Gurgaon, New Delhi’s flourishing satellite city, is today one of the country’s most promising hospitality markets. Currently, Gurgaon’s existing branded inventory stands at above 4,000 rooms, with a planned pipeline of over 4,500 rooms. Of these, over 50 percent are mid-scale and budget supply. Virtually all domestic and international hotel operators aspire for representation in Gurgaon, if they are not already present.
Backed by a strong corporate and industrial base, the Gurgaon hospitality market has consistently demonstrated strong performance. It has gradually emerged as an independent micro-market from New Delhi. As per STR Global, the Gurgaon hotel market has emerged as a RevPAR (revenue per available room) leader in the five star segment of India for 2012.
Gurgaon posted a RevPAR of INR 7,200, which is 22 percent and 27 percent higher than the five star segments in Mumbai and Bangalore respectively. It is one of the few hotel markets in the country that did not see a dramatic performance decline during the economic downturn.
Gurgaon’s branded four and five star hotels saw significantly increased occupancy levels in 2012, reflecting growing demand levels and resulting in an overall strengthening of RevPAR levels from INR 6,000 in 2011 to INR 6,100 in 2012, as per STR Global. Adding to the room/night business is the strong F&B demand from Gurgaon’s corporate and residential communities.
Read more: Jones Lang LaSalle
How you can get yourself a cheaper home loan
The country’s largest bank, State Bank of India, raised base rates (BRs) by 10 basis points (bps), last week. This means an effective increase of 0.1 per cent on all loans. In addition, from October 1, the spreads on home loans will go up by five to 10 bps. For loans below Rs 30 lakh, the spread will be 30 bps, as against 25 bps now. For loans of Rs 30-75 lakh, the spread will be 50 bps, as against 40 bps now. This means for loans up to Rs 30 lakh the effective rate will be 10.1 per cent; for between Rs 30 and 75 lakh, the effective rate will be 10.3 per cent.
While the rise in BR will apply to existing and new customers, the increase in spreads will apply to new borrowers only. The Reserve Bank of India defines the spread as an extra amount the banker adds to cover credit risk, profit mark-up, etc. The amount differ between lenders but is usually constant over the life of the loan.
For banks, the spread is ‘positive’; the final interest rate is the BR + the spread. For housing finance companies, it is ‘negative’. An HFC will mention its rate as a discount to the Benchmark Prime Lending Rate.
In the case of SBI’s loans, the difference works out to Rs 96,000 for a Rs 60-lakh loan, over a 20-year period. SBI’s margins, despite the rise, continue to be the lowest. For instance, ICICI Bank charges 40 bps for loans up to Rs 30 lakh and 65-125 bps for above Rs 30 lakh.
Read more: Business Standard
IT sector revenue to cross $225 b by 2020
Newer technologies such as social media, analytics and cloud computing (SMAC) will help India’s IT-BPO industry cross $225-billion-mark in revenues by 2020, according to a CII report.
These technologies have opened new avenues for the Indian IT-BPO vendors. Since globally companies are adopting SMAC technologies for operational efficiency, Indian IT-BPO vendors can develop their SMAC strategies, according to CII Report – ‘The SMAC Code – Embracing New Technologies for Future Business’ released at at CII Connect 2013.
SMAC enables companies leverage the cloud for storing huge volumes of multi-structured customer data, generated over mobile devices and social media and analyse these data sets for business advantage.
Industry estimates suggest that the global ICT spending will reach the $5-trillion mark by 2020 driven by the combination of social media, mobility, analytics and cloud. In 2012, SMAC approximately contributed about 20 per cent of the total ICT spending and they are collectively, growing at about 18 per cent year-on-year. At this rate, it is expected that these technologies will become 80 per cent of the total spending by 2020, the report said.
Read more: Business Line
Singapore Airlines to Initially Invest $49 Million in India Airline
Singapore Airlines Ltd. C6L.SG +0.19% plans to invest initially $49 million to start an airline in India in partnership with Tata Sons Ltd., a senior government official said Tuesday.
The newly named Tata SIA Airlines Ltd. will be the second airline venture of Tata Sons—which controls the Tata Group, India’s largest conglomerate with more than 100 companies globally.
Tata Sons and Singapore Airlines said Thursday that they had signed an initial pact to establish a joint venture to run the new airline that will be based in New Delhi. Tata SIA Airlines will be owned 51% by Tata Sons, and the remainder by Singapore Airlines.
Singapore Airlines, in its plan submitted to the Indian government on the creation of the new airline, said it won’t raise any loans in India to invest in the new company, and that additional funds may be invested depending on business requirements.
The proposal would be discussed first by the Foreign Investment Promotion Board of India, a panel of bureaucrats which vets investment plans from foreign companies. It is not yet known when it would discuss the proposal.
Read more: Wall Street Journal