Category Archives: Hotels

Information Of Hotel Industry Laws In India – Part2

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Tax benefits/ incentives.
.Current projections in budget.

Hotel Industry in India currently has supply of 110,000 rooms and there is a shortage of 150,000 rooms fueling hotel room rates across India. According to estimates demand is going to exceed supply by at least 100% over the next 2 years. To overcome, this shortage Indian hotel industry is adding about 60,000 quality rooms, currently in different stages of planning and development, which should be ready by 2012.

Indias hotel industry comprises of four main categories star hotels, heritage hotels, budget hotels and unclassified hotels. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

It is forecasted to be the number 3 market in the world by 2015 for hospitality and tourism.

The industry is growing at a very rapid pace and there is a demand for more rooms both in metros and smaller towns.

In short, the Indian hospitality industry is poised for tremendous growth as the demand-supply imbalance has prompted several national and international hotel companies to focus their energies towards expansion in India. The next few years will thus witness the opening of several hotels in India.

Regulatory policy

The Ministry of Tourism is the nodal authority & along Dept. of Tourism it is responsible policies promotion & regulation of hospitality industry particular hotels.

The following are the some of important guidelines issued by the Dept. of Tourism.

.Approval of Hotels at Project Stage and Classification & Reclassification of Hotels.
.Guidelines for Classification of Heritage Hotels.
.Time Share Resorts (TSR).
.Stand Alone Restaurants
.Guidelines for apartment hotels.
.Guidelines for approval of Guest Houses.

FDI in this sector is permitted up to 100 per cent on the automatic route. For foreign technology agreements, automatic approval is granted if:-

.Up to 3 per cent of the capital cost of the project is proposed to be paid for technical and consultancy services.

.Up to 3 per cent of the net turnover is payable for franchising and marketing/publicity fee, and

.Up to 10 per cent of gross operating profit is payable for management fee, including incentive fee.

Incentives

Tax incentives under the current Budget

.Five year holiday from income tax being granted to two, three or four star hotels established in specified districts having UNESCO-declared ‘World Heritage Sites’; the hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013.

.FBT exempted on crche, employee sports, guest houses facilities.

.No specific projections for this sector under the Current Budget.

Conclusion

The thriving economy and increased business opportunities especially growth in the tourism in India have acted as a boon for Indian hotel industry.

The future scenario of Indian hotel industry looks extremely rosy. It is expected that the budget and mid-market hotel segment will witness huge growth and expansion while the luxury segment will continue to perform extremely well over the next few years.

Hotels Guide – Part 2 of 4

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Classification and hotels reservation

Regarding Italy, law differentiates the hotel services in:

– hotels: receptive services open to the public, with unitary administration providing lodging, possibly food and other accessory services, thanks to the reservation of rooms in hotels; – motel: hotels particularly equipped for the stop and services of vehicles or crafts assuring them repair services and fuel supply; – villages hotel: hotels that, in a single area, give centralized services to users of residence units located in more establishments.

This distinction, besides substituting the traditional structure among hotels, pensions, and inns, cancels the distribution in the traditional categories (from first to fourth), and hold the same rules regarding reservation of rooms in hotels. The law stipulates that hotels be marked, in descending order, from 5, 4, 3, 2 or 1 star.

The enclosed denomination “luxury” is also stipulated, for five-stars hotels classified according to typical standards of international class.

Local authorities must fix the criteria for the classification of the receptive structures keeping in mind the dimensions, the structural requirements, the services offered and the qualification of specialists, the criteria and modalities in the reservation of rooms.

The law limited itself to set down the minimum requirements that should have the receptive services to be classified as hotels. They are:

– receptive capacity not lower than seven rooms; – presence of at least a hygienic service for every ten beds; – a bathroom with hot and cold current water for each room; – a room for common use; – technological facilities and an appropriate amount of qualified specialists for the running of the installation.

To determine the categories of hotels, that is, to assign the adequate number of stars, it’s used a punctuation expressing the quality of the best offerings of the facilities, the services the hotels are able to guarantee, the location, etc.

Also in this case, as explained before for travel agencies, local laws are quite uniform and use very similar features, as well as for the reservation of rooms. They dispose, for one-star hotels to have characteristic for which at least thirty points must have been assigned, for two-stars at least eighty points, until the 340 points of five-stars luxury hotels. The private bathroom in all the rooms vouches 30 points, if 90% of the rooms is endowed with bathroom 25 points must be assigned, if the rooms with bathroom are the 70% the points must be 20, etc. The night porter vouches 10 points, as well as the 24-hours room services; direct line telephone in each room gives 8 points, the same thing for the telex; color television in each room accounts 5 points, black and white television 4; for the covered pool 10 points, the uncovered one 5; and so forth.

The classification of hotels is made on the request of the hotel itself, which should indicate, in its application, the punctuation reached, result of the sum of parameters they offer.

FDI in retail

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FDI is investment which occurs directly across national boundaries. It means when firm of one country buys a controlling investment in firm of another country or where a firm sets up its branch in another country. A firm that engages itself in FDI becomes a multinational enterprise (MNE).

Foreign Direct Investment (FDI) is important because it gives facility to make investments in long-term profits which are in long-term projects working in other countries. The investment is done directly by foreign investors which can be any company or a group of persons who are looking for power in excess of the foreign ventures. It is also a major source of finance where the country can obtain finance from other countries to develop itself. f.

Recently, the government announces that the retail sector is partially opened for FDI. It means the foreign investors who are interested in Indian markets can invest up to 51% in multi brand retail and 74% FDI in single-brand retail. The government decision divided experts on the problem and on its prospects. Some says the decision will decrease opportunities, and will result in wipe out of local stores. The optimists, on the other hand, have seen decision as a large range of opportunities for farm products and more opportunities for the unemployed.

