5e Consulting City Profile Hotels Hyderabad(Feasibility Study, Demand Study, etc). We have conducted a detailed city level assessment for hospitality industry for one of our assignment. Attached is a brief snapshot of the same

1. City Profile
City Profile
Hyderabad
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2. HO & Registered Office ‐ Hyderabad
Contact
Mr. Raghuram AVG, 102 A, Sri Dattasai Commercial Complex, Opp. Saptagiri Theatre, RTC ‘X’ Roads, Hyd ‐ 500020
Landline +91‐04‐27627607 : Mobile +91‐9701010000
Email : varishtaconsultants@gmail.com, raghu@varishta.in
Mumbai Delhi Kolkata Ahmedabad
12/3 Monohar Pukur Road 3 rd Floor 6 Mangal , 3A Vishrut Bunglows ,
B 29/113 Sundar Nagar 10‐B, Jangpura
Near Uttam Mancha Opposite A School
Near Ganesh Temple Mathura Road
Kolkatta ‐ 700026 Subhash chowk , Memnagar
Sundernagar , Santacruz East New Delhi ‐ 110014
Mumbai 400098 Ahmedabad 380052
h d b d 3800 2
Contact Mr. Sourabh Agarwal Contact Mr. Rajiv Jha Contact Mr. Haresh Desai
Contact Mr. Ashutosh Nigam Landline +91‐79‐40055790
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Hyderabad

4. Introduction
Parameter Description
Population (2001 census) 3.63 million
Population (2010 projected) 4.20 million
Area 621.48 sq. km
•Greater Hyderabad Municipal Corporation (GHMC): 625 sq km
•Hyderabad Urban Development Authority (HUDA): 1905 sq km (including the SCB area)
Hyderabad Urban Development Authority (HUDA): 1905 sq km (including the SCB area)
Administrative Status
•Hyderabad Metropolitan Development Authority (HMDA): 6850 sq km (Enlarged Jurisdiction of HUDA) Note: HMDA
has become the sole jurisdiction authority thus abolishing HUDA, HADA, CDA and BPPA, w.e.f 24th August 2008
Hyderabad gets about 32 inches (about 810 mm) of rain every year, almost all of it concentrated in the monsoon
Climate months. The highest temperature ever recorded was 45.5 o C (113.9 °F) on 2 June 1966, while the lowest recorded
temperature was 6.1o C (43 °F) on 8 January 1946
6 1 C (43 °F) 8J 1946
Air: Rajiv Gandhi International Airport providing flight services to all major cities within India and abroad.
Road: Well connected by a road network is major National Highways, leading to Mumbai – Vijayawada (NH‐9) &
Connectivity
Bangalore ‐ Nagpur (NH‐7) connected to different cities in towns within the State through State Highways.
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Rail: Well connected by rail network to all major cities and towns in the country. y
Commercial ↔
Real Estate Outlook Residential ↔
Retail ↔
•Location advantages ‐ connected well by road, air and rail;
•The administrative status as the metropolitan city and the capital city of the State;
Growth Potential
•Good potential for expanding its economic base as it is one of the major IT/ITeS, Pharmaceuticals, Bio‐Technology,
Tourism and Industrial hub of South India.
Development of fringe areas which essentially constitute the Growth Corridors, are in the process of being equipped
Constraints for with necessary Physical and Social infrastructure facilities. Hence, any comprehensive real estate development
Development promulgated by Developers (Private parties) may be constrained due to the aforementioned aspect, in general.
However, the GoAP has initiated necessary steps to overcome the said constraint.

5. Geographical Features
Airport
Railway Station
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Bus Stand
International
Airport

6. Hyderabad – Socio Economic &
Infrastructure Profile
Economic Profile Hyderabad Mumbai Delhi Chennai Kolkata
GDP/Capita Rs. 23,000 Rs. 43,000 Rs. 39,000 Rs. 34,000 Rs. 33,000
Population Below Poverty Line
p y 23% 27% 8% 20% 6%
Economic Disparity (% of low
and lower middle Income
households, 2002) 37% 27% 18% 42% 32%
Education Hyderabad Mumbai Delhi
Delhi Chennai Kolkata
Literacy Rate 79% 87% 83% 80% 81%
Drop Out Rate 66% 42% 52% 46% 42%
Socio Profile Hyderabad Mumbai Delhi Chennai Kolkata
Housing ‐ % of population living in slums 37% 55% 35% 40% 31%
Health ‐ Child Mortality Rate 6.9% NA 2.6% 3.7% 1.6%
Water Hyderabad Mumbai Delhi Chennai Kolkatta
Piped water supply per day
p pp y p y 2 NA 2 1 NA
Per capita Availability in lpcd of
potable water 110 168 180 106 173
Household water connections 36.0% 58.0% 51.3% NA 23.0%
Infrastructure
I f t t Hyderabad
H d b d Mumbai
M b i Delhi
D lhi Chennai
Ch i Kolkatta
K lk tt
Sanitation 41% NA 55% 55% NA
Average commute time (minutes) 60 30 45 NA NA
Public Transport Utilization rate 44% NA 62% 36% NA
% Area covered by roads
% Area covered by roads 6% 10%
0% 18%
8% 10%
0% 12%
%
Vehicles Density (passenger car units per KM
of road length) 723 242 NA 293 NA
Source ‐ CDP, Hyderabad, JNNURM

