Project information memorandum of Haritha Resort, Berm Park, Vijayawada

Transcription

1 Project information memorandum of Haritha Resort, Berm Park, Vijayawada April 2016 Prepared by, Tourism Development Corporation,

2 DISCLAIMER This report has been prepared by KPMG Advisory Services Private Limited ( KASPL or We ) Tourism Development Corporation ( You or the Client ) and it shall not be copied, circulated, referred to or disclosed, in whole or in part (save for Department s own internal purposes), without our prior written consent. Our reports and comments are confidential in nature and are not intended for general circulation or publication, nor are they to be quoted or referred to be in whole or part, without our prior consent in each specific instance. This report sets forth our views based on the completeness and accuracy of the facts stated and any assumptions that were included. If any of the facts and assumptions is not complete or accurate, it is imperative that we be informed accordingly, as the inaccuracy or incompleteness thereof could have a material effect on our conclusions. We have not performed an audit and do not express an opinion or any other form of assurance. Further, comments in our report are not intended, nor should they be interpreted to be legal advice or opinion. Our views are not binding on any person, entity, authority or Court, and hence, no assurance is given that a position contrary to the opinions expressed herein will not be asserted by any person, entity, authority and/or sustained by an appellate authority or a court of law. The documentation review was limited to the records/documents produced before KASPL. Neither KPMG nor any of its partners, directors or employees undertake responsibility in any way whatsoever to any person in respect of errors in this report, arising from incorrect information provided to us. While performing the work, we assumed the genuineness of all signatures and the authenticity of all documents. We have not independently verified the correctness or authenticity of the same. In performing this engagement and preparing this report, KASPL assumes no responsibility for the accuracy and completeness of the information provided by external sources of information and will not be held liable for it under any circumstances. While information obtained from the public domain has not been verified for authenticity, we have obtained information, as far as possible, from sources generally considered to be reliable. Our report may make reference to KPMG Analysis ; this indicates only that we have (where specified) undertaken certain analytical activities on the underlying data to arrive at the information presented; we do not accept responsibility for the underlying data. We must emphasize that the realization of the prospective financial information set out within our report (based on secondary sources, as well as our internal analysis), is dependent on the continuing validity of the assumptions on which they are based. The assumptions will need to be reviewed and revised to reflect such changes in business trends, cost structures or the direction of the business as further clarity emerges. In connection with our report or any part thereof, KPMG does not owe duty of care (whether in Contract or in tort or under statute or otherwise) to any person or party to whom the report is circulated to and KPMG shall not be liable to any party who uses or relies on this report. KPMG thus disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the report or any part thereof. By reading our report the reader of the report shall be deemed to have accepted the terms mentioned herein above. 2 P age Tourism Development Corporation Limited

3 Table of Contents DISCLAIMER...2 TABLE OF CONTEN TS...1 EXECUTIV E SUMMARY...2 BACKGROUND...2 PROJECT DETAILS INTRODUCTION ABOUT ANDHRA PRADESH- SUNRISE STATE TOURISM AS ONE OF THE KEY FOCUS AREAS FOR ANDHRA PRADESH OBJECTIVE OF THE REPORT DESCRIPTION OF VIJAYAWADA CITY INFORMATION PHYSICAL FEATURES DEMOGRAPHICS OF VISHAKHAPATNAM ECONOMY CONNECTIVITY TOURIST ARRIVALS IN VISHAKHAPATNAM OCCUPANCY OF THE RESORTS IN VIJAYAWADA PROJECT DESCRIPTION PROJECT DESCRIPTION LOCATION OF BERM PARK HOTEL GRANT OF SERVICE SCOPE OF WORK GENERAL SERVICE PERIOD AREA TO BE OPERATED DETAILED SCOPE OF SERVICES P age Tourism Development Corporation Limited