FDI provide benefits to small farmers by working together to form producer companies which will directly work with corporations to get higher revenues, or small farmers must willingly move into the new jobs directly or indirectly created by FDI in sectors such as retail, food processing and supporting industries.

The FDI offers a foreign capital and funds. It also extends an economy of a particular country where the investment is being made. It permits the move of highly developed technologies from developed countries to developing countries which helps in creating fresh jobs in a particular country and in turn the salary of the employee increases. The country where investment is done increases its human capital resource. It also brings new skills in a country & possibility of innovative research increases which helps in the growth of the country.

Now, global retailers are willing to sell their products by setting their own branch or franchises in another country which will again attract foreign capital along with better quality products in a large variety and advance services for the consumers and even consumers will get access of some global brands. This will in turn increase competition in the country and expands manufacturing units. To stand in a market, these global retailers have to lower their prices of foreign goods which need them to set up their manufacturing units locally or to handover the production assignments to domestic manufacturers on their specifications which brings a large number of employments in the country.

All this opportunities make, the Indian retail market a real happening place in the days ahead while at the same time it will be offering immense business opportunities and growth to the domestic entrepreneurs. In result, the Indian market will become the part of the global market.

Hotels in Chicago

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Here come the hotels and restaurants in Chicago! It has been noticed and observed with great care and attention that the hotels are ravishing and remarkable. The city of Chicago possess and have some kind of magical and appealing attribute that quickly and instantly capture and captivate the attention of each and every individual. All the food lovers should better lick these hotels and restaurants from top to bottom. This is the one and only golden opportunity for them to have the taste of real hotels and restaurants. Read on further and you will be able to get to know through this piece of writing the various and immense number of hotels and restaurants in Chicago. In this way, all of your queries and questions will be solved sooner or later. The Inn at the market, Fairmont hotel and Grand Hyatt Chicago are one of the top most hotels and restaurants in Chicago. Their environment and ambiance truly deserves a huge round of applause. They are quite and rather affordable. It has always been the common practice of city of Chicago to provide exceptionally great services to the tourists and visitors. This is only tip of the ice berg. Real pleasure and excitement can only be taken if you yourself are going to make use of these hotels and restaurants as soon as possible. Get up and go and make a visit to these magical places and make your moments to be remembered forever.

Hotel Monaco, Hilton Chicago Hotel and Hotel Vintage Park are also performing their job in a quite and rather satisfied way. The best Western Pioneer Hotel can also be the best choice that should be made right away. The luxurious hotels, family hotels and low budgeted hotels are large in number in the city of Chicago. The Sheraton Chicago Hotel has been located in such a ravishing and appealing location that will automatically make you stick to this particular hotel. The decor and the discount prices are quite and rather satisfying. You will surely not find any kind of trouble or difficulty while making out the choice form the above mentioned hotels and restaurants. The comfortable and soothing environment has totally and completely come up to the expectation of each and every individual. The city of Chicago has been trying its level best to bring more advancements and improvements in this sector as it plays a very important and vital role in the economy.

Hence, from the above mentioned discussion it is quite and rather evident that the hotels and restaurants in Chicago are exceptionally great and grand. Efforts and attempts are being done to bring out the best part from these hotels and also to retain and satisfy large number of visitors. Hopefully, in the future time period we will be able to see more hotels in Chicago in a better way and mode. That day will surely come sooner or later. Waiting for that day when we all will be enjoying the hotels of Chicago with more thrill and adventure!

How To Start And Run A Hotel Business Successfully

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If you are thinking to start to start your own hotel business, it is better to plan your business priorities first. It will help you to know what exactly you need in order to achieve your business objective. Every business needs a robust business plan before it gets started whether its matter of raising funds or to run the business. Here are few steps to enable you to start your hotel business successfully.

Raising Funds
Every business needs money to be invested in it to function properly and when you are starting a new hotel, money is the critical element of your planning. Whether you are planning to buy an established hotel or constructing your own from the scratch, you need strong financial planning for it. The best source to raise funds is taking a business loan from a bank. You can approach to any bank of your choice but before that keep your business plan ready. Nearly all banks need a business plan as an integral part of your loan application

Location of Hotel
A right location matters a lot for your hotel to get success. For example if your hotel is located in an area where competitors are unable to fulfill the requirements of travelers your hotel can touch the heights of success and if your hotel is located on a walking distance from the main tourist attraction but there is lot of competition your hotel might not get enough guests. If you hotel is located near to airport or railway station or bus stand, you will get many guest without doing any thing. You also have to think that shopping places and entertainment places are easily accessible from hotel.

Strategy
Business strategy is the foundation of successful hotel business. Your strategy should be very clear in concept without any confusion. It is better to plan your business strategies in advance. Just ask few questions to yourself like How you will fulfill the requirements of families, kids, honeymoon couples, business travelers and international tourists. And What kind of services you will offer to your guest. A good strategy is always a key to success in any business.

Hospitality Experience
If you are new to this industry you might face lots challenges to gain success. You must know How you want your guests to be treated in your hotel. Every guest in your hotel needs highest level of attention and service whether its a family or business traveler. It is better to first get a job in a hotel, learn some basics of hospitality industry and then start your own hotel.

Marketing
Once your hotel is up and running, you need customers. If you will not get enough guests in your hotel your business will fail. To attract guest you must run effective marketing campaign and you must advertise your hotel. You must contact travel agents and franchise to get bookings in your hotel. There are many online hotel booking websites, you must register with them. Your hotel must have an effective website of its own with online hotel booking facility so that your customers can make direct booking with you and you dont have to pay commission to travel agent. You can pass this saving to your guest by lowering down your tariff or by providing then additional services.