7. Demographics
The city's population in 2001 was 3.6 million and it has reached over 4.0 million by 2009 making it among the most
populated cities in India , while the population of the metropolitan area was estimated above 6.3 million. Muslims form
a majority in the city. Hindus constitute about 40% of the population, making Hyderabad's Muslim community the
largest in Andhra Pradesh. Muslims have substantial presence across the city and especially they are densely
concentrated in and around Old City (Hyderabad), where they form 70% of the population. Christians constitute a small
amount of the city's population. Churches are located across the city and the popular ones are in Abids and
Secunderabad areas.

8. Economy & Development
Hyderabad is the financial, economic and political capital of the state of Andhra Pradesh. The city is the largest
contributor to the state's gross domestic product, state tax and excise revenues. The workforce participation is about
29.55%. Starting in the 1990s, the economic pattern of the city has changed from being a primarily service city to
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being one with a more diversified spectrum, including trade, transport, commerce, storage, communication etc.
Service industry is the major contributor, with urban workforce constituting 90% of the total workforce. Hyderabad is
known as the city of pearls, lakes and, lately, for its IT companies. The bangles market known as Laad Bazaar is
situated near Charminar. Products such as silverware, saris, Nirmal and Kalamkari paintings and artifacts, unique
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Bidri handcrafted items, lacquer bangles studded with stones,silk ware, cotton ware and handloom‐based clothing
materials are made and traded through the city for centuries. Hyderabad is a major centre for pharmaceuticals with
companies such as Dr. Reddy's Laboratories, Matrix Laboratories, Hetero Drugs Limited, Divis Labs, Aurobindo
Pharma Limited, Lee Pharma and Vimta Labs being housed in the city. Initiatives such as Genome Valley, Fab City and
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the Nano Technology park are expected to create extensive infrastructure in bio‐technology.
SEC classification

9. Hyderabad – Growth Drivers
Apparel Export Park
Apparel Park is set up by APIIC –a layout plan for 174 acre of land, with 117 plots for exporters of
apparels, made‐ups and hosiery goods. This park has facility for uninterrupted power, roads, Knowledge Corridor and
drinking water, drainage and effluent discharge by pipes, sewerage system and other supportive Biotechnology Park
Biotechnology Park
facilities. The site for the park is located at Gundla‐Pochampally, at a distance of 18 km from In its Vision 2020 document, the
Hyderabad. state government has proposed to
develop a knowledge corridor
Hi‐Tech City focusing on biotechnology /medical
Hyderabad Information Technology sciences, industrial technology and
sciences industrial technology and
Engineering Consultancy (Hi‐Tech) City ITES. Located at Turkapally village
project was developed by the state at a distance of 18 km from
government in association with L&T as Hyderabad, the Park is being
an integrated techno township to offer developed by a private developer
a one‐stop solution to the business and
p and the state government as a joint
and the state government as a joint
social needs of IT sector. Launched in Venture project.
year 1997 on 158‐acre site with a
capital investment of over INR 15
billion in phases over 6 to 8 years, HI‐
Tech city has already attracted Financial District
multinational software giants like A sophisticated and state‐of‐the‐art
Microsoft, IBM, Metamor, GE Capital, financial district is proposed to
Toshiba and Oracle and Indian accelerate the speed of development
companies like Satyam Computers and and provide multiplier effect to the
Wipro. economy. The Financial District will
focus on insurance sector, financial
research institutions, financial markets,
commodities exchange, banking, law
Hardware Park and secretarial firms, consulting firms,
An area of approximately 5000 Acres of land has been earmarked in etc. The site for the project comprising
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Mamidipalli near the proposed International Airport. An extent of 1,565 of 130 acres has been earmarked at
acre has already been handed over to APIIC for this purpose. A pilot Khanamet Village, near Hitech City. The
hardware park of about 100 Acre catering to about 10 units is to be APIIC is the nodal agency for the
created initially with an Infrastructure of world‐class standards. implementation of the project.

