At a leadership panel on “Seizing Opportunities: The Next Wave of Investments in Hospitality,” moderated by Rajiv Kaul, Founder of Kaul Advisory, industry heavyweights Snehdeep Aggarwal, Founder and Chairman of Bhartiya Group, and Sanjay Saraf, Chairman of Saraf Group, explored emerging trends in hospitality and the potential for transformative growth in India’s luxury and experiential sectors.
Rajiv Kaul: Hospitality’s New Dawn
Rajiv Kaul kicked off the discussion by acknowledging the current hospitality upcycle, marked by record results and valuations. However, he emphasized the importance of sustaining this momentum. “For years, we’ve talked about the need for more rooms, more tourism circuits. Today, we’ll examine the opportunities ahead,” Kaul said, introducing the panelists as leaders with the conviction to take action in this evolving market.
Sanjay Saraf: From Accidental Hotelier to Luxury Innovator
Kaul introduced Sanjay Saraf, noting his diverse background in steel and tea before venturing into hospitality with a bold investment in Navi Mumbai. Saraf seized the opportunity during the pandemic, acquiring valuable land near the upcoming Navi Mumbai airport. “Bombay is transforming, and with the new airport and improved connectivity, Navi Mumbai offers the luxury of space,” Saraf explained. He revealed plans for an urban luxury resort and branded residences, a concept he believes will revolutionize hospitality in India. “We’re planning an urban luxury resort with branded villas, something that hasn’t yet gained popularity in India, but I think it will be a game-changer.”
Snehdeep Aggarwal: Rethinking Resorts for an Evolving Market
Snehdeep Aggarwal, with his successful transition from fashion to real estate, shared his vision for reimagining resorts in India. He argued that most “resorts” in the country are essentially city hotels in rural locations. “What we lack are true experiential resorts—places where people can disconnect from everyday life and reconnect with themselves,” Aggarwal said. He stressed that as India’s economy grows, people are seeking experiences beyond basic needs. “There’s a huge opportunity to create resorts that offer the beauty of life, not just opulent buildings.”
Aggarwal also pointed out that while India welcomed 10 million tourists last year, most were business travelers staying in city hotels, not resorts. He believes the future lies in developing destinations akin to Shimla and Mussoorie, places that can cater to both domestic and international tourists seeking more meaningful, immersive experiences.
Kaul: India’s Untapped Potential in Branded Residences
Kaul highlighted the relatively untapped market for branded luxury residences in India, pointing to examples in other countries where properties in the $5 million to $10 million range are common. Saraf agreed, noting that post-COVID, there has been a growing demand for “silent luxury” and larger living spaces. “Indians are now well-traveled, and the market is mature. People want a lifestyle, not just real estate,” he said. Saraf believes that branded residences, combined with luxury hotels, will soon gain traction in India, aligning with global trends seen in destinations like Bali and Phuket.
During the panel discussion on “Seizing Opportunities in Hospitality,” Rajiv Kaul engaged Sanjay Saraf in a conversation about the relatively untapped potential of branded luxury residences in India. Kaul pointed out that while markets around the world have long embraced high-value branded residences—such as $5 million to $10 million properties—India has yet to see a significant uptake of this trend. “We’ve seen some success, like Leela’s project in Bharatiya City, but residences of that value are still rare in India. Why do you think that is, and what does the future hold?” Kaul asked.
Sanjay Saraf attributed the shift to changing consumer preferences, especially post-COVID. “People now seek larger spaces and what I call ‘silent luxury.’ This desire has only recently emerged in India, driven by a more well-traveled and discerning market,” Saraf explained. He noted that while the concept of branded luxury residences has long been successful in countries like Thailand and Vietnam, India’s market is now maturing and ready to embrace this lifestyle change. “It’s a costly investment, but as people experience this shift, there will be a growing demand for branded villas and residences,” Saraf predicted. He also highlighted the synergy between branded residences and hospitality projects, suggesting this model could help ease the financial burden of new hotel developments.
Kaul also referenced DLF’s recent venture in Goa, where they are launching branded villas priced at around ₹60 crore. Saraf acknowledged DLF’s success with its Camellias brand in Delhi, noting that the developer is now capitalizing on that reputation to offer luxury residences in Goa. “It’s about creating a lifestyle product, and DLF has done just that,” Saraf added.
