Family offices bet big on hospitality amid travel surge
In a recent marquee transaction, a prominent Mumbai-based family office acquired a 130-key hotel in Manipal, Karnataka, for about ₹150 crore. The asset, currently nearing completion, will be housed under one of Indian Hotels Company's (IHCL) upscale brands. In another deal, a business house promoter picked up a 190-room hotel in Kolkata. About six months ago, the family office of SanRaj acquired the 245-key Holiday Inn near Mumbai International Airport, underscoring a clear trend—private capital is pivoting to hospitality.
Value of hotel deals in India climbed to $167 million in the first half of 2025, from $93 million a year ago, according to JLL data.Family offices and HNIs, either directly or through wealth arms, comprised 54% of these deals, more than double of 26% in the year-ago period.
'There is a clear shift from viewing hotels as trophy assets to treating them as structured, yield-generating investments built on strong brand affiliations and operator partnerships,' said Nandivardhan Jain, CEO of Noesis Capital Advisors, which has executed multiple hotel deals across Kolkata, Amritsar, Vithalapur, Khandala, Khopoli, Vadodara, and Udupi.
Ashvini Chopra, head of family office solutions at Avendus Wealth Management, noted that hospitality assets, alongside student housing, are experiencing a boom, particularly in tier-2 locations. 'Hotel investments offer a unique combination of depreciation cover, stable rental income, and long-term capital appreciation,' he said.The growing appeal of hospitality assets is backed by strong fundamentals. India's total hotel transaction volume grew at steady pace to $340 million in 2024, from $337 million in 2023.With robust activity in the first half of 2025, JLL forecasts volumes to accelerate and touch $400 million by December-end.'We anticipate the momentum seen in H1 2025 to sustain through the rest of the year,' said Jaideep Dang, managing director, hotels and hospitality group, India, JLL. Significantly, family offices—from being passive observers—are emerging as key drivers of deal-making in the hospitality sector.Markets like Manipal, with their expanding university ecosystems and regional healthcare hubs, are experiencing a surge in domestic travel and room demand. Analysts highlight limited branded supply in tier-2 cities like Manipal as a compelling opportunity for both greenfield and brownfield investments.Unlike traditional real estate, hospitality assets demand deep operational alignment and brand partnerships. Once considered a high-risk segment reserved for large, diversified conglomerates, hotels are now firmly on the radar of family offices looking for stable income and long-term value creation.'We expect at least ₹5,000 crore of family-office capital to flow into Indian hotels over the next 2-3 years,' said Jain.Government initiatives aimed at promoting tourism, coupled with a rising domestic consumption story, have further bolstered investor confidence in hospitality as a strategic asset class. With rising RevPARs (revenue per available room), inadequate new supply in several micro-markets, and improving occupancy levels, experts say hotels will continue to attract private capital.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Wit and Chai bets on ambitious ramp-up to hit ₹200 crore revenue
MUMBAI : In a category crowded with pitch decks and posturing, Pune-based creative agency Wit and Chai is choosing to do things differently. Started six years ago by three friends with no formal advertising background, the company is now scripting an ambitious growth story, with eyes set on a ₹200 crore revenue target. 'We're not advertisers running an agency—we're businessmen running an advertising business," says co-founder Mohit Ghate, who previously built and exited a med-tech startup. What began with a simple Facebook campaign for a café in Pune has grown into a 100-member operation with offices in Pune, Mumbai, and London. The agency services marquee clients such as Coca-Cola, Starbucks, Amul, Kotak, Chitale Bandhu, and Hindustan Pencils. No legacy, no funding, no pitch frills Wit and Chai was founded by Ghate, Nahush Gulawani, and Nihar Kolapkar, three friends with unconventional backgrounds for the advertising world. Mohit, an engineering dropout; Nahush, a chartered accountant, was previously with EY; and Nihar brought creative sensibilities from his early stint in Mumbai's ad industry. The trio credits their lack of legacy baggage for shaping a results-first mindset that puts client outcomes ahead of industry jargon. Wit and Chai has stayed entirely bootstrapped so far. 'We've never raised external capital. Our first client paid for our second," Ghate told Mint in an exclusive interview. A formal fundraise is not on the table yet, though the company is evaluating it as it scales internationally. Also Read: Fixderma's low-key, high-growth strategy defies D2C playbook The business posted a 2.5x year-on-year growth in FY25 and is on track to close this fiscal at ₹40 crore in topline. Internal projections expect another 3x growth, after which Ghate anticipates a steady 2x curve as they chase scale. A third-party valuation, commissioned for internal use, pegs the company's worth at ₹40–45 crore. Built for outcomes, not applause Unlike many independent agencies that bank on creative flair or network shops focused on scale, Wit and Chai positions itself around execution, efficiency, and business results. It competes with new-age firms like Schbang, Spring Marketing Capital, Talented, and Creativeland Asia, and Wondrlab. 