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FOREIGN HOTELS JACK UP STAR VALUE IN INDIA
Premier Inn, the UK’s largest hotel chain, is popular among international travelers as a budget hotel. But in India, where it will open its first hotel in Bangalore early next month, Premier Inn is pitching itself as a value-for money mid-market brand.
“In India we realized that the consumers’ connotation of a budget hotel means something that might not offer quality. So we decided to term ourselves as value for money mid-market hotel brand,” says Aly Shariff, managing director of Premier Inn, which plans to build 80 hotels across the country for an investment of 300 million pounds.
It’s not an exception, though. As a rule, most international hotel chains are positioning themselves higher than their global equity in India, thanks to the c http://www.propertycafeteria.com/prime-property.aspxountry’s peculiar business model for building and running hotels that just can’t survive here without restaurants and banqueting facilities. For example, Park Inn, an international three-star hotel chain belonging to the US-based Carlson Hotels Worldwide, is branded as four-star hotel in India.
“Mid-market hotels in the western countries do not have elaborate food and beverages options or room service since people tend to be select service hotels. But in India, food and beverages contributes significantly to the overall hotel revenues and so most international mid-market brands tend position themselves as 4 star,” says Ajay Bakaya, executive director of Sarovar Hotels & Resorts that runs Park Inn and Park Plaza hotels in India under a franchisee agreement with Carlson.
In India, where the concept of ‘select service hotels’ does not exist, food and beverages account for about one third of a hotel’s overall revenues, according to industry estimates. Total ancillary services in a 5 star hotel, which also include renting of banquet halls, spas and night clubs, could constitute as much as 45% of a hotel’s business here.
In India, hotels are food and beverages destinations and host weddings unlike the western countries,” says Rajiv Menon, area vice president (India, Pakistan, Malaysia and Maldives) of Marriott International, a US based Hotel Company.
This has forced moderately priced brands like Courtyard by Marriott to offer elaborate in-house dining services, concept restaurants or banqueting services in India, while globally they have elaborate dining options outside the hotels, he says.
Another aspect that’s making hotels to upgrade their positioning is the high real estate costs, says Siddharth Thaker, executive director of hotel consultant HVS India. According to him, real estate costs in India at 35-40% of total project costs is double that of global average. “This leads most international hotel brands to position themselves higher than what they are branded globally so that they can become profitable faster.” This trend, however, can confuse international travelers visiting India and Indians traveling abroad. It can even lead to cannibalization of brands, warns Larry Malarkar, an independent hotel consultant.
Theformerinvestmentportfolio.aspx/">Starwood Hotels regional director expects stricter branding standards in the future as most international hotel chains are now introducing multiple brands in the country. “If international hotel brands do not work towards uniform branding, it could lead to cannibalization of brands,” says Mr Malarkar.
Some hoteliers have started doing that, by realigning hotel brands to position them as per global markets.
For instance, ITC Maurya Sheraton in Delhi was recently rebranded as ITC Maurya-The Luxury Collection as the hotel offered far more facilities than what brand Sheraton offers globally. This made Starwood Hotels and ITC Hotels to rebrand the hotel, an ITC spokeswoman said.
Single-brand chains like Premier Inn may not be too bothered about such confusion, but the Carlsons and Marriott’s may go the Starwood way as India steadily climbs to the top of the world.
Courtesy:- ET dt:- 23-10-2009
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Premier Inn, the UK’s largest hotel chain, is popular among international travelers as a budget hotel. But in India, where it will open its first hotel in Bangalore early next month, Premier Inn is pitching itself as a value-for money mid-market brand.
“In India we realized that the consumers’ connotation of a budget hotel means something that might not offer quality. So we decided to term ourselves as value for money mid-market hotel brand,” says Aly Shariff, managing director of Premier Inn, which plans to build 80 hotels across the country for an investment of 300 million pounds.
It’s not an exception, though. As a rule, most international hotel chains are positioning themselves higher than their global equity in India, thanks to the c http://www.propertycafeteria.com/prime-property.aspxountry’s peculiar business model for building and running hotels that just can’t survive here without restaurants and banqueting facilities. For example, Park Inn, an international three-star hotel chain belonging to the US-based Carlson Hotels Worldwide, is branded as four-star hotel in India.
