Ambuja Neotia group may list hospitality business in FY27, consolidation of properties underway

Kolkata | June 27, 2025 — The Ambuja Neotia Group, one of East India's prominent real estate and diversified conglomerates, is reportedly preparing to list its hospitality business by FY27, in a move aimed at unlocking value from its premium assets and accelerating expansion in the tourism and leisure segment. The group is currently undergoing a significant consolidation exercise to bring all hospitality properties under a single corporate umbrella, according to top executives familiar with the matter.

Strategic Move to Tap Growing Hospitality Demand

The proposed public offering will be part of the group’s broader vision to capitalize on India's growing domestic and international tourism sectors. Harshavardhan Neotia, Chairman of Ambuja Neotia Group, recently hinted at a major corporate restructuring aimed at simplifying ownership and operational control of its hospitality vertical. The initiative seeks to improve transparency, boost investor confidence, and optimize future fundraising capabilities.

“We are in the process of consolidating our hospitality portfolio under one holding company. This would enable better management, branding, and value unlocking when we consider a potential public issue in the next couple of years,” Neotia stated during an industry event in Kolkata.

The group owns and operates several high-end and boutique hospitality assets, including The Conclave, AltAir, Raajkutir IHCL SeleQtions, and other properties under its hospitality brand Ambuja Neotia Hospitality.

Consolidation in Motion: Portfolio Streamlining Across Verticals

As part of the realignment, the group has initiated due diligence and asset restructuring to centralize ownership of its hotels and resorts, which are currently spread across various group entities. This includes operational properties in West Bengal, Sikkim, and Jharkhand, with expansion plans in North Bengal and Eastern India.

“The current phase involves legal, financial, and operational consolidation. The goal is to transfer all owned, leased, and managed properties under a single entity that would ultimately go public,” said a senior executive, requesting anonymity.

Industry insiders suggest the Ambuja Neotia Group may rope in a strategic advisor or investment banker by early FY26 to guide the listing process.

Industry Context: Hospitality Sector on the Rise

India’s hospitality sector has witnessed a strong recovery post-COVID, driven by rising domestic leisure travel, increased international arrivals, and resurgence in MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism. According to a JLL report, hotel occupancy levels in major Indian cities are back to pre-pandemic levels, and average daily rates (ADRs) are at a historic high.

“With rising disposable incomes, demand for premium hospitality is on the rise, particularly in Tier 2 and Tier 3 cities. A focused regional player like Ambuja Neotia, with strong brand equity in the East, could find favor with investors if it brings a well-capitalized, consolidated entity to the market,” said Arvind Mahajan, Partner – Real Estate and Hospitality at KPMG India.

Financials & Growth Potential

While the group has not publicly disclosed revenue or profit figures specific to its hospitality vertical, market estimates peg the segment’s contribution at around ₹150–₹200 crore in annual revenue. With operational margins improving due to better capacity utilization and optimized staffing post-pandemic, analysts believe there is strong potential for scale and profitability.

“If they continue expanding in underpenetrated markets like North Bengal and the Northeast, the group could double its footprint and valuation by FY27,” added Mahajan.

Currently, the Ambuja Neotia hospitality arm is also exploring partnerships for spa retreats, wellness centers, and boutique properties — all in high demand due to shifting travel preferences post-COVID.

Investor Outlook: Valuation, Timing, and Risk Factors

The IPO, tentatively scheduled for FY27, will likely be benchmarked against recent hospitality listings like India Hotels Company (Taj) and Lemon Tree Hotels, which have seen significant post-listing appreciation. However, execution risks remain — especially around the timeline of consolidation, regulatory approvals, and market volatility.

“Valuation will depend on the EBITDA profile at the time of listing, future pipeline visibility, and regional dominance. Investors will look for scalable growth, a lean capital structure, and brand differentiation,” said Meera Jaiswal, Senior Analyst at ICICI Securities.

Assuming stable market conditions and successful execution of consolidation, analysts expect the listing could raise ₹800–₹1,000 crore, with a possible valuation of ₹2,500–₹3,000 crore, depending on asset mix and growth strategy.

A Milestone in the Making

For the Ambuja Neotia Group, the move marks a strategic inflection point. From being a legacy name in real estate and education to positioning itself as a regional hospitality powerhouse, the group’s transition into a listed hospitality firm may significantly diversify its revenue base and open new growth avenues.

If successful, the IPO will not only elevate the brand’s stature in the national landscape but also potentially pave the way for future listings of other verticals such as healthcare, education, or retail — sectors where the group has strong foundations.