'Most agencies chase likes. We chase outcomes," says Ghate. 'We beat Ogilvy for the global Hindustan Pencils mandate not because we were louder, but because we were focused," he claimed. Client retention is unusually high in an industry marked by short tenures. Long-term relationships with brands like Amul, Haldiram, and Kotak have allowed the agency to grow without aggressive pitching. 'Retained clients expand their mandates, which leads to better work and better visibility," he says. This consistent demand has led Wit and Chai to build a house-of-brands structure. It has acquired or taken stakes in three firms over the past 18 months: LMN Communications (for social), Pratisad (for BTL and traditional marketing), Yellout Media (an influencer agency managing talent like Danny and Atharva) and a fourth entity, OPQ Studios, which functions as its in-house production studio. All entities are now being merged under a new private limited structure, with Wit and Chai operating as the strategic comms core and other brands focusing on execution layers. 'It was getting too complicated as an LLP," says Ghate. 'Now everything is being brought under one roof." Talent, tech and the trust factor The agency claims to attract talent disillusioned by the image–driven world of legacy networks. 'People from Schbang, FCB and others have joined us not for bean bags but because they saw value," Ghate says. 'Our office has IKEA furniture, not a podcast studio. But the work is meaningful." Also Read: RCB dethrones CSK as most valuable IPL franchise; league value jumps to $18.5 bn Their business-first DNA also influences how they adopt technology. Ghate says martech has become a buzzword often misunderstood by both clients and agencies. 'Performance marketing is mathematics. But we're also exploring AI-led creativity where a system can understand a brand's voice and generate content accordingly," he says. In-house tools are built for scheduling and qualitative analysis, while complex tech is outsourced through partnerships. 'Tech has to be useful—not just cool." On the creative front, the agency is mindful of chasing virality. 'Too many brands want memes and AI content without understanding why. A hospital doesn't need to trend—it needs trust," Ghate says. For clients like Kotak or security solutions firms, the messaging is tuned accordingly. Scaling abroad, thinking long term The company is also deliberate in its expansion bets. While many Indian agencies head to the Middle East or Southeast Asia, Wit and Chai has picked the UK as its first global outpost. 'The UK has strong Indian business diaspora, better pricing leverage, and is insulated from EU turbulence," says Ghate. London operations are currently being built out to cater to Indian-origin businesses and local UK SMEs. Back home, Wit and Chai is setting up satellite offices in Delhi, Hyderabad and Bangalore, but no full-fledged offices beyond Pune and Mumbai for now. 'Clients don't care where we sit, as long as the work gets done," he says. The agency has also begun exploring new acquisition targets in performance marketing, particularly firms that use AI to optimise campaigns instead of relying purely on headcount. Regional agencies may also be on the radar, especially to meet rising client demand for vernacular storytelling. Future trends According to GroupM's TYNY 2025 report, India's total advertising market is projected to grow to ₹1.64 trillion this year, with digital media accounting for over 60% of the spend. As marketers increasingly prioritise performance, content, and commerce-led strategies, independent agencies operating at the intersection of creative and martech are well-positioned to capture this shift. Ghate believes this will lead to two parallel trends: consolidation by large groups and the rise of 5–10 person specialist shops powered by AI. Also Read: Fast fashion, slower thinking: Myntra's mugshot ad is dressed up with no insight 'There will be a senior talent crunch in the industry within a few years," he says. 'Anyone who's put in the grunt work will suddenly become rare and valuable." When asked what surprises outsiders most about building a creative agency, Ghate says: 'Cash flow. That's true for any business. But also the fact that a place like ours—with no fancy chairs or award shelves—is building serious brands." The short-term goal is to win big at global award shows like Cannes or Kyoorius. But the long-term plan remains rooted in business fundamentals. 'We're not married to advertising. We're here to build impact. That might mean building brands—or acquiring them," Ghate says. 'And if someone makes a good offer to buy us out? I have a few more names for the next agency ready."
