What a Running Hotel in Chennai Sells For
Hotels are priced two ways at once. Buyers look at the building and land like any other property, and at the rooms as an operating business with a rate, an occupancy and a staff. The asking prices on our portfolio show how those two views combine across Chennai's segments, from a beach resort on East Coast Road to a branded five-star tower on OMR.
Four price points from our portfolio
- Branded five-star hotel, OMR at Sholinganallur — 1.74 acres of land with about 2,44,887 sq ft built up, operating since 2013. Asking Rs 400 crore, negotiable. That is roughly Rs 16,300 per built sq ft, with the brand agreement and a decade of operating history included. See FS-117.
- Premium hotel, 84 rooms, Chennai — 22,603 sq ft site, 69,355 sq ft built. Asking Rs 145 crore, which is about Rs 1.7 crore per key and Rs 20,900 per built sq ft. Location is shared on enquiry. See FS-158.
- Three-star hotel, Mylapore — fully furnished, 6 grounds of land with about 54,000 sq ft built. Asking Rs 75 crore, or Rs 13,900 per built sq ft. In this part of the city the land alone, at Rs 12.5 crore per ground implied, carries most of the value. See FS-115.
- Beachfront resort with bungalow, Kanathur on ECR — an 8-bedroom resort with party hall and pool plus a 5-bedroom house on the same beachfront plot. Asking Rs 23 crore. Priced as a lifestyle and events asset rather than on room count. See FS-112.
Reading the numbers
Per-key pricing is the hospitality industry's shorthand, and Rs 1.5 to 2 crore per key is where premium city hotels on our portfolio sit. Per-square-foot pricing tells you how much of the price is real estate: when a hotel's built-up rate is close to what an office building in the same street would fetch, you are buying land and building with an operation thrown in. When it is well above, you are paying for the brand, the occupancy and the F&B revenue, and the due diligence has to cover the business, not only the title.
What to verify before the term sheet
- Brand and management agreements. Term remaining, fees, termination rights and whether the agreement survives a change of ownership. A branded hotel without its brand is a different asset.
- Licences that must transfer. Trade licence, FSSAI, bar licence (FL-3 in Tamil Nadu), fire NOC, lift licences, pollution-control consent and the completion certificate. Check each one's expiry and whether it is in the owner's name or the operating company's.
- The last three years of operating accounts. Occupancy, average room rate, F&B share, and the payroll. Staff transfer under Indian labour law needs planning.
- Building age and capex. A hotel that opened in 2013 is due a refurbishment cycle; price it in.
- Land title and lease. Some hotels sit on leased land. Confirm freehold, and check the encumbrance certificate for lender charges.
Selling a hotel discreetly
Owners rarely want a running hotel advertised by name. We publish the asset without identifying it, share the name and accounts only with a buyer who has cleared a first conversation, and handle every enquiry personally. Current hospitality listings are on the hotels and resorts page; if you are buying or selling, start with a call.
Figures in this guide are the asking prices stated by owners for listings on the Elite FourSquare Realtors portfolio as of 10 September 2026. They are not valuations. Every listing is verified with the owner before publication, and prices change; the listing pages carry the current figure.