10. Economy & Development
Growth Pattern Ring Roads
Medhchal
Kukatpally
Shamshabad
The growth regions in suburbs, Source: Market Survey, Map source:
HUDA
MRTS Proposed Infra
TOTAL HUDA
Area: 1865 Sq Km Apparel Park on 175 Acres
Population: 62 L
CDA GENOME Valley – Biotech Park
Established DGR: 36.8% @ Shamirpet – 150 Acre
Proposed Singapore
600 Acre Township &
Township proposed IT
@ Tellapur Park
Financial ORR – Upcoming
District & proposed 22
130 Acres Townships along
ORR
Convention
Center
Hardware park &
FAB City
Golf Course
250 Acres
Proposed 600
Acre Township
Emmar Township
@ Maheshwaram
550 Acres
International
ORR – Phase 1
Airport
8 Lane Express way

11. CBD & Commercial Areas
The Hyderabad CBD comprising the areas of Abids, Nampally, Koti, etc. is the oldest CBD of the city. This is more popular as a retail destination
rather than office destination. With increased population and traffic problems, the CBD has expanded into adjacent areas of Himayatnagar and
Basheerabagh. The characteristics of the areas falling under the Hyderabad CBD are detailed below.
CBD ‐1: Himayatnagar, Abids, Basheerabagh Cyberabad: Madhapur, Gachibowli, Kondapur
CBD‐2: SD Road, SP Road, Secunderabad Peripheral: Kukatpally, Bachupally, Uppal, Nacharam & Shamshabad
CBD‐3: Begumpet, Rajbhavan Road, Banjara Hills, Jubilee Hills Table 5.1‐1: Characteristics of Commercial Market
Submarket Type of occupants
Type of occupants Remarks
This is more popular as a retail
CBD ‐1 No such prominent tenants destination rather than office
NH – 7 destination.
Pune Highway This is the area in the northern part
of the city connects Begumpet and
Satyam, Sonata Software, Wipro, Secunderabad.
Secunderabad The activity on SP
CBD ‐2 NCR,Airtel, Brigade software, GFC, road is mostly commercial with
CBD - 2 Coramandal corporate office several banks and government
Cyberaba CBD - 3 offices and corporate offices.
d This area is in the northern part of
the city located between the CBD of
Secunderabad and new CBD of
Graphics, Satyam, APPlabs,
Somajiguda. With the domestic
ATI, Dhanalakshmi Bank, Tuch, Mars
airport being located in this area and
CBD ‐3 Telecom, American Express,
with the railway station in the
International, Madhucon
vicinity this area has several
corporate office,
locational advantages, including a
catchment population of high‐
p p g
income group.
Dell, 24/7, GE, Microsoft, Patni Ameerpet, along with Somajiguda
ComputersGE., Concesco,Boston and Banjara Hills forms the new CBD
Technologies, Bank of baroda, area of the city. Located in the
Microsoft, Market Tools, Google, north‐western part of the city, this
CBD -1 Cyberabad
Computer Associates, Cognizant area has developed as a natural
NH – 7 Technologies, Zenzar, Yash response to the growth of the city in
Bangalore Upcoming International
Technologies, Oracle, TCS, HSBC (bpo) this direction particularly in the last
Highway Airport
Three decades.
All the projects are in Planning &
Peripheral Not yet Decided
Excavation stage.