The Hindu
an hour ago
- The Hindu
Indian Bank hands over sanction letters worth ₹1,011 cr to over 3,000 women
Public sector Indian Bank has handed over sanction letters worth ₹1,011 crore to over 3,000 women, extending financial support to Self Help Groups across Tamil Nadu. Ministry of Finance, Department of Financial Services, Secretary M. Nagaraju presented the cheques to the beneficiaries at a Mega Self Help Group Credit Outreach Programme held at Tamukkam Convention Centre, in Madurai. In his brief address, Mr. Nagaraju emphasised that access to capital for livelihood activities is crucial. "Such initiatives not only reduce the dependence on sources of informal credits but also help inclusion into the formal financial ecosystem," he observed. "More than 3,000 women from various self-help groups across Tamil Nadu were part of the event. Sanction letters to the tune of ₹1,011 crore were handed over during the mega SHG credit outreach programme," the Chennai-based bank said in a press release on Sunday (July 13, 2025). Indian Bank Managing Director and CEO Binod Kumar, Executive Directors Ashutosh Choudhury, Shiv Bajrang Singh and Brajesh Kumar Singh were present on the occasion. Indian Bank has so far assisted 5.09 lakh self help groups benefitting more than 60 lakh women. The bank currently stands as the 4th largest public sector banks in SHG financing with over 10 per cent market share and a credit portfolio of ₹22,224 crore as of March 2025, it said.
Economic Times
an hour ago
- Economic Times
Blinkit plans transition to inventory led model from September 1; pings sellers to switch
Blinkit is transitioning to an inventory-led model as planned after its parent Eternal became an Indian-owned and controlled company (IOCC) in April. The Gurugram-based quick commerce platform has asked its sellers to switch to a new system where the company will now buy the inventory from them, instead of just storing it in its warehouses for an email to sellers on Saturday, Blinkit said it will shift to a new model starting September 1. From that date, the platform will directly buy inventory from sellers and brands, instead of having them list products on the marketplace. Currently, Blinkit runs two models. In the marketplace model, sellers list their products and pay Blinkit to store them in its warehouses. In the second model, typically offered to larger and more well-renowned brands with high frequency purchases, select sellers buy products in bulk and sell them through the platform. With this change, Blinkit will now take over inventory buying itself and list the products directly. During the company's January-March quarter earnings, Eternal's chief financial officer Akshant Goyal had said that assuming Blinkit owned 100% of inventory in fiscal 2025, it would have ended up deploying less than Rs 1,000 crore in working capital. This accounts for 15 days of working capital, and about 3-4% of Blinkit's gross order value of Rs 28,274 crore in FY25. 'Last date to opt into the new system (is July 30). No new listings or inventory will be allowed after this date for non-accepted sellers,' Blinkit wrote in its email to the sellers. ET has seen a copy of this announcement.'(From August 31) Your inventory moves from your books to BCPL (Blinkit),' it adds. A founder at one of the brands that ET spoke with said that the change is expected to make processes less complex. 'Right now, whoever operates on the marketplace model has to add the Blinkit warehouses on their goods and services tax (GST) and FSSAI registrations (for food and beverage brands)...once Blinkit starts taking inventory through purchase orders, that hassle will go away since it will be treated like a sale and not a stock transfer,' he the sellers not willing to transition to the new model, Blinkit said in its email that it will return the inventory after deducting reverse logistics development was first reported by Eternal had first announced its plans to become an IOCC in April this year, after 51% of its shareholding became locally owned, analysts had said that the move will help the company have better control over inventory and margins particularly at a time when quick commerce companies are witnessing piling up of losses. Blinkit's rival, Zepto, has also been working to raise its domestic shareholding. Under India's foreign direct investment (FDI) rules, foreign-funded online marketplaces are not allowed to own inventory or control sellers on their platforms. Due to these restrictions, quick commerce platforms typically do not directly own the dark stores – micro-warehouses used for 10-minute deliveries – which are instead operated by separate entities.
