Panchshil Realty, renowned for its excellence in India’s real estate sector, has also made substantial strides in the hotel industry with its hospitality arm, Ventive Hospitality. Led by Founder and Chairman of Panchshil, Atul Chordia, Ventive has redefined what luxury, business, and leisure hotels mean in India. With his focus on growth, innovation, and sustainability, Chordia has propelled India’s hospitality sector to new heights.
Atul Chordia: A Visionary Leader Driving Change
The journey into hospitality began with a deep understanding of the local market in Pune, Chordia’s hometown. In 2002, Pune had limited hotel options while its office market was expanding rapidly. Panchshil identified a gap in business accommodation and focused on creating hotels near office hubs and IT parks, addressing the growing demand for business travellers. Thus was born Ventive Hospitality.
“Pune is a major industrial and office market,” Chordia explains. “With over 30 million square feet of office space and six hotels, Panchshil grew alongside the city, establishing a strong foothold in the commercial hospitality space.”
The success in Pune set the stage for expansion into other cities, leading to the creation of luxury properties such as the Ritz-Carlton Pune, JW Marriott Pune, and more.
Chordia’s leadership combines innovation with a design-driven approach, ensuring each property meets high standards of quality and sustainability. “One of our core strengths is our ability to build quickly, efficiently, and at a reasonable cost compared to typical hotel companies,” Chordia says, underlining Panchshil’s focus on design and construction expertise.
Sustainable Luxury
“At Panchshil, we live by the mantra ‘Profit by Design’,” adds he. “This guiding principle shapes every decision we make, especially in the design and operation of our hotels. Efficiency is key, from the layout and square footage to the materials we choose. We take great care in ensuring that every element of our properties, from furnishings to finishes, is not only durable but also cost-effective. Our expertise in global sourcing allows us to bring in the best materials from around the world.”
The company has also pioneered sustainability initiatives like green power and dry construction, ensuring a minimal environmental impact.
“On the construction side, we were pioneers in adopting dry construction in India – a more environmental-friendly approach that eliminates the use of bricks or mortar in our buildings. This not only makes the building process faster and more sustainable but also reduces the environmental impact. Our commitment to sustainability extends beyond construction, as we’ve integrated green power solutions into our operations. Currently, 72% of our energy usage is powered by renewable sources, including windmills and solar roofing, a step that reinforces our dedication to sustainable hospitality.”
Ranjit Batra: Implementing the Vision of Ventive
While Chordia’s vision laid the foundation, Ranjit Batra, CEO, Ventive Hospitality, the hospitality arm of Panchshil, has been a key person in the evolution of the Panchshil hospitality journey of 11 operational hotels and three under construction.
Panchshil’s strategic partnerships with global hospitality brands like Marriott, Hilton, Minor Group, and more recently, Atmosphere, have been integral to its growth. “Marriott’s strengths in distribution and loyalty programs make them a perfect partner,” Batra shares. This collaboration has helped Panchshil expand its footprint both in India and internationally.
Panchshil’s keen eye for opportunity led to their entry into the Maldives with the development and construction of Raaya by Atmosphere, and acquisition of two iconic hotels in the Maldives – Anantara and Conrad, which houses the first-ever underwater suite at the Muraka.
Ventive Shines in Maldives
“The Maldives is a resilient destination, and with the right positioning, we’ve seen repeat clients and a growing length of stay at our properties,” Ranjit explains.
The focus on unique, luxury offerings has solidified Panchshil’s and now Ventive’s leadership in the Maldives’ competitive market. The Maldives market, incidentally, is one of the top global markets to be in, as it is dollar-denominated and has one of the highest GOPAR (Gross Operating Profit per Available Room) rates in the Asia-Pacific region – almost five times higher than that of Indian hotels. It is also very close to India, just 1.5 hours from Bangalore, with access to 34 destinations by flight.
“Ventive stands out from other listed players due to its unique ability to build resorts in the Maldives, which is akin to constructing a mini city. This requires specialized expertise to develop in the middle of the ocean. Ventive possesses the skills needed to acquire hotels on a global scale,” adds Ranjit.
