Realty group Sattva deepens premium hotel push amid travel boom

Real estate developer Sattva Group is planning to expand its hospitality business amid rising travel demand and increasing consumer spending on premium experiences.

The Bengaluru-based company, which has jointly developed JW Marriott Hotel Kolkata and Novotel Kolkata Hotel and Residences, is building a larger accommodation line covering Bengaluru, Hyderabad, Visakhapatnam and Darjeeling.

“Going forward, we will invest 10-20% of our turnover in hotel business,” said Adrija Agarwal, chairman of Sattva Group. Mint. “We now see hospitality as a serious asset class for us. For years, hospitality was seen as a ‘white elephant’ as hotels took time to build and stabilize. But today’s structural drivers are very different.”

Sattva’s expansion comes amid a broader shift among Indian real estate developers towards hospitality assets as room rates and occupancies remain high following the rebound in travel sparked by the pandemic. Prestige Group, Brigade Group and DLF Ltd. Developers such as have also expanded into hotels and branded residences.

According to HVS Anarock, the Indian hotel market currently has over 200,000 regular rooms and this number is expected to grow to around 350,000 rooms by FY30.

“One of the strongest stories in hospitality right now is that everyone wants to build a hospitality portfolio,” said Navneet Nagpal of Spectra Hospitality Services. He added that high-quality hotel assets have achieved valuation multiples of approximately 15 times EBITDA, reflecting stronger investor appetite.

“There is now a willingness to spend on better hotels and experiences. Five years ago, the price difference between a luxury hotel and a mid-range hotel was not very large. Today, the difference is huge because consumers are ready to pay for different products,” Agarwal said.

Next big bet

Its next project is a 340-key Taj facility in Bengaluru, with a tentative launch expected towards the end of 2027. The company is planning a luxury business hotel in Hyderabad, a mixed-use hospitality-focused development in Visakhapatnam and boutique entertainment projects in eastern India, including the Darjeeling belt in West Bengal.

The company’s upcoming projects will focus on premium and luxury accommodation, urban hotels, wedding-focused assets and boutique entertainment facilities. Sattva is also investing in India’s wedding and events economy, which has become a major revenue generator for premium hotels.

“The wedding market in India is huge, but quality stock is still limited. Destination weddings abroad have become significantly more expensive and people are increasingly choosing to celebrate in India,” he said.

Spread across 33 acres and announced in 2022, the Bengaluru Taj resort is expected to open in early 2027 as a wedding, meeting and event venue with around 340 rooms and 20,000 square feet of banquet facility.

Originally planned on a smaller scale, it was later expanded as demand forecasts improved. “We realized that if there was a good (hotel) product, there would be a strong demand for it,” he said.

While the Hyderabad project is planned as a luxury business and events-oriented hotel, the Vizag project is expected to become a mixed-use ecosystem integrating hospitality, residential, office and retail spaces.

“Vizag is a fairly under-penetrated market with strong long-term potential. Connectivity is improving, the government is proactive and it reminds me of what Hyderabad looked like 15 or 20 years ago,” he said.

It is currently working with hotel management companies such as Marriott, Indian Hotels Company Ltd and Accor and plans to remain flexible on future partnerships. “The supply dynamics of each city are different. We do not want to create our own competition by repeating the same brand everywhere, so we will be brand independent,” he added.

According to HVS Anarock, the hospitality industry is seeing consolidation as hotel companies and investors deploy capital; According to HVS Anarock, more than 64,000 hotel keys were signed in 2025, up 35.7% from the previous year.

Despite concerns about future supply growth, Agarwal remains positive about the long-term fundamentals of the sector. “I don’t think the structural story is changing. More Indians are traveling, incomes are rising, aviation connectivity is improving and experiences are becoming the center of consumption,” he said.

According to public documents Sattva Developers, ₹732.1 crore in FY25.