“Mid-market hotels in the western countries do not have elaborate food and beverages options or room service since people tend to be select service hotels. But in India, food and beverages contributes significantly to the overall hotel revenues and so most international mid-market brands tend position themselves as 4 star,” says Ajay Bakaya, executive director of Sarovar Hotels & Resorts that runs Park Inn and Park Plaza hotels in India under a franchisee agreement with Carlson.
In India, where the concept of ‘select service hotels’ does not exist, food and beverages account for about one third of a hotel’s overall revenues, according to industry estimates. Total ancillary services in a 5 star hotel, which also include renting of banquet halls, spas and night clubs, could constitute as much as 45% of a hotel’s business here.
In India, hotels are food and beverages destinations and host weddings unlike the western countries,” says Rajiv Menon, area vice president (India, Pakistan, Malaysia and Maldives) of Marriott International, a US based Hotel Company.
This has forced moderately priced brands like Courtyard by Marriott to offer elaborate in-house dining services, concept restaurants or banqueting services in India, while globally they have elaborate dining options outside the hotels, he says.
Another aspect that’s making hotels to upgrade their positioning is the high real estate costs, says Siddharth Thaker, executive director of hotel consultant HVS India. According to him, real estate costs in India at 35-40% of total project costs is double that of global average. “This leads most international hotel brands to position themselves higher than what they are branded globally so that they can become profitable faster.” This trend, however, can confuse international travelers visiting India and Indians traveling abroad. It can even lead to cannibalization of brands, warns Larry Malarkar, an independent hotel consultant.
Theformerinvestmentportfolio.aspx/">Starwood Hotels regional director expects stricter branding standards in the future as most international hotel chains are now introducing multiple brands in the country. “If international hotel brands do not work towards uniform branding, it could lead to cannibalization of brands,” says Mr Malarkar.
Some hoteliers have started doing that, by realigning hotel brands to position them as per global markets.
For instance, ITC Maurya Sheraton in Delhi was recently rebranded as ITC Maurya-The Luxury Collection as the hotel offered far more facilities than what brand Sheraton offers globally. This made Starwood Hotels and ITC Hotels to rebrand the hotel, an ITC spokeswoman said.
Single-brand chains like Premier Inn may not be too bothered about such confusion, but the Carlsons and Marriott’s may go the Starwood way as India steadily climbs to the top of the world.
Courtesy:- ET dt:- 23-10-2009
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CAPRICORN HOSPITALITY GETS FIPB NOD TO SEEK RS 576 CR
The foreign investment promotion board (FIPB), the apex body that clears foreign capital inflow into the country, has allowed New Delhi-based Capricorn Hospitality Services to seek Rs 576 cr foreign investments worth 49% of its equity. The funds will be used for making downstream investments.
The FIPB has also allowed Hyderabad based Indus Renewable Energy to bring in Rs 500 cr to invest in hydroelectric power projects and Dawnay Day AV India Advisors to infuse a foreign capital of Rs 30 cr to start commodity broking in the country, the finance ministry said in a statement here.
The board approved investments worth Rs 1,360.5 cr on October 9, the ministry said. The board also allowed Monsanto India to undertake business activities involving genetically engineered cells and material.
The board, however, deferred decisions on Jet Airways’ proposal to raise capital from foreign institutional investors and Analjit Singh’s and Asim Ghosh’s proposals to divest part of their stake in Vodafone Essar.
Courtesy:- ET dt:- 23-10-2009
The foreign investment promotion board (FIPB), the apex body that clears foreign capital inflow into the country, has allowed New Delhi-based Capricorn Hospitality Services to seek Rs 576 cr foreign investments worth 49% of its equity. The funds will be used for making downstream investments.
The FIPB has also allowed Hyderabad based Indus Renewable Energy to bring in Rs 500 cr to invest in hydroelectric power projects and Dawnay Day AV India Advisors to infuse a foreign capital of Rs 30 cr to start commodity broking in the country, the finance ministry said in a statement here.
The board approved investments worth Rs 1,360.5 cr on October 9, the ministry said. The board also allowed Monsanto India to undertake business activities involving genetically engineered cells and material.