Currently, the company owns three luxury resorts in the Maldives: Anantara, Conrad, and Raaya by Atmosphere. Known as a top-tier tourist destination, the Maldives is celebrated for its ‘one island, one resort’ concept. Revenue from these properties is generated in US dollars, meaning any strengthening of the dollar has a favourable impact on Ventive’s earnings.
Pune: F&B Hotspot
In Pune, of course, Ventive is a leading force in the local dining scene, with seven out of the top 10 restaurants in the city under their umbrella.
“Food and Beverage excellence is essential,” says Batra. “When you get it right, people celebrate important moments at your hotel, making it the preferred destination for both leisure and business.”
Ventive Goes Public: A Game-Changer for Growth
Panchshil’s recent IPO of Ventive has marked a major milestone for the company. After utilizing the IPO proceeds, Ventive reported a net debt of around ` 1,740 crore. This strategic decision will bring the net debt-to-EBITDA ratio to approximately 1.5-2x, positioning the company strongly for future growth investments.
“Going public has given us access to the capital we need to scale at an even faster pace,” Ranjit informs. A key highlight of Ventive’s performance is its impressive metrics – Ventive has recorded the highest REVPAR (Revenue Per Available Room) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) among listed hospitality companies. This achievement underscores the company’s exceptional financial performance and its potential for future growth.
“The IPO provides transparency and capital, allowing us to continue expanding our footprint and building world-class properties,” says Batra. This strong financial position allows Ventive to pursue ambitious growth targets, focusing on both luxury and business hotels.
The Role of Blackstone: Strategic Partnership for Growth
A significant player in this journey has been Blackstone, a leading global investment firm that has partnered with Panchshil for over a decade. Blackstone’s involvement has strengthened Panchshil’s position in the hospitality market, especially as the company entered the listed space with Ventive.
“Blackstone has been a long-term partner, bringing its expertise in acquisitions and investments,” Batra explains. “Panchshil brings its strengths in building and managing high-quality hotels, and together, we’ve created a powerful combination.”
The strategic partnership with Blackstone has enabled Panchshil to leverage capital for expansion while benefiting from Blackstone’s global network and financial acumen. “We have combined our strengths to create a hospitality platform that is set to grow at an even faster pace,” says Batra, emphasizing the importance of this partnership.
Incidentally, Ventive’s portfolio includes 3.4 million square feet of Grade A office and retail space in Pune, generating an annual annuity income of approximately ₹400-500 crore. This reliable revenue stream ensures financial stability, helping to offset the cyclical nature of the hospitality sector.
A Day at The Ritz-Carlton Pune
When we visited the Ritz-Carlton Pune for this cover interview, it didn’t take long to understand why Panchshil has been so successful. The attention to detail, the elegant interiors, and the warm, personalized service – every detail had been meticulously crafted to reflect a blend of sophistication and warmth.
During our discussion, Chordia shared his experiences and visions for the future of Panchshil’s hospitality division, and what struck us the most was his hands-on approach. He’s not just a leader – he is passionate about his work.
“We really want people to feel at home in our hotels,” Chordia told us. And it shows. From the minute you step into the lobby to the final goodbye, everything about the experience is designed to make you feel special.
A Vision for the Future
So, what’s next for Panchshil? The focus remains on expanding their portfolio, with new luxury hotels on the horizon, including a Ritz-Carlton Reserve in Sri Lanka and a Marriott in Varanasi.
Chordia is excited about the potential of untapped markets. “As India grows, so does the demand for hospitality,” he says, noting the potential of seafront properties and new, untapped destinations across India.
Batra shares this optimism, pointing to the burgeoning demand for both inbound and outbound tourism, with India emerging as a key player in the global hospitality market.
“India is a huge market for outbound tourism, and we need to tap into that potential with our own hotels,” he adds. Infrastructure projects like the Navi Mumbai and Velana International Airports will further fuel growth in India’s hospitality sector.
Changing the Game in Indian Hospitality
Atul Chordia has turned Panchshil into a brand that’s synonymous with luxury, innovation, and a relentless focus on quality. His ability to blend strong design principles with smart business decisions has set a new standard for India’s hospitality industry.
As Ventive continues to expand globally, it’s not just changing the hospitality game in India – it’s shaping the future of tourism, one world-class hotel at a time.
