do not conflict with the revenue generation capacity to any individual development
component.
 Development Critical Path

Critical Path for Hotel Key Activities and Completion

Development Mile Stones Timelines

Concept Validation, • Market Assessments and Trend Analysis

Feasibility and Financial Oct
Analysis • Entry Strategy and Product DevelopmentBenchmarking
2019
• Project Feasibility and Financial Validation

Financial Closure for the • Project Equity Funding Jan

Project • Project Debt Syndication 2020

Branding • Brand Evaluation and Branding Strategy Validation March

• Brand Development 2020

Design and • Appointment of Architects, Facility Planners & Design Consultants July
Development
• Appointment of Project Management Company and Design Finalization 2020

• Key Project Approvals and Commencement of Construction Approval

Construction and Project • Preparation and Execution of Constructions Critical Path Oct
Management 2020
• Monthly Project Review with PMC

Pre Opening and • Pre-Opening Support Services Critical Path Jan

Commencementof
Operation • Operations Management Critical Path 2023
 Recommended Facilities Plan for Proposed Resort
GUEST ROOMS
Particulars Number of Unit Size Unit Size Corridor Space Total Area Total Area Inventory
Rooms Sq.m [Link] Allocation Sq.m [Link] Distribution Ratio

Standard Room 40 24 258 20.0% 1,152 12,400 50.0%

Superior Room 40 24 258 20.0% 1,152 12,400 50.0%
Total 80 2,304 24,800 100.0%

Meetings & Conference Facilities

Particulars Number of Unit Size Unit Size Capacity Total Area Total Area
Rooms Sq.m [Link] (Covers /PAX) Sq.m [Link]

Ball Rooms 1 372 4,000 200 372 4,000

Conference Rooms 1 186 2,000 100 186 2,000
Meeting Rooms 1 93 1,000 50 93 1,000
Total 3 350 650 7,000

Restaurant & Bar Facilities

Particulars Number of Unit Size Unit Size Capacity Total Area Total Area
Restaurants Sq.m [Link] (Covers /PAX) Sq.m [Link]

All Day Dining 1 279 3,000 100 279 3,000

Specialty Restaurant A 1 223 2,400 60 223 2,400
Specialty Restaurant B 1 149 1,600 40 149 1,600
Total 3 200 650 7,000

Particulars Number Unit Size Unit Size Total Area Total Area
Sq.m [Link] Sq.m [Link]

Fitness Centre 1 139 1,500 139 1,500

Total 1 139 1,500

1
 Summary of Key Facilities & Area Allocations
Areas in Sq. Ft.
Total Site Area 30,056
Gross Total Builtup Area (Available) 42,079
-
Total Builtup Area for Hospitality 41,333
Total Builtup Area for Serviced Apartments -
Total Builtup Area for Residential -
Total Builtup Area for Spa & Wellness -
Balance FSI Available for Development 746

Hotel Rooms Food & Beverage Facilities

Facilities Area Facilities Area
Standard Bay Size 258 Number of Restaurants (#) 3
Number of Bays (#) 96 Number of Covers (#) 200
Number of Rooms (#) 80 Total Builtup Area - F&B 7,000
Number of Premium Rooms (Suites) - Average Area per Cover 35
Premium Inventory Count % 0%
Total Builtup Area - Rooms 24,800

Meeting and Conference Facility Outdoor and Banquet Facility - Non FSI
Facilities Area Facilities Area
Numbers of Meeting Rooms 3 Numbers of Outdoor & Banquet 0
Total Meeting and Conference Capacity 350 Total Outdoor and Banquet Capacity 0
Total Builtup Area - Meeting and Conference 7,000 Total Builtup Area - Outdoor and Banquet -

2
 Recommended Facilities Plan for Proposed Hotel
SUMMARY PRODUCT PLAN AND AREA ALLOCATION

Areas Hotel AREA ALLOCATION - HOTEL INVENTORY ALLOCATION -HOTEL

Room to Total Area Ratio 60.0%

Hospitality Superior Room Standard Room Standard Room

Total Room Area 24,800 50% Superior Room 50%
50% 50%
Ancillary and Back-of-the-HouseAreas 16,533

Gross Builtup Area for Hospitality 41,333 [Link]

Other Development Components

AREA ALLOCATION - FOOD AND AREA ALLOCATION - CONFERENCES
Gross Builtup Area for Other Development - [Link] BEVERAGE FACILITIES

Total Gross Builtup Area (Utilised) 41,333 [Link]

Specialty RestaurantB All DayDining Meeting Rooms
23% 43% 14%
Gross Total Builtup Area (Available) 42,079
Conference Rooms Ball Rooms
Gross Builtup Area for Addl. Development 746 [Link] 29% 57%

Product Positioning Mid Market Specialty RestaurantA

34%

Note: Total Built-up area utilisation does not include provision for free of FSI areas within the building

3
Section: 6

Competitive Hotel Market

Analysis
 Competitive Hotel Market Overview
#ofF&B Facilities
Sr.
Hotel Inventory Location Positioning
No. Restaurants Bars

1 Hotel Fern 42 NH4 Mid Market 2 1

2 Hotel Sangam 36 NH4 - KolhapurNaka Mid Market 2 1
3 Hotel Mahendra 28 NH4 Mid Market 1 1
4 Hotel Pankaj 44 NH4 Mid Market 2 1
5 Sugam Hotel 16 NH4 - KolhapurNaka Budget 1 -
6 Other Guest Houses andLodges 150 Various Economy 1 -

OtherFacilities
Sr.
Hotel Comp Level Fitness Business Swimming Kids Brand Association Accessibility Visibility
No. Spa
Center Center Pool Activities

1 Hotel Fern Primary Yes Yes Yes No No Fern Hotels Excellent Very Good
2 Hotel Sangam Primary Yes No Yes No No Independent Very Good Very Good
3 Hotel Mahendra Secondary No No No No No Independent Very Good Very Good
4 Hotel Pankaj Secondary Yes No No No No Independent Good Average
5 SugamHotel Secondary No No No No No Independent Average Poor
6 Other Guest Houses and Lodges Tertiary No No No No No Independent Average Average

In FY 2019, the overall competitive hotel market in Karad has 5 hotels and a competitive cluster of independent guest houses and lodges with a cumulative inventory of 316 rooms.

In terms of overall asset quality and guest service delivery, the newly opened Fern Hotel and the Hotel Mahindra are the best-in-class assets in the market, also enjoying the best
RevPar performance. The Hotel Sugam, Hotel Pankaj and Hotel Sugam comprise the other competition hotels. The cluster of stand alone guest houses and lodges are form an
important part of the Karad market.
 Competitive Hotel Market Performance Summary FY 2017 - FY 2019
HISTORICAL PERFORMANCE & DEMAND ANALYSIS (CATEGORY-WISE)

Inventory Estimated Occupancy Estimated ARR(Rs.) REVPAR(Rs.)

FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19

All Competitive Hotels 316 316 316 50.3% 53.7% 55.5% 1,589 1,841 2,351 800 989 1,306

Primary Competitive Hotels (4 Hotels) P 78 78 78 55.0% 57.0% 56.4% 1,800 2,300 2,915 990 1,311 1,644
Secondary Competitive Hotels (3 Hotels) S 88 88 88 46.5% 51.9% 54.6% 1,889 2,115 2,460 878 1,099 1,344
Tertiary Competitive Hotels (1 Cluster) T 150 150 150 51.0% 53.0% 55.0% 1,000 1,000 1,000 510 530 550

HISTORICAL MARKET PERFORMANCE OVERVIEW ANALYSIS OF ALL COMPETITIVEHOTELS

100% 3,500
For FY 2019, The overall competitive market, with a cumulative inventory of 316 rooms,
90%
witnessed an occupancy of 56% with an ARR of Rs. 2,351 resulting in a REVPAR of Rs. 2,915
3,000
1,306 80%
2,460
70% 2,351 2,300
•For the primary competitive hotels, with a cumulative inventory of 78 rooms, the FY 2,500
60% 2,115
2019 occupancy was recorded at 56% with an ARR of Rs. 2,915 resulting in a REVPAR of
1,841 1,889
Rs. 1,644 50% 2,000
1,589
40%
•In FY 2019, the Secondary Competitive Hotels, with a cumulative inventory of 88 1,500
rooms, recorded an occupancy of 55% with an ARR of Rs. 2,460 and a REVPAR of Rs. 30%
1,000 1,000 1,000
1,344 20%
1,000
10%
•The Tertiary Competitive Hotels comprise of a cumulative inventory base of 150 50% 54% 56% 55% 57% 56% 46% 52% 55% 51% 53% 55%
Rooms. For FY 2019, The tertiary competition recorded an occupancy of 55% with an 0% 500
FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19
ARR of Rs. 1,000 resulting in a REVPAR of Rs. 550
Occupancy Average Rates (Rs.)

COMPETITIVE PERFORMANCE REVIEW

The Karad hotel market has witnessed an increase terms of occupancy and an increase in terms of ARR performance over a 3 year period from FY 2017 to FY 2019. The market wide occupancy grew from 50%
in FY 2017 to 56% in FY 2019. The ARRs for the market grew from Rs. 1,589 in FY 2017 to Rs. 2,351 in FY 2019. The growth momentum, both in terms of occupancy and ARRs, has been lead primarily by the
newly opened Hotel Fern in the market . TheREVPAR performance for the market has improved from Rs. 800 to Rs. 1,306 between FY 2017 and FY2019.

Within the competitive set, the Sugam Hotel witnessed the highest occupancy of 61% for FY 2019. In terms of ARRs, Hotel Fern was the leader with Rs. 3,200 for FY 2019. The overall REVPAR leader for the
market, for FY2019, was Hotel Fern with a REVPAR of Rs. 1,760.
 Competitive Hotel Market Performance Summary FY 2017 - FY 2019
HISTORICAL PERFORMANCE & DEMAND ANALYSIS (ALL HOTELS)
Inventory Estimated Occupancy Estimated ARR (Rs.) REVPAR (Rs.) Fair Share
Sr. Competitive Hotels
FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19

TOTAL 316 316 316 50% 54% 56% 1,589 1,841 2,351 800 989 1,306 100.0% 100.0% 100.0%

1 Hotel Fern P 42 42 42 0% 0% 55% - - 3,200 - - 1,760 0.0% 0.0% 25.2%

2 Hotel Sangam P 36 36 36 55% 57% 58% 1,800 2,300 2,600 990 1,311 1,508 28.9% 28.9% 21.6%
3 Hotel Mahendra S 28 28 28 43% 53% 55% 2,000 2,300 2,700 860 1,219 1,485 16.9% 16.9% 12.6%
4 HotelPankaj S 44 44 44 46% 48% 52% 2,100 2,200 2,500 966 1,056 1,300 17.7% 17.7% 13.2%
5 Sugam Hotel S 16 16 16 57% 60% 61% 1,200 1,500 1,800 684 900 1,098 6.4% 6.4% 4.8%
6 Other Guest Houses and Lodges T 150 150 150 51% 53% 55% 1,000 1,000 1,000 510 530 550 30.1% 30.1% 22.5%

Sr. Competitive Hotels Inventory Estimated Occupancy Actual Share Demand PenetrationIndex Rate PenetrationIndex
FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 FY 17 FY 18 FY 19

TOTAL 316 316 316 50% 54% 56% 100.0% 100.0% 100.0%

1 Hotel Fern P 42 42 42 0% 0% 55% 0.0% 0.0% 25.0% - - 0.99 - - 1.36

2 Hotel Sangam P 36 36 36 55% 57% 58% 31.6% 30.7% 22.6% 1.09 1.06 1.04 1.13 1.25 1.11
3 Hotel Mahendra S 28 28 28 43% 53% 55% 14.4% 16.6% 12.5% 0.85 0.99 0.99 1.26 1.25 1.15
4 Hotel Pankaj S 44 44 44 46% 48% 52% 16.2% 15.8% 12.4% 0.91 0.89 0.94 1.32 1.20 1.06
5 Sugam Hotel S 16 16 16 57% 60% 61% 7.3% 7.2% 5.3% 1.13 1.12 1.10 0.76 0.81 0.77
6 Other Guest Houses and Lodges T 150 150 150 51% 53% 55% 30.5% 29.7% 22.3% 1.01 0.99 0.99 0.63 0.54 0.43

COMPETITIVE PERFORMANCE REVIEW

The Karad hotel market has witnessed an increase terms of occupancy and an increase in terms of ARR performance over a 3 year period from FY 2017 to FY 2019. The market wide occupancy grew from 50% in
FY 2017 to 56% in FY 2019. The ARRs for the market grew from Rs. 1,589 in FY 2017 to Rs. 2,351 in FY 2019. The growth momentum, both in terms of occupancy and ARRs, has been lead primarily by the newly
opened Hotel Fern in the market . The REVPAR performance for the market has improved from Rs. 800 to Rs. 1,306 between FY 2017 and FY 2019.

Within the competitive set, the Sugam Hotel witnessed the highest occupancy of 61% for FY 2019. In terms of ARRs, Hotel Fern was the leader with Rs. 3,200 for FY 2019. The overall REVPAR leader for the
market, for FY2019, was Hotel Fern with a REVPAR of Rs. 1,760.
 Market Segmentation - Market Segment Composition
MARKET SEGMENTATION
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29

CVGR 15.0% 20.0% 22.0% 20.7% 20.6% 20.4% 20.4% 20.5% 20.6% 20.7% 20.9% 21.1% 21.2%
FITs 40.0% 38.0% 35.0% 36.9% 37.6% 38.3% 38.3% 38.1% 37.9% 38.3% 38.6% 38.9% 39.2%
OTAs 35.0% 35.0% 40.0% 39.8% 39.4% 39.1% 39.1% 39.3% 39.4% 39.1% 38.7% 38.3% 37.9%
Others 10.0% 7.0% 3.0% 2.6% 2.4% 2.2% 2.2% 2.1% 2.1% 2.0% 1.8% 1.7% 1.7%
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

MARKET SEGMENTATION OVERVIEW

The CVGR, comprising of business travellers to the various Sugar mills, agriculture cooperatives and MARKET SEGMENTATION
MSME firms based in Karad and the Talewadi MIDC, constitutes large segment with 22% in FY 2019.
3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1%
10% 7%
The FITs segment constitutes 35% of the overall demand. The clients mostly consist of various
commercial segment travelers to Karad. In the last couple of years the market has witnessed a robust
growth in travel from this segment specially in FY 2019. 37% 37% 36% 36% 36% 35%
40% 39% 39% 39% 39% 39% 39% 39% 38% 38% 38%
35% 40%
35%
•The OTAs segment constituted 40% of the overall demand in FY 2019. This segment owing to its
ability to provide competitive rates at all price points and for all accommodation formats, has
witnessed very agressive growth within the Karad micro market.

