Lok Sabha Question No. 2194 (UNSTARRED), answered on 2015-08-03
Subject: ITDC plan to exit Hotel Business
Ministry: TOURISM
Asked by: C. MAHENDRAN, DUSHYANT CHAUTALA, PR. SENTHILNATHAN

GOVERNMENT OF INDIA

MINISTRY OF TOURISM

LOK SABHA

UNSTARRED QUESTION NO.2194

ANSWERED ON 03.08.2015

ITDC PLAN TO EXIT HOTEL BUSINESS

2194. SHRI C. MAHENDRAN:

SHRI DUSHYANT CHAUTALA:

SHRI PR. SENTHIL NATHAN:

Will the Minister of TOURISM be pleased to state:

(a) 	the number of ITDC hotels in the country at present, location-wise;

(b) 	whether several ITDC hotels are running in huge losses for the last three years;

(c) 	if so, the details thereof, hotel-wise and year-wise and the reasons therefor;

(d) 	the steps taken by the Government to streamline the economic condition of these hotels;

(e) 	whether Government proposes to privatise/sell these hotels; and

(f) 	if so, the details thereof along with the estimated amount likely to be received through the privatisation/selling of the said hotels?

ANSWER

MINISTER OF STATE FOR TOURISM (INDEPENDENT CHARGE)

(DR. MAHESH SHARMA)

(a):	India Tourism Development Corporation Ltd. (ITDC) under the administrative control of Ministry of Tourism, Government of India runs 15 hotels in the country. The details of the hotels are given in Annexure-I.

(b) & (c):	Yes, some of these hotels were in losses. The details of these are given in Annexure-II. The reasons for losses in hotels are as under:

(i)	Spurt in availability of overall room supply position as compared to demand.

(ii)	High wage cost.

(iii)	Weakening of global economy have contributed to a room     supply vs. demand ‘mismatch’.

(iv)	Reducing average room recovery due to high competition.

(v)	Major renovation at Hotel Kalinga Ashok, Bhubaneswar has resulted in higher expenditure leading to net loss in the Hotel.

(vi)	Lease of the Hotel Jammu Ashok has expired and ITDC is unable to undertake any renovation/refurbishment activity in the hotel.

(d):	Steps undertaken by ITDC to boost the profitability are as follows:

- Investment in Human Resource Development and brand management.
- Establishing Customer Relationship Management System (CRM) to enhance the customer focus.
- Aggressive marketing in India as well as abroad through participation in major Travel Marts and organizing Food Festivals.
- Carrying out renovation/refurbishment works in ITDC hotels.
- Launching e-marketing and thus laying greater focus on B2C (Business 2 Customer) market.
- Balanced Score Card System (BSC) approach has been adopted for performance management and evolving execution strategy.
- Smart Hotel Initiatives (SHI) have been implemented to get customer experience and use analytics to improve performance and bring about change in service delivery standards.

(e):	No, Madam.

(f):	Does not arise.

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ANNEXURE-I

STATEMENT IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.2194 ANSWERED ON 03.08.2015. REGARDING ITDC PLAN TO EXIT HOTEL BUSINESS.

State and city-wise details of owned Hotels, managed and Joint Venture Hotels of ITDC

| **Sr. No.**   | **Name of Hotel**                                                                                                         | **Location**    | **State**             |
|---------------|---------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------------|
| **(A)**       | **OWNED HOTELS**                                                                                                          |                 |                       |
| **01**        | **Ashok Hotel**                                                                                                           | **New Delhi**   | **New Delhi**         |
| **02**        | **Samrat Hotel**                                                                                                          | **New Delhi**   | **New Delhi**         |
| **03**        | **Janpath Hotel**                                                                                                         | **New Delhi**   | **New Delhi**         |
| **04**        | **Lalitha Mahal Palace Hotel**                                                                                            | **Mysore**      | **Karnataka**         |
| **05**        | **Hotel Kalinga Ashok**                                                                                                   | **Bhubaneswar** | **Odisha**            |
| **06**        | **Hotel Jammu Ashok**                                                                                                     | **Jammu**       | **J&K**           |
| **07**        | **Hotel Pataliputra Ashok**                                                                                               | **Patna**       | **Bihar**             |
| **08**        | **Hotel Jaipur Ashok**                                                                                                    | **Jaipur**      | **Rajasthan**         |
| **(B)**       | **MANAGED HOTEL**                                                                                                         |                 |                       |
| **09**        | **Hotel Bharatpur Ashok**                                                                                                 | **Bharatpur**   | **Rajasthan**         |
| **(C)**       | **JOINT VENTURE HOTELS**                                                                                                  |                 |                       |
| **10**        | **Hotel Ranchi Ashok (Joint Venture with Bihar State Tourism Development Corporation Ltd.)**                              | **Ranchi**      | **Jharkhand**         |
| **11**        | **Hotel Brahmaputra Ashok (Joint Venture with State of Assam)**                                                           | **Guwahati**    | **Assam**             |
| **12**        | **Hotel Pondicherry Ashok (Joint Venture with Pondicherry Industrial promotion Development Investment Corporation Ltd.)** | **Puducherry**  | **Puducherry**        |
| **13**        | **Hotel Lake View (Joint Venture with Madhya Pradesh State Tourism Development Corporation Ltd.)**                        | **Bhopal**      | **Madhya Pradesh**    |
| **14**        | **Hotel Donyi Polo Ashok (Joint venture with Arunachal Pradesh Industrial Development Finance Corporation Ltd.)**         | **Itanagar**    | **Arunachal Pradesh** |
| **15**        | **Hotel Nilachal Ashok (Joint Venture with Orissa Tourism Development Corporation Ltd.)**  **(not operational)**          | **Puri**        | **Odisha**            |