12. Residential Real estate
Zones Important Locations Profile
This area reflects the cosmopolitan culture of the city and the
catchment of this area consists of mostly higher income groups.
I Prime: Residential j
Banjara Hills, Jubilee Hills, Red Hills, etc
It's the upmarket side of town and is witnessing a rapid increase
It's the upmarket side of town and is witnessing a rapid increase
in the number of malls.
No new developments are happening since most of the land
, Padma Rao Nagar, A.S Rao Nagar,
II Secunderabad belongs to railways & Cantonments. , Mettuguda, Sitafalmandi,
Malakajigiri, Trumalgiri
Malkajgiri & Chilkalguda are the major residential catchment.
There is a mix of integrated townships, Mega townships with
There is a mix of integrated townships Mega townships with
independent homes /villa as well as residential apartment
Madhapur, Gachibowli, Kondapur,
developments is more in these areas.
III Western Suburb Kukatpally, Miyapur, Tellapur, Gopanpally,
Most of the foreign developers are coming forward in these
etc
areas with township projects in the Joint Venture mode. Demand
for 2BHK, 3BHK, 4BHK and villas are more in these areas.
for 2BHK 3BHK 4BHK and villas are more in these areas
The real estate activity in these areas is in the form of layout
developments with a combination of independent houses and
Kompally, Medchal, Shameerpet, Yamjal,
IV Northern Suburb apartments (Township Development)
Gajularamaram, and Jeedimetla
Most of the developments in these areas are coming along and
between starting from Jedimetla, Shamirpet and .
between starting from Jedimetla, Shamirpet and .
Development in this region is not as prominent as in the western
Habsiguda, Uppal, Nacharam, Pocharam and northern suburbs.
Nagaram, Bogaram, Rampally, Ghatkesar, An area known for high profile national science institutes and a
V Eastern Suburb
Koremula, Chengicherla, Boduppal, and growing cluster natural cluster for biotech research, training and
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Maidpally g , p
manufacturing activities. In this zone, the development of
residential apartments is more.
The Southern suburbs have gained prominence with the
L.B Nagar, Rajenderanagar, Shamshabad, commencement of work for international air port in this region.
Pedda Amberpet, Tukkuguda, Also attracting a lot of attention because of the proposed
VI Southern Suburb
Maheshwaram, Mamidipally, developments such as , Fab city, , Infosys Campus, ring roads and
Kottur etc link roads etc. Moreover, several residential plots are being sold
in the site region.

13. Residential Real estate
High end Villas &
Independent Homes
High end Apartments &
Integrated Townships
Small & Medium Scale
Apartment
Developments
Large Scale Layouts
(Plotted
Developments)

14. Retail Real estate
Major
Zones Market Remarks
Areas
Himayatn Part of old CBD area of the city. Retail
agar, showrooms of jewellery, ready made
NH – 7 Abids, garments and saree. Jewellery shops
Pune Highway CBD ‐1 Basheerab are mostly ground floor level. Retail
CBD - 2 agh
g and commercial activity is observed
y
on station road connecting Nampally
and Abids
, , Part of Secunderabad CBD with
Secundera intensive retail activity in Parklane,
Suburb
CBD 2 bad
CBD ‐2 Swapnalok complex and Minerva
complex, CMR building are prominent
CBD -1 shopping centres here.
Begumpet Part of new CBD area of the city. Prime
CBD - 3 , , Banjara locality with high end retail,
Suburb CBD ‐3
Hills, commercial activity, restaurants and
Jubilee pubs. Prime locality for retail and
Hills commercial with Three star and Five
star hotels.
NH – 7 Madhapurp
Bangalore
B l Upcoming International Airport Commercial activity on either side of
C i l ti it ith id f
Highway
,
the main road (NH) Major activity:
Gachibowl
Cinema theatres and educational
Subur i,
institutions. Commercial development
bs Kukatpally
is along the main road in the form of
,
shopping arcades and commercial
Dilsuknag
complexes.
ar

15. Tourists & Business Visitors

16. Overview of hospitality sector
Hyderabad is emerging as a potential market, driven by
the growth of the IT, ITES, and financial services
industries. The entry of new companies, typically,
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generates significant room night demand during the
start‐up period, for extended periods. Since there are
very few branded extended stay products, the demand is
absorbed b h l A new and interesting trend is that
b b d by hotels. d d h
Hyderabad has seen substantial improvement in the
performance in terms of occupancy, growing at 83.31%
with an average rate per hotel is INR 6,400, an 8.5%
growth over the previous year’s l l h witnessed and
h h i ’ level has i d d
Average rates grew by 23.1%.
Hotels are now able to guarantee a specific level of usage
from the extended‐stay segment on a daily basis and this
extended stay basis,
has enabled them to substitute business from airlines
and group bookings that usually negotiate deeply
discounted room rates. Hotels across Hyderabad are now
adopting an integrated dynamic pricing model for their
commercial clients as opposed to the traditional fixed‐
rate allotment model. They have also aligned the process
of commercial rate contracts to fill periods of low
occupancy,
occupancy and quickly displace this demand when
higher‐rated non‐contracted business offers better
potential.

