Noesis Capital Advisors Intends to Raise its Own Hospitality Fund by 2020

NOESIS CAPITAL Advisors, an integrated solutions provider for hotel real estate targets to add value to 100 hotels by the end of this year. The company also aims to migrate the unorganised standalone hotels to the organised hospitality ecosystem. Currently, India has 1,30,000 rooms inventory in the organized sector which consist of only 30 percent of the total market size. BW Hotelier spoke to Nandivardhan Jain, Founder & CEO, Noesis Capital Advisors who told us about the upcoming projects of the company.

“We have a mandate from mid & budget hotel chains that are looking for a rapid expansion across South Asia and UAE. We have given them quite a bit of our bandwidth to add value in their growth story,” said Jain. In luxury and upscale segment, Noesis Capital Advisors are currently running nine conversions and 12 Greenfield projects operator selection mandates. Along with this, company intend to raise its own hospitality fund within next 24 months to add more quality hotels in the Indian Subcontinent, as told by Jain.

Jain, who has an experience of over a decade in multi-disciplinary advisory and transactions ranging from hospitality to social development projects feels that migration of hotel inventory from standalone hotel status to branded hotel chain is big on cards. Last year Noesis Capital Advisors successfully completed 58 hotel advisory assignments out of which 37 were conversions from standalone to the branded hotel chain.

“Majority of such transactions are getting materialized in the budget and mid segment. This shift adds tremendous value to all the stakeholders starting from Hotel employees, guest, owners, vendors, hotel operator, and government. Due to high land cost, debt cost & structure complexity, licenses & approvals process very limited new hotel supply will come into the market. Therefore migration will be a key focus for most of the hotel operators,” Jain adds.

Dealing and specialising with the budget hotels chain, Jain suggests that the budget segment is largely a room play, which is more profitable than F&B operations. “Best suited locations for budget hotels are near Airports, Railway stations, bus stand, CBD, Industrial belts and metro stations. Building the efficient product and at the right price is very critical,” he stated.

Speaking about the region-wise growth in the hospitality sector, Jain says, “In Northern India F&B contributes heavily towards hotel revenues whereas in western and southern India rooms play a critical role in revenue contribution.” According to him, some of the positive markets five in each region, which are worthy for hotel investment region wise, are as follows:

North India: Noida, Delhi, Chandigarh, Lucknow, Varanasi.

Western India: Mumbai (including Navi Mumbai & Thana), Surat, Lonavala, Pune, Aurangabad

South India: Bangalore, Hyderabad, Vizag, Vijaywada, Cochin

Eastern India: Kolkata, Patna, Guwahati, Darjeeling, Gangtok