hotel mgmt college project outline

8/3/2019 Hotel Mgmt College Project Outline

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PROJECT –ELLAA SCHOOL OF HOTEL MANAGEMENT

- AT A GLANCE

Distributed To:

Mr.Pradeep DewanVP & GM

ELLAA HOTELSHyderabad

Submitted By:

Amit DulluCEO – Call Logic Knowledge Center, India



Hotel Mgmt. College Project - At a Glance

Objective of the Project

To start a premier hotel management college offering courses in various fields, which

shall help in bridging the gap between the manpower requirements of the industry

and the supply chain for trained and skilled manpower.

Implementation of the Project

Within the year 2011

Gap Identified

There are only a select few quality hotel management colleges in Hyderabad. The

colleges lack the basic infrastructure and professionalism to attract the right talent,

resulting in students migrating out of the state to pursue their professional studies in

the line of hotel management and hospitality operations.

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Tourism & Hospitality – At a Glance

Tourism

As per the Travel and Tourism Competitiveness Report 2009 by the World Economic

Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up

three places on the list of the world's attractive destinations. It is ranked the 14th

best tourist destination for its natural resources and 24th for its cultural resources,

with many World Heritage sites, both natural and cultural, rich fauna, and strong

creative industries in the country. India also bagged 37th rank for its air transport

network. The India travel and tourism industry ranked 5th in the long-term (10-

year) growth and is expected to be the second largest employer in the world by

2019.

Contribution to the economy

Combining unparalleled growth prospects and unlimited business potential, the

industry is certainly on the foyer towards being a key player in the nation's changing

face. Furthermore, banking on the government’s initiative of upgrading and

expanding the country’s infrastructure like airports, national highways etc, the

tourism and hospitality industry is bound to get a bounce in its growth.

The hotel and tourism industry’s contribution to the Indian economy by way of

foreign direct investments (FDI) inflows were pegged at US$ 2.17 billion from April

2000 to September 2010, according to the Department of Industrial Policy and

Promotion (DIPP).

India’s hotel pipeline is the second largest in the Asia-Pacific region according to Jan

Smits, Regional Managing Director, InterContinental Hotels Group (IHG) Asia

Australasia. He added that the Indian hospitality industry is projected to grow at a

rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing

tourism market in the world. Initiatives like massive investment in hotel

infrastructure and open-sky policies made by the government are all aimed at

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propelling growth in the hospitality sector.

Foreign Tourist Arrivals

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) in

India and Foreign Exchange Earnings (FEE) from tourism on the basis of data

received from major airports. Following are the important highlights, as regards

these two important indicators of tourism sector for October 2010.

• FTAs in India during October 2010 were 487,000 as compared to FTAs of

446,000 during the month of October 2009 and 450,000 in October 2008.

• FTAs during the period January-October 2010 were 4.32 million with a growth

rate of 9.9 per cent.

• FEE from tourism during the month of October 2010 were US$ 1.18 billion as

compared to US$ 1.09 billion in October 2009.

Government Initiatives/policy

According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce

and Industry, Government of India, the government has allowed 100 per cent

foreign investment under the automatic route in the hotel and tourism related

industry. The terms hotel includes restaurants, beach resorts and other tourism

complexes providing accommodation and /or catering and food facilities to tourists.

The term tourism related industry includes:

• Travel agencies, tour operating agencies and tourist transport operating

agencies

Units providing facilities for cultural, adventure and wildlife experience to tourists

• Surface, air and water transport facilities for tourists

• Convention/seminar units and organisations

• The Government of India has announced a scheme of granting Tourist Visa on

Arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand

and Singapore. The scheme is valid for citizens of the above mentioned

countries planning to visit India on single entry strictly for the purpose of

tourism and for a short period of upto a maximum of 30 days. During the

period January - October 2010, a total number of 5016 VoAs were issued

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under this Scheme.

