Ventive Hospitality - Driving Luxury Market

Ventive's focus on Luxury (~80%+) in under-supplied markets such as Pune and focus on differential products has resulted the company's Average Room Rate being amongst the highest in the Industry.

May 19, 2025

When someone calls Luxury and Hotels, the first name which comes to mind is Taj, and rightly so. However, a recently listed Hotel chain focusing on niche markets such as Pune has Average Room rate 60% higher than Indian Hotels.

We analyze Ventive Hospitality which has several luxury brands under it’s bracket such as JW Marriott and Ritz Carlton -

About -

Ventive Hospitality Ltd (VHL), formerly ICC Realty (India) Private Limited, is a leading hospitality and real estate development company in India, with a presence in premium hotel and commercial segments. The company specializes in owning, developing, managing, and operating luxury hotels and integrated commercial assets in key markets, including Pune, Bengaluru, and the Maldives. VHL operates 11 hospitality assets with a total of 2,036 keys as of December 2024.

These include luxury brands such as JW Marriott, The Ritz-Carlton (Marriott brand), Conrad, Anantara, and Raaya by Atmosphere in India and the Maldives.

VHL plans to add 367 keys to its hotel portfolio over the next three years with 120 keys through brownfield expansion at existing hotels and 247 keys through the greenfield route.

VHL’s strong market presence in the hospitality segment is underpinned by the strategic business/leisure locations of its assets (proximity of hotels to key hubs such as airports and commercial buildings) as well as its alliances with esteemed international hotel chains such as Marriott, Hilton, Conrad, Anantara and Atmosphere Core.

Despite the geographic concentration risk from Maldives operations (~56% of hospitality revenues), strategic leisure locations of these properties, premium positioning and favorable demand dynamics support its strong business profile in the hospitality segment.

Additionally, VHL owns four stabilized Grade A commercial properties in Pune, with a total leasable area of 3.40 million square feet (msf) and a committed occupancy of ~96% as of December 2024. These include three office assets and one retail space. This Adds a stable revenue stream alongside its hospitality operations.

History -

The company was founded as the hospitality division of Panchshil Realty, a large real estate conglomerate based in Pune that has presence across the commercial, retail, luxury residential and data center segments.
The portfolio has grown significantly over the years, starting from 83 keys acquired by the company in 2007 to 2,036 keys now (~19% CAGR).
In 2017, BRE Asia (formerly known as Xander Investment Holding XVI Limited), an affiliate of Blackstone, became a 50% shareholder in the company. The promoters have had a longstanding partnership of over 10 years, with an established track record of development and acquisition-led expansion.
The current portfolio of 2,036 keys across 11 assets comprises 1,331 keys across seven assets that were developed by Ventive and 705 keys across four assets that were acquired by it.

Portfolio: Hotels and F&B

JW Marriott - Pune, the flagship property of Ventive

Maldives -

The offerings on the Maldives size is predominantly hospitality ventures setup in an island. This island has been given on 99 years lease to the company by the Government where the company pays around 1mn USD as lease per year.

The recent addition has been Raaya By atmosphere which was built by Panchashil Realty at 600k per key.

F&B Portfolio -

The F&B Portfolio not only compliments the luxury hotels but also is a big contributor to the revenue.:

6 of Ventive’s restaurants is in Pune's Top 10 restaurants.

Some of the Key restaurants under Ventive are

Largest ballroom in Western India among luxury hotels, at JW Marriott Pune -
Ukiyo – Best Japanese Restaurant
Ritz Carlton Paasha – Best Rooftop Restaurant
JW Marriott Ithaa, Conrad – World’s first undersea restaurant (See Image Below)

Spice Kitchen – Best Buffet Restaurant

Peer Comparison - Ventive primarily competes with Luxury Hotel Chains such as Chalet and Indian Hotels.

Room Rent of Ventive owned properties is significantly higher than it’s peers, however it lags peers in occupancy rates primarily due to Maldives portfolio being seasonal in nature.
Peak Occupancy for domestic properties is ~75% whereas for Maldives is ~65%.
Going ahead increase in Occupancy rates and future projects will aid growth.

Future Projects -

The company is adding ~367 keys spread across 3 properties Varanasi and Bangalore properties under Marriott and Ritz Carlton Reserve Hotel in Sri Lanka.
The company has 4 properties (2 in Mumbai / 2 in Pune) with 900 Keys.
~450 Keys in Navi Mumbai in addition to convention Centre with JW Marriott
Rest ~450 Keys will be in competition to IBIS (lower than Luxury) under Moxy brand.

IPO - The company got listed in December 2024. The shareholding pre-ipo by the promoter was 99.59% and post raising funds was brought down to 88.98%.

The total issue size was Rs 1600 crores and at upper band the company commanded a Market cap of Rs 15045 crores.

The proceeds were primarily used to reduce the debt by Rs 1400 crores with the rest earmarked for IPO expenses and general corporate purposes. The company has been issued AA rating by Crisil on its long term loan which makes the interest rates very competitive

The existing debt is a mix of rupee loan and foreign loan: Rupee loan is at 8.4% and Foreign loan is at 7.7% both of which makes it a very competitive rate.

Currently the net debt stands at Rs 1745 crores v/s 3407 crores in FY24.

Capex - With most of the IPO money going into repaying debt, the future expansion would be majorly funded by Internal accruals.

The company has planned to double its key size in next 5 years of which they have highlighted the 50% expansion plans (development + pipeline) and the rest would either be further new development or acquisition.

The management has stated that Rs 5000 crores would be required to double their portfolio size to 5000 keys in next 5 years which the management is confident of doing majorly from internal accruals and lower reliance on debt which would be the thing to watch out.

Post IPO the net debt to equity has fallen down to 0.4x which gives the company enough headroom for expansion.

What works for the company:

Strong Promoters of the company with experience in Asset building
Headroom for increasing occupancy in Maldives (new assets) and Pune (lower supply of luxury assets)
Constant cash flow due to 95-96% occupancy in commercial real estate
High Quality F&B offering Aiding in EBIDTA expansion
Risks -
High Geographical concentration
Asset heavy business leading to unfavourable debt mix
To Generate enough internal accruals to fund the capex of Rs 5000 crores leading to either dilution or higher debt
Conclusion -
Ventive hospitality , as things stands, is the only pure play luxury hospitality player in the listed market with high ARR (Rs 20000+) and commercial Real Estate in a very low supply market ( Pune). The competency of promoters and their expertise in Domestic and International markets will aid in business expansions and creating a big niche in a market where the high end luxury is in low supply. With India seeing fast premumization across and Maldives remaining more tourist centered, the company is in prime position to leverage their asset and experience to maximize profits.

Disclosure - We are not registered under SEBI. All information above is based on public sources and due diligence conducted by us. We may or may not have invested in stocks which we have written about.

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