• The Others segment constituted 3% of the overall demand in FY 2019. 39% 39% 40% 40% 40% 40% 41% 41% 41%
38% 35% 37% 38% 38% 38% 38% 38% 38% 39
40% %

20% 22% 21% 21% 20% 20% 20% 21% 21% 21 21% 21% 21% 22% 22% 22% 22% 22% 22%
15% %

FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 17 18 19 20 21
22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

CVGR FITs OTAs Others

 Market Segmentation - Market Segment Growth & Room Nights Forecast
MARKET SEGMENT GROWTH RATES
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
CVGR 0.0% 42.4% 52.1% 9.0% 9.0% 9.0% 8.0% 8.0% 8.0% 12.0% 12.0% 12.0% 12.0%
FITs 0.0% 1.4% 27.3% 22.0% 12.0% 12.0% 8.0% 7.0% 7.0% 12.0% 12.0% 12.0% 12.0%
OTAs 0.0% 6.8% 58.0% 15.0% 9.0% 9.0% 8.0% 8.0% 8.0% 10.0% 10.0% 10.0% 10.0%
Others 0.0% -25.3% -40.7% 0.0% 2.0% 2.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
0.0% 6.8% 38.3% 15.7% 9.9% 10.0% 7.9% 7.6% 7.6% 11.1% 11.1% 11.1% 11.1%

FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29

CVGR 3,429 4,883 7,426 8,094 8,823 9,617 10,386 11,217 12,114 13,568 15,196 17,019 19,062
FITs 9,145 9,277 11,814 14,413 16,142 18,079 19,526 20,892 22,355 25,037 28,042 31,407 35,176
OTAs 8,002 8,545 13,501 15,527 16,924 18,447 19,923 21,517 23,238 25,562 28,118 30,930 34,023
Others 2,286 1,709 1,013 1,013 1,033 1,054 1,106 1,161 1,220 1,281 1,345 1,412 1,482
TOTAL 22,862 24,413 33,753 39,046 42,922 47,196 50,941 54,787 58,927 65,448 72,700 80,768 89,743

MARKET SEGMENT GROWTH

• Analysing the TOP 3 segments, in terms of room nights contribution over the last 3 years (FY 2017 to -FY 2019), the CVGR segment has been a significant contributor for the [Link] FY 2019, the demand
from the segment witnessed an increase of 52%.This is partly due to an upswing in the customer's usage of contracted rates with the various hotels. This segmentation shift can be attributed to the ability of
the Newly opened branded hotel to better reach out to the demand drivers within the market leading to client [Link] the next few years we expect this segment to witness continued stable
growth in light of planned expansion and entry of new companies to the micro [Link] FY 2020 and FY 2021, we have forecasted the segment to grow at 9% and 9% [Link] by a 8%, 8% and 8%
growth forecast for FY 2023, FY 2024 and FY 2025 respectively. Subsequently, we have estimated a 12% stabilized growth for the segment starting FY 2026.

•The FITs segment witnessed an increase in demand of 27% in FY [Link] analysis of historical demand patterns and market forecast estimates indicate that the segments contribution will grow due to
increased rate of visitation to new MSMEs and small companies setting base in the micro [Link] FY 2020 and FY 2021, we have forecasted the segment to grow at 22% and 12% YoYfollowed by a 8%, 7%
and 7% growth forecast for FY 2023, FY 2024 and FY 2025 respectively. Subsequently, we have estimated a 12% stabilized growth for the segment starting FY 2026.

•For the OTAs segment, in FY 2019 & FY 2020, we have witnessed the segment growth at 58% & 15% YoY followed by a nominal 9% growth forecast for FY 2021. The increased popularity of the segment is
attributed to the price sensitive nature of the market. In FY 2023, we have forecasted the segment to grow at 8% YoY followed by a 8% and a 8% growth forecast for FY 2024 and FY 2025. Growth rate decline is
due to higer base, however the long term growth potential of the segment continues to remain [Link] FY 2026 we have estimated a 10% YoY stabilized growth. The growth driver for this segment will be
also be growing prominance of smaller companies using this segment as a travel and logistics service provider.
Sr. Proposed
Brand Competitiveness Competitive Project
Hotel Inventory Opening Location Positioning Promoter
No. Affiliation Level Inventory Status
(MM/YY)

1 Proposed Hotel Karad 80 Apr/22 Karad Mid Market TBA 100.0% 80 Mr Patil Greenfield
2 Proposed Unknown Hotels 50 Apr/20 Various Mid Market Various 50.0% 25 Unknown Rumored
3 Proposed Unknown Hotels 50 Oct/23 Various Mid Market Various 50.0% 25 Unknown Planned
4 Proposed Unknown Hotels 50 Apr/24 Various Mid Market Various 50.0% 25 Unknown Planned
Total 230 155

New Developments & Market Supply Forecast

MARKET SUPPLY (WEIGHTED INVENTORY)
•For a 3 year period between FY 2017 and FY 2019, the weighted inventory market supply
322 322 322 322 322 322 322
stood constant at 167 rooms.

•Over the next 3 years (FY 2020 to FY 2022), 1 new hotel projects with a weighted inventory 272 297
of 25 rooms will be added to the existing supply taking the cumulative weighted inventory to
192 rooms.

•For the period FY 2023 to FY 2027, 3 new hotel projects, including the subject resort, are
expected to be made operational. These projects will result in an additional weighted
inventory of 130 rooms, taking the cumulative weighted inventory in the market to 322 167 167 192
192
rooms by FY 2027.
167 167
In the above estimates of new developments and market supply forecast, we have provided
for addition of 3 proposed unknown hotels. The same has been done to provide stability to
the market occupancy forecast calculations over the long term period. FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 17 18 19 20 21 22 23 24 25 26 27
28 29 30 31 32 33 34 35 36
 Market Demand, Supply and ARR Forecast Overview
DEMAND SUPPLY FORECAST
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29

Weighted Inventory 167 167 167 167 192 192 272 297 322 322 322 322 322
Additions toSupply - - - - 25 - 80 25 25 - - - -
Room Night Available 45,443 45,443 60,773 60,773 69,898 69,898 99,098 1,08,223 1,17,348 1,17,348 1,17,348 1,17,348 1,17,348
Annual Room Night Demand 22,862 24,413 33,753 39,046 42,922 47,196 50,941 54,787 58,927 65,448 72,700 80,768 89,743
Annual Induced Demand - - - - - - - - - - - - -
Total Annual Room Night
22,862 24,413 33,753 39,046 42,922 47,196 50,941 54,787 58,927 65,448 72,700 80,768 89,743
Demand
Uncapped Market Occ. 50.3% 53.7% 55.5% 64.2% 61.4% 67.5% 51.4% 50.6% 50.2% 55.8% 62.0% 68.8% 76.5%
Total Room Nights Occupied 22,862 24,413 33,753 39,046 42,922 47,196 50,941 54,787 58,927 65,448 65,448 65,448 65,448
Forecast Marketwide Occupancy 50.3% 53.7% 55.5% 64.2% 61.4% 67.5% 51.4% 50.6% 50.2% 55.8% 55.8% 55.8% 55.8%
Residual Demand - - - - - - - - - - 7,253 15,320 24,295
Residual Demand - Keys - - - - - - - - - - 20 42 67

FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Market
Occupancy 50.3% 53.7% 55.5% 64.2% 61.4% 67.5% 51.4% 50.6% 50.2% 55.8% 55.8% 55.8% 55.8%
ARR 1,589 1,841 2,351 2,633 2,896 3,099 3,316 3,515 3,726 3,912 4,108 4,313 4,529
REVPAR 800 989 1,306 1,692 1,779 2,093 1,705 1,779 1,871 2,182 2,291 2,406 2,526
Average Room Rate
Market ARR 1,589 1,841 2,351 2,633 2,896 3,099 3,316 3,515 3,726 3,912 4,108 4,313 4,529
ARR Growth 0.0% 15.8% 27.7% 12.0% 10.0% 7.0% 7.0% 6.0% 6.0% 5.0% 5.0% 5.0% 5.0%
 Market Demand, Supply and ARR Forecast Overview (Contd…)

COMPETITIVE MARKET OCCUPANCY (%) AND ARR (Rs.) TRENDS

•Based on the preceding analysis of demand and supply
7,000
dynamics in the market and segment level growth 6,373
90%
estimates, the uncapped market occupancy for FY 2019, FY 6,069
5,780
2020 and FY 2021 is forecasted at 56%, 64% and 61%, 80% 5,505 6,000
5,243
respectively. In FY 2023, FY 2024 and FY 2025 the market 4,993
wide occupancy is forecasted at 51%, 51% and 50%, 70% 4,755
5,000
4,529
respectively. The drop in occupancy is due to new 4,313
60% 3,912 4,108
additions / expansions in supply, however the base 3,726
3,515 4,000
demand growth for the market continues to be positive. 50% 3,316
Starting FY 2026 we have stabilized the long term 2,896 3,099
40% 2,633 3,000
occupancy at 56%.
2,351

•In terms of ARR, we have forecasted at 28%, 12% growth 30% 1,841
1,589 2,000
for FY 2019, FY 2020, followed by a 10% YoY growth for FY
2021. We estimate this to be followed by growth at 7%, 20%
6% & 6% YoY growth for FY 2023, FY 2024 & FY 2025 1,000
10%
[Link] rate rationalization process for the
market will commence starting FY 2026 and post 50% 54% 56% 64% 61% 68% 51% 51% 50% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56% 56%
0% -
rationalization, we expect the long term stabilized ARR FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36
growth at 5%, which is likely to be inflation neutral.
Section: 7

Proposed Hotel - 10 -Year

Performance Projections
 Hotel Occupancy and Average Room Rate Estimates
OCCUPANCY RELATED CALCULATIONS - HOTEL SPECIFIC
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Occupancy
Forecasted Market Occ. 50.3% 53.7% 55.5% 64.2% 61.4% 67.5% 51.4% 50.6% 50.2% 55.8% 55.8% 55.8% 55.8%

Subject Hotel Market Penetration - Input 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 75.0% 75.0% 80.0% 90.0% 90.0% 90.0% 90.0%

Subject Hotel Market Penetration -

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 75.0% 75.0% 80.0% 90.0% 90.0% 90.0% 90.0%
Calculated

Average RoomRate

Forecast ARR - Current Value Terms - - - - - - 2,864 2,891 3,058 3,335 3,335 3,335 3,335

OCCUPANCY SUMMARY
FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29
Market
Occupancy 50.3% 53.7% 55.5% 64.2% 61.4% 67.5% 51.4% 50.6% 50.2% 55.8% 55.8% 55.8% 55.8%
ARR 1,589 1,841 2,351 2,633 2,896 3,099 3,316 3,515 3,726 3,912 4,108 4,313 4,529
REVPAR 800 989 1,306 1,692 1,779 2,093 1,705 1,779 1,871 2,182 2,291 2,406 2,526
SubjectHotel
Occupancy 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 38.6% 38.0% 40.2% 50.2% 50.2% 50.2% 50.2%
ARR - - - - - - 3,482 3,691 4,098 4,695 4,929 5,176 5,435
REVPAR - - - - - - 1,342 1,401 1,646 2,356 2,474 2,598 2,728
 Hotel Occupancy and Average Room Rate Estimates (Contd..)

HOTEL OCCUPANCY & ARR ESTIMATION

•Based on the preceding forecasted market occupancies, as
determined by the market demand and the expected increase in PROPOSED HOTEL OCCUPANCY (%)
supply dynamics, we have derived the forecasts for the subject AND ARR (Rs.)TRENDS 9,000
hotel’s occupancy based on Market Penetration Index (MPI). In FY 90%
7,647 8,000
2023, the subject hotels MPI is estimated at 75% resulting in an 7,283
80% 6,936
occupancy of 39%. In FY 2024 and FY 2025 (based on estimated 6,606 7,000
6,291
70%
MPI of 75% and 80% each) the occupancy for the hotel is 5,706 5,992
5,435 6,000
forecasted at 38% and 40%, respectively. The hotel is forecasted to 60% 5,176
4,695 4,929
stabilize its occupancy from year 4 of operation at 50% with a MPI 5,000
50% 4,098
of 90%.
3,482 3,691 4,000
40%
•The forecasted ARR for the subject hotel is derived using ARR 3,000
30%
Penetration Index (API). In FY 2023, the subject hotels API is
estimated at 105% resulting in an ARR of Rs. 3,482. In FY 2024 and 20% 2,000
FY 2025 (based on estimated API of 105% and 110%) the ARR for 1,000
10%
the hotel is forecasted at Rs. 3,691 and Rs 4,098 respectively. The 38% 40% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50%
hotel is forecasted to stabilize its ARR from year 4 of operation at 0% -
Rs. 4,695 with a API of 120%. FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36
 Food & Beverage Revenue Calculations
FACILITIES: RESTAURANTS & BARS FACILITIES: MEETING ANDCONFERENCES
Specialty Specialty Conference Meeting
Total All Day Dining Ball Rooms
Restaurant A RestaurantB Rooms Rooms

Cumulative Capacity 550 100 60 40 200 100 50

Number ofDays
Breakfast 36,500 365 - - - - -
Lunch 2,00,750 365 365 365 365 365 365
Dinner 2,00,750 365 365 365 365 365 365
Forecast Occupancy%
Breakfast 90.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Lunch 40.0% 50.0% 50.0% 25.0% 30.0% 35.0%
Dinner 75.0% 70.0% 70.0% 25.0% 25.0% 25.0%
Annual Covers
Breakfast 32,850 32,850 - - - - -
Lunch 68,438 14,600 10,950 7,300 18,250 10,950 6,388
Dinner 84,863 27,375 15,330 10,220 18,250 9,125 4,563
Estimated APC (Rs.)
Breakfast - 200 - - 225 175 175
Lunch - 300 350 350 400 375 400
Dinner - 350 500 500 400 400 500

