HVS India partners with Anarock to boost revenues by 75%
As part of its efforts to rebuild operations in the Indian market, HVS has signed a strategic partnership with Anarock Property Consultants – a relatively new real estate consulting firm that is making significant inroads in the market. The partnership is expected to boost HVS’ annual revenues by as much as 75%.
Founded in 1980, HVS is primarily a consulting firm that specialises in the hospitality sector, offering services in valuation, executive recruitment, investment banking, hotel and hotel asset management, operational marketing, litigation, and a range of other associated services.
Within the hospitality sector, the firm extends beyond the traditional hotel clientele to work with restaurants, casinos, country clubs, and other such luxury facilities. Since its establishment, the firm has conducted over 60,000 assignments, stretching across five continents, operating with over 300 professionals.
One of the firm’s primary markets has been India, where the hospitality sector is estimated to be worth over $200 billion. The firm recently published a number of reports detailing how India’s hospitality industry is on the rise, particularly in terms of occupancy rates and average room rates in the larger urban centres.
This scenario represented a sea of opportunities for HVS, given the fact that the firm dominated 60% of India’s hospitality market. However, late last year, the firm’s India operations were stopped in their tracks when 42 of its professionals – including its entire senior leadership – broke off from the firm to establish an independent hospitality consultancy by the name of Hotelivate.
The exodus was led by Manav Thadani, who was the majority owner of HVS India, thrusting the firm into uncertainty. Nevertheless, the firm remained positive about its future in India. At the time, CEO of HVS Global, Stephen Rushmore Jr. said, “I am planning to announce a new leader for India shortly. It is presumptive to assume they (existing India clients) are all moving with the old management. Many clients prefer to work with a global brand.”
HVS Anarock
As part of these rebuilding efforts, the firm has now signed a strategic partnership with Anarock to form a new vertical named HVS Anarock, which will operate under the umbrella infrastructure of the Anarock Group. The new arm will offer a range of services that includes brokerage feasibility studies, executive searches and appraisals. The scope of operations will extend beyond India to the rest of South Asia as well.
Anarock is a real estate consultancy that was established just last year, and has been active in expanding its operations since the start of this year. The firm first established a Channel Partners vertical for networking purposes, before merging with ANB Capital to form an Anarock Capital vertical.
The duo has indicated that a number of funding projects, divestments and acquisitions are already in the pipeline. Anuj Puri, who is the Chairman at Anarock, will now also act as Chairman for HVS Anarock, while the CEO of Anarock Capital Shobhit Agarwal will head the transactions arm of the new partnership. A CEO for HVS Anarock is yet to be announced.
Commenting on the partnership, Rushmore Jr. said, “We are very excited to partner with ANAROCK as we share a strong professional and cultural fit. Together, we foresee rapid expansion in the region and will be able to tap into more resources to serve our clients better than ever. India has always been an exciting market for us, and we are targeting a concentric outward growth into the hottest South Asian markets from here. HVS India has had more than two decades of exposure in the country, and we anticipate the partnership will leverage ANAROCK's proprietary real estate funding platform to increase HVS India’s revenues by up to 75% over the next two years.”
Puri added, “HVS is the leading global hospitality player, and we have aligned our synergies to tap into this market in India and beyond. Tourism in India is growing by over 15% annually, and the launch of HVS ANAROCK coincides with some of the most exciting times for the Indian hospitality industry.”
