Brigade Hotel Ventures Ltd is sharpening its growth playbook with a continued focus on building hotels from the ground up, while keeping the door open for opportunistic acquisitions as market dynamics evolve.
Speaking during the company’s latest earnings call, Managing Director Nirupa Shankar underlined that the firm’s core strength lies in its ability to develop high-quality hotel assets efficiently, a capability she described as rare in India’s hospitality landscape.
“Hotel construction is a niche segment with very few large-scale players. While acquiring assets is easier, building from scratch and getting every aspect right is far more complex, and that’s where we excel,” she noted.
Build-first, but pragmatic on acquisitions
The company’s strategy has historically centered on land acquisition, either through outright purchase or leasing, followed by in-house development. This approach has enabled Brigade to deliver projects on time and within cost, often achieving better cost efficiencies than peers.
However, as a listed entity with increasing visibility and deal flow, Brigade is now evaluating acquisition opportunities more actively. Shankar acknowledged that acquisitions typically come at a higher cost per key but can offer faster go-to-market advantages.
“If refurbishment, rebranding, and quicker commercialization make business sense, we will pursue acquisitions,” she said, adding that the company is currently exploring multiple options but has yet to finalize a deal.
Stable Q4 performance, margin tailwinds
Brigade Hotel Ventures reported a stable performance in Q4 FY26, driven by disciplined execution and a continued focus on margin expansion. Growth was supported by calibrated pricing strategies, resulting in a 7% increase in average daily rate (ADR), while occupancy remained healthy at around 78%.
The company’s portfolio ADR reached ₹8,066,its highest to date, while RevPAR rose by 6%, reflecting steady demand conditions despite external headwinds.
Lower interest costs, aided by loan repayments, also contributed positively to net profitability during the quarter.
Renewable push and brand upgrades
Sustainability remains a key pillar, with renewable energy adoption reaching 61% across the portfolio, some properties exceeding 90%.
On the asset enhancement front, Brigade plans to upgrade its Kochi property from Four Points by Sheraton to Courtyard by Marriott, a move expected to drive higher ADRs and profitability.
Looking ahead, the company will launch a 45-key Courtyard by Marriott at the World Trade Center in Chennai’s OMR corridor in FY27, strengthening its presence in a high-demand business district.
₹3,600 crore capex roadmap
Brigade has outlined an ambitious capital expenditure plan of approximately ₹3,600 crore, with ₹400 crore already deployed by FY26. The investment will be funded through a balanced mix of debt (60%) and internal accruals.
The company expects internal cash generation to exceed ₹1,000 crore in the coming years, supported by ARR growth and operating leverage as new properties ramp up.
Long-term pricing power intact
Brigade remains optimistic about long-term pricing trends. Its operating portfolio ARR currently stands at around ₹7,500, with projections to cross ₹10,000 by FY29 and exceed ₹14,000 by FY31, nearly doubling current levels as more luxury assets come online.
West Asia impact offset by domestic demand
Geopolitical tensions in West Asia impacted the company’s F&B segment, leading to cancellations worth ₹7–8 crore during the quarter, about 5% of the business. The decline in F&B revenue stood at around 3% sequentially.
While cancellations persisted into April–June, Brigade has been able to partially offset the impact through stronger domestic demand. Domestic business now accounts for 73% of total revenue, up significantly from pre-conflict levels.
“The shift towards domestic demand has been a key stabilizer,” Shankar noted, adding that the company continues to actively rebalance its business mix.