Forecast Annual Revenue ([Link]) 6,68,86,250 2,05,31,250 1,14,97,500 76,65,000 1,46,00,000 77,56,250 48,36,250

Total Cumulative Capacity 550

Annual Cumulative Covers Available 4,38,000
Annual Cumulative Covers Utilized 1,86,150
F&B FacilitiesOcc % 42.5%
Estimated APC - F&B Facilities (Rs.) 359
Forecast Annual Revenue - F&B Operations (Rs.)- Year 1 6,68,86,250
 Food & Beverage Revenue Calculations

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32

All Day Dining 2,05,31,250 2,15,57,813 2,26,35,703 2,37,67,488 2,49,55,863 2,62,03,656 2,75,13,839 2,88,89,531 3,03,34,007 3,18,50,707
Specialty Restaurant A 1,14,97,500 1,20,72,375 1,26,75,994 1,33,09,793 1,39,75,283 1,46,74,047 1,54,07,750 1,61,78,137 1,69,87,044 1,78,36,396
Specialty Restaurant B 76,65,000 80,48,250 84,50,663 88,73,196 93,16,855 97,82,698 1,02,71,833 1,07,85,425 1,13,24,696 1,18,90,931
Ball Rooms 1,46,00,000 1,53,30,000 1,60,96,500 1,69,01,325 1,77,46,391 1,86,33,711 1,95,65,396 2,05,43,666 2,15,70,849 2,26,49,392
Conference Rooms 77,56,250 81,44,063 85,51,266 89,78,829 94,27,770 98,99,159 1,03,94,117 1,09,13,823 1,14,59,514 1,20,32,489
Meeting Rooms 48,36,250 50,78,063 53,31,966 55,98,564 58,78,492 61,72,417 64,81,038 68,05,089 71,45,344 75,02,611
Forecast Annual Revenue - F&B
6,68,86,250 7,02,30,563 7,37,42,091 7,74,29,195 8,13,00,655 8,53,65,688 8,96,33,972 9,41,15,671 9,88,21,454 10,37,62,527
Operations (Rs.)

F&B REVENUE CALCULATIONS AND 10 YEAR FORECAST

• Key forecasts on Outlet Occupancy, Annual Covers and Estimated APCs for the first year of operation are provided in the table above.

Based on our analysis the average outlet occupancy for the proposed F&B facilities at the hotel is expected to average at 43% resulting in 1,86,150 average annual covers. The average APC is estimated at
Rs. 359. In the long term the F&B revenues are expected to grow at 5% annually.

•During the first year of operation (FY 2023) the F&B operations at the hotel are likely to deliver annual revenues of Rs. 6,68,86,250 approx. 62% of the hotel’s annual revenues. In FY 2026, the stabilized
year of operation, the total revenue contribution from F&B operations is estimated to reach Rs. 7,74,29,195 .
 Spa Revenue Calculations
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32

Hotel Inventory 80 80 80 80 80 80 80 80 80 80
Forecasted Annual Occupancy 38.6% 38.0% 40.2% 50.2% 50.2% 50.2% 50.2% 50.2% 50.2% 50.2%
Annual Room Nights Occupied 11,258 11,087 11,730 14,657 14,657 14,657 14,657 14,657 14,657 14,657
Double Occupancy Ratio 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x 2.0 x
Resident Guests 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x 0.0 x
Total No: Guests(Annual) 22,515 22,174 23,461 29,314 29,314 29,314 29,314 29,314 29,314 29,314
Average SpaVisitation Rate 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Total No of Spa Guests (Annual) - - - - - - - - - -
Forecast Spend per Visit (Rs.) - - - - - - - - - -

Forecast Annual Revenues - Spa Ops (Rs.) - - - - - - - - - -

•The Spa is an important offering and a revenue opportunity, from both Leisure and Business guests [Link] the first year of operation (FY 2023) the Spa at the hotel are likely to deliver annual
revenues of Rs. 0 approx. In Subsequent years, the owners may decide to open the facilities to Non-Resident guests, increasing incremental [Link] FY 2026, the stabilized year of operation, the total
revenue from Spa is estimated to reach Rs. 0 a conservative figure that constitutes the Resident guests only.
 Other Revenue Calculations
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32

INCOME FROM MINOR OPERATING DEPARTMENTS

Rs. Per Room NightsOccupied 100 125 150 150 158 165 174 182 191 201
Rs. Per Room Nights Occupied 100 125 150 150 158 165 174 182 191 201
Total Room Nights Occupied 11,258 11,087 11,730 14,657 14,657 14,657 14,657 14,657 14,657 14,657
Forecasted Income from Minor Operatin 11,25,758 13,85,852 17,59,549 21,98,552 23,08,479 24,23,903 25,45,098 26,72,353 28,05,971 29,46,270

•Income from Minor Operating Departments (MOD) include Laundry, chargeable wi-fi, taxi services etc. During the first year of operation (FY 1900) the Other MOD operations at the
hotel are likely to deliver conservative annual revenues of Rs. 11,25,758 approx. In FY 2026, the stabilized year of operation, the total Other Revenues is estimated to reach Rs.
21,98,552 .
 10 - Year Projection of Income & Expenses - Assumptions
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
EXPENSES AS A % OF GROSS REVENUES FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32
DEPARTMENTAL EXPENSES
Rooms 20.0% 18.0% 18.0% 16.0% 16.0% 16.0% 16.0% 16.0% 16.0% 16.0%
Food & Beverage 45.0% 42.0% 38.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Spa & Fitness Centre 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Minor Operating Departments 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%
Rentals and Other Income 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
UNDISTRIBUTED OPERATINGEXPENSES
Admin & General 20.0% 20.0% 19.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0% 18.0%
Sales & Marketing 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Property O&M 8.0% 9.0% 9.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0% 11.0%
Utilities & EnergyCosts 12.0% 11.0% 10.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0% 9.0%
MANAGEMENT FEES
Brand Marketing Fees 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Management Fees 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Incentive Fees 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
FIXED EXPENSES
Rent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Property Taxes 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Insurance 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
FF&E RESERVEACCOUNT 1.0% 2.0% 3.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

Rooms Revenue is calculated as Annual Total Room Nights Occupied X Annual Forecast Average Room Rate based on subject hotel’s potential MPI and API as provided in the preceding
slides . F&B Revenues have been estimated based on the workings provided in “Food & Beverage Revenue Forecast”.

Other Minor Operating Department (MOD) Revenues include revenues from usage of Laundry, Internet Services and other incidentals at the hotel. The MOD revenues for the purpose of
this forecast has been estimated at Rs. 36,500 Per Occupied Room (POR). Rental and Other Income have been estimated at Rs. 0 Per Available Room. Rooms Departmental Expenses have
been estimated at 20% of Gross Rooms Revenue in year 1 and 18% in year 2 of operation. Rooms Departmental Expenses are forecasted to stabilize at 16% of Gross Rooms Revenue from
year 4 of operations.