The board, however, deferred decisions on Jet Airways’ proposal to raise capital from foreign institutional investors and Analjit Singh’s and Asim Ghosh’s proposals to divest part of their stake in Vodafone Essar.
Courtesy:- ET dt:- 23-10-2009
PROPERTY INVESTMENTS YIELD HIGH RETURNS
You can invest in property for both immediate rental returns and long-term wealth creation, says Vikas Agarwal
As economic conditions improve globally, the cheer is coming back into the property market. Analysts believe it is a good time for those looking at investing in property, both residential for own use as well as from an investment perspective. Investments in property bring diversification to an investor’s investment portfolio. Historically, it has been proved that a property investment is a lowrisk option with high returns over a long term.
Usually, price volatility is quite low in the property market. Due to the global recession, property prices corrected in the recent past. As the global economic conditions are improving, the demand in the property market has increased. The property prices have begun to show signs of appreciation. Therefore, it is a good time to go in for property.
Investments in property offer short-term returns in terms of rental income and long-term returns in terms of capital gains. Therefore, it is suitable from a short-term as well as long-term perspective. Property adds to the long-term wealth creation goal of an individual. The government also provides income tax exemptions for those invested in residential property.
In general, investments in property require a significant upfront investment. Therefore, it is important to plan well while entering into a property investment. Location and price of the property are the two most important factors that pretty much decide the returns from the propertyinvestment. A property investment in an upcoming area gives the best returns over time.
Here are some options available for investors:
Residential property
Investors who do not have a house of their own should first look at buying a residential property. There are many sops available for investors buying a residential property, especially the first residential property. The government gives an income tax exemption on interest paid against a housing loan, to a maximum of Rs 1.5 lakhs per year. Also, investors can claim a rebate in income tax on the principal repaid, to a maximum of Rs 1 lakh.
The government is planning to increase the limits of these exemptions in the new tax code. In addition to these, attractive housing loan schemes are available in the market and the interest rates on housing loans are lower than the interest rates on other borrowings.
Site
A site is good for those who can keep a regular watch on it. An investment in a site requires relatively more attention at the time of purchase. The percentage returns on sites at good locations is mostly higher than other options. The value of a site in developing areas has appreciated many times over the last few years.
Commercial property
A commercial property is a good investment for those looking at high rental income and capital appreciation over a long run. The price of commercial property is quite high. However, commercial property in a prime location has the potential to earn 10 to 12 percent returns in terms rental income.
Perspective
There are two avenues in property investments - buying a house to live in and an investment for capital appreciation. Buying a house to live in should be done as early as possible as it saves tax, and creates long-term wealth.
An investment for rental returns and capital appreciation should be planned well. It helps in portfolio diversification.
Courtesy:- TOI dt:- 17-10-09
You can invest in property for both immediate rental returns and long-term wealth creation, says Vikas Agarwal
As economic conditions improve globally, the cheer is coming back into the property market. Analysts believe it is a good time for those looking at investing in property, both residential for own use as well as from an investment perspective. Investments in property bring diversification to an investor’s investment portfolio. Historically, it has been proved that a property investment is a lowrisk option with high returns over a long term.
Usually, price volatility is quite low in the property market. Due to the global recession, property prices corrected in the recent past. As the global economic conditions are improving, the demand in the property market has increased. The property prices have begun to show signs of appreciation. Therefore, it is a good time to go in for property.
Investments in property offer short-term returns in terms of rental income and long-term returns in terms of capital gains. Therefore, it is suitable from a short-term as well as long-term perspective. Property adds to the long-term wealth creation goal of an individual. The government also provides income tax exemptions for those invested in residential property.
In general, investments in property require a significant upfront investment. Therefore, it is important to plan well while entering into a property investment. Location and price of the property are the two most important factors that pretty much decide the returns from the propertyinvestment. A property investment in an upcoming area gives the best returns over time.
Here are some options available for investors:
Residential property
Investors who do not have a house of their own should first look at buying a residential property. There are many sops available for investors buying a residential property, especially the first residential property. The government gives an income tax exemption on interest paid against a housing loan, to a maximum of Rs 1.5 lakhs per year. Also, investors can claim a rebate in income tax on the principal repaid, to a maximum of Rs 1 lakh.