17. Overview of hospitality sector

18. Hotels Clusters

19. Major Hotels
Number of Tariff
Name Location Category
rooms (INR )
ITC Kakatiya Sheraton Somajiguda ‐Begumpet 5 Star Deluxe 188 INR 5,400 ‐ INR 6,500
Taj 1 5 star Deluxe 257 INR 14,220 ‐ INR 19,800
Taj Residency Or 1 7 star 140 INR 9,570 ‐ INR 11,425
Taj Banjara 1 5 star Deluxe 118 INR 9,570 ‐ INR 11,426
The Manohar Begumpet 5 star 135 INR 8,200 ‐ INR 10,000
Hotel Viceroy Tankbund 5 star 180 INR 6,500 ‐ INR 8,000
Ameerpet 5 star 148 INR 5,015 ‐ INR 7,250
Secretariat Road, Saifabad 5 star 97 INR 4,000 ‐ INR 4,500
Fortune Katriya 4 Star 132 INR 5,800 ‐ INR 8,500
Hotel Golconda Masab Tank 4 Star 150 INR 8,300 ‐ INR 12,700
Quality Inn Residency Nampally 3 Star 95 INR 3,750 ‐ INR 4,250
Central Court Lakdikapool 3 Star 77 INR 2,795 ‐ INR 3,500
Aditya Park Inn Ameerpet 3 Star 88 INR 4,800 ‐ INR 5,700
Comfort Inn Woodbridge AC Guards 3 Star 55 INR 4,800 ‐ INR 5,701
Kamat Lingapur Hotel Begumpet Business 77 INR 2400 ‐INR 3400
Hotel Aditi INN Ameerpet Business 127 INR 2200 ‐ INR 2300

20. Proposed hotels as per market
intelligence
Supply Status
Name/Project Location (number of Category (Estimated
Rooms) opening)
The Hyatt Road No 3 in Banjara
No. Super Deluxe
NA 2009‐10
Hills
Hotel Leela NA 150 Super Deluxe 2008‐09
The Park 150 Super Deluxe End 2007
Hilton Hotel NA NA 5 star deluxe 2010
Le Meridien
L M idi 250 5 star
t 2009
Mind space Hotel hi‐tech city NA 5 star End 2007
Taj Falaknuma Manikonda 80 5 star 2009
Taj GVK Begumpet 120 5 star 2009
Taj GVK ‐ Taj Expansion Banjara Hills 125 5 star 2009‐10
IVRCL Hotel Gachibowli 300 5 star End 2007
Taj GVK ‐ Taj Expansion Banjara Hills 65 Service Apartment 2008‐09
Taj GVK ‐ Taj Residency / Expansion Banjara Hills 120 Service Apartment End 2007
Taj GVK ‐ Taj Banjara Hills 100 Service Apartment 2008‐09
IVRCL
IVRCL Gachibowli 135 Service Apartment Mid 2007
Mid 2007
The Manohar – Expansion Begumpet 160 Service Apartment 2008‐09

21. Demand Supply Gap
Anticipated Anticipated Demand Supply
Anticipated Stock
Anticipated Stock
Demand
D d Supply
S l Gap (number of
G ( b f
(number of Rooms)
(number of Rooms) (number of Rooms) Rooms)
Current FY 06 2,064 7,335 286 4,985
Projected FY 07 2,350 7,555 470 4,735
Projected FY 08 2,820 7,933 1,633 3,480
Projected FY 09 4,453 8,329 3,584 292
Projected FY 10
j d 8,037 8,996 455 504
Projected FY 11 8,492 9,715 980 243
A total of 7 408 new rooms with brand affiliation are being planned to be built from now through the year 2011 in 39 hotels across
7,408 2011,
star categories. The Existing HICC and the upcoming international airport in Shamshabad, which is expected to be commissioned in
early 2008, will keep room occupancy rates high for five‐star hotels for in near future. Despite all the interest generated by mid‐market
and budget hotel development, around 53% of the development is still concentrated in the luxury and first class (Five‐star Deluxe and
Five‐star) segment.

22. Future Outlook
With an upcoming supply of over 8,000 rooms by 2012 there is a possibility of an over supply in the market. While on
one hand, this is likely to increase the level of competition among the hotels, on the other hand, the surge in supply is
expected to reduce occupancy levels and ARRs with most of these hotels becoming operational in the next few years. At
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present, many developers who had planned projects are now postponing construction activity due to the slowdown in
the market. Since the existing hotels would have an advantage in the market, the upcoming ones would need to
formulate a new stratagem to compete and create a niche for them in the market.
With the recent terrorist attacks in Mumbai, the hospitality industry in Hyderabad has seen a considerable effect on its
business. There has been an incremental cancellation of 15% seen in the week post the attacks and a decrease of 10% in
the occupancy rates.

23. Assuring you of the best services
Assuring you of the best services
Thanking you
Thanking you
Helping execute your projects
elping xecute your