Real estate developer Sattva Group plans to expand its hospitality business amid rising travel demand and higher consumer spending on premium experiences.
The Bengaluru-based company, which has co-developed JW Marriott Hotel Kolkata and Novotel Kolkata Hotel and Residences, is building a wider hospitality pipeline spanning Bengaluru, Hyderabad, Visakhapatnam and Darjeeling.
“We will invest 10-20% of our turnover into the hotel business going forward,” Adrija Agarwal, president of Sattva Group told Mint. “We see hospitality as a serious asset class for us now. For years, hospitality was seen as a ‘white elephant’ because hotels take time to build and stabilise. But the structural drivers today are very different.”
Sattva’s expansion comes amid a broader shift among Indian real estate developers towards hospitality assets as room rates and occupancies remain high after the pandemic-led travel rebound. Developers such as Prestige Group, Brigade Group and DLF Ltd. have also expanded into hotels and branded residences.
India’s hotel market currently has over 200,000 organised rooms and this is expected to rise to nearly 350,000 rooms by FY30, according to HVS Anarock.
“One of the strongest stories in hospitality right now is that everybody wants to build a hospitality portfolio,” said Navneet Nagpal of Spectra Hospitality Services. He added that high-quality hotel assets are commanding valuation multiples of nearly 15 times Ebitda, reflecting stronger investor appetite.
“There is a willingness to spend on better hotels and experiences now. Five years ago, the difference in pricing between a luxury hotel and a mid-market hotel was not dramatic. Today, the gap is huge because consumers are willing to pay for differentiated products,” Agarwal said.
Next big bet
Its next project is a 340-key Taj resort in Bengaluru, expected to soft-launch toward the end of 2027. The company plans an upscale business hotel in Hyderabad, a mixed-use hospitality-led development in Visakhapatnam and boutique leisure projects in eastern India, including the Darjeeling belt in West Bengal.
The company’s upcoming projects will focus on premium and luxury hospitality, spanning city hotels, weddings-focused assets and boutique leisure properties. Sattva is also betting on India’s weddings and events economy, which has emerged as a major revenue driver for premium hotels.
“The wedding market in India is massive, but quality inventory is still limited. Destination weddings abroad have become significantly more expensive, and people are increasingly choosing to celebrate within India,” she said.
The Bengaluru Taj resort, spread across 33 acres and announced in 2022, is expected to open by early 2027 as a weddings, meetings and events destination with around 340 rooms and a 20,000 sq ft banquet facility.
It was initially planned on a smaller scale before being expanded as demand projections improved. “We became very cognisant that if there is a good (hotel) product, there is strong demand for it,” she said.
The Hyderabad project is being planned as an upscale business and events-focused hotel, while the Vizag development is expected to become a mixed-use ecosystem integrating hospitality, residential, office and retail spaces.
“Vizag is a hugely underpenetrated market with strong long-term potential. Connectivity is improving, the government is proactive and it reminds me of what Hyderabad looked like 15 or 20 years ago,” she said.
At present, it works with hotel management companies like Marriott, Indian Hotels Company Ltd and Accor, and plans to remain flexible in future partnerships. “Every city has different supply dynamics. We don’t want to create our own competition by repeating the same brand everywhere, so we will be brand agnostic,” she added.
The hospitality sector is seeing consolidation as hotel companies and investors deploy capital, with more than 64,000 hotel keys signed in 2025, a 35.7% increase from the previous year, according to HVS Anarock.
Despite concerns over a future supply surge, Agarwal remains positive on the sector’s long-term fundamentals. “I don’t think the structural story changes. More Indians are travelling, incomes are rising, aviation connectivity is improving and experiences are becoming central to consumption,” she said.
As per publicly available documents, Sattva Developers reported a turnover of ₹732.1 crore in FY25.
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