1. At a Glance
Advent Hotels International Ltd is what happens when Indian real estate finally decides to dress up, put on a tuxedo, and enter the luxury hospitality ballroom. Freshly demerged, freshly listed, and freshly judged by the market, Advent is currently sitting at a market cap of ₹1,181 Cr, a stock price of ₹219, and an enterprise value flirting with ₹1,947 Cr.
The company operates just 484 keys today, yet trades at a P/E of 40.3, with ROCE of 3.28% and ROE of 0.65% — numbers that look underwhelming until you realize the balance sheet is still digesting a demerger, CWIP-heavy assets, and hotels that haven’t even opened their doors yet.
Q3 FY26 brought fireworks: PAT jumped 175% YoY, quarterly profit clocked ₹28.5 Cr, and operating margins expanded to 43%. Occupancy stayed strong at 82%, ARR touched ₹13,085, and RevPAR landed at ₹10,769.
Is this a luxury hotel company or a luxury patience test for investors? Let’s find out.
2. Introduction
Advent Hotels International is not your typical hotel stock. It doesn’t have hundreds of operating properties, it doesn’t have decades of public market history, and it definitely doesn’t have stable ROE yet. What it does have is ambition, premium locations, and a pipeline that makes most hotel CFOs sweat nervously.
Born out of the demerger from Valor Estate (formerly DB Realty), Advent is essentially the hospitality crown jewel that was carved out and given its own identity, board, and balance sheet. Think of it as a startup wearing luxury brand logos — Grand Hyatt, Hilton, St. Regis, Waldorf Astoria — but funded with real estate DNA.
Right now, revenues are coming from just two hotels. But the valuation already
assumes a future where Advent operates thousands of keys across India’s most expensive micro-markets. That gap between today’s fundamentals and tomorrow’s vision is where all the drama lives.
So the real question isn’t “How did Advent perform last quarter?”
It’s “Do you believe this hotel pipeline actually gets built on time, on budget, and at the margins management is dreaming of?”
3. Business Model – WTF Do They Even Do?
Advent’s business model is simple in theory and brutal in execution:
- Own or JV luxury hotels
- Tie up with global brands
- Build in premium micro-markets
- Wait patiently while cash burns
- Enjoy annuity-like EBITDA once stabilized
Currently operating assets:
- Grand Hyatt Goa – 313 keys (owned), plus 113 keys expansion WIP
- Hilton Mumbai International Airport – 171 keys (owned)
That’s it. Two hotels. Yet revenue already stands at ₹367 Cr annually, with OPM of ~36%.
Revenue mix (Q1 FY26):
- Rooms: 64%
- MICE / Events: 19%
- F&B: 13%
- Others: 4%
This is textbook luxury hospitality — rooms lead, events add juice, F&B supports margins.
The real kicker is the pipeline. Advent isn’t adding hotels slowly. It’s trying to scale like a real estate developer on
