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The 26/11 hit Taj Hotels have two brands competing with ITC's Fortune and others in the mid-market segments like the Quality Inn. However Only Fortune and Taj's Gateway have plans to be in the Tier II towns dotting the country's landscape like the pilgrim towns and those with significant merchant trade. The Taj Gateway for example wants to add 30 new hotels by 2015 in locations like Jalandhar, Mysore, Raipur and Gondia ( Mint - November 18 ) 

The answer is nto that simple however. The available accommodation would definitely make a profitable niche but wll not reduce the shortage of boarding and lodging nor will it address viability concerns of the Taj and ITC Hotels, not to mention home grown players like East India Hotels and the Club Mahindras.

Indian consumer spending in B towns is definitely slated to pick up and double in every 2-3 years for some time to come, but this country hs been in the midst of such boom and not seen enough clientele in this industry yet. Business Travellers and the 5% of GDP that is accumulated by Tourism remain formidable targets to maintain each year even during the good time, Costs of Real Estate, F&B related inflation, wage inflation and the seasonality of tourist arrangements coupled with India's non voice in international leisure and lifestyle forums , lack of negotiated tarriffs in travel and hospitality all count towards a tremendous dearth of new traffic for any such tourism business. A lot remains to be done and while more and more deluxe 5 star facilities are slowly becoming available because of rush hour and the consequent unavailability that plagues travellers scheduling a trip, too many ventures like the recent Indian Maharaja ( TC/Cox & Kings IPO now open) trins and the 15 year old plans of Gateway and ITC fortune have been non starters. Costs for 5 stars have easily climbed to an average of Rs 5 Crore per room, while the Marriott has managed the same in Mumbai for less tan 3 crore and the Fortune and the Gateway chains have to manage with Room Rents of not more than Rs 800000 to 1000000 per room and 20-30% contribution from F&B implying a 100 room hotel cannot earn a topline of more than $2.7 million a year, a measly Rs 12 crores, a pretty small cake for the employee family. A cosmopolitan venture like Ginger on the other hand would not be acepted easily outside the metros of DElhi, Mumbai, Chennai and Bangalore.  

Also a significant competitor to these brands would be Oakwood and Marriott Suites that provide furnished flats for unlimited duration as they would segment that population of expats that need such spacious living and confine their target market to backpack tourists and pilgrimage bound couples/families

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If you follow the brand valuations for the IPL here, you would note the vertical cliff between revenues after season 1 and season 2. Also, the same is likely to repeat again in season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL coverage which in fact may not cover public radio and is unclear about use of team logos etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then there is as of now a very minimal revenue share for the TV network, the teams and the On ground sponsors are also getting away scotfree..it probably would be a very tightly monitored roll out as all the stakeholders would want to be visible and / or paid for the game in action and the real brand value would probably factor in this roll out of IPL at even 10 times the bid of INR 3300 crores at the very least.

Apart from this, team revenues would also need to rise vertically again for season 3 as time for rebidding is close at hand and some voices will already be contemplating new team mates in the pits. If not, trading is likely to get very ham handed despite the adding teams in during seasons 3 and 4

Here are the few tweets about the rights being granted and what has been happening:

What are the revenue share arrangements for ESD? and ESD with Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season 10

As per GoI broadcast Ministry rules all DTH providers have to get the channels from MSM, now if ESD uses at theater?

Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd

MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr settlement later for season 2

ESD would thus control IPl coverage in cinema, stadia and other public places for 10 years..they should pay the TV ntwrk used for broadcast?

Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from Season 3 on, That means TV networks would now bid again

Lakers shining the Suns! At least NBA fans in India are happier with the new ESPN India imports

The Sales numbers from Apple $AAPL though their self congratulatory notes don’t sound too polished http://ping.fm/DESi9

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The Data is courtesy the amfiindia.com site of AMFI

October turned out to be buoyant for the entire economy with retail and auto sectors reporting a 30% + uptick in sales and mutual funds also adding a neat INR 20000 Crores or $4.33 billion.

However individual fortunes were mixed as some fund houses managed to lose in Assets under management in the cracker season. UTI MF grew further by INR 3260 Crores or $720 million, and even Tata MF growing by INR 2500 Crores or $550 million. A small player like Kotak grew its corpus by INR 1350 Crores or $ 300 million. It is definitely a market whose time has come.

However Religare lost over 350 crores in AUM in the festive celebrations as it also withdrew from its AIG The newer giant Reliance at INR 116782 Crores also reported a reduction of INR 2000 crores and the growth is favoring the progressive biggies with a good corporate governance score. ICICI Prudential kept losing custom with markets withdrawing theuir favor after the recent turmoil in its ranks losing a miniscule but significant INR 400 crores, while its larger rival HDFC MF has taken its market share up to 12.23% growing to INR 93.300 Crores

The only other significant player in the Birla Sun Life MF grew rapidly by INR 2000 crores with the AUM of INR 65.500 crores reflecting a market share of 8.5% Ajay as head of the Financial Services business for the group has recently appeared in a a few network interviews to beef up these gains and reiterate BSL's plan and vision in the upcoming wealth explosion in India. Fidelity MF remained between ICICI and HDFC in the rankings with INR 87000 crores or $19 billion.

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