The government is planning to increase the limits of these exemptions in the new tax code. In addition to these, attractive housing loan schemes are available in the market and the interest rates on housing loans are lower than the interest rates on other borrowings.
Site
A site is good for those who can keep a regular watch on it. An investment in a site requires relatively more attention at the time of purchase. The percentage returns on sites at good locations is mostly higher than other options. The value of a site in developing areas has appreciated many times over the last few years.
Commercial property
A commercial property is a good investment for those looking at high rental income and capital appreciation over a long run. The price of commercial property is quite high. However, commercial property in a prime location has the potential to earn 10 to 12 percent returns in terms rental income.
Perspective
There are two avenues in property investments - buying a house to live in and an investment for capital appreciation. Buying a house to live in should be done as early as possible as it saves tax, and creates long-term wealth.
An investment for rental returns and capital appreciation should be planned well. It helps in portfolio diversification.
Courtesy:- TOI dt:- 17-10-09
FESTIVE WINDOW IN THIS DIWALI
Diwali 2008 saw real estate developers struggling with cash flows & global slowdown & offers too were highly watered down. This year, the offers are meant more for end users, say Neha Dewan & E Jayashree Kurup
It’s that time of the year when you can feel the festive buzz all around you. And real estate developers are cashing in on the festive mood. Real estate developers realised that the consumer is not interested in a drop in basic sale price but more in the total outflow that is incurred towards purchase of the properties.
Ravi Saund, marketing head of Sare, a real estate-backed private equity fund developing residential properties, says there is a qualitative shift in Diwali offers across years. “The year 2007 was the height of the real estate boom and developers were riding the crest of the real estate boom. Diwali 2008 saw real estate developers struggling with cash flows and global recession and Diwali offers too were highly watered down. This year the offers are structured to be of more use to the end user.” Sare took advantage of the positive buyer sentiment to launch its Chennai and Gurgaon real estate projects. In addition, it offered a Rs 25,000 festival discount.
According to Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj (JLLM), demand this festive season has been 25% higher than it was last year, when the real estate sector was already in the grip of the slowdown.
Whether this demand is on the back of varied offers or an improvement in the overall sentiment, the fact is that many real estate developers are launching special incentives to appease buyers.
Supertech is offering free LCD screens to customers in some of their projects such as 34 Pavilion in Noida, Emerald Court at Expressway Noida, Czar Suits in Greater Noida and Green Village in Meerut. R K Arora, chairman & MD, Supertech, says they have received a good response from buyers. “In the first phase during the Navratras, we had offered ACs per BHK flats in some of our residential projects. The response to the previous festival offer and the current offer (AC+ LCD) has been quite welcoming. Around 70-75 units were sold for all the residential and commercial projects put together.”
Delhi-based real estate developer Omaxe too has announced a special offer where customers can win an LCD TV on every on-the-spot booking of flat in their newly-launched group housing project in Bahadurgarh and Rohtak projects. Both the group housing projects offer a 3BHK houses and flats for around Rs 35 lakh.
Vijay Jindal, CMD, SVP Group claims that they have seen a 35% growth in booking with the launch of their festive offers. “We are offering 10-55-35 (30+5). Booking amount is 10%, 55% will be financed by bank whose EMI will be paid by SVP. Then on possession 5% will be paid by the customer and rest 30% will be financed by the bank or financial institution. The response for our scheme has been quite encouraging.”
Ditto is the case with Raheja Developers which is offering a discount of Rs 100 per sq ft till Diwali on its Raheja Shilas project in Gurgaon. Value addition was one of the reasons why the property developers chose to launch the offer. The Raheja Shilas project has been our fastest selling project so far. It is 85% booked already. Value addition is the name of the game in real estate,” feels Manoj Goyal, GM, strategic planning and group company secretary, Raheja Developers.
