Eco Hotels and Resorts is the world’s first hotel brand built from the ground up to be carbon net zero, targeting the vast and underserved mid-scale and budget accommodation market in India. The company was originally a textile manufacturer incorporated in 1987, but in 2022 it was acquired by a UK-based operator of its own carbon-neutral hotel brands and completely restructured, changing its name, its business, and its entire purpose to hospitality. Its recurring approach is an asset-light, distribution-led expansion that uses long-term leases, management contracts, and a proprietary franchise model to roll out vegetarian-first, ecologically engineered hotels without the heavy cost of owning the real estate. # Business segments A single-engine hospitality business - an owner, developer, and asset manager of carbon-neutral hotels - that generates revenue through three distinct asset-light operating models, all serving the same mid-scale and budget guest. ## 1. Hotel operations: a carbon-neutral brand for the value-conscious Indian traveller **The company takes existing hotels on long lease, refurbishes them to its own net-zero and vegetarian-first brand standards, and then runs them - earning its money from room rent, food, and events, not from owning the buildings.** - **Paid by the room and the plate** - revenue comes from operating the hotels, with a typical split of 70% from room rent and 30% from food and beverage, banquets, and wellness services. - **A brand ladder for every budget** - it operates four core hotel brands, from the no-frills EcoValue (2 Star+, INR 1,500-3,500 a night) for Tier III cities, up to The Eco Grand (4 Star+, INR 3,500-7,499 a night) with pools and multiple restaurants, so it can match the property to the city’s demand. - **Vegetarian is the identity, not an afterthought** - properties that serve only vegetarian food carry the ‘SATVA’ label, and its signature restaurants like SAHAR (Indian vegetarian) and GG’S (Pan-Asian vegetarian) are standalone draws, with some kitchens using separate utensils to respect Jain dietary practices. - **Where the guest is spiritual, the hotel follows** - its geographic strategy is built around pilgrimage and cultural tourism, which drives over 60% of domestic travel in India, so its first operating hotels are in cities like Ayodhya, Varanasi, and Shirdi. ## 2. The EBOT franchise engine: a factory-built hotel in a box **A proprietary full-lifecycle model where an investor pays to build a hotel using modular construction, Eco Hotels runs it under a long lease, and both share in the eventual sale - designed to scale without the company spending its own capital on bricks and mortar.** - **Four steps, one promise** - in the Enterprise phase, the investor forms a company and Eco Hotels sources the land; in Build, the hotel is constructed offsite using 3D volumetric steel modules in under 52 weeks with a fixed cost; in Operate, Eco Hotels runs it on a hybrid lease model guaranteeing the investor a minimum return or a revenue share; and in Trade, it supports the investor’s exit, taking a 20% carried interest only after the investor earns a 10% annualised return. - **Built by a sister company** - the modular construction technology comes from Modulex, a fellow Red Ribbon group company that uses AI, Blockchain, and IoT to cut construction carbon emissions by up to 40% and dramatically speed up timelines compared to traditional building. ## 3. Management contracts: running someone else’s hotel for a fee **For owners who want to keep their property but not the headache of running it, Eco Hotels steps in as the operator, guaranteeing the owner a fixed monthly profit in exchange for a management fee.** - **The owner’s safety net** - the contract includes a Fixed Profit Clause that guarantees a certain profit to the property owner every month, with the risk of operations staying with the owner and Eco Hotels receiving a fixed fee or revenue-linked remuneration. # Group structure and partners **The company is a listed Indian operating arm, promoted by a UK-based impact investment group that provides the brand, the construction technology, and the sustainability credentials, while a network of travel distributors fills its rooms.** - **A promoter with a green mandate** - the promoter is Red Ribbon Asset Management PLC, a mainstream impact investor managing over £53 million in funds with a focus on climate and sustainability across real estate and technology. - **Two subsidiaries do the heavy lifting** - Eco Hotels India Private Limited acts as the property company, sourcing deals and handling project management, while the listed parent pays it lease rentals or fees to operate the hotels; a second subsidiary, Ecohotels Ayodhya Private Limited, was incorporated in early 2025. - **Distribution is outsourced to giants** - a 13% stake is held by EaseMyTrip, and the company has strategic partnerships with Riya Travel & Tours (access to over 75,000 travel agents) and Kesari Tours (strength in pilgrimage travel), so its rooms are sold through established networks rather than a costly proprietary booking engine.