4 Executive summary Background In line with the ever changing tourism demand, APTDC is in the process of upgrading/ developing its properties including hotels, resorts and restaurants to meet the present day expectations of the tourists. The focus of this exercise is on improvement of services as well as facilities. In relation to this, APTDC desires to hire a reputed Housekeeping services agency towards administering housekeeping services at its Vijayawada property - Haritha Hotel, Berm Park, for the Service period specified. APTDC proposes to outsource housekeeping services for the Berm Park property to such agency for provision of housekeeping services of not less than a three star category hotel. In line with this objective, APTDC wishes to identify and hire such agency through a Competitive Bidding/ Open Tender process. The Housekeeping services shall be administered in line with industry best practices and standards, and apart from conforming to the minimum standards laid down by the APTDC, should also incorporate best practices and standards practiced in the industry. These terms and conditions will be specified in the Service agreement between APTDC and the Successful Bidder. Project details Berm park resort located at the bank of river Krishna is considered as a 3 star property having total 30 rooms with ancillary facilities such as business center, restaurant, lounge etc. Out of 30 rooms, 8 rooms are standard rooms, 12 are deluxe rooms and 10 are suites. Based on tourist arrival at Vijayawada, the resort have a good occupancy ratio of around 50-60% and expected to rise because of regular government bulk bookings. Based on the present scenario of tourist arrival in and existing occupancy levels, the occupancy of the resort is fixed as 60% for the first year of operation and assumed to increase at 5% year-on-year. However, the occupancy of the resort is restricted to 75 % for rest of concessionaire period. 2 P age APTDC

5 1. Introduction 1.1. About - Sunrise state is strategically located on the southeast coast of India and is a natural gateway to East and Southeast Asia. The state has a population of 4.93 crores (as per population census ), accounting for 4% of country s population, residing in 4.9% of country s geographical area. Andhra Pradesh has abundant natural resources (barytes, limestone, bauxite, and a number of minor minerals), fertile land and river basins, water resources, extensive State of canal system and conducive agro-climatic conditions. The State has the second longest coastline in India and is also one of the largest producers of marine products. At current prices, the Gross State Domestic Product (GSDP) of was 4, 75,859 crores in Between and , the average annual GSDP growth rate of was 7.25% while the average per capita income at (current prices) increased from INR 46,345 in to INR 88,876 in Tourism as one of the Key focus areas for Government of (GoAP) vision is to be amongst the top 3 States in India by 2022, the top State in India by 2029, and be the most preferred global destination by The government is taking steps to provide an environment conducive to economic and social growth. These steps include formulation of investment friendly policies, creating world-class infrastructure, improving governance and taking necessary steps to attract investments into the State. Promotion of tourism infrastructure and services at potential destinations is one amongst the many initiatives taken up by the GoAP In line with the objective to make the premier destination for tourists in the country, Government of has identified nine key theme areas to be developed. The theme areas are listed below Religious Tourism 3 P age APTDC

6 Recreation Tourism Beach Tourism Buddhist Tourism Spiritual & Wellness Tourism Heritage Tourism Medical Tourism MICE Tourism Eco Tourism 1.3. Objective of the Report The objective of the report is to provide information on APTDC property of Haritha Resort at Berm Park, Vijayawada. 4 P age APTDC

7 2. Description of Vijayawada 2.1. City information Vijayawada is a city on the banks of the Krishna River, in the Indian state of Andhra Pradesh. It is a municipal corporation and the headquarters of Vijayawada (urban) mandal in Krishna district of the state. The city is one of the suburbs of the state capital Amaravati, under the Capital Region The city is one of the major trading and business centers of the state and hence, it is also known as "The Business Capital of ". The city is one of the two metropolis in the state, with the other being Visakhapatnam. It is one of the commercial hubs of with a GDP of $3 billion in 2010, and is expected to increase to $17 billion by The political, agricultural, industrial sectors are a boon for its recognition Physical features Vijayawada is surrounded by the Krishna river on the east and west, and the Budameru River on the north. The northern, northwestern, and southwestern parts of the city are covered by a low range of hills, while the central, southwestern and northwestern parts are covered by rich and fertile agriculture lands with three major irrigation canals. The topography of Vijayawada is flat, with a few small to medium-sized hills. The Krishna River runs along the city. These hills are part of the Eastern Ghats cut through by the Krishna river. Three canals originating from the north side of the Prakasham barrage reservoir, Eluru, Bandar and Ryves, run through the city. 1 City Development Initiative For Asia 5 P age APTDC

