In view of its proximity to Surat city and port connectivity, the region attracts a lot of medium sized industries to set up base.
Surat being the economic capital of Gujarat, is a major urban growth centre that has propelled the growth in adjoining areas as well. The growth in industrial sector factors the most for the rapid development in the city.
Surat’s economy is characterised by a large number of small and medium size unorganised industries. Of the total small scale units registered in the state, Surat makes up for 14.9%.
Most of the industrial development in Surat is located within the city limits engaging almost 50% of the workforce. The city is known for its textile manufacturing, trade, diamond cutting and polishing industries, intricate zari works, chemical industries and the gas based industries at Hazira.
Hazira is a renowned industrial area established by leading industry houses such as ONGC, Reliance, ESSAR and Shell International.
Spread over 167 sq km the area is located in contiguity with SUDA (Surat Urban Development Authority) limits. In view of its proximity to Surat city and port connectivity, the region attracts a lot of medium sized industries to set up base.
At present, the region accommodates 20 large and medium sized industries producing polymer, heavy engineering products, gas, LPG bottling, steel foils and ammonia, to name a few. The total investment in this industrial belt is believed to be more than INR20,000 crore.
Surat’s textile industry is one of the oldest industries in the country and continues to be a significant contributor to value of industrial production, employment generation, and national income.
Zampa Bazaar, Bombay Market, JJ Textile Market and Jash Market are a few to name amongst those. Katat Gam, Magdalla and Udhana are the areas of Surat where manufacturing units are concentrated.
The Surat textile industry has grown considerably over the time. As per recent figures, textile production in Surat has grown by 10% in the last 5 years.
With improved air connectivity the city is expected to witness recognition at a global level. Currently there are only two airlines, which operate out of the city.
Indian Airlines serves Delhi-Surat and Kingfisher serves Surat-Jaipur. By 2012, it is expected that the city will have an International Airport at Magdalla-Dumas, which would connect the city with major global cities.
With increased footfalls, better connectivity and a growing economy; the city is expected to emerge as a good investment destination in the coming years.
The hospitality market in the city is at a very nascent stage. Local demand for food and beverage and other income sources such as spas and fitness centers located within the hotel is yet to be established. Currently there are 2,391 keys operational in the city.
Most of the hotels are in the unbranded segment and are owned by local promoters and managed independently. There are limited branded hotels currently operational in the city. These branded hotels include Taj Gateway, Lords Plaza and Ginger.
Gujarat based TGB (The Grand Bhagwati) group is a new entry in the city with a total inventory of 170 keys, with 90 being operational.
The city hospitality market is fed primarily by guests coming for business.
The business segment comprises of guests visiting the city on account of textile business, diamond cutting and polishing, traders, oil and gas refineries, industrial area in Hazira and contribute about 91% of the total demand generated.
The MICE segment is the second largest demand driver comprising of conferences and meetings from BFSI, pharmaceutical companies and telecom companies and is about 6% of the total demand generated.
The leisure segment comprises of NRIs and guests visiting the city for weddings and shopping and this segment contributes about 3% of total commercial demand generated in the city.
The Surat market has not been affected much with recession, as the textiles and diamond business has historically driven demand for hospitality in the city. During 2008-2010, the city observed a compound annual average growth (CAAG) of 1.4% in average occupancy rate (AOR) while average room rate (ARR) grew at 20.8% and revenue per available room (RevPAR) grew at 22.5%.
Market wide ARR in the city has grown from INR657 (2008) to INR779 (2009) to INR960 (2010) while the occupancy for the same time period has been fluctuating between 65.7%, 63% and 67.5% for the last three consecutive years.
Of the operational hotels, Lords Plaza was the best performing hotel on account of higher occupancy throughout the year. MICE in year 2008, was largely impacted on account of economised budgets of major corporates/companies.
Price sensitivity is the biggest concern for the guests while picking a hotel in the city. Demand for upscale hotels is limited to big corporate and high end leisure travelers, mostly NRIs. Companies like L&T and ONGC have their o wn premium residential units being used as guest houses to cater to the upscale segment, which limits the scope for hotel room nights.
Local guest houses categorically around railway station and commercial hubs with tariff in the range of INR350 to INR450 per night, are in abundance in the city absorbing demand from economy and budget segments.
On account of limited demand in midscale and upscale segment, minimal supply is planned for the city. Hyatt Place with an inventory of 150 keys is expected to be operational by 2013. TGB is to add 80 keys by April 2011.
With growth in exports and the development of BFSI post the recession, the MICE and business segments are expected to propel demand for room nights in the city in coming two or three years. Since the city lacks quality banquet space, there is huge potential for developing the banquet space in the city which could accommodate domestic functions.
In brief, on a time horizon of three to five years, the hospitality market in the city has immense potential as it is seen to be only entering the hotel development cycle with the existence of few branded properties.
With entry of more keys in branded segment at reasonable pricing, the city is expected to graduate to a fair market in the coming years. The anticipate price sensitive market, following the entry of new supply, is expected to stimulate higher levels of service quality and customised business packages for the corporate and leisure segments.
Cushman & Wakefield provides a wide range of consulting services for hotels, resorts, serviced apartments and mixed-use developments.
For more information visit www.cushman-wakefield.com
Surat: It’s all about business
(NULL)
In view of its proximity to Surat city and port connectivity, the region attracts a lot of medium sized industries to set up base.
