Noesis says that the Indian hotel are no longer just a business that hotel companies run, it has become a real investment asset (Photo: India and You)
Analysing around 125 hotel transactions covering 37,847 keys worth INR 365.64 billion, Noesis Hotel Advisors, a hospitality consulting firm, says that hotels in India are emerging as a mainstream investment asset, attracting institutional investors, developers, family offices, lenders, landowners and first-generation hotel owners.
In a press statement, Noesis says the study shows that the average transaction value stood at around INR 9.7 million per key, while institutional investors emerged as the largest buyer group with investments worth INR 218.12 billion. Large multi-city hotel portfolios accounted for INR 150.95 billion in deal value, reflecting strong investor appetite for scale.
The statement says that although luxury hotels accounted for only 29 transactions, they represented INR 220.33 billion in value at an average of INR16.8 million per key. In comparison, 48 budget hotel deals covered 14,903 keys at an average value of INR 3.8 million per key, highlighting the wide variation in hotel asset pricing across segments.
According to the report, the expanding buyer base now includes developers, family offices, institutional investors, lenders, landowners and new-generation hotel owners. It also outlines six investment routes, including acquiring operational hotels, distressed assets, partially completed projects, minority stakes and land with hotel development potential.
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The report draws on real advisory assignments to demonstrate how investment decisions should be based on business fundamentals. In one South India case, a promoter who invested around INR 11 billion in a 140-room hotel approached Noesis to raise funds for completion. The firm found that the hotel was oversized for its market and carried excessive debt, recommending a sale instead. The property was eventually sold for around INR 940 million. In another case, a Jaipur resort was repositioned as a wedding destination under a new brand, increasing inventory from around 70 rooms to 145 rooms while improving room rates.
Nandivardhan Jain
“For most of the last two decades India treated hotels as a passion business. That time is over. A hotel is a working business that sits inside real estate. Its value comes from the cash it earns, not from the size of its lobby. Owners who understand this are building real wealth. Owners who do not are simply paying for someone else’s future purchase,” says Nandivardhan Jain, Founder and CEO, Noesis.
The statement adds that India continues to face a shortage of quality hotel rooms even as investment interest rises, creating favourable conditions for buyers and sellers who base decisions on financial fundamentals.
“India still has too few quality hotel rooms and capital has finally noticed. This is the best window in ten years to buy the right hotel or to sell a good one at the right price. The mistake is to buy or sell without doing the math first,” Jain adds.
