CARE Ratings reaffirms credit rating for Ambuja Neotia Hotel Ventures Limited with Positive Outlook
CARE Ratings Maintains Positive Outlook for Ambuja Neotia Hotel Ventures
CARE Ratings has reaffirmed its credit rating for Ambuja Neotia Hotel Ventures Limited (ANHVL), citing satisfactory financial performance in FY25 and 9MFY26 backed by improving occupancy levels and RevPAR (revenue per available room) across its hospitality assets, alongside increasing revenue from lease rentals.
Ratings Strength and Group Support
The ratings continue to derive strength from the established position of the group in hospitality and real estate in eastern India, long experience of the promoters, established brand image, and diversified revenue profile, as well as the association with Indian Hotels Company Limited (IHCL) for management and operations of majority of its hotels under the Taj brand.
The ratings factor in the past and expected support of Ambuja Neotia group available towards fund requirement of ANHVL. The Ambuja Neotia Group has been promoted by the Neotia Family, which has been an integral part of the business community in Kolkata for nearly 125 years.
Positive Outlook Drivers
The outlook continues to remain positive on account of expected sustained improvement in financial performance backed by improving occupancy and positive industry outlook. Furthermore, the recently completed projects are likely to support better scale of revenue over the medium term.
Steady occupancy levels are likely to support cash flows in the long run. The company's revenue has recorded a compounded annual growth rate of 39% in the last year.
Hospitality Portfolio Expansion
Till FY25, the company acquired stakes in twelve companies, of which nine were already owned by Ambuja Neotia group and three were acquired from outside. The Ambuja Neotia group has taken up consolidation of similar and related lines of business under one entity, with majority of companies operating in hospitality now brought under ANHVL.
The company's diverse portfolio includes hotels, retail spaces, and leisure homes, offering experiences across the hospitality spectrum. The company owns retail space at City Centre Salt Lake and City Centre Patna garnering lease rentals.
Group Scale and Track Record
The group has completed development of around seventeen million square feet area comprising residential apartments and commercial space through its various joint ventures and subsidiaries over the last decade. The Ambuja Neotia group has a long operational track record in the hospitality industry of around four decades.
In July 2025, Mumbai-based Indian Hotels Company Limited entered a partnership with Kolkata-based Ambuja Neotia Group to open 15 hotels over the next five years, with the majority to be branded as Taj hotels or branded villas. Once completed, together both companies will have a portfolio of more than 40 hotels.
Outlook Conditions
The outlook shall be revised to stable in case the company is unable to complete the projects without time overrun and derive envisaged benefits therefrom or there is a significant deterioration in the leverage position of the company beyond envisaged levels.