F&B Departmental Expenses are estimated at 45% of F&B Revenues in year 1 and 42% in year 2 of operation. The F&B departmental expenses for year 3 of operation are estimated at 38%.
From year 4 of operation these expenses are expected to stabilize at 35% of F&B revenues.
 10 - Year Projection of Income & Expenses - Assumptions

•Admin. & General Expenses have been estimated at 20% of Total Gross Revenue in year 1. In year 2 and year 3 of operation the expenses are forecasted at 20% and 19% respectively.
Admin. & General Expenses are expected to stabilize at 18% from year 4 of operations.

• Sales and Marketing related expenses are estimated at 2% for year 1, 2% for year 2 and 2% from year 3 onwards of Total Gross Revenues from each year of operation.

•Property Operations & Maintenance Expenses are estimated at 8% of Total Gross Revenues for year 1 and year 2 of operations, owing to a new product and will increase to 9% in year 3.
The Property operations and maintenance expenses are forecasted to stabilize from year 4 of operation at 11% of Gross Total Revenues.

•Utilities and Energy Costs are estimated at 12% of Total Gross Revenues for year 1, 11% and 10% in year 2 & year 3 of operations. Utilities and Energy Costs are estimated to stabilize at
9% of total gross revenues from year 4 of operations.

• Brand Marketing Fees are estimated at 2% of Total Gross Revenues from year 1 onwards.

• Brand management fees are estimated at 3% for years of Operation. From Year 4 Brand Management fees are forecasted to stabilize at 3% of total gross revenues

• Incentive Fees are estimated at 5% of GOP from year 1 of operations.

•Rent and Property Taxes are estimated at 1% each of Total Gross Revenues from year 1 of operation. Insurance related expenses are estimated at 1% of total gross revenues from year 1
of operations

• Provision for FF&E ReserveAccount are estimated at 1% of Total Gross Revenues in year 1 and at 2% for Year 2 & 3 and 4% Year 4 onwards.

In the subsequent slides we have provided the detailed 10 – year projection of income and expenses for the subject hotel in terms of Actual Values, Percentage Values, Per Occupied
Room (POR) Values and Per Available Room (PAR) [Link] projection of income and expenses for the subject hotel is based on the accounting rules defined under the 10th edition of
uniform system of accounting for hotels and lodging industry. The 4th year of operation (FY 2026) is expected to be the stabilized year of operation for the subject hotel. All Key revenue
and expenses derivation prior to stabilization are based on benchmarks defined above. Post stabilization, the revenues and expenses for the subject hotel are expected to move in line
with general inflationary trends in the market, which for the purpose of our analysis is estimated at 5%
 10 - Year Projection of Income & Expenses - Actual Values
All Figures in Rs. Thousand Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 FY 30 FY 31 FY 32
Inventory 80 80 80 80 80 80 80 80 80 80
Days Operational 365 365 365 365 365 365 365 365 365 365
Total Room Nights Available 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200 29,200
Forecast Occupancy 38.6% 38.0% 40.2% 50.2% 50.2% 50.2% 50.2% 50.2% 50.2% 50.2%
Total Room Nights Occupied 11,258 11,087 11,730 14,657 14,657 14,657 14,657 14,657 14,657 14,657
Average Daily Rooms Occupied 31 30 32 40 40 40 40 40 40 40
Forecast ARR (Rs.) 3,482 3,691 4,098 4,695 4,929 5,176 5,435 5,706 5,992 6,291
Forecast REVPAR (Rs.) 1,342 1,401 1,646 2,356 2,474 2,598 2,728 2,864 3,008 3,158
REVENUES
Rooms 39,197 40,918 48,076 68,809 72,249 75,862 79,655 83,638 87,820 92,211
Food & Beverage 66,886 70,231 73,742 77,429 81,301 85,366 89,634 94,116 98,821 1,03,763
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 1,126 1,386 1,760 2,199 2,308 2,424 2,545 2,672 2,806 2,946
Rentals and Other Income - - - - - - - - - -
TOTAL GROSS REVENUES 1,07,209 1,12,535 1,23,578 1,48,437 1,55,859 1,63,651 1,71,834 1,80,426 1,89,447 1,98,919
DEPARTMENTAL EXPENSES
Rooms 7,839 7,365 8,654 11,009 11,560 12,138 12,745 13,382 14,051 14,754
Food & Beverage 30,099 29,497 28,022 27,100 28,455 29,878 31,372 32,940 34,588 36,317
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 450 554 704 879 923 970 1,018 1,069 1,122 1,179
Rentals and Other Income - - - - - - - - - -
TOTAL DEPARTMENTAL EXPENSES 38,388 37,417 37,380 38,989 40,939 42,985 45,135 47,391 49,761 52,249
GROSS DEPARTMENTAL INCOME 68,820 75,118 86,198 1,09,448 1,14,920 1,20,666 1,26,699 1,33,034 1,39,686 1,46,670
UNDISTRIBUTED OPERATING EXPENSES
Admin & General 21,442 22,507 23,480 26,719 28,055 29,457 30,930 32,477 34,100 35,805
Sales and Marketing 2,144 2,251 2,472 2,969 3,117 3,273 3,437 3,609 3,789 3,978
Property Operations & Maintenance 8,577 10,128 11,122 16,328 17,144 18,002 18,902 19,847 20,839 21,881
Utilities and Energy Costs 12,865 12,379 12,358 13,359 14,027 14,729 15,465 16,238 17,050 17,903
TOTAL UNDISTRIBUTED EXPENSES 45,028 47,265 49,431 59,375 62,343 65,461 68,734 72,170 75,779 79,568
GROSS OPERATING PROFIT (GOP) 23,793 27,854 36,767 50,073 52,577 55,205 57,966 60,864 63,907 67,103
MANAGEMENT FEES
Brand Marketing Fees 2,144 2,251 2,472 2,969 3,117 3,273 3,437 3,609 3,789 3,978
Management Fees 3,216 3,376 3,707 4,453 4,676 4,910 5,155 5,413 5,683 5,968
Incentive Fees 1,190 1,393 1,838 2,504 2,629 2,760 2,898 3,043 3,195 3,355
TOTAL MANAGEMENT FEES 6,550 7,019 8,017 9,925 10,422 10,943 11,490 12,064 12,668 13,301
INCOME BEFORE FIXED EXPENSES 17,243 20,834 28,750 40,147 42,155 44,263 46,476 48,800 51,239 53,801
FIXED EXPENSES
Rent - - - - - - - - - -
Property Taxes 1,072 1,125 1,236 1,484 1,559 1,637 1,718 1,804 1,894 1,989
Insurance 1,072 1,125 1,236 1,484 1,559 1,637 1,718 1,804 1,894 1,989
TOTAL FIXED EXPENSES 2,144 2,251 2,472 2,969 3,117 3,273 3,437 3,609 3,789 3,978
NET OPERATING INCOME (NOI) 15,098 18,584 26,278 37,179 39,038 40,990 43,039 45,191 47,451 49,823
FF&E Reserve Account 1,072 2,251 3,707 5,937 6,234 6,546 6,873 7,217 7,578 7,957
ADJUSTED NOI (EBITDA) 14,026 16,333 22,571 31,241 32,803 34,444 36,166 37,974 39,873 41,866
 10 - Year Projection of Income & Expenses - Actual and Percent Values (Year 1 to5)
PROFIT & LOSS ACCOUNT
All Figures in Rs. Thousand Year 1 Year 2 Year 3 Year 4 Year 5
FY 23 FY 24 FY 25 FY 26 FY 27

