1. Indian Hospitality Industry Presented By- Mr . Shashank Gawalee

2. Interdependence Tourism Sector Hospitality Sector Real Estate Sector

3. Tourism Sector

5. Key highlights Source: CRISIL Research 28.97 10.81 Growth (percentage) 2891.75 1.64 April-Aug 2007 2242.26 1.48 April-Aug 2006 44.35 8.33 Growth (percentage) 659.33 0.38 Aug 2007 456.76 0.35 Aug 2006 Tourist Arrival (Million No.) Forex Earnings ( $ million) Particulars

6. Tourist arrival Source: KPMG Research

7. Tourism Sector fund Allocation Note : * This fig. corresponds only to the provision for building tourism infrastructure, as against Rs 4,230 mn provided for the year 2006-07 Source : CRISIL Research n.a 5,200* 2007-08 n.a 29,000 Tenth Plan Outlay (2002-07) 8,300 8,300 2006-07 7,860 7,860 2005-06 5,000 5,000 2004-05 3,500 3,250 2003-04 Actual Expenditure (Rs mn) Budget Estimates (Rs mn) Year

9. HOTEL INDUSTRY India's hotel industry is experiencing an unprecedented boom, driven by increasing numbers of business and tourist arrivals. But how long can the good times last?

11. Market Players

12. Types of hotels

13. EXISTING AND PROPOSED DISTRIBUTION TO HOTEL SUPPLY IN INDIA

14. PRIMARY DRIVERS OF GROWTH IN THE INDIAN HOTEL INDUSTRY

21. CRITICAL FACTORS TO DRIVE FUTURE GROWTH AND PERFORMANCE

23. Managing Demand The hotel industry is inherently prone to fluctuating demand with Occupancy Rate (OR’s) in certain period 10 – 20 % lower than annual average. Source: Crisinfac Annual review of Hotel Industry 2006

29. Real Estate Sector

31. Growth Drivers

32. FDI in Real estate Sector

34. Challenges: Real Estate Industry

35. Projected investment by segment Residential, 67 % Commercial, 16 % Hospitality, 10 % Retail, 7 % Projected investment by segment (2008-2010)

36. Projected demand by City Chennai, 17 % Mumbai, 12 % Bangalore, 26 % Kolkata, 5 % Pune, 8 % NCR, 21 % Hyderabad, 11 % Projected demand by city (2008-2010)

37. Funding Options

38. Funding Options Strategic Investment Private Equity Initial Public Offering AIM/ Overseas Listing REIT

40. Strategic Investor Source: KPMG 10,000 To develop an integrated township of 40,000 acres Residential Al Nakheel - DLF 4,000 A JV engaged in Pan India projects in residential, commercial, infrastructure & hospitality sectors integrated master plans & SEZ Mixed Use Emmar - MGF 300 For developing 100 Hotels , 10,000 rooms in next 10 years Hospitality Emaar MGF - Accor 220 To acquire & develop 7 properties in the country by 2010 Hospitality Rattha Group - Ascott 550 To develop 75 hotels & serviced apartment over next 7 yrs, subject to necessary approvals Hospitality DLF - Hilton 720 To construct 28 hotels in partnership with Marriott Hospitality Unitech – Marriot Amt Invested (USD mn) Details Project Type Company

42. Private Equity Investor Source: KPMG 600.0 NA DLF Assets DE shaw, Lehman Brothers Jul- 07 167.0 13.5 % Anant Raj Industries GIC, Morgan Stanley Dean Witter, Quantum (SOROS) May- 07 152.0 10 % Oberoi Constructions Morgan Stanley Jan- 07 350.0 15 % RMZ AIG Apr- 07 100.0 NA QVC Reality IL & FS Apr- 07 40.0 5 % Indiabulls Real Estate Ltd. Oberon (Farallon Capital) Jul- 07 Amount ( USD Mn) Stake Investee Investor Date

44. Initial Public Offering 114.31 x 11.0 % 126.7 Sobha Developers Dec- 06 61.84 x 18.3 % 220.2 Parshvnath Developers Dec- 06 81.05 x 10.0 % 80.0 Akruti Nirman Jan- 07 3.23 x 10.3 % 2296.9 DLF Jun- 07 6.60 x 14.0 % 371.0 HDIL Jul- 07 68.26 x 10.3 % 138.0 Omaxe Aug- 07 5.75 x 21.8 % 194.5 IVR Prime Aug- 07 1.91 x 10.1 % 214.7 Puravankara Aug- 07 Response received Stake Dilution Amount Raised Company Date of Listing

45. Initial Public Offering 25 % 13 % One Month Return 23 % 16 % Two Month Return 82 % 37 % Six Month Return Realty Index Sensex Returns

48. AIM Listing/Overseas Listing Source : KPMG Research -15 % 500 Trinity Apr- 06 -26 % 759 Hirco Apr- 06 -6 % 464 Ishaan Nov- 06 2 % 714 Unitech Dec- 06 -27 % 274 Dev Properties Jan- 07 25 % 325 Ascendas Aug- 07 Return since listing Amount Raised(USD Mn) Name of Company Date

49. FDI Equity Inflow

50. Leading the pack…. Indian companies had a higher return on equity than other countries in Asia.

51. Gains in world stock exchanges

55. THANK YOU