Walk past the Ritz-Carlton in Pune or step into one of Ventive’s Maldivian resorts, and it is easy to see why investors are intrigued. Ventive Hospitality has built a portfolio that mixes luxury hotels with steady rental income from offices and malls, and the stock market has rewarded it with a valuation of nearly 150 times earnings. That makes it one of the most expensive hospitality stocks in India. The company’s latest quarter adds fuel to that story. In Q1 FY26, Ventive’s revenue touched Rs 520 crore, up 18 percent year on year. Its hotels in India managed 13 percent growth despite disruptions in May, while its Maldivian resorts surged 33 percent, thanks to strong demand and the ramp-up of the newly acquired Raaya by Atmosphere. Profitability stayed strong too: EBITDA margins held at 42 percent, with hospitality profits climbing 35 percent and the office rental portfolio steady at 97 percent occupancy. But numbers only tell part of the tale. Investors are paying for a vision that Ventive can turn premium locations, glossy restaurants, and new hotel openings into a much larger luxury platform. The open question is whether this premium pricing in the market reflects a business already delivering, or one that still needs to prove it can scale without losing its shine. How Ventive makes its money To understand Ventive, think of it as running two businesses under one roof. The first is the luxury hotel story. Ventive owns and operates high-end hotels and resorts in India and the Maldives, flying the flags of brands like Marriott, Ritz-Carlton, Conrad, and Anantara. These are not budget hotels trying to fill every room. Instead, they are designed to extract more from each guest who walks in, whether it is through premium room rates, fine dining, rooftop bars, weddings, or banquets. That is why the company focuses on a metric called TRevPAR (Total Revenue per Available Room), which captures everything a guest spends on the property, not just the room rate. The numbers show how central this is: in FY25, nearly one-third of hotel revenue came from food and beverage, and in some properties it was close to half. What makes it even more interesting is that most of these diners are not staying in the hotel. About 80 percent of F&B guests are locals or walk-ins, which means the business is not entirely dependent on tourists or occupancy levels. The second part is a steady rental business. Ventive owns commercial offices and retail spaces in Pune that are almost fully leased out at 97 percent occupancy. These assets quietly generated Rs 124 crore of revenue and Rs 111 crore of EBITDA in Q1 FY26. With margins close to 90 percent, this arm provides a cushion of predictable cash flows that hotel-only companies often lack. Together, these two engines – luxury hospitality and annuity rentals – explain why Ventive gets investor attention. The hotels offer growth and brand power, while the rentals give stability and financial comfort. Margins, occupancy, and the pricing playbook Ventive has built a reputation for profitability that stands out in the hotel industry. In Q1 FY26, the company earned Rs 520 crore in revenue, up 18 percent year on year. Of this, hotels brought in Rs 386 crore while the rental business added Rs 124 crore. The real highlight was operating profit: EBITDA was Rs 220 crore, with margins at 42 percent. For every Rs 100 of revenue, more than Rs 40 stayed as profit before interest and depreciation, a level most hotel companies rarely achieve. The hotel side alone posted Rs 111 crore of EBITDA, up 35 percent year on year. Hotels in India contributed Rs 63 crore, growing 28 percent, driven by higher room rates and strong food and beverage sales. International resorts, mainly in the Maldives, added Rs 48 crore, rising an impressive 47 percent. In India, 72 percent of incremental revenue flowed directly into EBITDA, showing how tightly costs are managed. Meanwhile, the rental arm continued to be the steady engine, generating Rs 111 crore of EBITDA on Rs 124 crore of revenue, running at margins close to 90 percent. What makes this even more striking is that Ventive has managed these profits without chasing maximum occupancy. In India, hotel occupancy was in the mid-60s percentage range, lower than the 70-75 percent levels seen in gateway cities. Instead, Ventive has pushed Average Daily Rates (ADR) higher up about 10 percent year on year in Q1 and focused on TRevPAR. This metric captures not just the room, but also spending on restaurants, bars, weddings, and banquets. In fact, about one-third of hotel revenue comes from food and beverage, and in flagship properties, it is closer to half. Importantly, 80 percent of diners are non-resident guests, meaning the hotels earn even when rooms are not full. This playbook — fewer rooms sold at higher rates — combined with strong non-room spending gives Ventive a cushion. Management believes occupancy has headroom to rise from current levels toward 70-75 percent in the medium term, especially in Pune, where new offices, airports, and infrastructure projects are driving travel demand. Each percentage point of higher occupancy can significantly lift profits because most fixed costs are already covered. The Maldives resorts are also benefiting from higher tourist arrivals and