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Bengaluru: Ventive Hospitality Ltd, a joint venture between Pune-based real estate developer Panchshil Realty and global asset manager Blackstone, is looking to expand its hotel business to capitalize on a surge in leisure travel and temple tourism in India, senior company officials told Mint.
The firm, which owns upscale hotels including Ritz Carlton Pune and Aloft Bangalore, is planning to expand the business both through organic and inorganic routes. It will acquire hotel assets across cities and also develop projects from the ground up.
Blackstone and Panchshil together own more than 80% of Ventive Hospitality, which is set to raise ₹1,600 crore through an initial public offering (IPO). The proceeds of the IPO will be mainly used to pare debt. The offering comprises only a primary share issue and has no offer-for-sale component, and includes reservation of shares worth ₹1 crore for the company’s employees, according to its red herring prospectus. The price band is set at ₹610-643 and the IPO will remain open for bidding during 20-24 December.
The platform has 11 operational hotel properties with 2,036 keys, of which eight are in India including JW Marriott Pune, and three in the Maldives including Raaya by Atmosphere. It also has some office and retail space as part of mixed-use developments.
Ventive Hospitality is currently developing three hotel projects with 367 keys- a Marriot-branded hotel in Varanasi, and one each in Sri Lanka and Bengaluru.
“The idea of Ventive came about with the whole concept of us setting up scalable platforms in the country. In hospitality, the big play was how one can target the aspirational Indian business and leisure traveller. Our key markets are the business growth markets,” Asheesh Mohta, senior managing director and head of real estate acquisitions, India, at Blackstone, told Mint in an interview.
Ventive’s key markets are the business growth markets. Besides Bengaluru and Pune, the company plans to expand in some of the other large office markets, he added.
While Ventive Hospitality is a relatively new joint venture between Blackstone and Panchshil, the partnership of the duo goes back to 2008-09, when Blackstone invested in the latter’s commercial office project in Pune.
Temple tourism, or spiritual tourism, in India accounts for 30% of the country’s overall travel and tourism sector, according to a report by property advisory Colliers. More than 1.4 billion tourists visited religious sites across the country in 2022, generating over $16 billion in revenue during the year, according to data by the Union tourism ministry.
“Ventive is exploring relevant places beyond Varanasi as well,” said Atul Chordia, chairman of Panchshil Realty and executive director at Ventive Hospitality.
The firm is also looking to set up premium hotels in non-metro regions such as Sindhudurg, a district in Maharashtra, which is in close proximity to Goa’s Mopa airport.
Blackstone’s Mohta said that Ventive is a unique partnership that combines Panchshil’s development and operational expertise and Blackstone’s acquisition and financing capabilities.
“Today, we are India’s third-largest hotel operator and the vision for the next 5-7 years is to get to number one,” Blackstone’s Mohta added.
Blackstone, which opened its real estate division in India in 2007, has focused largely on investing in the office sector and shopping malls. It later diversified into industrial real estate and warehousing, a platform it has been scaling up very fast under Horizon Industrial Parks.
Hospitality is a new real estate asset class for Blackstone in India, though it has funded large office parks that also have hotels.
“While we have hotels in Sri Lanka and the Maldives, going forward we will be focusing on acquiring or building hotels across cities within the country,” said Chordia of Panchshil Realty, which is the largest office developer in Pune, with a 22 million sq ft portfolio.
In FY24, Ventive Hospitality posted a net loss of ₹66.7 crore, against a profit of ₹15.7 crore in the previous year. Revenue during the financial year ended March 2024 stood at ₹1,842 crore, up 8.4% compared to ₹1,699.4 crore in FY23.
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