The company’s modern identity was shaped by the late chairman Byram D. Avari, who passed away in January 2023. A decorated sportsman and respected businessman, he led the group for decades and left behind a reputation for both excellence and perseverance. Today, his sons Dinshaw and Xerxes, along with their sons Byram Jr. and Dinshaw Jr. respectively, are carrying forward that legacy, positioning the group for continued growth in an evolving tourism landscape.

The origins of the Avari Group date back to 1944, when Dinshaw B. Avari laid the foundations of the family’s hotel business in Karachi. His son, Byram, took the company to new heights, turning it into one of Pakistan’s most recognized names in hospitality and securing the country’s first international hotel management contracts. The group’s flagship properties include Avari Towers Karachi with 225 rooms and Avari Lahore with 186 rooms, alongside the Beach Luxury Hotel in Karachi. Avari was the first hotel company to operate internationally with management/lease of the Avari Dubai Hotel at Dubai’s celebrated Clocktower and the Avari Hotel Apartments at Al Barsha from 1994 to 2020. The company also managed the Ramada Hotel Toronto Airport from 1997 up to 2006. Under family ownership and consistent leadership, the company has built a reputation for stability, resilience, and service.

“Expansion is the strongest measure of our competitiveness,” said Dinshaw Avari. “Our growth reflects both the trust of our guests and the strength of our business model.”

A Model Built for Expansion

A key differentiator for Avari Group has been its leasing model, which reduces capital exposure while accelerating growth. Rather than investing heavily in construction, the company partners with property owners who build to Avari’s specifications. In return, the group operates the hotels and shares a portion of revenues with the owners.

“Our formula allows property owners to share directly in our success,” explained Xerxes Avari. “It means that when we perform well, our partners do too—and that has allowed us to expand at a faster pace than most competitors.”

This approach has supported the launch of the Avari Xpress brand, which caters to business travelers and the leisure market. Offering nearly all the amenities of five-star hotels—modern rooms, strong service, and business facilities—Xpress omits features such as swimming pools, multiple restaurants, or large retail spaces, keeping prices competitive. “Avari Xpress is designed for business travelers who value efficiency and comfort,” said the Director. By mid-2024, the Xpress chain had grown to almost 1,000 rooms across cities including Lahore, Islamabad, Faisalabad, Multan, Gujranwala, Skardu, and Gilgit, with properties in the pipeline at Bhurban and Karachi.

Financial Recovery and Market Performance

The post-pandemic years have seen Avari Group recover strongly. In FY22, net sales nearly doubled from a year earlier. Occupancy rates rose, while gross margins jumped three times, with net margins turning positive after heavy losses in FY21.

In FY23, growth stabilized, with revenues expanding 27% as occupancy settled at the flagship properties of Avari Towers Karachi and Avari Lahore. Rising inflation and financing costs squeezed margins in FY24; however, with both policy rates and inflation dropping steeply, margins are expected to rise sharply in FY25.

The company is in the process of renovating its landmark Lahore property, an investment aimed at strengthening its competitive edge. As a result, credit agencies reaffirmed Avari’s AA rating with a stable outlook, underlining confidence in its resilience.

Navigating Risks and Opportunities

The hospitality industry in Pakistan is on an upward trajectory, with government estimates projecting the sector could reach USD 9.6 billion by 2025. Visa liberalization, new e-visa facilities, and active promotion of religious and adventure tourism are boosting the country’s profile.

According to Xerxes, this presents a compelling opportunity: “Tourism in Pakistan has strong long-term potential, whether for adventure, business, religious, or medical travel. We believe leisure and adventure will be the next significant driver of demand in the north and a mix of business and tourism in the south and central parts of the country.”

While the economic scenario of Pakistan has dramatically improved, underlying risks of a return to high inflation, currency depreciation, and regulatory uncertainty remain. Nevertheless, the group remains bullish on the country and the region.

As a result, international hotel chains are increasingly eyeing Pakistan’s growth markets; however, the Avari Group continues to differentiate itself through its identity as a proudly Pakistani brand. “Our focus is on building our own brand value rather than relying on franchising,” the CEO said. “Guests know they can expect the same quality and service wherever they stay with us.”

Expanding the Footprint

The group’s expansion strategy includes new properties at Sialkot, Hyderabad, and Sukkur, along with additional developments in Lahore and Islamabad. These projects reflect rising demand outside metropolitan hubs, especially in industrial and secondary cities.

Avari’s approach to staff training ensures consistency across its network. Employees are initially trained at flagship five-star properties before being deployed to other locations. “Our structure ensures that service standards are upheld everywhere,” explained Dinshaw. “Staff carry the culture and training from our core hotels into every new property.”

Beyond investment and job creation, the group contributes to community development through discreet social responsibility initiatives. From staff welfare programs to local partnerships, its work has been steady but deliberately low-profile.“We believe in focusing on impact rather than publicity,” said the Director. “Our role is to support the communities we operate in quietly and consistently.”

Looking Ahead with Confidence

With a flexible leasing model, diversified offerings, and strong local brand equity, Avari Group is well positioned to continue shaping Pakistan’s hospitality sector.

Expansion into new markets, with re-entry into Dubai, the UAE in general, Saudi Arabia, and the broader Middle East, coupled with its track record of operational resilience, gives it a unique edge at a time of renewed tourism growth. 

Director Xerxes offered a clear message to potential visitors and investors: “People should come and see Pakistan for themselves. Once they experience what the country has to offer, we are confident they will want to return.”