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The Adani Group is accelerating its expansion into the hospitality sector, with plans to develop more than 60 hotels across India, according to a report by The Times of India. The move could place the group among the country’s largest hotel asset owners and signals a broader FINANCE-driven strategy linked to its airport business.
At first glance, hospitality appears to be a challenging sector. Hotels operate with thin margins, face seasonal demand swings, and require continuous spending on staff and maintenance. However, the group’s strategy does not focus on running hotels directly.
Instead, the Adani Group plans to own hotel real estate while partnering with established hotel operators for day-to-day management. This asset-heavy, operations-light model already exists in India’s STOCKMARKET.
Listed player Chalet Hotels follows a similar structure. Chalet owns premium hotel and commercial properties, mainly near airports and business hubs, while global brands such as Marriott and Westin manage operations. This approach allows asset owners to earn stable income through management fees and revenue-sharing arrangements without taking on operational risks.
Industry observers believe Adani is adopting the same playbook. By owning hotel infrastructure and monetising it through partnerships, the group can compete with major hospitality brands such as Taj, ITC, and Oberoi without building its own hotel brand.
This strategy also aligns with the group’s earlier investments in distressed infrastructure assets. The Adani Group aggressively acquired Jaypee Group assets, which were weighed down by nearly ₹55,000 crore in debt. After removing the debt overhang and integrating these assets into its infrastructure ecosystem, the group significantly improved their value.
A similar opportunity exists with assets owned by the Sahara Group, which includes hotels, malls, office spaces, and residential properties across India. Sahara is currently selling assets under court supervision to repay close to $2.8 billion to investors.
From a FINANCE perspective, hotel assets often carry high borrowing costs due to their cyclical nature. Infrastructure assets, however, attract cheaper funding. By repositioning airport-adjacent hotels as infrastructure-linked assets, the group could refinance debt at lower interest rates, potentially saving hundreds of crores annually.
The timing of this hospitality push also reflects a larger objective. All hotel assets will sit under Adani Airport Holdings Limited (AAHL), which may be demerged and listed on the STOCKMARKET in the future. To attract investors, AAHL needs a diversified and predictable revenue profile.
Currently, airport revenue depends on aeronautical fees and non-aeronautical income from retail, food, lounges, and advertising. These revenues fluctuate based on passenger traffic, which airports cannot fully control.
Hotels offer a solution. Airport hotels generate steady demand from business travellers, airline crews, conferences, and events. This consistent activity increases spending across the airport ecosystem and improves revenue stability.
The strategy extends beyond hotels. Earlier this year, the group announced plans to develop Mumbai’s largest international convention centre near the airport, positioning it as a competitor to Reliance’s Jio World Convention Centre. Such infrastructure attracts large-scale events, international visitors, and frequent business travel, further boosting airport-linked revenues.
Together, hotels, convention centres, and airports create a diversified infrastructure platform rather than a standalone aviation business. This integrated approach strengthens the investment case for AAHL ahead of a potential listing.
The Adani Group plans to invest nearly $11 billion over the coming years to expand its airport network. Analysts say the strategy reflects a broader shift in INDIA’s infrastructure FINANCE landscape, where airports increasingly function as multi-revenue commercial hubs rather than just transit points.
