2 Star Hotel

In: Business and Management

Submitted By himato
Words 1750
Pages 7
1. INTRODUCTION
Hotel industry is inextricably linked to the tourism industry and the growth in tourism industry fuels the growth in hotel business. Demand for hotel rooms also increases during times of boom in the economy, due to the increase in business travellers. In India, the Ministry of Tourism is the regulatory authority for categorisation of hotels, the purpose of which is to provide contemporary standards of facilities and services available in the hotels and thereby contribute in the overall tourism experience.

Under the regulatory regime, the hotels in India are classified as below.
1. Star Category Hotels: 5 Star Deluxe, 4 Star, 3 Star, 2 Star, 1 Star.
2. Heritage Category Hotels: Heritage Grand, Heritage Classic & Heritage Basic

This project profile is for setting up of a 2 Star Hotel with accomodation capacity of 24 rooms.

2. MARKET POTENTIAL
The hotel industry in India has witnessed significant growth over the past few years and the demand has been constantly increasing due to various factors. CARE research estimates the hotel industry in India to grow at a compounded annual growth rate. Buoyancy in economy, rising discretionary income, growing culture of weekend vacation and increased business travel are likely to propel growth in the hotel industry. Domestic leisure tourists will continue to dominate the domestic demand for hotel rooms in the low, economy and medium segment, whereas the rise in foreign tourist arrivals and business travelers will create demand for upper segement.

When compared with the potential for tourism in the NE region, the number of tourist visiting the region is far below the actual potential. The tourist flow to the region witnessed a fluctuating trend over the years though this has changed for the better with attempts to position the NER for its wide biodiversity. As per one study report, the the hotel industry in the…...

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