REVENUES % % % % %
Rooms 39,197 36.6% 40,918 36.4% 48,076 38.9% 68,809 46.4% 72,249 46.4%
Food & Beverage 66,886 62.4% 70,231 62.4% 73,742 59.7% 77,429 52.2% 81,301 52.2%
Spa & Fitness Centre - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Minor Operating Departments 1,126 1.1% 1,386 1.2% 1,760 1.4% 2,199 1.5% 2,308 1.5%
Rentals and Other Income - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL GROSS REVENUES 1,07,209 100.0% 1,12,535 100.0% 1,23,578 100.0% 1,48,437 100.0% 1,55,859 100.0%
DEPARTMENTAL EXPENSES
Rooms 7,839 7.3% 7,365 6.5% 8,654 7.0% 11,009 7.4% 11,560 7.4%
Food & Beverage 30,099 28.1% 29,497 26.2% 28,022 22.7% 27,100 18.3% 28,455 18.3%
Spa & Fitness Centre - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Minor Operating Departments 450 0.4% 554 0.5% 704 0.6% 879 0.6% 923 0.6%
Rentals and Other Income - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL DEPARTMENTAL EXPENSES 38,388 35.8% 37,417 33.2% 37,380 30.2% 38,989 26.3% 40,939 26.3%
GROSS DEPARTMENTAL INCOME 68,820 64.2% 75,118 66.8% 86,198 69.8% 1,09,448 73.7% 1,14,920 73.7%

UNDISTRIBUTED OPERATING EXPENSES

Admin & General 21,442 20.0% 22,507 20.0% 23,480 19.0% 26,719 18.0% 28,055 18.0%
Sales and Marketing 2,144 2.0% 2,251 2.0% 2,472 2.0% 2,969 2.0% 3,117 2.0%
Property Operations & Maintenance 8,577 8.0% 10,128 9.0% 11,122 9.0% 16,328 11.0% 17,144 11.0%
Utilities and Energy Costs 12,865 12.0% 12,379 11.0% 12,358 10.0% 13,359 9.0% 14,027 9.0%
TOTAL UNDISTRIBUTED EXPENSES 45,028 42.0% 47,265 42.0% 49,431 40.0% 59,375 40.0% 62,343 40.0%
GROSS OPERATING PROFIT (GOP) 23,793 22.2% 27,854 24.8% 36,767 29.8% 50,073 33.7% 52,577 33.7%
MANAGEMENT FEES
Brand Marketing Fees 2,144 2.0% 2,251 2.0% 2,472 2.0% 2,969 2.0% 3,117 2.0%
Management Fees 3,216 3.0% 3,376 3.0% 3,707 3.0% 4,453 3.0% 4,676 3.0%
Incentive Fees 1,190 1.1% 1,393 1.2% 1,838 1.5% 2,504 1.7% 2,629 1.7%
TOTAL MANAGEMENT FEES 6,550 6.1% 7,019 6.2% 8,017 6.5% 9,925 6.7% 10,422 6.7%
INCOME BEFORE FIXED EXPENSES 17,243 16.1% 20,834 18.5% 28,750 23.3% 40,147 27.0% 42,155 27.0%

FIXED EXPENSES
Rent - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Property Taxes 1,072 1.0% 1,125 1.0% 1,236 1.0% 1,484 1.0% 1,559 1.0%
Insurance 1,072 1.0% 1,125 1.0% 1,236 1.0% 1,484 1.0% 1,559 1.0%
TOTAL FIXED EXPENSES 2,144 2.0% 2,251 2.0% 2,472 2.0% 2,969 2.0% 3,117 2.0%
NET OPERATING INCOME (NOI) 15,098 14.1% 18,584 16.5% 26,278 21.3% 37,179 25.0% 39,038 25.0%
FF&E Reserve Account 1,072 1.0% 2,251 2.0% 3,707 3.0% 5,937 4.0% 6,234 4.0%
ADJUSTED NOI (EBITDA) 14,026 13.1% 16,333 14.5% 22,571 18.3% 31,241 21.0% 32,803 21.0%
 10 - Year Projection of Income & Expenses - Actual and Percent Values (Year 6 to10)
PROFIT & LOSS ACCOUNT
All Figures in Rs. Thousand Year 6 Year 7 Year 8 Year 9 Year 10
FY 28 FY 29 FY 30 FY 31 FY 32

REVENUES % % % % %
Rooms 75,862 46.4% 79,655 46.4% 83,638 46.4% 87,820 46.4% 92,211 46.4%
Food & Beverage 85,366 52.2% 89,634 52.2% 94,116 52.2% 98,821 52.2% 1,03,763 52.2%
Spa & Fitness Centre - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Minor Operating Departments 2,424 1.5% 2,545 1.5% 2,672 1.5% 2,806 1.5% 2,946 1.5%
Rentals and Other Income - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL GROSS REVENUES 1,63,651 100.0% 1,71,834 100.0% 1,80,426 100.0% 1,89,447 100.0% 1,98,919 100.0%

DEPARTMENTAL EXPENSES
Rooms 12,138 7.4% 12,745 7.4% 13,382 7.4% 14,051 7.4% 14,754 7.4%
Food & Beverage 29,878 18.3% 31,372 18.3% 32,940 18.3% 34,588 18.3% 36,317 18.3%
Spa & Fitness Centre - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Minor Operating Departments 970 0.6% 1,018 0.6% 1,069 0.6% 1,122 0.6% 1,179 0.6%
Rentals and Other Income - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
TOTAL DEPARTMENTAL EXPENSES 42,985 26.3% 45,135 26.3% 47,391 26.3% 49,761 26.3% 52,249 26.3%
GROSS DEPARTMENTAL INCOME 1,20,666 73.7% 1,26,699 73.7% 1,33,034 73.7% 1,39,686 73.7% 1,46,670 73.7%

UNDISTRIBUTED OPERATING EXPENSES

Admin & General 29,457 18.0% 30,930 18.0% 32,477 18.0% 34,100 18.0% 35,805 18.0%
Sales and Marketing 3,273 2.0% 3,437 2.0% 3,609 2.0% 3,789 2.0% 3,978 2.0%
Property Operations & Maintenance 18,002 11.0% 18,902 11.0% 19,847 11.0% 20,839 11.0% 21,881 11.0%
Utilities and Energy Costs 14,729 9.0% 15,465 9.0% 16,238 9.0% 17,050 9.0% 17,903 9.0%
TOTAL UNDISTRIBUTED EXPENSES 65,461 40.0% 68,734 40.0% 72,170 40.0% 75,779 40.0% 79,568 40.0%
GROSS OPERATING PROFIT (GOP) 55,205 33.7% 57,966 33.7% 60,864 33.7% 63,907 33.7% 67,103 33.7%
MANAGEMENT FEES
Brand Marketing Fees 3,273 2.0% 3,437 2.0% 3,609 2.0% 3,789 2.0% 3,978 2.0%
Management Fees 4,910 3.0% 5,155 3.0% 5,413 3.0% 5,683 3.0% 5,968 3.0%
Incentive Fees 2,760 1.7% 2,898 1.7% 3,043 1.7% 3,195 1.7% 3,355 1.7%
TOTAL MANAGEMENT FEES 10,943 6.7% 11,490 6.7% 12,064 6.7% 12,668 6.7% 13,301 6.7%
INCOME BEFORE FIXED EXPENSES 44,263 27.0% 46,476 27.0% 48,800 27.0% 51,239 27.0% 53,801 27.0%
FIXED EXPENSES
Rent - 0.0% - 0.0% - 0.0% - 0.0% - 0.0%
Property Taxes 1,637 1.0% 1,718 1.0% 1,804 1.0% 1,894 1.0% 1,989 1.0%
Insurance 1,637 1.0% 1,718 1.0% 1,804 1.0% 1,894 1.0% 1,989 1.0%
TOTAL FIXED EXPENSES 3,273 2.0% 3,437 2.0% 3,609 2.0% 3,789 2.0% 3,978 2.0%
NET OPERATING INCOME (NOI) 40,990 25.0% 43,039 25.0% 45,191 25.0% 47,451 25.0% 49,823 25.0%

