Inflation In Hotel Industry Analysis

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INFLATION IN INDIAN HOTEL INDUSTRY
Inflation is a sustained increase in price of goods and services over a period of time in an economy. When the price of commodities increases then each unit of currency buys fewer goods and services and hence inflation reflects a reduction in the purchasing power per unit of money.

India is considered to be the large market that doesn’t have a strong monetary policy framework. This is one of the main reasons why India mostly faces rise in inflation after the financial crisis.
Some major factors which lead to inflation in Indian economy:-
 Rise in tax, import prices and administered prices.
 Increase in money supply.
 Deficit financing.
 Increase in government expenditure.
 Inadequate agricultural and
 Global economics crises during 2008 affected Indian hotel industries as well as its global counterpart .The same year added to the downturn of hotel industry in India on account of terrorist attack at Hotel Taj in Mumbai .
 In 2011-12 continuously de-accelerating Indian economy and current international economic crises create a threat to Indian hospitality industry, which resulted in inflation of 8.8%.
 In spite of long recessionary situation in international market i.e Euro crises and geo-political turmoil in Arab countries, high interest rates, coupled with inflation, Indian hotel industry came up with 4% growth rate and a margin around 30% due to domestic tourism in year the 2012-13. And hence it is expected that in future India will perform better than its global counterpart even in challenging
Hotel Company Mean Median Standard Deviation
TajGVK Hotels & Resorts Ltd 85.74 85.785 24.39417007
Hotel Leela Venture Ltd 209.242 186.03 127.3178188
Indian Hotels Co Ltd 379.62 490.32 320.9686281
EIH Ltd 340.052 317.03 82.27265211
ITC Hotels Ltd (Merged) 29.483 26.82 12.95995289
Royal Orchid Hotels Ltd 22.769 21.475 18.0205206
Mahindra Holidays & Resorts India Ltd 151.609 171.64 51.0776323

Purchase of Raw Material
Hotel Company Mean Median Standard Deviation
TajGVK Hotels & Resorts Ltd 23.845 23.34 4.654238809
Hotel Leela Venture Ltd 40.685 33.885 15.90417922
Indian Hotels Co Ltd 138.837 132.59 29.86168189
EIH Ltd 123.575 116.355 48.81865109
ITC Hotels Ltd (Merged) 9.872 10.22 1.728723357
Royal Orchid Hotels Ltd 9.081 9.35 2.135135101
Mahindra Holidays & Resorts India Ltd 12.298 11.14 7.872033198

Cash Flow from Operating Activities
Hotel Company Mean Median Standard Deviation
TajGVK Hotels & Resorts Ltd 65.503 66.58 15.18026281
Hotel Leela Venture Ltd 163.558 175.465 71.56492216
Indian Hotels Co Ltd 404.05 424.20 95.4103937
EIH Ltd 191.505 219.19 62.49963187
ITC Hotels Ltd (Merged) 21.528 11.3 35.82495927
Royal Orchid Hotels Ltd 17.578 19.465 7.668721585
Mahindra Holidays & Resorts India Ltd 129.676 128.7

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