Zerodha Founders Acquire 6.72% Stake in Viceroy Hotels Amid Expansion

In a notable development within the hospitality and investment sectors, Zerodha founders Nithin Kamath and Nikhil Kamath have acquired a combined 6.72% stake in Viceroy Hotels. This purchase was made during the September quarter through their respective investment entities, Kamath Associates and Nksquared. The move signals confidence in Viceroy Hotels as the company continues its recovery phase following a period of financial distress.

Viceroy Hotels had faced significant challenges in recent years, culminating in its entry into the Corporate Insolvency Resolution Process (CIRP) due to heavy debt burdens. The hotel chain owed creditors in excess of Rs 1,150 crore and was at risk of liquidation. Share trading of Viceroy Hotels was suspended amid these financial difficulties, reflecting the uncertainty surrounding the company’s future.

The turning point arrived in October 2023 when the National Company Law Appellate Tribunal (NCLAT) approved a resolution plan proposed by Anirudh Agro Farms Limited. This plan facilitated an infusion of fresh capital through Viceroy's subsidiary, Loko Hospitality, providing much-needed financial stability. Following the implementation of the resolution plan, the company’s shares were reinstated for trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in April 2024.

Currently, Viceroy Hotels operates prominent Marriott and Courtyard by Marriott properties in Hyderabad, establishing a solid presence in the upscale hospitality segment. To support its growth ambitions, the company has initiated a rights issue aiming to raise approximately Rs 105 crore by offering shares at Rs 115 each. This capital raise not only fuels expansion plans but also seeks to boost public shareholding levels to comply with regulatory standards, especially after an increase in promoter ownership post-resolution.

Viceroy Hotels is actively pursuing growth through acquisitions and portfolio diversification. In December 2025, shareholders approved the purchase of SLN Terminus Hotels and Resorts for Rs 206 crore. This acquisition adds Marriott-branded executive apartments to Viceroy’s portfolio, enhancing its offerings and market reach.

The investment by the Kamath brothers comes at a pivotal time for Viceroy Hotels. Their stake acquisition reflects a growing interest from seasoned investors in India’s hospitality sector, which is gradually rebounding from the impacts of economic slowdowns and pandemic-related disruptions. The Kamath brothers, known for building Zerodha into a leading fintech platform, are expanding their investment footprint into the hotel industry, indicating confidence in Viceroy’s management and strategic direction.

Viceroy Hotels’ recovery story highlights the effectiveness of the insolvency resolution framework in India, enabling companies burdened by debt to restructure and regain operational stability. The company’s focus on acquiring established properties under well-known brands aligns with broader industry trends where consolidation and brand strength play key roles in competitiveness.

As Viceroy Hotels continues to rebuild, the participation of investors like Nithin and Nikhil Kamath is likely to enhance market confidence. Their involvement could also provide strategic support as the company navigates its expansion plans and capital market activities.

This development is part of a larger pattern where entrepreneurs and investors are diversifying portfolios by entering sectors showing signs of recovery and growth potential. The hospitality industry, closely linked to travel and tourism trends, is an area attracting renewed interest amid improving economic conditions.

Investors and market watchers will be keen to observe how Viceroy Hotels leverages the recent capital infusion and acquisitions to strengthen its position. The company’s efforts to meet regulatory shareholding norms through the rights issue will be critical in maintaining compliance and investor trust.

In summary, the acquisition of a 6.72% stake by Zerodha founders in Viceroy Hotels underscores a growing confidence in the hotel company’s turnaround strategy and expansion prospects. It also reflects a broader trend of strategic investments in India’s hospitality sector following periods of financial restructuring.