• The tourism master plan, the first for Karnataka, envisages initiatives to

attract private investment ranging from US$ 2.2 billion to US$ 4.4 billion in

the next three to five years. The plan is prepared based on the Vision 2020

document prepared and adopted by the Karnataka State Planning Board. The

state government aims to generate 200,000 jobs in the tourism sector in the

next five years. The master plan is aimed at making Karnataka the number

one destination for tourism in the country by 2020, according to Mr G

Janardhan Reddy, Minister for Tourism and Infrastructure Development

As per the press release by Press Information Bureau (PIB) dated November 15,

2010, the Union Ministry of Tourism has included Medical Tourism under the

Marketing Development Assistance (MDA) Scheme. The Ministry of Tourism has

sanctioned US$ 27,742 as MDA to 10 Medical Tourism Service Providers during

current year.

The Ministry of Tourism has sanctioned 781 projects in 34 States/ Union Territories

(UTs) in the country amounting to US$ 511.82 million during the last three years up

to June 2010, as per a press release dated October 18, 2010.

The Ministry of Tourism has won a PATA Grand Award and two PATA Gold Awards

during the Pacific Asia Travel Association (PATA) Travel Mart 2010 in Macau. The

PATA Grand Award was given under the Heritage category for the Rural Tourism

Project at Hodka village in Kutch District of Gujarat.

Medical Tourism

As per a market research report ‘Booming Medical Tourism in India’ by RNCOS,

India’s share in the global medical tourism industry will reach around 3 per cent by

the end of 2013. Moreover, medical tourism is expected to generate revenue worth

US$ 3 billion by 2013, growing at a CAGR of around 26 per cent during 2011–2013.

The number of medical tourists is anticipated to grow at a CAGR of over 19 per cent

during the forecast period to reach 1.3 million by 2013.

Factors such as, low cost, scale and range of treatments provided by India

differentiate it from other medical tourism destinations. The growth in India’s

medical tourism market will be a boon for several associated industries, including

hospital industry, medical equipments industry and pharmaceutical industry.

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Domestic medical tourism in the country has also seen growth in the recent years.

As per the report ‘Domestic Tourism in India, 2008-09’ released by the National

Sample Survey Office (NSSO), trips for 'health and medical' purposes formed 7 per

cent of overnight trips in the rural population and about 3.5 per cent in the urban

population. 'Health and medical' purposes accounted for 17 per cent of same-day

trips in rural India and 8 per cent in urban India. Expenditure on medical trips

accounted for 30 per cent of all overnight trip expenditure for rural India and 15 per

cent for urban.

Hospitality

The current count of hotel rooms is 130,000, and the country is expected to require

an additional 50,000 rooms over the next two to three years, according to WorldTravel and Tourism Committee (WTCC) estimates

US-based hotel chain, Marriott International, plans to expand its network in India to

100 hotels over the next five-years, stated Arnie Sorenson, Chief Operating Officer,

Marriott International. At present, the group operates 11 properties across the

country.

Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to

70 budget hotels, known as Ginger Hotel, in 23 locations across the country.

•

ITC, the Kolkata-based cigarette major, also projected its plan to open 25new hotels under the Fortune brand over the course of next 12-18 months (or

by 2012).

The Road Ahead

The Indian hospitality sector is certainly the most apt replication of the belief 'Atithi

devo bhava'- touch of tenderness, a helping hand and a welcoming visage.

According to the Tourism Satellite Accounting (TSA) research, released by WorldTravel and Tourism Council (WTTC) and its strategic partner Oxford Economics in

March 2010:

• The contribution of travel and tourism to Gross Domestic Product (GDP) is

expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per

cent (US$ 330.1 billion) by 2020.

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• Export earnings from international visitors and tourism goods are expected to

increase from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020.

• Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent

of total investment in 2010. By 2020, this should reach US$ 109.3 billion or

7.7 per cent of total investment.

DEVELOPMENT OF HUMAN RESOURCES THROUGH CAPACITY

BUILDING:

The Tourism Sector has become globalized today mainly due to the

information explosion and the ease and affordability of travel from one place

to another. The modern tourist today is well familiar with the international

standards and benchmarks and tends to feel disappointed if his expectations

are not met during any particular tourism experience. There is also a high

element of competitiveness between Countries and between the States of a

Country for attracting visitors. In such a context it is very essential that

tourism activities are organized with utmost professionalism by highly trained

and skilled manpower.

