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Hotels become real investment asset
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Friday, 03 July, 2026, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Noesis Hotel Advisors has released a new report titled, ‘The Art and Science of Buying and Selling Hotels’. The report studies around 125 hotel transactions in India covering 37,847 keys and Rs 36,564 crore of disclosed deal value. Its point is direct. The Indian hotel is no longer just a business that hotel companies run. It has become a real investment asset. The buyers now include developers, family offices, institutional investors, lenders, landowners and a new wave of first-generation owners.
Across the deals studied, the average works out to about Rs 97 crore per key. That average hides the real story. Luxury hotels made up only 29 deals yet accounted for Rs 22,033 crore of value, at about Rs 1.68 crore per key. Budget hotels were the opposite. 48 deals moved 14,903 keys at about Rs 0.38 crore per key. Institutional investors alone were behind Rs 21,812 crore of the value. Large multi city portfolios accounted for Rs 15,095 crore, which shows that size on its own has become something investors will pay for.
The report speaks to every part of the hotel business. For an owner with a single hotel, it shows that the same asset can mean very different things to different buyers, so price per key alone tells you little. For a developer, it lays out six clear ways to enter, from buying a running hotel to taking on a distressed asset, a half-built project, a part stake or a piece of land with hotel potential. For a family office or a wealthy investor, it turns rising incomes and growing travel into a clear way to take part without repeating other people’s mistakes. For an operator or a lender, it is a reminder that brand fit, capital structure and feasibility decide the next ten years of a hotel long before the first guest walks in.
Nandivardhan Jain, founder and CEO, Noesis, said, “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.”
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