Down South in Hyderabad, the Manjeera Group is offering a neat slash of Rs 10 lakh in the real estate pricing for a 1,000 sq ft flat so that a 2 BHK apartments at MDT Phase II costs Rs 25 lakh instead of Rs 36 lakh. The net cost to consumer is a mere Rs 2,150 per sq ft. The price includes amenities as car parking and club house membership, which were unheard of during the real estate boom times. The offer is on till Diwali 2009
Diwali 2008 saw real estate developers struggling with cash flows & global slowdown & offers too were highly watered down. This year, the offers are meant more for end users, say Neha Dewan & E Jayashree Kurup
It’s that time of the year when you can feel the festive buzz all around you. And real estate developers are cashing in on the festive mood. Real estate developers realised that the consumer is not interested in a drop in basic sale price but more in the total outflow that is incurred towards purchase of the properties.
Ravi Saund, marketing head of Sare, a real estate-backed private equity fund developing residential properties, says there is a qualitative shift in Diwali offers across years. “The year 2007 was the height of the real estate boom and developers were riding the crest of the real estate boom. Diwali 2008 saw real estate developers struggling with cash flows and global recession and Diwali offers too were highly watered down. This year the offers are structured to be of more use to the end user.” Sare took advantage of the positive buyer sentiment to launch its Chennai and Gurgaon real estate projects. In addition, it offered a Rs 25,000 festival discount.
According to Raminder Grover, CEO, Homebay Residential, Jones Lang LaSalle Meghraj (JLLM), demand this festive season has been 25% higher than it was last year, when the real estate sector was already in the grip of the slowdown.
Whether this demand is on the back of varied offers or an improvement in the overall sentiment, the fact is that many real estate developers are launching special incentives to appease buyers.
Supertech is offering free LCD screens to customers in some of their projects such as 34 Pavilion in Noida, Emerald Court at Expressway Noida, Czar Suits in Greater Noida and Green Village in Meerut. R K Arora, chairman & MD, Supertech, says they have received a good response from buyers. “In the first phase during the Navratras, we had offered ACs per BHK flats in some of our residential projects. The response to the previous festival offer and the current offer (AC+ LCD) has been quite welcoming. Around 70-75 units were sold for all the residential and commercial projects put together.”
Delhi-based real estate developer Omaxe too has announced a special offer where customers can win an LCD TV on every on-the-spot booking of flat in their newly-launched group housing project in Bahadurgarh and Rohtak projects. Both the group housing projects offer a 3BHK houses and flats for around Rs 35 lakh.
Vijay Jindal, CMD, SVP Group claims that they have seen a 35% growth in booking with the launch of their festive offers. “We are offering 10-55-35 (30+5). Booking amount is 10%, 55% will be financed by bank whose EMI will be paid by SVP. Then on possession 5% will be paid by the customer and rest 30% will be financed by the bank or financial institution. The response for our scheme has been quite encouraging.”
Ditto is the case with Raheja Developers which is offering a discount of Rs 100 per sq ft till Diwali on its Raheja Shilas project in Gurgaon. Value addition was one of the reasons why the property developers chose to launch the offer. The Raheja Shilas project has been our fastest selling project so far. It is 85% booked already. Value addition is the name of the game in real estate,” feels Manoj Goyal, GM, strategic planning and group company secretary, Raheja Developers.
Down South in Hyderabad, the Manjeera Group is offering a neat slash of Rs 10 lakh in the real estate pricing for a 1,000 sq ft flat so that a 2 BHK apartments at MDT Phase II costs Rs 25 lakh instead of Rs 36 lakh. The net cost to consumer is a mere Rs 2,150 per sq ft. The price includes amenities as car parking and club house membership, which were unheard of during the real estate boom times. The offer is on till Diwali 2009
REAL ESTATEA DEVELOPERS PARSVNATH SET TO INVEST RS 1500 CR
Realty major Parsvnath Developers will invest about Rs 1,500 cr to complete over 30 ongoing real estate projects in the next two and half years. “Out of 193 million sq ft of our real estate land bank, we have put real estate construction of 42 million sq ft, comprising over 30 real estate projects, on fast track. These real estate projects will be delivered in the next 24-30 months,” real estate developers Parsvnath Chairman Pradeep Jain said.
More information of:- http://www.zameen-zaidad.com and http://www.propertycafeteria.com
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