Surat being the economic capital of Gujarat, is a major urban growth centre that has propelled the growth in adjoining areas as well. The growth in industrial sector factors the most for the rapid development in the city.
Surat’s economy is characterised by a large number of small and medium size unorganised industries. Of the total small scale units registered in the state, Surat makes up for 14.9%.
Most of the industrial development in Surat is located within the city limits engaging almost 50% of the workforce. The city is known for its textile manufacturing, trade, diamond cutting and polishing industries, intricate zari works, chemical industries and the gas based industries at Hazira.
Hazira is a renowned industrial area established by leading industry houses such as ONGC, Reliance, ESSAR and Shell International.
Spread over 167 sq km the area is located in contiguity with SUDA (Surat Urban Development Authority) limits. In view of its proximity to Surat city and port connectivity, the region attracts a lot of medium sized industries to set up base.
At present, the region accommodates 20 large and medium sized industries producing polymer, heavy engineering products, gas, LPG bottling, steel foils and ammonia, to name a few. The total investment in this industrial belt is believed to be more than INR20,000 crore.
Surat’s textile industry is one of the oldest industries in the country and continues to be a significant contributor to value of industrial production, employment generation, and national income.
Zampa Bazaar, Bombay Market, JJ Textile Market and Jash Market are a few to name amongst those. Katat Gam, Magdalla and Udhana are the areas of Surat where manufacturing units are concentrated.
The Surat textile industry has grown considerably over the time. As per recent figures, textile production in Surat has grown by 10% in the last 5 years.
With improved air connectivity the city is expected to witness recognition at a global level. Currently there are only two airlines, which operate out of the city.
Indian Airlines serves Delhi-Surat and Kingfisher serves Surat-Jaipur. By 2012, it is expected that the city will have an International Airport at Magdalla-Dumas, which would connect the city with major global cities.
With increased footfalls, better connectivity and a growing economy; the city is expected to emerge as a good investment destination in the coming years.
The hospitality market in the city is at a very nascent stage. Local demand for food and beverage and other income sources such as spas and fitness centers located within the hotel is yet to be established. Currently there are 2,391 keys operational in the city.
Most of the hotels are in the unbranded segment and are owned by local promoters and managed independently. There are limited branded hotels currently operational in the city. These branded hotels include Taj Gateway, Lords Plaza and Ginger.
Gujarat based TGB (The Grand Bhagwati) group is a new entry in the city with a total inventory of 170 keys, with 90 being operational.
The city hospitality market is fed primarily by guests coming for business.
The business segment comprises of guests visiting the city on account of textile business, diamond cutting and polishing, traders, oil and gas refineries, industrial area in Hazira and contribute about 91% of the total demand generated.
The MICE segment is the second largest demand driver comprising of conferences and meetings from BFSI, pharmaceutical companies and telecom companies and is about 6% of the total demand generated.
The leisure segment comprises of NRIs and guests visiting the city for weddings and shopping and this segment contributes about 3% of total commercial demand generated in the city.
The Surat market has not been affected much with recession, as the textiles and diamond business has historically driven demand for hospitality in the city. During 2008-2010, the city observed a compound annual average growth (CAAG) of 1.4% in average occupancy rate (AOR) while average room rate (ARR) grew at 20.8% and revenue per available room (RevPAR) grew at 22.5%.
Market wide ARR in the city has grown from INR657 (2008) to INR779 (2009) to INR960 (2010) while the occupancy for the same time period has been fluctuating between 65.7%, 63% and 67.5% for the last three consecutive years.
Of the operational hotels, Lords Plaza was the best performing hotel on account of higher occupancy throughout the year. MICE in year 2008, was largely impacted on account of economised budgets of major corporates/companies.
Price sensitivity is the biggest concern for the guests while picking a hotel in the city. Demand for upscale hotels is limited to big corporate and high end leisure travelers, mostly NRIs. Companies like L&T and ONGC have their o wn premium residential units being used as guest houses to cater to the upscale segment, which limits the scope for hotel room nights.
Local guest houses categorically around railway station and commercial hubs with tariff in the range of INR350 to INR450 per night, are in abundance in the city absorbing demand from economy and budget segments.
On account of limited demand in midscale and upscale segment, minimal supply is planned for the city. Hyatt Place with an inventory of 150 keys is expected to be operational by 2013. TGB is to add 80 keys by April 2011.
With growth in exports and the development of BFSI post the recession, the MICE and business segments are expected to propel demand for room nights in the city in coming two or three years. Since the city lacks quality banquet space, there is huge potential for developing the banquet space in the city which could accommodate domestic functions.
In brief, on a time horizon of three to five years, the hospitality market in the city has immense potential as it is seen to be only entering the hotel development cycle with the existence of few branded properties.
With entry of more keys in branded segment at reasonable pricing, the city is expected to graduate to a fair market in the coming years. The anticipate price sensitive market, following the entry of new supply, is expected to stimulate higher levels of service quality and customised business packages for the corporate and leisure segments.
Cushman & Wakefield provides a wide range of consulting services for hotels, resorts, serviced apartments and mixed-use developments.
For more information visit www.cushman-wakefield.com
Zee Zest Unlimit Awards 2024: A spectacular evening of excellence and glamour
Leisure Hotels Group introduces new ‘Sociotel’ concept
JM Financial Private Equity invests Rs 45 Crore in Energy Beverages Pvt Ltd
Fortune Hotels inks a new alliance in Palampur
Pride Hotels debuts in Punjab
One Rep Global inaugurates luxury roadshow, ‘One Edge’