Valor’s Advent Hotels to list as separate entity this month, bets big on luxury expansion

The move signals Valor’s diversification beyond residential real estate into the high-value hospitality sector, at a time when India’s supply of branded hotels is growing rapidly and demand continues to exceed new capacity.

With Mumbai-based Valor already publicly listed, Advent will exit directly as an independently traded company following the demerger. Valor shareholders will receive one share of Advent for 10 Valor. Advent will be listed on BSE and National Stock Exchange.

While Valor will maintain its residential focus through partnerships with other developers, Advent will operate as a specialty hospitality platform developing large-format properties in key business districts through joint ventures.

“The idea is not only to grow Advent but also to ensure focused management and a clear capital structure,” said Shahid Balwa, vice chairman and managing director of Valor Estate. Mint.

New luxury accommodation in major cities

Currently, Advent Hotels has two hotels in operation: a 171-room Hilton-branded property in Mumbai’s Andheri East and a 313-room Grand Hyatt property in Bambolim, Goa. The Goa property adds 113 more keys.

The company has two hotels under construction in Aerocity, Delhi, in equal partnership with real estate developer Prestige Group. The Marriott Marquis and St Regis hotels, which are expected to be ready by mid-2026, will have a total of 778 keys. There are two more upcoming hotels: the Waldorf Astoria hotel and branded residences, and a 550-key Hilton in Mumbai’s posh Worli district.

“Advent’s strategy is to build sizeable hotel properties in prime CBD (central business district) locations in key cities,” Balwa said. “The focus is on good management of hotels by appointed operators. The pipeline is significant and there will be further expansion going forward.”

Advent’s upcoming hotels are a mix of luxury and upscale properties. Typically, the average room rate (ARR) between two categories can vary by 20-40% 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 likely 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 consider building two hotels here offering different price points.

Midsize hotels are leading the next phase of growth

For the first time in over a decade, India’s proposed branded offering in the industry has surpassed 100,000 rooms. As of March 2025, the active development pipeline comprised 114,151 rooms, led by Bengaluru, Mumbai, Jaipur and Goa.

“There is a huge focus on growth. Advent’s portfolio of seven hotels is on track to reach 3,100 keys. EBITDA (earnings before interest, tax, depreciation and amortization) is currently low ₹200 crore, it will exceed ₹660 crore as the pipeline stabilizes by FY32, said Rahul Pandit, managing director and CEO of Advent Hotels.

“The five hotels under preparation and under construction are located in high-value locations and will offer luxury and upscale hotel experiences. The overall hospitality industry is performing well, with demand outpacing supply across price segments,” Pandit said.

As luxury and leisure destinations continue to increase available room revenues, the future trajectory points to a clear strategic shift, with mid-market and upper-mid-market hotels accounting for nearly 50% of future supply, according to the latest Trends and Opportunities 2025 report from hospitality consulting firm Hotelivate.

“Beyond the five (new) hotels, there is a new pipeline of projects we are looking at that includes inorganic opportunities through acquisitions. We are looking at major metros as well as entertainment centres,” Pandit added. For example, Prestige Group and Advent are planning to develop a large-format resort-style development in Lonavala near Mumbai, spread over 300 acres, which will also have a hotel.