Office clusters, corporate travel to drive next growth for hotel firms

Ventive, Brigade, Samhi and Chalet to bring majority of new inventory to metro office hubs

A 15-20 per cent rise in average room rents and higher than average daily occupancy rates in hotels situated in office clusters are nudging hotel asset management companies (AMCs) like Ventive Hospitality, Brigade Hotel Ventures, Samhi Hotels and Chalet Hotels to redraw their growth roadmaps.

 

The companies that make hotel assets for major global and Indian hospitality brands to run them, are planning to bring majority of their upcoming supply to these office clusters, in Mumbai, Bengaluru, Gurugram, New Delhi and Hyderabad, which account for 28 per cent of the nationwide room supply.

 

These cities together saw average daily rate (ADR) grow by about eight per cent, with a rise of over 12 per cent in RevPAR (revenue per available room) on a year-on-year (Y-o-Y) basis, according to Hotelivate’s 2025 Indian Hospitality Trends and Opportunities report released in October.

 

The portfolio of upscale and luxury hotels, located in high-demand urban business hubs, will also benefit from the sharp rebound in both domestic and international travel.

 

Taking cue, Blackstone-backed Ventive Hospitality is adding 75 per cent of the new inventory of 1,581 keys in Navi Mumbai, Pune, and Bengaluru, located primarily within major office-led metro markets.

 

Brigade Hotel Ventures, which has a strong presence in Bengaluru, Chennai, and Hyderabad markets, also expects a significant majority of its new inventory to be in metro or Tier-I locations anchored by office clusters in the next three to five years, as the cities continue to offer robust demand and better yield potential for the company.

 

Chalet Hotels has added 121 rooms at the Marriott Bengaluru Hotel Whitefield, which has seen a strong market response, reinforcing the demand tailwinds in key metro corridors and the office-connected micro markets, it said in its annual report.

 

The company did not respond to Business Standard’s email query.

 

“Proximity to major office clusters is a significant factor in our expansion strategy,” Vineet Verma, director, Brigade Hotel Ventures, told Business Standard.

 

He added, “These hubs drive consistent corporate travel demand, which aligns well with our business hotels segment. Locations near IT parks, financial districts, and large corporate campuses offer strong weekday occupancies and higher revenue per available room (RevPAR) stability.”

 

Verma added that currently over 60 per cent of the company’s inventory keys are in key metro cities such as Bengaluru and Chennai.

 

Additionally, room rates in prime office clusters are typically 15-20 per cent higher than those in non-commercial or peripheral areas, driven by strong weekday demand and premium positioning.

 

Ranjit Batra, chief executive officer (CEO), Ventive Hospitality, agreed with Verma.

 

Batra said that hotels in office-led micro markets command RevPAR premiums compared to the national average, supported by consistent corporate and meetings, incentives, conferences and exhibitions (MICE) demand.

 

He highlighted that co-location with Grade-A offices also sustains strong long-stay, banqueting and food and beverage (F&B) performance for the hotel properties.

 

Panchshil Group-promoted Ventive Hospitality has its hotel properties, like The Ritz-Carlton, JW Marriott, and Courtyard Marriott in Pune, which are co-located within thriving commercial hubs.

 

The company is already developing a Marriott-branded hotel in Varanasi and has recently announced its entry into Goa with the Hilton Goa Resort. Both these regions showcase that emerging leisure-business destinations fit into its growth strategy that complements its metro-focused business hotel portfolio, Batra said.

 

“Tier-II and III cities with growing IT or global capability centres (GCCs) or industrial corridors are increasingly attractive,” Verma said, adding that the company is actively evaluating opportunities in these markets as part of its medium-to-long term growth strategy.

 

Samhi Hotels said in its annual report that as the nation continues to emerge as a global hub for services, it's witnessing a strong and sustained increase in demand for quality hospitality infrastructure across key commercial corridors.

 

An email query sent to Samhi Hotels did not elicit a response. The company has several hotels under development and some in the planning and designing stage across cities like Hyderabad, Pune, Delhi, Chennai and Bengaluru, according to its annual report.