Mahindra Holidays & Resorts has entered into an agreement with the Andhra Pradesh government to invest INR 500 crore in the state. Additionally, the top executive of the vacation timeshare company revealed ongoing discussions with authorities in Rajasthan, Gujarat, Tamil Nadu, and Jammu & Kashmir regarding potential investment opportunities.
“We are in active discussions with state governments to see if we can get land parcels or existing resorts. We could also take over and refurbish existing resorts,” stated Kavinder Singh, Managing Director and Chief Executive, in an interview. “If we have to go from 5,000 to 10,000 keys by 2030, our capex is going to be in the order of INR 4,000-5,000 crore. We are really strong on our cash position.”
In the past one year, the Mahindra Group company has signed memorandums of understanding (MoUs) with Tamil Nadu and Uttarakhand, committing investments worth INR 1,800 crore to build new resorts.
Continue Exploring: Mahindra Holidays & Resorts inks MoU with Tamil Nadu for INR 800 Crore investment in Greenfield Resorts
“This plan requires us to go all out. It could be acquisitions, greenfield opportunities, and even expansion of existing resorts like our resort Kandaghat (in Himachal Pradesh). We are also looking at larger resorts now in the range of 150-200 rooms,” Singh said.
In the past one year, the Mahindra Group company has signed memorandums of understanding (MoUs) with Tamil Nadu and Uttarakhand, committing investments worth INR 1,800 crore to build new resorts.
“This plan requires us to go all out. It could be acquisitions, greenfield opportunities, and even expansion of existing resorts like our resort Kandaghat (in Himachal Pradesh). We are also looking at larger resorts now in the range of 150-200 rooms,” Singh said.
Leisure branded accommodation is highly underserved in India, he said.
“Smaller places like Bali, Dubai and Phuket beat us hollow. So, we are very confident in our assessment that this is the time to invest, build properties and build a great future for the company,” he said.
“Our occupancies will close at an all-time high this quarter at around 87-88%. We have never seen this momentum in people wanting to holiday despite the fact that we are adding rooms. It’s a great situation to be in, as whatever we are building is getting absorbed,” he added.
The company is additionally exploring the expansion of its portfolio into nearby short-haul markets, driven by demand from India, and is assessing the feasibility of establishing its own properties in those regions.
“We are constantly looking for new opportunities in Thailand, Singapore and Vietnam,” said Singh.
In September last year, Mahindra Holidays & Resorts signed an MoU with the Uttarakhand government to invest INR 1,000 crore and build four to five resorts over the next few years. Then, in January this year, the company announced an MoU with Tamil Nadu, committing to invest INR 800 crore to build three new resorts over five to six years.
Continue Exploring: India’s hospitality industry toasts to 2024 with high hopes and record-breaking revenue growth