Advent Hotels International: Listing and Expanding in India's Luxury Hospitality Sector

BENGALURU: Advent Hotels International Ltd, the hospitality arm carved out of Valor Estate Ltd (formerly DB Realty), will list as a separate entity on the stock exchanges on 13 November. This strategic move aims to build a portfolio of luxury and upscale hotels across major Indian cities through a partnership route, as detailed by a top company executive.

The move marks Valor’s diversification beyond residential real estate into high-value hospitality, at a time when India’s branded hotel supply is expanding rapidly and demand continues to outpace new capacity. With Mumbai-based Valor already publicly listed, Advent will debut directly as an independently traded company following the demerger. Valor shareholders will receive one share of Advent for every 10 shares of Valor. Advent will be listed on both the BSE and the National Stock Exchange.

While Valor will retain its residential focus through partnerships with other developers, Advent will operate as a dedicated hospitality platform, developing large-format properties in key business districts through joint ventures. “The idea is not only to scale up Advent, but also to provide focused management and a clear capital structure,” said Shahid Balwa, vice-chairman and managing director of Valor Estate, in an interview with Mint.

Currently, Advent Hotels has two operational hotels: a 171-key Hilton-branded property in Mumbai's Andheri East and a 313-room Grand Hyatt property in Bambolim, Goa. The Goa property is adding another 113 keys. The company has two under-construction hotels at Aerocity, Delhi, in equal partnership with real estate developer Prestige Group. The hotels—Marriott Marquis and St Regis—are expected to be ready by mid-2026, with a total of 778 keys. There are two more upcoming hotels—a Waldorf Astoria hotel and branded residences, and a Hilton in Mumbai's upscale Worli, with 550 keys.

Advent's strategy is to build fairly large hotel properties in prime CBD (central business district) locations in key cities. “The focus is that the hotels are managed well by the operators appointed. The pipeline is significant, and there will be further expansion, going forward,” Balwa said. Advent's upcoming hotels are a mix of luxury and upper-upscale properties. Typically, the average room rate (ARR) between the two categories can have a 20-40% difference, depending on the season.

Advent's pipeline also includes a 1,175-key hotel project in Mumbai's business district Bandra Kurla Complex (BKC), which will possibly be one of the largest in the country's financial capital. The hotel will be part of a large mixed-use project, in which L&T Realty is the developer partner. Advent may look to build two hotels there, offering different price points.

For the first time in over a decade, India’s proposed branded supply in the sector has crossed 100,000 rooms. The active development pipeline as of March 2025 was at 114,151 rooms, with Bengaluru, Mumbai, Jaipur, and Goa leading the charge. “There is a huge focus on growth. Advent's portfolio, with seven hotels, is on track to expand to 3,100 keys. EBITDA (earnings before interest, taxes, depreciation, and amortization) currently under ₹200 crore, will grow to over ₹660 crore as the pipeline stabilizes by FY32,” said Rahul Pandit, managing director and chief executive of Advent Hotels.

“The five hotels underway and in the pipeline are in high-value locations and will offer luxury and upper upscale hotel experiences. The overall hospitality industry has been performing well, with demand outstripping supply across price segments,” Pandit added. According to hospitality consulting firm Hotelivate’s recent Trends & Opportunities 2025 report, while luxury and leisure destinations continue to drive current room revenues, the future pipeline shows a clear strategic shift: mid-market and upper mid-market hotels account for nearly 50% of the future supply.

Beyond the five new hotels, there is a fresh pipeline of projects that Advent is examining, including inorganic opportunities via acquisitions. The company is looking at key metros as well as leisure locations. For instance, Prestige Group and Advent plan to develop a large-format resort-style development, spread across over 300 acres in Lonavala, near Mumbai, that will also include a hotel.