FF&E Reserve Account 6,546 4.0% 6,873 4.0% 7,217 4.0% 7,578 4.0% 7,957 4.0%
ADJUSTED NOI (EBITDA) 34,444 21.0% 36,166 21.0% 37,974 21.0% 39,873 21.0% 41,866 21.0%
 10 - Year Projection of Income & Expenses - POR and PAR Values (Year 1 to 5)
PER AVAILABLE ROOM (PAR) VS. PER OCCUPIED ROOM (POR)
All Figures in Rs. Thousand Year 1 Year 2 Year 3 Year 4 Year 5
FY 23 FY 24 FY 25 FY 26 FY 27

REVENUES PAR POR PAR POR PAR POR PAR POR PAR POR
Rooms 490 1,271 511 1,347 601 1,496 860 1,714 903 1,799
Food & Beverage 836 2,169 878 2,312 922 2,295 968 1,928 1,016 2,025
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 14 37 17 46 22 55 27 55 29 57
Rentals and Other Income - - - - - - - - - -
TOTAL GROSS REVENUES 1,340 3,476 1,407 3,705 1,545 3,845 1,855 3,696 1,948 3,881
DEPARTMENTAL EXPENSES
Rooms 98 254 92 242 108 269 138 274 144 288
Food & Beverage 376 976 369 971 350 872 339 675 356 709
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 6 15 7 18 9 22 11 22 12 23
Rentals and Other Income - - - - - - - - - -
TOTAL DEPARTMENTAL EXPENSES 480 1,245 468 1,232 467 1,163 487 971 512 1,019
GROSS DEPARTMENTAL INCOME 860 2,231 939 2,473 1,077 2,682 1,368 2,726 1,437 2,862

UNDISTRIBUTED OPERATING EXPENSES

Admin & General 268 695 281 741 293 731 334 665 351 699
Sales and Marketing 27 70 28 74 31 77 37 74 39 78
Property Operations & Maintenance 107 278 127 333 139 346 204 407 214 427
Utilities and Energy Costs 161 417 155 408 154 385 167 333 175 349
TOTAL UNDISTRIBUTED EXPENSES 563 1,460 591 1,556 618 1,538 742 1,479 779 1,553
GROSS OPERATING PROFIT (GOP) 297 771 348 917 460 1,144 626 1,247 657 1,309
MANAGEMENT FEES
Brand Marketing Fees 27 70 28 74 31 77 37 74 39 78
Management Fees 40 104 42 111 46 115 56 111 58 116
Incentive Fees 15 39 17 46 23 57 31 62 33 65
TOTAL MANAGEMENT FEES 82 212 88 231 100 249 124 247 130 260
INCOME BEFORE FIXED EXPENSES 216 559 260 686 359 895 502 1,000 527 1,050
FIXED EXPENSES
Rent - - - - - - - - - -
Property Taxes 13 35 14 37 15 38 19 37 19 39
Insurance 13 35 14 37 15 38 19 37 19 39
TOTAL FIXED EXPENSES 27 70 28 74 31 77 37 74 39 78
NET OPERATING INCOME (NOI) 189 490 232 612 328 818 465 926 488 972
FF&E Reserve Account 13 35 28 74 46 115 74 148 78 155
ADJUSTED NOI (EBITDA) 175 455 204 538 282 702 391 778 410 817
 10 - Year Projection of Income & Expenses - POR and PAR Values (Year 6 to 10)
All Figures in Rs. Thousand Year 6 Year 7 Year 8 Year 9 Year 10
FY 28 FY 29 FY 30 FY 31 FY 32

REVENUES PAR POR PAR POR PAR POR PAR POR PAR POR
Rooms 948 1,889 996 1,984 1,045 2,083 1,098 2,187 1,153 2,296
Food & Beverage 1,067 2,126 1,120 2,232 1,176 2,344 1,235 2,461 1,297 2,584
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 30 60 32 63 33 67 35 70 37 73
Rentals and Other Income - - - - - - - - - -
TOTAL GROSS REVENUES 2,046 4,075 2,148 4,279 2,255 4,493 2,368 4,718 2,486 4,954

DEPARTMENTAL EXPENSES
Rooms 152 302 159 317 167 333 176 350 184 367
Food & Beverage 373 744 392 781 412 820 432 861 454 904
Spa & Fitness Centre - - - - - - - - - -
Minor Operating Departments 12 24 13 25 13 27 14 28 15 29
Rentals and Other Income - - - - - - - - - -
TOTAL DEPARTMENTAL EXPENSES 537 1,070 564 1,124 592 1,180 622 1,239 653 1,301
GROSS DEPARTMENTAL INCOME 1,508 3,005 1,584 3,155 1,663 3,313 1,746 3,479 1,833 3,652

UNDISTRIBUTED OPERATING EXPENSES

Admin & General 368 734 387 770 406 809 426 849 448 892
Sales and Marketing 41 82 43 86 45 90 47 94 50 99
Property Operations & Maintenance 225 448 236 471 248 494 260 519 274 545
Utilities and Energy Costs 184 367 193 385 203 404 213 425 224 446
TOTAL UNDISTRIBUTED EXPENSES 818 1,630 859 1,712 902 1,797 947 1,887 995 1,981
GROSS OPERATING PROFIT (GOP) 690 1,375 725 1,444 761 1,516 799 1,591 839 1,671
MANAGEMENT FEES
Brand Marketing Fees 41 82 43 86 45 90 47 94 50 99
Management Fees 61 122 64 128 68 135 71 142 75 149
Incentive Fees 35 69 36 72 38 76 40 80 42 84
TOTAL MANAGEMENT FEES 137 273 144 286 151 300 158 315 166 331
INCOME BEFORE FIXED EXPENSES 553 1,102 581 1,157 610 1,215 640 1,276 673 1,340

FIXED EXPENSES
Rent - - - - - - - - - -
Property Taxes 20 41 21 43 23 45 24 47 25 50
Insurance 20 41 21 43 23 45 24 47 25 50
TOTAL FIXED EXPENSES 41 82 43 86 45 90 47 94 50 99
NET OPERATING INCOME (NOI) 512 1,021 538 1,072 565 1,125 593 1,182 623 1,241
FF&E Reserve Account 82 163 86 171 90 180 95 189 99 198
ADJUSTED NOI (EBITDA) 431 858 452 901 475 946 498 993 523 1,043