1. At a Glance – Goa, Golf, and Glorious Cash Flows
One hotel. One beach. One golf course. And somehow ₹575 Cr market cap.
Advani Hotels & Resorts (India) Ltd is the definition of “don’t underestimate a well-located asset.” While most hotel companies are busy adding rooms, brands, debt, and headaches, Advani Hotels has spent decades doing just one thing: running the Caravela Beach Resort in South Goa and squeezing every possible rupee out of it—politely, of course, with towels folded like swans.
Current price sits around ₹62, stock P/E ~23.8, dividend yield a juicy 3.06%, and ROCE that would make capital-intensive industries cry at 45%+. Debt? Basically decorative—₹0.43 Cr, which is what some hotel chains spend on minibar peanuts annually.
Latest quarterly revenue came in at ₹36.1 Cr, with PAT ₹11.3 Cr, even after seasonality punched Q2 and Q3 in the face. Occupancy in FY24 stayed above 83%, which in hotel language means “rooms are rarely empty unless Goa is underwater.”
But here’s the real hook:
👉 This is a single-asset hotel company outperforming multi-city chains on ROCE and dividends.
So is this operational brilliance… or just Goa being Goa? Let’s unpack.
2. Introduction – One Hotel to Rule Them All
Advani Hotels is not trying to be Indian Hotels. It’s not chasing Lemon Tree’s expansion itch. It’s not playing Marriott Monopoly across the country.
Instead, it has committed the ultimate corporate sin in India: focus.
Founded in 1987, the company owns and operates the Caravela Beach Resort, a 201-key, 5-Star Deluxe golf resort sitting on 23 acres of prime Varca Beach land in South Goa. That’s not an operating asset—that’s real estate poetry.
While most hotel companies juggle asset-light models, management contracts, and brand fees, Advani Hotels does the boring thing:
- Own the land
- Own the hotel
- Run the
- hotel
- Pay dividends
And then repeat.
Post-COVID, when travel revenge became a national hobby, this single hotel quietly printed cash. FY23 and FY24 saw revenue and margins normalize sharply, while FY25 and FY26 show stability rather than explosive growth—which is actually impressive for a mature asset.
But here’s the question worth asking:
👉 Can one hotel keep justifying a ₹575 Cr valuation forever?
3. Business Model – WTF Do They Even Do?
Short answer: They sell Goa.
Long answer:
Advani Hotels earns money through hospitality services, broken down neatly in FY23 as:
- Room Sales – ~63%
- Food Sales – ~24%
- Wine & Beverages – ~5%
- Sightseeing & Transport – ~3%
- SPA, Health Club & Others – ~1–3%
- Fair value gain on mutual funds – ~1%
Translation:
Guests come for the beach, stay for the rooms, overspend on food, and accidentally subsidise shareholder dividends.
What’s interesting is how operationally conservative the company is. Instead of adding rooms aggressively, management focused on:
- Waterproofing the South Wing
- Lobby and entrance upgrades
- Room renovations
- Kitchen and machinery upgrades
- Adding luxury coaches and Innova Crystas for guest transport
No vanity expansion. No “let’s add 500 rooms because consultants said so.” Just asset sweating.
So here’s the lazy investor test:
👉 Would you rather
