Polo Hotels Management Discussions


(This Part to be reviewed and altered considering Current Market Analysis)

The trends in the Hotel and Hospitality industry in Panchkula are mixed. While on one overall size of the market has increased but competition has increased as one new hotel and several restaurant and banquet halls have come up in the territory. The increase in size of the market provides an opportunity while the competition is of course a threat and adequate measures for maintaining the clientele is required.

The construction of new 3 Star Hotel on the above said Land has been stalled due to shortage of funds.

Hospitality Industry Over view-

Travel & Tourism is an important economic activity in most countries around the world. With its backward and forward linkages with other sectors of the economy like transport, construction, handicrafts, manufacturing, horticulture, agriculture, etc., tourism has the potential to not only be the economy driver, but also become an effective tool for poverty alleviation and ensuring growth with equity.

Healthcare Industry Overview-

The health sector in India is characterized by a government sector that provides publicly financed and managed curative, preventive and promotive health services from primary to tertiary level throughout the country free of cost to the people and a fee-levying private sector that plays a dominant role in the provisioning of curative care.

Chandigarh Tri city Micro Market Overview

Chandigarh Tri-City real estate market has witnessed unprecedented growth over the last few years. Within the last two years it has witnessed enormous development in relation to real estate in both commercial and residential segments. Chandigarh and the surrounding areas are becoming most important destination for the developers, investors and end users looking to invest in Tier II cities. Developers have launched their projects around the city in areas like Kharar, Zirakpur, Baddi, Dera Bassi, Panchkula and Mohali.

The residential sector is also showing a great amount of activity around the city. Demand for residential colonies is both investment and residential driven. Several residential blocks are coming up in the outskirts of the city. Major among these are sector grids of Mohali, Kharar Road and Zirakpur.

Projects like Parsvnath Greens in Dera Bassi, Parsvnath Royale in Panchkula, Uppals Marble Arch in Mani Majra, Ansals Golf Links in Mohali, Omaxe Greens in Dera Bassi, Emaar MGF in Mohali are in various stages of development. These projects are coming in the suburban areas of Chandigarh due to land exhaustion in the city and very limited options with exorbitant prices.

Strategic Advantage of Tri City

Mohali and Panchkula, along with Chandigarh the capital of Punjab and Haryana have a growing commercial market.

The Tri city has wide public parks, vibrant markets and lakes, which contribute to the high standard of living in the region

The tri city also enjoys the geographical advantage of being close to the National Capital Region (NCR)

Tri- City is in close proximity with some of the beautiful hills like Kalka,Pinjore, Kasauli, Shimla, Chail, Morni, Nahan

Chandigarh Tri City Potential Business Market

Highest per capita income Thrice the national average

Rank 1st In the Human Development Index of the country

Ranked 7th in the list of top 50 centers for outsourcing in the world

Ranked 7th in terms of FDI inflow into Indias cities

Chandigarh has four 5-star hotels- the Taj Chandigarh, Parkview, Mountview and JW Marriott has also recently opened. Apart from these, there are a number of smaller hotels of fair quality including Shivalik view, Hotel Piccadily, Sunbeam and Maya

Palace.

The hotels primarily cater to corporate clientele visiting Chandigarh and the neighboring Baddi Industrial Area. The primary sectors that make up the corporate clientele include Pharma, IT, Legal, Real Estate and Telecommunications. There has been a

significant increase in the number of business travelers from the IT and Pharma sector over the last few years with Chandigarh

being positioned as the next big IT city with a number of medical developments.

With an international airport coming up at Mohali and major sports events such as those of Indian Premier League (IPL) taking place in the vicinity, the hospitality industry is euphoric and it is felt that the need for both budget and premium hotels is

immense.Major hotel chains are moving in to tap the hospitality boom in Chandigarh. Carlson Hotels Worldwide Asia Pacific is setting up a hotel at Zirakpur, Sarovar Hotels, in synergy with James Plaza, is coming with James Park Plaza (five-star) which will come up adjacent to the existing Taj Chandigarh. Other big players from the hospitality sector, such as the Oberois and ITC have also shown interest in setting up hotels in Chandigarh.

Though there are a number of planned hospitality developments in the vicinity of Panchkula. However, the hospitality industry in Panchkula is still in its nascent stage, with an absence of branded and quality hotels in the area.

Location of the Project

i) The subject property is located in vicinity of Sector 2, 4, 6, 25, 26, etc., established residential hubs towards the north eastern suburbs of Panchkula city. Further, the subject property forms part of Devinagar-Chowki village micro market, located off Zirakpur-Shimla Highway (NH-22) and Panchkula-Dehradun Highway (NH-73) along the banks of River Ghaggar. It is located diagonally opposite Panchkula Technology Park Sector 22 (viz. proposed IT/ITes hub of Panchkula). The area in which the subject site is located is primarily characterized by residential activity, comprising of independent dwelling units as well as proposed IT / ITeS developments.

ii) The subject micro market is characteristic by the presence of North Park (subject property), Bella Vista, KC Royal Park, Fort Ramgarh, etc. in business and premium category. The subject region has witnessed demand for quality accommodation catering to mainly government employees, business travelers ( IT/ITES & Non IT segment) and tourist.

iii) The site is accessible from an existing two lane metalled road (viz. approximately 80 ft wide, Sector 32 central spine road as per

the Development Plan of Panchkula Extension). The property has a frontage of approx 566 ft on the said road.

SEGMENTWISE OR PRODUCT WISE PERFORMANCE

The companys only venture Hotel North Park has been given on lease, Hence no segment wise reporting is required.

Registered Office: By Order of the Board of Directors
Hotel North Park Village Chowki, For Polo Hotels Limited
Near Ghaggar Bridge Sector-32,
Panchkula - 134109. Amardeep S. Dahiya
Managing Director
st DIN 00468413
Date:- 21 August 2017
Place:- Panchkula.