Project 2 – Finlatics Business Analyst Experience Program – Lavleen Bagga

• As can be depicted in the bar graph, Kerala has the highest no. of hotels. It has
6,72,000 hotels.

No. of Hotels (State-Wise)

800000
700000
600000
500000
400000
300000
200000
100000
0
Goa
Kerala

Telangana

Odisha

Meghalaya
Tamil Nadu
Gujarat

Nagaland
Chhattisgarh

Madhya Pradesh
West Bengal

Tripura
Rajasthan

Haryana

Arunachal Pradesh
Jharkhand
Maharashtra

Uttar Pradesh

Karnataka

Assam

Manipur

Mizoram
Himachal Pradesh

Uttarakhand

Andhra Pradesh

Sikkim
Punjab

Bihar
• The different climatic conditions as can be seen in the map are – Tropical
Monsoon, Tropical Savannah (Wet & Dry), Arid/Steppe/Hot, Humid Subtropical,
Mountain Climate and Hot Deserts/Arid.
• From the bar graph below, it is evident that Himachal Pradesh, Madhya Pradesh,
Karnataka, Gujarat, Haryana and West Bengal have three types of climatic
conditions whereas Maharashtra has four types of climatic conditions.

No. of Climatic Conditions (State-Wise)

5
4
4
3 3 3 3 3 3
3
2 2 2 2 2 2 2 2 2 2
2
1 1 1 1 1 1 1 1 1 1 1
1

0
Goa

Meghalaya
Odisha
Madhya Pradesh

Gujarat

Telangana
Chhattisgarh

Jharkhand

Nagaland

Kerala
Haryana

Tamil Nadu

Uttar Pradesh

Tripura

Assam
Maharashtra

Karnataka

West Bengal
Rajasthan

Arunachal Pradesh

Mizoram

Manipur
Punjab

Uttarakhand

Sikkim

Bihar

Andhra Pradesh
Himachal Pradesh
• According to secondary research, Assam, Sikkim and Meghalaya are the top 3
north-eastern states where tourism is rising exponentially. So, it makes sense
to consider these states to set up a hotel. However, Assam and Sikkim have
the highest no. of hotels which shows that there is intense competition in
these two states which makes the two states less attractive for hotel industry
investors as margins would be low owing to price competition. So, Meghalaya,
Arunachal Pradesh, Manipur, Nagaland, Tripura and Mizoram are the best
suited to set up a hotel with top priority being Meghalaya owing to
attractive tourism market. Also, these states have a humid subtropical
climate which makes these places easily accessible by car or public transport.
So, tourists would prefer to visit hotels located at these regions. Lastly, the
hotel industry investors should consider setting up a hotel in a location which
is in close proximity to popular places of these states as it would lead to higher
demand for their hotel services.

No. of Hotels (North Eastern State-Wise)

30000
25000
25000

20000

15000
12000

10000
5000
5000 3000
2000
1000 1000 1000
0
Assam Sikkim Arunachal Manipur Meghalaya Nagaland Tripura Mizoram
Pradesh

• The best states for setting up a hotel can be seen through the following bar
graph –
 No. of Hotels (Region-Wise)
1800000
1547000
1600000
1400000
1200000
1000000
800000 670000 651000
570000
600000
400000
200000 128000
59000
0
South India East India West India North India North-East Central India
India

1. North-eastern States: The north-eastern region consists of 8 states yet it has the
second least number of hotels as compared to other regions. States such as
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland and Tripura are
potential regions for setting up a hotel as these states are gaining popularity
among tourists. Further, with government’s push in actively developing
infrastructure in these regions to improve accessibility, there is an indication of a
booming tourism industry which would lead to higher demand and comparatively
higher margins in the future.

2. Madhya Pradesh: The central Indian region consists of 2 states – Chhattisgarh

and Madhya Pradesh. There are total 59000 hotels in Central India out of which
there are only 14000 hotels in Madhya Pradesh which highlights untapped market.
Hence, Madhya Pradesh is one of the best regions to set up a hotel as there is
untapped demand and therefore, profit potential is high.

• The rainy season in India lasts from June 1 till October 15 which is a period of
135 days on an average.