Turning to Snehdeep Aggarwal, Kaul raised the topic of recent hospitality IPOs, which have seen hotel companies’ profitability double since the pandemic, while valuations have tripled. He asked if these high valuations were justified. Aggarwal responded by pointing out that valuations are forward-looking. “You’re not just valuing last year’s profits; you’re betting on future potential,” he explained. Aggarwal emphasized the global appeal of India’s hotel industry and the confidence investors have in its growth. “Investors are smart, and they see the potential. If they believe that brands like Radisson will expand to 500 hotels, those future hotels will add significant value,” he concluded.
Rajiv Kaul reflected on how the hospitality sector has long been undervalued, especially compared to the assets it holds. “For years, we’ve been forgotten in terms of value. Companies like IHCL and EIH had shares that didn’t even reach 30% of their replacement value. But now, I’m glad to see that investors are finally recognizing the true potential in this sector,” Kaul remarked, emphasizing the shifting perception of the industry.
Sanjay Saraf echoed this optimism, highlighting that hospitality in India is on the verge of significant growth. “If you compare room rates globally, Indian properties, like the Oberoi, offer top-notch experiences for $265 to $280 a night. With inbound travel on the rise, I believe room rates will steadily increase, and along with that, valuations will see consistent growth year after year,” Saraf predicted.
Weighing in on room rates, Snehdeep Aggarwal pointed out the stark contrast with global markets, particularly Europe. “In London, finding a decent room for less than a thousand pounds is nearly impossible. So why should a good room in New Delhi or Mumbai still cost $250 to $300 when real estate prices in these cities are already matching global standards? Sooner or later, room rates in India will have to catch up with international markets,” Aggarwal concluded.
During the panel discussion on “Seizing Opportunities in Hospitality: Industry Titans Explore the Next Wave of Investments,” Rajiv Kaul asked Sanjay Saraf about his optimism regarding Mumbai’s ongoing infrastructure transformation.
Sanjay Saraf responded enthusiastically, pointing to the development of the new Navi Mumbai airport, which he described as one of Asia’s largest, set to feature four terminals. “The scale of this airport, along with the other infrastructure projects like the Coastal Road and the Atal Setu, will significantly improve connectivity,” Saraf said. He noted that while Mumbai faces space constraints, Navi Mumbai offers ample room for development, making it an ideal location for expansion. Drawing a comparison to Gurgaon’s transformation over the last 30 years, Saraf predicted that Navi Mumbai will follow a similar path. “This region is going to be meticulously planned and will be a game changer for the city,” he added, highlighting the government’s commitment to the area’s growth.
In his closing remarks, Rajiv Kaul highlighted the ongoing evolution in the hospitality industry, emphasizing a shift toward experiential resorts and branded residences. Kaul noted, “While traditional growth patterns will persist, today’s discussion focused on the emerging trends at the high end of the market. Experiential resorts are poised to become a significant trend, reflecting a substantial opportunity that many, as Mr. Aggrawal pointed out, have recognized. This shift promises to bring about considerable action in the sector.”
He further elaborated on the rise of branded residences, noting, “The demand for branded residences is set to increase as affluent individuals seek not just property, but a lifestyle. This trend necessitates the involvement of operators who can provide comprehensive management and service.” Kaul traced the evolution of the hospitality industry, observing that, “Historically, hotels were the domain of hotel companies. Over time, real estate developers and builders entered the scene, creating integrated portfolios that included retail, commercial spaces, and hotels. More recently, private equity investors identified gaps and opportunities, leading to the current trend where high-net-worth individuals (HNWIs) are becoming increasingly involved.”
he Future of Hospitality
The panelists agreed that India’s hospitality sector is on the verge of a significant transformation, driven by infrastructure development, shifting consumer preferences, and the rising appeal of branded residences. As Kaul aptly summarized, “The traditional growth will continue, but the next wave will bring experiential resorts and lifestyle-driven branded residences, tapping into the evolving aspirations of a more affluent and discerning market.”
The discussion underscored that the hospitality industry in India is no longer just about hotels—it’s about creating holistic, luxury experiences that cater to the growing demands of both domestic and international travellers.
