South Indian cities are witnessing growth in hospitality demand. Select markets – Bengaluru (Karnataka), Chennai (Tamil Nadu), Hyderabad (Telangana), Kochi (Kerala) and Mysuru (Karnataka) – will see limited growth, with only 12.3 per cent share of new supply between 1 April 2025 and 31 March 2030 (Source: Horwath HTL Report).
With only 13,700 rooms being added in select markets through March 2030, the overall supply share of select markets will decline from its current level of 22.9 per cent to 19.2 per cent, according to a Horwath HTL Report. The Hotel Association of India (HAI) estimates foreign tourist arrivals (FTA) to cross 30 million in India by 2037, while McKinsey estimates 5 billion domestic visits by 2030.
Over the longer term, HAI forecasts 15 billion domestic visits and 100 million FTAs by 2047. The growth in FTAs is expected to strengthen hotel average daily rates, particularly for upper-tier hotels (Source: Horwath HTL Report). The inventory supply is projected to grow at a CAGR of 7.3 per cent in Bengaluru, 3.8 per cent in Chennai and 4.8 per cent in Hyderabad during 2024-25 to 2029-30, compared to 5.4 per cent, 3.8 per cent and 3.5 per cent during 2014-15 to 2024-25, respectively.
Brigade Hotel Ventures Limited (BHVL), the second largest owner of chain-affiliated hotels and hotel rooms in South India (comprising Kerala, Andhra Pradesh, Tamil Nadu, Karnataka, Telangana, as also the Union Territories – Lakshadweep, Andaman & Nicobar Islands and Puducherry) is among the major private hotel asset owners, as of 31 March 2025.
The company’s promoter, Brigade Enterprises Limited (BEL), entered into the hospitality business in 2004 with the development of its first hotel Grand Mercure Bangalore, which commenced operations in 2009. BHVL has a portfolio of nine operating hotels across Bengaluru, Chennai, Kochi, Mysuru and the GIFT City in Gujarat, with 1,604 keys.
The BEL connection
“Our association with BEL gives us a competitive edge and allows us to leverage its brand reputation, relationships with corporate clients and expertise in developing real estate properties,” affirms Nirupa Shankar, MD, BHVL. “We benefit from BEL’s understanding of market trends and strategic location opportunities, enabling us to develop hotels in prominent areas with high growth potential. We also take advantage of BEL’s involvement in mixed-use developments to develop hotels as part of real estate projects. Further, BEL’s knowledge and resources enable us to develop quality hotels outside India in a cost-efficient manner,” she adds.
BHVL’s hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels group and are in the upper upscale, upscale, upper-midscale and midscale segments. The hotels provide a comprehensive customer experience, including fine dining and specialty restaurants, venues for meetings, incentives, conferences and exhibitions, lounges, swimming pools, outdoor spaces, spas and gymnasiums. The hotels are located in positive demand locations, driven by factors such as high population density, premium neighbourhoods, commercial centres and IT hubs. The average occupancy in BHVL for 2024-25 was 76.76 per cent, which was higher than the industry annual occupancy of 64.5 per cent in 2024-25.
BHVL’s hotels provide a comprehensive customer experience including fine dining and specialty restaurants, venues for meetings, incentives, conferences and exhibitions (MICE), lounges, swimming pools, outdoor spaces, spas, and gymnasiums. These hotels have been recognised for their quality and have received several awards.
BHVL plans to launch its public issue in July 2025 and will be raising fresh issue of equity shares aggregating up to Rs759.6 crore and an implied market cap of over Rs3,400 crore. The company proposes to utilise the net proceeds towards repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company and material subsidiary, SRP Prosperita Hotel Ventures, amounting to Rs468.14 crore. The repayment amount will include Rs413.69 crore availed by the company and Rs54.45 crore by SRP Prosperita Hotel Ventures. The net proceeds will also be used towards the payment of consideration for buying of undivided share of land from our promoter, BEL amounting to Rs107.52 crore, as well as for pursuing inorganic growth through unidentified acquisitions, other strategic initiatives and general corporate purposes