It should be the prime responsibility of the Government to directly initiate

suitable capacity building efforts to turn out the required manpower. As a partof Government s efforts, both the institutions available in the Government‟

sector like National Institute of Tourism & Hospitality Management (NITHM),

Institutes of Hotel Management and Catering Technology (IHMCT), Food &

Catering Technology Institutes (FCTI), and similar Institutions running in the

private sector should be adequately funded and supported so they are able to

attract the best faculty and students who can jointly raise the professional

standards in this industry.

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Manpower Requirements – A Forecast

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It is party time for hotel companies in India! Domestic companies are aggressively adding

rooms and setting up greenfield projects. Foreign hotel companies are making full use of the

relaxed norms for foreign direct investment in India. In the next five years, we should expect

to see around 40 different hotel brands dotting the Indian landscape.

The addition of many new hospitality products, and a much larger and more sophisticated

hotel industry in India will bring with it a new set of pressures.

Today, however, hotels are vying with each other to capture the best talent. Most of the

time, it simply a matter of numbers: as more rooms and more properties are added, a larger

number of people are needed - to lead, to manage and to execute the various functions

involved in operating a hotel.

The following table presents the manpower requirement (across all hotels segments) by the

new supply and its growth in 2006-2011.

Manpower Requirement

Key Cities LuxuryFirst

Class

Mid -

MarketBudget

Base Year

Estimates*

2005/06

Additional

Employee

Requirements

by 2012/13

Projection

Year

Estimates

2012/13

Percent

Growth

Delhi/ NCR 4408 4786 7675 2226 12303 19096 31398 155%

Mumbai 5159 4855 4473 1905 13954 16391 29345 127%

Kolkata 495 1305 2205 360 2370 4365 6735 184%

Chennai 2223 3015 1831 720 3631 7789 11420 214%

Bangalore 4505 2340 5189 1662 3336 13697 17032 411%

Hyderabad 3393 4588 2842 2093 2524 12916 15439 512%

Pune 846 3181 2617 1391 893 8034 8927 900%

Goa 585 2065 1215 728 3941 4592 8533 117%

Cochin - 720 603 495 620 1818 2438 293%

Jaipur 583 1809 1296 1082 2272 4770 7041 210%

Total 22198 28663 29947 12660 44840 93467 138308 208%

*Assuming Employee to Room Ratio of an average 1.75

As indicated by the above table,

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ELLAA Advantage

Ellaa Hotels is already a name to be reckoned with in the hospitality sector and has a

high brand image in Hyderabad. The current market trends forecast a very high

demand in trained manpower in the hospitality sector. The twin cities of Hyderabad

and Secunderabad have seen a major boost in the last 4-5 years, with almost all the

big brands of hotels opening their branches in the twin cities.

It would be the absolute right time to provide a solution to the steep demand in

manpower requirements for the industry, while at the same time create a niche for

the brand in the segment of world class hospitality education.

KNOWLEDGE PARTNERS – CLKC INDIA

CLCK India (Call Logic Knowledge Center) is a training and development company

which was formed in the year 2005. Since its inception, the company has been

actively involved in designing, developing and delivering trainings for the service

industry.

The chief promoter Mr.Amit Dullu is a practicing consultant in the Hotel Industry.

He is a very successful professional as a consultant for Training and Operations

Management of various International Call Centers like Dell, GE, Delhicall and

Vanguard International, Star Hotels and various other companies of repute. Amit has

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more than 12 years of professional work experience in his field. His last assignment

was with a star resort in Hyderabad as their General Manager for a period of 2 years.

His wide experience in this field and his expertise of these domains makes him

always take a helicopter view of the situations and this would stand him in good

stead in the running of this project. He is an able administrator and an excellent

team leader.

CLKC India intends to be the Knowledge Partners in the project and help manage the

overall operations of the college right from the inception stage.

CHAPTER II

MARKET

The project is being proposed at the existing property of Ellaa Hotels, in Gachibowli,

Hyderabad, which is located in the proximity of companies like Wipro, Infosys,

Microsoft and next doors to The Indian School of Business (ISB). The location is of

particular interest as it has all the advantages of being nestled in the lap of one of

the best addresses in the city and also being at a stone throw distance from the

Hotel. The location also ensures the availability of constant electricity supply,

excellent communication and other facilities.

