Valor's Advent Hotels to List Separately, Eyes Luxury Expansion

Valor's Advent Hotels, a spin-off from Valor Estate Ltd (formerly DB Realty), is poised to list as a separate entity on the stock exchanges on 13 November. This move marks Valor’s strategic diversification beyond residential real estate into the high-value hospitality sector. According to a top company executive, Advent will focus on building a portfolio of luxury and upscale hotels across major Indian cities through partnerships.

India’s branded hotel supply is expanding rapidly, and demand continues to outpace new capacity. This makes the timing ideal for Advent’s market debut. 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 operates two hotels: a 171-key Hilton-branded property in Mumbai's Andheri East and a 313-room Grand Hyatt property in Bambolim, Goa, which is adding another 113 keys. The company has two under-construction hotels at Aerocity, Delhi, in equal partnership with real estate developer Prestige Group. These hotels, the Marriott Marquis and St Regis, are expected to be ready by mid-2026 and will have 778 keys in total. Additionally, 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 large hotel properties in prime central business district (CBD) locations in key cities. The hotels will be managed well by appointed operators, ensuring high standards of service. The pipeline is significant, and there will be further expansion going forward.

Advent's upcoming hotels are a mix of luxury and upper-upscale properties. Typically, the average room rate (ARR) between the two categories can vary by 20-40%, depending on the season. One of the most ambitious projects is a 1,175-key hotel in Mumbai's business district, Bandra Kurla Complex (BKC), which could be one of the largest in the country's financial capital. The hotel will be part of a large mixed-use project, with L&T Realty as 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. As of March 2025, the active development pipeline stood at 114,151 rooms, with Bengaluru, Mumbai, Jaipur, and Goa leading the charge. The hospitality industry has been performing well, with demand outstripping supply across price segments.

“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 CEO 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. 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, Advent is examining a fresh pipeline of projects, 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, which will also include a hotel.

This strategic move by Valor's Advent Hotels underscores the growing importance of the hospitality sector in India and the potential for significant growth and profitability in the luxury and upscale segments.