8 2.3. Demographics of Vishakhapatnam 2 According to 2011 census, Vijayawada had a population of 1,048,240 making it the second largest city in the state in terms of population and it had an urban agglomeration population of 1,491,202. The average literacy rate stands at 82.59% (male 86.25%; female 78.94%) with 789,038 literates, significantly higher than the national average of 73.00%. The city's population is expected to reach 2.5 million by Economy Agriculture, commercial trade, tourism, industries, transportation and tertiary sectors etc., are the major sectors that contribute to the economy of the city. Vijayawada is famous for processing of agricultural products, automobile body building, hardware, textile, consumer goods and small scale industries. Most of the visitors in the state visits for business purposes. Also, the two well-equipped industrial estates in Vijayawada are Auto-Nagar and other near Kondapalli. The Jawahar Lal Nehru Auto Nagar Industrial Estate in Vijayawada is one of the largest auto industry hubs of Asia. Kondapalli suburb also houses Heavy Machinery and Engineering Limited (APHMEL) factory. It is also a hub for storage, bottling and transportation of petroleum products of all major companies like BPCL, HPCL, IOC etc Connectivity The fact that Vijayawada is well connected through rail and road, makes it one of the main hubs of commercial activities Road Connectivity Vijayawada is well connected to the rest of the country by National Highways. Two National Highways, the NH 5 (Now NH-16) from Chennai to Kolkata and the NH 9 (Now NH-65) from Machilipatnam to Pune, pass through the city connecting it to other parts of the country. NH 221 (Now NH-30) connects the city to Jagdalpur in Chhattisgarh. It is connected to other areas of the state by state highways and district roads. The Pandit Nehru Bus Station of Vijayawada is the third largest Road Distance from Hyderabad Bangalore Pune Mumbai Kolkata Delhi Distance in km 275 km 661 km 850 km 998 km 1209 km 1788 km 2 Registrar General and Census Commissioner of India. Retrieved 2 September Global cities of the future - Mckinseyquarterly.com. 13 March Retrieved 8 August AP Industries, GoAP, (apind.gov.in) 6 P age APTDC

9 and busiest bus terminals in India alongside Delhi, CMBT (Chennai) Rail connectivity Vijayawada is the hub of transportation with one of the largest railway junctions in India. Vijayawada railway station is administered by the South Central Railway zone of Indian Railways. It is situated along the Howrah-Chennai main line and Delhi Chennai line and categorized as an A-1 station under the jurisdiction of Vijayawada railway division. It is one of the busiest station, handling more than 320 trains (both passenger and freight trains) per day next to Howrah and Mumbai. Madhuranagar, Gunadala, Rayanapadu, Kondapalli, Nidamanuru, Krishna Canal, Ramavarappadu, Kolanukonda, Mangalagiri, Gannavaram are the other railway stations in the city Air connectivity Vijayawada Airport is located at Gannavaram. It connects the city Hyderabad, Bangalore, Coimbatore, Chennai and Delhi. Vijayawada Airport is served by Air India, SpiceJet, TruJet and Air Costa. Annually, about 380,000 passengers use this airport. The plan for expansion of is also proposed Tourist arrivals in Vishakhapatnam In the year 2013, AP is the 3rd most visited state in India by domestic tourists accounting for 8.6% share to total domestic arrivals in India, however in terms of foreign tourists, AP stands 18th in the country with a share of about 0.35% Rank State Domestic Arrivals (Million) % 1 Tamil Nadu Uttar Pradesh Karnataka Maharashtra Madhya Pradesh Telangana Rajasthan Gujarat West Bengal P age APTDC

10 Vijayawada is one of the major tourist destination attracting tourist not only within Andhra Pradesh but also from various parts of India and abroad. The proximity to the places of tourist attraction and business importance has made Vijayawada one of the prime locations for tourist and ranked 3 rd in domestic tourist arrival for FY , with domestic tourist arrival of 10.4 million Arrivals District Domestic Rank (Million) % Rank International % Chittoor % 2 4, % East Godavari % % Krishna (Vijayawada) % % Kurnool % % West Godavari % % Visakhapatnam % 1 57, % Srikakulam % % Kadapa % % Guntur % % Vizianagarm % % Nellore % 3 3, % Prakasam % % Anantapur % 4 1, % TOTAL % 69, % Source: Ministry of Tourism, Occupancy of the resorts in Vijayawada As per Department of Tourism, AP, the average occupancy rate of hotels in Vijayawada is 60% in the year Vijayawada s proximity and ease of connectivity with major business hubs in the country with focus of state government on Vijayawada will increase the tourist foot-fall in. This increase in foot fall will increase the average occupancy in beach hotels to 70% in coming five years. 8 P age APTDC