There is an excellent market for Hotel Management and Hospitality colleges in

Hyderabad. The state capital of Andhra Pradesh, Hyderabad is seen as the next IT

capital of India after Bangalore and the excellent infrastructure plans being

implemented by the state government makes it an exciting destination for any

business which can cater to the growing demands of the equally fast growing

economy of the state.

The State also boasts of more than 240 state recognized Engineering colleges and

more than 400 other technical and non-technical institutions.

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Companies like Call Logic Knowledge Center (CLKC India) have already geared up to

meet the demand of such companies and envision that there will have to be a

revolutionary increase in colleges and training centers in India to completely meet

this demand without compromising on the quality of the manpower.

CHAPTER V

REQUIREMENTS FOR THE PROJECT

1. AFFILIATION FROM A RECOGNIZED UNIVERSITY FUCNTIONAL UNDER

THE AICTE NORMS

The college shall require to affiliate itself to a reputed recognized university in

India. This is a primary requirement for the college to be able to run any

degree courses.

2. IDENTIFY THE COURSES (DEGREE AND DIPLOMAS)

3. INFRASTRUCTURE

The college shall require the following as part of the infrastructure to manage

it in a professional manner:

a. Classrooms – 4 nos.

(A Seating capacity of 30 students, each. The Classrooms should be

equipped with whiteboards and other AV requirements)

b. Kitchen – functional – 2 nos.

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(Fully functional kitchens to train students on all the aspects of F&B

production)

c. Offices – Principals Office, Faculty/Staff Room, Administration/HR Room –

1, Library, Students Mess, Mock Setup for Front Office/Hotel

Room/Restaurant/SPA Room.

d. Students Hostel Facility

e. Telephone Lines, Computers, Printers, Fax, Xerox etc.

4. FINANCE

To be discussed

5. FACULTY AND OTHER MANPOWER

The college shall require experienced and highly skilled faculty as follows:

a. Principal

b. 1 Senior Faculty in each of the departments (Front Office

Operations/Housekeeping/F&B Service/F&B Production/SPA)

c. 1 Junior Faculty in each of the departments (Front Office

Operations/Housekeeping/F&B Service/F&B Production/SPA)

d. Human Resource/Administration Manager, Human

Resource/Administration Executive.

e. Receptionist – 2 nos.

f. Office Boys/Assistants – 4

g. Security Officers – 3

FINANCE SECTION

The project is being set up with an initial objective of an intake of students for each

academic year for the three year degree course, and 50 students in each semester

for the 1 year diploma course.

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This shall translate into approx. 150 students cumulative in the third year for the

Degree Course and another 100 students in the Diploma course (a total of 250

students at any given time in the third year shall be studying in the college). Though

these are just an estimate and may vary according to the number of courses the

college wants to extend in its kitty.

The above figures do not include the numbers for the SPA academy.

Cost of the Project

The total cost of the project comprising of the equipment, fixed assets, preliminary

and pre-operative expenses, margin on working capital, and contingencies works out

to Rs.30,00,000

The details are shown in Annexure 1

Recurring Costs:

Shall include all paid salaries, electricity, telephone, fax and other overheads. This

cost would be INR 5,00,000 per month (approx.)

Revenue Generated

1. Three Year Degree Program (BHMT)

No. of Students intake per year = 50

Fee per annum @ 35000 per semester = 35,00,000

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2. One Year Diploma Program


Fee per annum @ 30000 per semester = 30,00,000

3. 6 months Certificate Program


Fee per annum @ 20000 per program = 20,00,000

Total revenue generated from all three programs = 85,00,000 approx. for the

1st year running

For the second and third years the revenue from the BHMT course increases

to 70,00,000 and 1,05,00,000 respectively

Costs and Profitability

The total costs for running the operation for the first twelve months comes to

Rs.60,00,000 approx. and the college can expect a break-even on the initial capital

invested and the running costs (not including fixed assets like building etc.) in the

second year itself.

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hotel mgmt college project outline

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