******

ANNEXURE-II

STATEMENT IN REPLY TO PARTS (b) & (c) OF LOK SABHA UNSTARRED QUESTION NO.2194 ANSWERED ON 03.08.2015 REGARDING ITDC PLAN TO EXIT HOTEL BUSINESS.

The hotel-wise and year-wise details of Loss & Profitability for the last three years.

(Rs. In Lakhs)

| **Sr.**  **No**   | **Name of Hotel**                      |                                                            | **Operating Profit**   | **Net Profit**   | **Operating Profit**   | **Net Profit**   | **Operating Profit**   | **Net Profit**   |
|-------------------|----------------------------------------|------------------------------------------------------------|------------------------|------------------|------------------------|------------------|------------------------|------------------|
|                   |                                        |                                                            | **2012-13**            |                  | **2013-14**            |                  | **2014-15**            |                  |
| **1.**            | **Ashok Hotel, New Delhi**             |                                                            | **-666.41**            | **-1027.44**     | **744.23**             | **-1363.48**     | **1927.36**            | **28.39**        |
| **2.**            | **Hotel Jaipur Ashok**                 |                                                            | **-359.70**            | **-401.26**      | **-214.31**            | **-267.50**      | **-185.12**            | **-239.48**      |
| **3.**            | **Hotel Jammu Ashok**                  |                                                            | **-77.54**             | **-109.46**      | **-93.15**             | **-131.39**      | **-161.72**            | **-201.79**      |
| **4.**            | **Janpath Hotel, New Delhi**           |                                                            | **987.64**             | **432.06**       | **1031.54**            | **420.46**       | **817.01**             | **194.46**       |
| **5.**            | **Hotel  Kalinga Ashok, Bhubaneswar**  |                                                            | **-250.51**            | **-281.29**      | **-276.68**            | **-310.09**      | **-265.85**            | **-317.30**      |
| **6.**            | **Lalitha Mahal Palace Hotel, Mysore** |                                                            | **2.47**               | **-78.11**       | **-26.93**             | **-117.86**      | **-68.02**             | **-140.40**      |
| **7.**            | **Hotel Patliputra Ashok, Patna**      |                                                            | **264.61**             | **144.10**       | **180.00**             | **52.64**        | **30.50**              | **-72.08**       |
| **8.**            | **Samrat Hotel, New Delhi**            |                                                            | **1669.99**            | **889.88**       | **2323.94**            | **1309.86**      | **2591.89**            | **1814.82**      |
| **9.**            | **Hotel Bharatpur Ashok**              |                                                            | **-88.59**             | **-85.18**       | **-66.93**             | **-69.90**       | **-62.45**             | **-65.00**       |
| **10.**           | **Hotel Lake View Ashok, Bhopal**      |                                                            | **124.71**             | **104.93**       | **88.74**              | **72.78**        | **61.24**              | **15.53**        |
| **11.**           | **Hotel Pondicherry Ashok**            |                                                            | **-27.58**             | **-20.52**       | **-10.23**             | **-23.36**       | **-5.06**              | **-46.95**       |
| **12.**           |                                        | **Hotel Brahmaputra Ashok, Guwahati**                      | **-33.38**             | **-35.22**       | **50.94**              | **39.90**        | **-109.65**            | **-125.20**      |
| **13.**           |                                        | **Hotel Donyi Polo Ashok, Itanagar**                       | **12.77**              | **7.13**         | **39.21**              | **32.84**        | **8.07**               | **-0.93**        |
| **14.**           |                                        | **Hotel Ranchi Ashok**                                     | **-89.26**             | **-95.26**       | **-90.15**             | **-96.25**       | **-99.87**             | **-106.71**      |
| **15.**           |                                        | **Hotel Nilachal Ashok, Puri**  **(Operationally closed)** | **-58.38**             | **-61.40**       | **-55.85**             | **-61.40**       | **-67.67**             | **-69.94**       |

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