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Real Estate Investment Trusts (REITs) are transforming the landscape of commercial real estate investment, offering a streamlined and effective option for investors, particularly retail investors. By enabling investment in commercial properties through shares on stock exchanges, REITs have made it easier than ever to tap into this lucrative market.
At their core, REITs own high-quality commercial real estate, including offices and shopping malls. They are mandated to distribute 90 per cent of their cash flows to shareholders semi-annually and maintain at least 80 per cent of their portfolios in rent-generating assets, with a maximum of 20 per cent allocated to properties under construction. This structure not only ensures liquidity but also offers investors regular income streams.
Hilton Hotels Embassy Manyata Bengaluru
Having emerged in the United States over 60 years ago, REITs have grown into a substantial asset class valued at around $2 trillion, boasting over 1,000 different trusts worldwide. In India, the journey began with Embassy REIT, which made waves as the first REIT to list in 2019. With a remarkable portfolio exceeding 50 million sq ft (msf), Embassy REIT houses over 250 leading global companies across five gateway cities and 14 state-of-the-art office parks.
Aravind Maiya, CEO of Embassy REIT, notes, “The successful listing of Embassy REIT not only marked a significant milestone for the Indian market but also set the stage for future REIT launches. Its performance has demonstrated the potential for REITs to thrive in India.” At present, there are three additional listed REITs in the country, collectively managing 125 msf of commercial office and retail space and boasting a market capitalisation exceeding Rs 87,000 crore.
Strategic Inclusion Of Hotels
Embassy REIT is expanding its portfolio to include hotels, driven by a strategic vision. Maiya, emphasises that hotels are “a key ancillary service that supports our broader vision of creating total business ecosystems in our parks.” This approach integrates office spaces with retail, hospitality, and wellness amenities, creating a mixed-use environment. He notes, “Our hotels play a vital role in meeting the needs of our tenants and their corporate travellers,” providing essential accommodations and conferencing facilities.
The REIT is committed to enhancing its parks with not just hotels, but also gyms and sports zones. Additionally, they collaborate with local authorities on public infrastructure projects like flyovers and metro stations. “Our focus has always been to deliver a comprehensive, unmatched business ecosystem that supports the evolving needs of India’s dynamic workforce,” he adds.
Hilton Manyata, Lobby Lounge
Elevating Guest Experiences
Maiya emphasises on the company’s commitment to elevating guest experiences through innovative hotel designs and strategic partnerships. “As one of the largest office space owners in India and Asia, we deliver world-class office buildings, infrastructure, and amenities across our business parks,” he explains.
He also details how this commitment is reflected in their hotel offerings, which align with their ‘Total Business Ecosystem’ philosophy. “We ensure that our hotels match this standard of excellence,” he adds. Collaborating with world-renowned architects, Embassy REIT designs hotels that embody innovation, sustainability, and luxury. Recent projects, such as the Hilton and Hilton Garden Inn at Embassy Manyata, were crafted by the acclaimed Andy Fisher
Workshop from Singapore, while the Four Seasons hotel was designed by globally renowned Yabu Pushelberg Studio based in New York. “These architectural landmarks not only serve guests but also enhance the urban landscape of the city, making them destinations in their own right,” he shares.
To ensure alignment with tenant requirements, Embassy REIT engages in thorough consultations during the planning phase. This collaborative approach led to the development of dual-brand hotels within their business parks, allowing them to cater to varying accommodation needs and price points. “This flexibility provides our occupiers with more choices,” Maiya adds, highlighting their commitment to delivering tailored solutions that meet the evolving demands of the market.
Exceptional service is the cornerstone of hospitality business, opines Maiya. “We are fully committed to delivering unparalleled guest experiences across our hotels. Our partnership with the Four Seasons brand exemplifies this dedication, as we bring unmatched luxury and service to Bangalore,” he informs. Highlighting the strategic importance of Bangalore in their portfolio, Raghu Sapra, Head of Hospitality at Embassy REIT, says that with five hospitality projects offering 1,096 keys and an additional 529 keys in development, he sees the city as a vital focus for growth. “Bangalore is India’s top-performing office market and a hub for Global Capability Centers (GCCs), with 60 per cent of Fortune 2000 companies establishing their operations here,” Sapra explains.