infrastructure upgrades, helping occupancies inch closer to industry norms. By balancing high pricing power with gradual occupancy gains, Ventive is showing that luxury hospitality can deliver both exclusivity and profitability. Expansion pipeline: Betting big on the next 5 years The market’s excitement about Ventive is not just about what it has already built, but what it plans to create next. Today, the company runs about 2,000 hotel keys across India and the Maldives. Over the next five years, it wants to double that number. The growth story is anchored in a recent blockbuster deal with Marriott International. In July 2025, Ventive signed seven new projects under Marriott brands. These include a Ritz-Carlton Reserve in Sri Lanka with 73 villas and branded residences, a 161-room Marriott in Varanasi, and a 200-room Courtyard by Marriott in Mundra. On top of this, Ventive’s promoter group is developing a 450-key JW Marriott in Navi Mumbai and three Moxy hotels in Navi Mumbai and Pune, together adding another 664 keys. Ventive has the right of first offer to acquire these properties once they are ready, ensuring that shareholders benefit from the growth pipeline. All told, these additions will bring 1,582 new keys directly into Ventive’s portfolio by FY27, with another 500 keys targeted through acquisitions, particularly in luxury leisure and branded residences. The company is deliberately expanding into markets where supply is limited and demand is rising from religious tourism in Varanasi, to industrial hubs like Mundra, to first-mover opportunities in Navi Mumbai. This scale-up will not come cheaply. The estimated capital outlay is Rs 2,200 crore for the committed projects, spread over the next three years. Ventive plans to fund this through a mix of internal cash generation and modest leverage. As of Q1 FY26, net debt stood at Rs 1,679 crore with a comfortable net debt-to-EBITDA ratio of under 2. The company also has steady cash flows from its rental arm, which helps reduce dependence on debt. If executed well, this pipeline could transform Ventive from a regional luxury operator into one of India’s most visible hospitality platforms. But it also raises the stakes. New hotels take years to stabilise, and any delays or cost overruns could affect returns. The company’s challenge will be to balance speed of expansion with the same discipline it has shown so far in managing costs and profitability. Valuation and what investors should take away At nearly 150 times trailing earnings, Ventive trades at a multiple that is more common for high-growth technology firms than hotel companies. To put this in perspective, Indian Hotels, the owner of Taj, trades at about 55-60 times earnings. Lemon Tree Hotels and Chalet Hotels, both respected operators in midscale and upscale segments, are valued at around 50-80 times. Even Oberoi (EIH Hotels), a brand synonymous with luxury, trades at less than 40 times. So why is the market willing to pay such a steep premium for Ventive? One reason is its operating margins. With a consolidated EBITDA margin above 40 percent and near 90 percent margins from its rental arm, Ventive is more profitable than most peers on a per-rupee basis. Another is its growth runway. The company’s plan to double its hotel inventory in five years, while also expanding branded residences, suggests a pace of expansion faster than larger incumbents. Finally, the deep tie-up with Marriott International provides global brand equity and access to 240 million Bonvoy loyalty members, a pipeline of customers that few rivals can match. But these positives are already baked into the price. At its current multiple, the stock leaves little room for error. Any slip in execution, a delayed project, a soft season, or margin pressure could quickly reset expectations. The company’s return on equity is still low, under 3 percent, reflecting how much capital has been deployed relative to current earnings. For the premium to be justified, earnings need to grow significantly faster than revenues over the next few years. For retail investors, Ventive represents a high-risk, high-reward bet. On one hand, it offers exposure to luxury travel, rising consumer spending, and the scarcity of premium hotel assets in India and the Maldives. On the other hand, it is priced as if the future growth will materialize exactly as planned. The safer peers like Indian Hotels or even Chalet may not deliver the same explosive upside, but they trade at far lower valuations with more predictable earnings. Ventive’s story is compelling: a blend of luxury hospitality and steady rentals, backed by a bold expansion pipeline. The numbers so far show discipline and profitability. Yet at 150x earnings, the stock is demanding perfection. Investors must ask themselves whether they believe Ventive can deliver that not just in one quarter, but consistently, year after year. Note: This article relies on data from annual and industry reports. We have used our assumptions for forecasting. Parth Parikh has over a decade of experience in finance and research and currently heads the growth and content vertical at Finsire. He holds an FRM Charter and an MBA in Finance from Narsee Monjee Institute of Management Studies. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.
