India’s real estate and hospitality sectors have seen remarkable transformations over the past few decades, evolving from traditional and fragmented markets into organised and rapidly growing industries. The real estate sector has been a cornerstone of India’s economic development, contributing significantly to GDP and employment. Driven by rapid urbanisation, increasing income levels, and favourable government policies, the sector has witnessed the rise of modern infrastructure, smart cities, and integrated townships.
The hospitality sector, closely linked with real estate, has also grown by leaps and bounds. India’s rich cultural heritage, diverse landscapes, and expanding business hubs have made it a global tourist destination. The growth of domestic travel and the influx of foreign tourists have spurred the development of luxury hotels, resorts, and mixed-use developments, integrating retail, entertainment, and accommodation. This synergy between real estate and hospitality paved the way for the emergence of key players who are shaping the future of these sectors.
Among these players, Phoenix Mills stands out as a trailblazer, with a rich legacy and a forward-looking approach that has made it a leader in the Indian real estate and hospitality industries. From its humble beginnings as a textile mill in 1905, Phoenix Mills has transformed into a diversified conglomerate, with a strong focus on developing and managing large-scale retail-led mixed-use properties and luxury hotels.
An Attractive Business Model
The hospitality segment, though a smaller part of the company’s portfolio, complements its real estate operations. Phoenix Mills owns and operates luxury hotels, including The St. Regis Mumbai, which has become synonymous with opulence and world-class service. The integration of hospitality services within its retail complexes enhances the overall customer experience, driving higher footfalls and consumer engagement.
Recent Developments
Source: Phoenix Mills Q1FY25 Presentation
The chart above indicates the consumption growth being experienced across each of the Phoenix Mills malls. Whilst new malls are seeing a ramp up, same store sales growth have also been robust at 7% (Q1FY25 over Q1FY24). Overall consumption growth saw an increase of 25% in the quarter (year-on-year).
Financial Performance & Strategic Initiatives
Why we hold Phoenix Mills in our portfolio
Source: Yahoo Finance
Outlook
Disclaimer
- This Note (‘Note’) has been produced by India Avenue Investment Management Limited (‘IAIM’) ABN 38 604 095 954, AFSL478233 and has been prepared for informational and discussion purposes only. This does not constitute an offer to sell or a solicitation of an offer to purchase any security or financial product or service. Any such offer or solicitation shall be made only pursuant to a Product Disclosure Statement, Information Memorandum, or other offer document (collectively ‘Offer Document’) relating to an IAIM financial product or service. A copy of the relevant Offer Document relating to an IAIM product or service may be obtained by writing to us at IA@indiaavenue.com.au or by visiting http://www.indiaavenue.com.au.This Note does not constitute a part of any Offer Document issued by IAIM. The information contained in this Note may not be reproduced, used, or disclosed, in whole or in part, without the prior written consent of IAIM.
- Past performance is not necessarily indicative of future results and no person guarantees the performance of any IAIM financial product or service or the amount or timing of any return from it. There can be no assurance that an IAIM financial product or service will achieve any targeted returns, that asset allocations will be met or that an IAIM financial product or service will be able to implement its investment strategy and investment approach or achieve its investment objective.
- Statements contained in this Note that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of IAIM. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this Note may contain “forward-looking statements”. Actual events or results or the actual performance of an IAIM financial product or service may differ materially from those reflected or contemplated in such forward-looking statements. Any trademarks, logos, and service marks contained herein may be the registered and unregistered trademarks of their respective owners. Nothing contained herein should be construed as granting by implication, or otherwise, any license or right to use any trademark displayed without the written permission of the owner.
- Certain economic, market or company information contained herein has been obtained from published sources prepared bythird parties. While such sources are believed to be reliable, neither IAIM nor any of its respective officers or employeesassumes any responsibility for the accuracy or completeness of such information. None of IAIM or any of its respective officers or employees has made any representation or warranty, express or implied, with respect to the correctness, accuracy, reasonableness or completeness of any of the information contained in this and they expressly disclaim any responsibility or liability, therefore. No person, including IAIM has any responsibility to update any of the information provided in this Note.
- Neither this Note nor the provision of any Offer Document issued by IAIM is, and must not be regarded as, advice or arecommendation or opinion in relation to an IAIM financial product or service, or that an investment in an IAIM financial product or service is suitable for you or any other person. Neither this Note nor any Offer Document issued by IAIM considers your investment objectives, financial situation, and particular needs. In addition to carefully reading the relevant Offer Document issued by IAIM you should, before deciding whether to invest in an IAIM financial product or service, consider the appropriateness of investing or continuing to invest, having regard to your own objectives, financial situation, or needs. IAIM strongly recommends that you obtain independent financial, legal and taxation advice before deciding whether to invest in an IAIM financial product or service.