The city’s large, skilled workforce, particularly in technology, creates an attractive environment for businesses. Additionally, Bangalore’s diverse culture fosters a vibrant, global work atmosphere, making it appealing for international firms. The ongoing expansion of the city’s airport enhances its connectivity, solidifying its status as a prime destination for both business and leisure travellers. “This growth ensures that the city remains a key player in the hospitality sector,” feels Sapra.
The Lobby, Hilton Embassy Golf Links
Strong Partnership With Global Brands
Shedding light on the strategic partnerships the company has forged with global hospitality brands like Hilton and Four Seasons, Maiya shares, “Our commitment to world-class hospitality near our business parks is reflected in these collaborations.” He explains that these partnerships not only enhance the overall hospitality experience for tenants but also unlock greater value for Embassy REIT’s assets. Hilton has been a pivotal partner since 2014, chosen for their strong track record in elevating the hospitality offerings within the parks. “The success we’ve seen at Embassy GolfLinks and Embassy Manyata, marked by consistently positive tenant feedback, has solidified our relationship,” he adds.
Sharing exciting insights about the company’s future in hospitality, Maiya informs, “In 2026, we will unveil our dual-branded project with Hilton at Embassy TechVillage in Bangalore.” As Embassy REIT’s office portfolio expands, he highlights their proactive approach to assessing the demand for hotels within their business parks. “We will continue to collaborate with leading domestic and international hospitality brands to manage these properties,” he explains.
Policy Reforms For Growth
Sapra witnesses a crucial need for policy reforms to invigorate India’s hospitality industry. “Post-pandemic, there’s a renewed focus on revitalising the travel and tourism sector, with governments rolling out various initiatives,” he notes, emphasising on several key reforms necessary for growth. “Granting infrastructure status to hotels would enhance access to long-term financing, fuelling expansion,” he explains.
Additionally, reducing GST on hotel tariffs would make stays more affordable, thereby driving higher occupancy and
boosting travel demand. He also calls for streamlining the licensing process to accelerate project development. “Lastly, enhancing tourism marketing is essential to position India as a premier global destination, attracting more international visitors,” he adds, underscoring the need for a comprehensive approach to foster the industry’s growth.
Operator-Owner Relations
On the importance of robust owner-operator relationships in the hospitality sector, Sapra reacts, “As an organisation, we prioritise building strong, long-term relationships with our hotel operators, just as we do with our office occupiers.” Reflecting on his experiences with prominent brands like Hilton and Four Seasons, he notes that fostering trust and transparency is vital for success. “These relationships ensure smooth operations and alignment on strategic goals, which ultimately help the business thrive,” he says. He also believes that a strong owner-operator partnership is essential not just for delivering exceptional guest experiences but also for achieving sustained profitability in a competitive market.
Far & East, Four Seasons Hotel at Embassy One, Bengaluru
Profitable, Sustainable Asset-Owning Business
Sapra believes successful hospitality development begins with the right product in the right location. “Ensuring the asset meets market demand and has strategic positioning is essential,” he explains. He also emphasises that large-scale projects must adhere to budget and timeline constraints, as these factors directly influence profitability. “Fostering a strong partnership with operators is crucial to unlocking the asset’s full value and driving operational excellence,” Sapra adds. By focussing on these fundamentals, he believes businesses can drive long-term profitability and realise the full potential of their assets.
ESG Initiatives
Proudly highlighting the company’s commitment to sustainability through its robust Environmental, Social and Governance (ESG) strategy, Sapra shares, “We have developed 19 specific programmes with dedicated capital and clear action plans.” Recognised globally for its achievements, Embassy REIT boasts the largest USGBC LEED Platinum office portfolio and has initiated several measures to reduce energy and water consumption while promoting waste recycling.
In the hospitality sector, Sapra notes that ESG principles are equally vital. “All new hotel developments adhere to LEED-certified standards, and 95 per cent of our electricity comes from renewable sources,” he says. To combat plastic waste, the REIT has introduced in-house water bottling plants at its hotels and eliminated single-use
plastics in guest areas.
Additionally, rooftop solar installations, water recycling programmes and organic waste converters are now standard across their properties. Aligned with their goal of achieving Net Zero by 2040, Sapra assures their hotels are on track to meet this target ahead of schedule.
