The board of Valor Estate (VEL) has approved a Composite Scheme of Amalgamation and Arrangement amongst VEL, Shiva Realtors Suburban (being renamed as Advent Hotels International) (Advent), Esteem Properties, and their respective shareholders and creditors (Composite Scheme). Under the terms, Esteem (a WOS of VEL) will merge with VEL, and VEL will demerge its hospitality business into a separate legal entity - Advent, currently a wholly-owned subsidiary of VEL. The share entitlement ratio is set at one Advent share for every ten shares in Valor Estate.

The demerger will create two independent entities with a more focused approach to serving their respective markets and customers. VEL will continue to focus on the real estate business in the Mumbai Metropolitan Region (MMR) in joint development format, in partnership with developers. Advent will construct and operate the existing and new luxury and upscale hotels in Mumbai, Delhi, and Goa.

Immediately, Advent (WOS of VEL) will obtain entire interests of VEL in an operating hotel, the 313-key Grand Hyatt (Goa), and also 50 percent joint venture equity interests (balance 50 percent with Prestige Estate) in an under-construction project comprising the 590-key Marriott Marquis (Delhi) and the 189-key St Regis (Delhi), and will also later hold 75 percent equity in Hilton Mumbai, upcoming projects at Sahar near Mumbai airport, Worli, and Riverwalk at Bandra Kurla Complex.

Over the next four to five years, Advent plans to implement three to four large upscale branded assets with about 4,000 keys, in Mumbai and Delhi. The Composite Scheme, including receipt of requisite approvals, and subsequent listing of Advent is expected to be completed in 2025.