11 3. Project Description 3.1. Project Description APTDC desires to hire a Food and Beverage services agency towards providing housekeeping services at its Vijayawada property - Haritha Hotel, Berm Park. The hotel consists of 30 rooms, restaurant, bar and conference hall. The detailed layout drawing showing the facilities is provided in Appendix-I housekeeping facility details. A view from entrance A view from River Krishna Party lawn in Berm Park Party lawn in Berm Park A view from party lawn A view from party lawn 9 P age APTDC

12 The room inventory is assumed to be 60 rooms, with the detailed breakup as follows: Particular Berm Park Type of room Standard Rooms Deluxe Rooms Suite Rooms No. of rooms 8 rooms 12 rooms 10 Rooms The bidder is expected to provide housekeeping services as per the terms and conditions provided in next section 3.2. Location of Berm park Hotel Berm Park is beautifully located at the bank of river Krishna and also easily approachable through Vijayawada Hyderabad highway. The distance from airport, railway station and bus station is shown below: Distance from Airport Railway station Bus station Berm Park, Vijayawada 12 Km 6 Km 6 Km 3.3. Grant of service The Subject to and in accordance with the terms and conditions set forth in this Agreement, APTDC hereby grants and authorizes the Housekeeping Agency to provide Housekeeping Services at APTDC s Haritha Berm park hotel at Vijayawada and to exercise and/or enjoy the 10 P age APTDC

13 rights, powers, privileges, authorizations and entitlements as set forth in this Agreement, including access to the Housekeeping Services Site. 4. Scope of work 4.1. General This chapter outlines the scope of work to be executed by agency, service period, roles and responsibilities of agency and minimum service obligations to be maintained by the agency Service Period The Service hereby granted is for a period of 3 years commencing from the Commencement Date during which the Housekeeping Agency is authorized to implement the Housekeeping Services in accordance with the provisions hereof Area to be operated The Agency will be handed over the F&B Facilities by APTDC on an as-is-where is basis. The agency shall be handed over the following facilities 1. All the area of property except Bar and restaurant The detailed layout drawing is provided in the Annexure 4.4. Detailed scope of services The Scope of Services to be provided would include: 1. Cleaning & housekeeping services General and routine cleaning of reception and lobby area, washrooms, sit out area, telephone room, office, rooms including bathrooms, stairs, corridors, store rooms and conference rooms with banquet area, windows and frontage of the hotel as given in Volume-II of the RFP The Housekeeping responsibilities include the lawns and landscaping, roads, parking lot. Daily washing, ironing and changing of bed and bath linen, bed making, Replenishment of toiletries supplied by APTDC Replenishment of replaceable items in the rooms and wash rooms at the hotel and dusting of furniture. Daily vacuum cleaning of carpets and sofas. Alternate day cleaning of curtains and furniture. 11 P age APTDC

