Omaxe Launches Major Hospitality Initiative with INR 6,200 Crore Investment, ETTravelWorld
Omaxe Ltd. has announced the launch of a dedicated hospitality business vertical, with plans to develop 19 hotels across five states over the next four to five years. The company proposes to invest approximately INR 6,200 crore, subject to project-specific approvals, regulatory clearances and market conditions, to expand its presence in India’s hospitality sector.
The planned portfolio will span nearly five million square feet across 13 cities, with hospitality developments integrated into Omaxe’s existing townships, mixed-use developments, commercial projects and urban infrastructure assets.
Of the proposed 19 hotels, 12 will be located in Uttar Pradesh, including properties in Ayodhya, Lucknow, Prayagraj, Ghaziabad, Gorakhpur, Kaushambi and Vrindavan. The remaining hotels are planned for New Delhi, Faridabad, Ujjain, Chandigarh, Amritsar and Ludhiana.
One of the flagship developments will be a 158-key Gateway Hotel by IHCL at The Omaxe State in Dwarka, New Delhi. The project is being developed under a Public-Private Partnership (PPP) model with the Delhi Development Authority. The company also plans to develop transit-oriented hospitality projects through its PPP partnership with the Uttar Pradesh State Road Transport Corporation.
Mohit Goel, Managing Director, Omaxe Ltd., said:
“Hospitality is a natural extension of our integrated development strategy. With improving connectivity, growing religious tourism and increasing travel across emerging markets, there is a clear need for quality hospitality infrastructure in these locations. Through this expansion, we aim to create well-located hospitality destinations that complement our existing developments, strengthen our recurring revenue base and contribute to the economic activity of the cities where we operate.”
The hospitality portfolio will cater to business, leisure, pilgrimage, destination weddings and MICE demand. Planned developments will include midscale and upscale branded hotels, luxury properties, pilgrimage hotels, serviced apartments and extended-stay accommodation, with each project designed to meet the requirements of its respective market.
The company expects to implement the investment in phases over the next four to five years. Based on current business assumptions and subject to project execution, occupancy levels, regulatory approvals and market conditions, Omaxe estimates that the hospitality portfolio has the potential to generate approximately INR 1,000 crore in annual revenue after stabilisation.
Omaxe added that it is in advanced discussions with domestic and international hospitality operators for branding and management partnerships, with formal announcements expected following the completion of definitive agreements.
