For Amruda Nair, a name synonymous with luxury hospitality in India, hospitality wasn’t just a career choice. It is a way of life. As the third generation of hoteliers in her family, her upbringing gave her a unique, multi-faceted perspective – one that went beyond wealth creation to encompass financial, cultural and social credit.
As a scion of the illustrious Leela family, she has not only inherited a legacy but also reimagined it with the launch of the Araiya Group of Hotels. This venture is her own, a testament to her entrepreneurial spirit and a fresh take on boutique hospitality. “Growing up at the Leela, I suppose hospitality was just a part of our way of life,” she said.
In the latest episode of Let’s Mint Money presented in association with Waterfield Advisors, Nair spoke to Neil Borate, Editor-in-Chief, thefynprint, about the evolution that the hospitality industry has seen, her own entrepreneurial journey, and her personal philosophy on wealth and investment.
Watch the full episode below,
The foundation for her career in the hospitality sector was laid on the dinner table. “The foundation was laid at the dining table in a lot of ways, because I am the third generation, and we talk shop all the time. It is what we live and breathe,” said Nair. Her early education, first at a hotel school in the Netherlands and then a Masters’ degree from Cornell University, where both her parents also studied, provided the groundwork for an illustrious career that would span continents and diverse roles.
Having studied in the US, she took up her first job with Mandarin Oriental in New York. Realising that the real action is in Asia, she soon moved to Singapore as an analyst with JLL, where she worked on hotel sale deals in countries like Japan, Cambodia and Vietnam. She then took up a position as an owner’s representative for an investment fund with assets in Shanghai, Beijing and Singapore. This hands-on experience gave her a deep understanding of the industry from an investment perspective, teaching her to look at properties not just as places of stay but as tangible assets that can give measurable returns.
It was this foundation that she brought back to the family business in 2010, where she helped centralise operations and implement Management Information System (MIS) processes. She then decided to move to a new geography, the middle-east where she entered into a joint venture with a Qatari partner and set up her first brand, Ayana.
The Indian hospitality sector has undergone a seismic shift, driven primarily by a surge in domestic demand. This is a significant change from her grandfather’s time, when the Leela brand was launched 40 years ago. “I certainly think that the domestic demand has certainly changed dramatically,” Nair said. She believes this shift is a reflection of change in thought for Indians – a growing confidence and their changing perception of India as a premium travel destination.
The post-pandemic era has further accelerated this trend, leading to a phenomenon known as “premiumisation”. Indian hotel room rates have risen, a development that Nair views not as a sign of overpricing but as a reflection of value. “If you took that same product and level of service and put that in the centre of Paris, you would be paying three times and Indians are paying three times the amount. So, I think, yes, room rates have gone up, but I think in terms of value for money, there is a lot more consciousness of also what you are getting in other countries versus what we get in India, and a greater appreciation for that,” she pointed out.
The target demographic for Araiya and the industry at large, is no longer a “cookie-cutter model”. Younger travellers are spending almost 45 per cent of their disposable income on travel, which has broadened the customer base. Travel is no longer just for special occasions. It is a spontaneous decision, a way to unwind. “The audience has gotten much broader, and I don’t think you can really segment it anymore,” Nair said. The average room rent for Araiya, for instance, ranges around ₹15,000, catering to the upscale and luxury segments. This is a testament to the fact that people are willing to invest in experiences that offer a tangible return in the form of memories and well-being.
She also offered a pro-tip: Travelling in off-season can save you up to 30 per cent on room tariffs. “Book in the off season. Even look at the days of the week because when you are looking at revenue, even your days of the week matter and length of stay matters. So, you would get a better rate if you stayed longer,” she said.
Running a successful hotel, especially a boutique property, is complex. Nair spoke about the importance of the initial investment, a process that her team at Araiya works closely with first-time owners on. “We spend a lot of time telling people what not to build so that we can get the right size of room,” she shared. This focus on efficiency ensures that capital is deployed in areas that directly enhance the guest experience, like the reception, rather than in non-revenue-generating spaces.
The financial metrics of a hotel can be broken down into two key concepts, namely cash break-even and the overall payback cycle. Cash break-even is the occupancy level required to cover fixed costs, which are often high due to payroll. Nair said that for leisure properties, this is typically between 25 per cent to 35 per cent. The overall payback cycle for the initial capital investment is usually 7-10 years. The surge in domestic tourism has been a game-changer, as it has mitigated seasonality and ensured a steady flow of weekend staycations and long-stay business, a trend that was not as prevalent even a decade ago.
Moving beyond her business, Amruda Nair shared her personal philosophy on money, which has evolved from a source of security and identity to a tool that provides freedom. “I see money as a tool that gives me that freedom to decide... what I want to invest in,” she said. This perspective is particularly evident in how she manages the family office, where she takes a more moderate approach compared to her entrepreneurial ventures.
Nair’s investment strategy is structured and disciplined. The family office started with traditional assets like real estate and fixed income before slowly moving into equity and, more recently, alternatives and private equity. “We are really looking at preservation and continuity,” she explained, highlighting that the primary goal is not just high returns but the long-term stewardship of wealth. Her family has been forward thinking in succession planning and have the required governance structures in place to have clarity around inheritances.
Nair is a strong advocate for working with professional advisors or wealth managers. “I come from a services business, so I believe that you should bring professionals in to give you the right advice,” she said. She prefers a fee-based advisory model over a commission-based one, as she feels it brings greater transparency and aligns the advisor’s interests with yours. Ask her what she looks for in a ‘good advisor’ and she is quick to say patience, transparency and a willingness to provide honest, even critical, feedback.
As a third-generation entrepreneur, Nair’s journey is a blend of honouring her family’s legacy and charting her own course. “My advice would be to use… those roots not really as an anchor, but more like a compass in terms of where you want to take it forward,” she concluded. This analogy perfectly encapsulates her approach of using the values and foundational knowledge inherited from her family as a guide, while forging a new and independent path for herself.
Note to Readers: Lets Mint Money is a Mint editorial IP, in association with Waterfield Advisors. The series will see Neil Borate explore the personal finance perspectives of India's accomplished corporate professionals, entrepreneurs, and family business owners.
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To know more about Waterfield, visit www.waterfieldadvisors.com
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