14 Deep Cleaning to be performed once a week. Dry and wet mopping of the floors on a daily basis and as and when required for special cases. Maintenance of electrical fittings and plumbing including regular maintenance of shower heads, taps, water spouts and bidets. The Services Staff responsible for room cleaning are required to check the health of electrical appliances and plumbing in the room on a daily basis, and report it to the Services Staff Supervisor who is expected to take necessary action to rectify the same prior to guest occupation. The Successful Bidder is expected to set in place a standard operating procedure in case of a guest forgetting items in the rooms towards handing over such items to the APTDC Supervisor for safekeeping. The Services Staff are to direct any enquiries for laundry requirements from hotel guests to the hotel front desk or APTDC Supervisor as required. The rooms including bathrooms should be thoroughly cleaned after every check out by day and wet mopping to get the rooms ready in all respects for check in with in one hour of check out. The successful bidder shall prepare a schedule for day to day and periodical maintenance of the facilities. This schedule shall be submitted to APTDC for approval and this schedule shall be part of service agreement. Note: Toiletries i.e., comb, toothpaste, soaps, toilet tissue, shampoo, hair oil will be provided by APTDC. All cleaning materials shall be supplied by the successful bidder at its cost. The indicative list of cleaning materials is provided at Appendix XI Electrical and plumbing consumables will be provided by APTDC. Only electrical and plumbing maintenance services is to be undertaken by the successful bidder. 2. Minimum Service Requirements The minimum number of employees to be provided as a part of this Service Agreement is as detailed in Table 1. The Successful Bidder is expected to provide a minimum number of Services Staff (the, Minimum Services Staff ) at the Hotel Site on a daily basis. The Successful Bidder is required to maintain the Minimum Services Staff at the property at all time as specified, including providing replacement for staff on leave. The Successful Bidder may choose to employ additional staff at the property over and above the number of Minimum Services Staff herein specified at its discretion. Table 1: Minimum Staff to be deployed Services Staff designation Technical requirements skill Number of staff in Shift 1 (6:00 hours to 14:00 hours) Number of staff in Shift 2 (14:00 hours to 22:00 hours) Number of staff in Shift 3 (22:00 hours to 6:00 hours) 12 P age APTDC

15 Services Staff Supervisor Unskilled Staff Housekeeping staff Skilled staff, with previous experience in hotels of not less than 3 stars category and relevant educational qualification. Cleaning of open areas, streets, lawns Semi-skilled staff trained in provision of housekeeping activities Electrician Skilled staff 1 1 Plumber Skilled staff Reporting requirements The Services Staff Supervisor would be responsible for ensuring smooth day to day operations as a part of the Service Agreement, including ensuring quality services are provided by the housekeeping and maintenance team. The Services Staff Supervisor would be supervised by the APTDC Supervisor as appointed by the APTDC. Any routine maintenance or replacement of APTDC machinery and equipment, building maintenance, laundry enquiries or any other communication relevant to housekeeping at the property would be communicated to the APTDC Supervisor by the Services Staff Supervisor. The Services Staff Supervisor would be required to maintain a daily attendance sheet for the Services Staff delivering the Service Agreement, with details of the same to be submitted to the APTDC Supervisor on a daily basis. 4. Other Terms of housekeeping services The fee indicated is for housekeeping services on 7 days a week and 24 hours a day for staff and services as specified herein. Manpower, bed and bath linen, cleaning equipment, machinery, pest control, cleaning chemicals, agents or accessories and other related consumables except toiletries shall be provided by the Successful Bidder to its Service Staff. Working timings is for 8 hours a shift. Services will be provide for 3 shifts a day and for 7 days a week. The Successful Bidder is expected to maintain stringent health, hygiene and safety standards at the property, including general pest control for internal areas. 13 P age APTDC

16 The Successful Bidder will be responsible for salary distribution to the employed staff as a part of this Service Agreement. Salary will be distributed in first week of following month. The Successful Bidder is expected to ensure that its Services Staff wear a uniform and carry an Identification Card (the, IDC ) while performing said services at the property. Said uniform and Identification Card is to be provided to Services Staff at the Successful Bidder s own cost and effort. The uniform and IDC design is to be submitted to APTDC for approval within two weeks of SA Execution Date, prior to start of services at the property. The Successful Bidder would need to intimate the names and IDC s of the Services Staff to be employed towards fulfilling its obligations under the SA to APTDC. Also, in case of replacement of any staff during the Service Period, the Successful Bidder is expected to intimate the APTDC at least two days prior to employment of said staff at the property. The services rendered as part of this Service Agreement should be equivalent to those rendered at hotels of not less than three star hotel category standard 5. Escalation in wages The successful bidder has to conform to the regulations of Labour Welfare Department and other statutory bodies. The wages paid to the employees shall be subject to the minimum wages prescribed by the Commissioner, Labour Welfare Department, Govt. of AP, from time to time. APTDC will pay the differential wages subject to maximum of the minimum staff to be deployed as furnished in the above table. To ensure proper crediting to the PF accounts of the staff, the bidder will be required to furnish Original payment PF challan of previous month for release of payment from APTDC. The Service tax payable by APTDC is subject to the maximum of the minimum staff to be deployed as per the above furnished table. 14 P age APTDC

17 15 P age APTDC