Behind the Hotel Deals in Bengaluru – India Report

Bengaluru’s hospitality market is buzzing as two hotel acquisition deals were finalized in the city over the past few days. The two deals amounted to INR 4.85 billion ($57.8 million). 

SAMHI Hotels acquired Innmar Tourism and Hotels for an enterprise value of INR 2.05 billion ($24.4 million) on Friday. As part of this deal, SAMHI also acquired the 142-room Trinity Hotel in the Whitefield area of Bengaluru. The complex has the opportunity to add a second hotel with 200-220 rooms. The deal was facilitated by real estate services company JLL.

On Monday, Juniper Hotels said in an exchange filing that it entered into a loan agreement with ICICI Bank for INR 2.8 billion ($33.3 million). The loan is meant to acquire a 220-key hotel asset situated near the Bengaluru airport from Twenty Fourteen Hotels. The property, spread across 6.5 acres of land, is designed to be a five-star hotel. 

The Driving Factors: JLL India managing director for hotels and hospitality group Jaideep Dang told Skift that the acquisition comes on the back of increasing demand for office spaces. A lot of companies are placed in Bengaluru and are further populating the city. Because of that, there is a growing demand for hotel rooms, he said.

“The main reason driving the hotel sector in Bengaluru is the business demand. It maintained the number one position in the July to September quarter in terms of office leasing activity. These leases are generally for 9 years, indicating that more people are going to work in this city for the next 9 years. This is a clear indicator that as a business city, Bengaluru has strong demand,” he said. 

Bengaluru also has a strong market for food and beverages, as well as events. This adds to hotel industry’s revenue sources. The addition of new flights to Bengaluru is also a factor, he said. 

“The important thing to understand is that both of these transactions took place at a high valuation, and were not distress sales. The players genuinely believe that there is a potential and demand for high return on investment.”

Investor Interest in Indian Hotels: Hotel transactions in India are expected to amount to a total of $413 million by the end of the year, according to estimates of JLL. It expects Tier-1 markets to dominate hotel transaction activity in the second half of 2024, accounting for 78% of the expected transaction volume. 

The surge in investor interest is driven by favorable macroeconomic factors, expanding commercial markets, and improved air connectivity, said Dang. 

Domestic Air Traffic in September up 15% From 2019

The domestic air passenger traffic in September 2024 is estimated at 13.2 million, up by 15.2% as compared to pre-Covid levels, according to credit ratings agency ICRA. This figure was also 8% higher than the domestic traffic in September last year. 

Airlines’ capacity deployment during the month was 7.3% higher year-on-year, but was marginally lower than August 2024. Between April and September, the first six months of the 2024-25 financial year, the domestic air passenger traffic is estimated to be nearly 80 million, up 13% from pre-Covid levels. 

According to ICRA’s estimates, in the first 5 months of the 2025 fiscal, Indian airlines carried about 13.6 million international passengers. This was 15.7% more than last year, and 47.4% higher than the pre-Covid figures, it said.

The firm maintained a stable outlook for the Indian aviation industry, backed by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment.

Meanwhile, India’s civil aviation minister Kinjarapu Rammohan Naidu said that India’s domestic air passenger traffic is expected to reach 300 million by 2030. He added that the government is in the process of injecting $11 billion to construct new airports and expand the existing ones.

Why All Eyes Are on China and India

The tourism world is watching two markets closely — India and China. With both countries representing vast populations, rising incomes, and an increasing appetite for travel, they are transforming the global tourism landscape. As China regains its position as a leading outbound travel market and India sees a surge in young, aspirational travelers, the potential is immense.

Jane Sun, CEO of Trip.com Group and Puneet Chhatwal, managing director and CEO of Taj-parent Indian Hotels Company (IHCL) spoke at the World Travel and Tourism Council’s Global Summit in Perth, offering insights into the dynamics of India and China as part of the “Markets to Watch” panel, reported Asia Editor Peden Doma Bhutia. 

Visa Applications for Concerts, Sports Rise

Visa processing platform Atlys has reported a surge in applications by travelers seeking to travel for global concerts, sporting events, and festivals, in a shift towards experiential travel. It noted a 20% spike in visa applications due to Taylor Swift’s concerts, while Coldplay and Diljit Dosanjh’s shows also contributed to an increase in visa applications. 

It noted that Dosanjh’s tour led to a 10% increase in applications, especially among young adults aged 25-35. Meanwhile, car races in Abu Dhabi, the U.S., Mexico, and Brazil led to a 10-12% rise in visa requests from Indian cities like Delhi, Mumbai, and Hyderabad. 

SpiceJet to Induct 10 Planes by November-End

Budget carrier SpiceJet is planning to add 10 aircraft to its fleet by the end of November. Three of these are grounded SpiceJet planes which are being reintroduced into service, while the remaining 7 are being acquired on lease. The airline said that the lease agreements have already been signed. 

The fleet expansion comes after SpiceJet raised INR 30 billion ($357 million). Apart from ungrounding SpiceJet’s existing aircraft and acquiring new planes, the airline is planning to use this funding to invest in technology and expand into new markets. 

Yatra Partners With Swiggy 

Online travel agency Yatra has partnered with food delivery service Swiggy to offer travel deals to members of Swiggy’s premium membership program. As part of this collaboration, Swiggy One members will be able to get access to free seat selection, free meal selection, and free cancellation on domestic flights booked via Yatra. The services are accessible through Swiggy’s app. 

Yatra has been entering into partnerships to grow its business, even as most of it is to grow its corporate travel business. Last month, it acquired Globe Travels to expand its corporate travel footprint.