Real estate company Omaxe has launched a dedicated hospitality business vertical and plans to invest around ₹6,200 crore over the next five years to develop 19 hotels spanning nearly 5 million sq ft across five states. The proposed portfolio includes two hotels each in Ayodhya, Kaushambi and Vrindavan, three in Lucknow, and one each in Prayagraj, Ghaziabad and Gorakhpur, among other locations, the company said in a regulatory filing.
The company said the investments will be made subject to project-specific, regulatory and other approvals, as well as prevailing market conditions, with a focus on high-growth urban centres, pilgrimage destinations and transit corridors.
The company “plans to develop 19 hotels spread over nearly 5 million sq ft across five states in the next 4-5 years,” the company said in a regulatory filing on June 29.
Of the 19 hotels, 12 will be developed in Uttar Pradesh, including two in Ayodhya, three in Lucknow, one each in Prayagraj, Ghaziabad and Gorakhpur, two in Kaushambi and two in Vrindavan. Omaxe will also develop one hotel each in New Delhi, Faridabad and Ujjain, along with four hotels across Chandigarh, Amritsar and Ludhiana, including two properties in Chandigarh. In total, Omaxe will have a presence across 13 cities in five states over the next 4-5 years, the company said.
The hospitality developments will be integrated with Omaxe’s existing ecosystem of townships, mixed-use developments, commercial destinations and urban infrastructure projects, the company said in a regulatory filing.
Omaxe will rope in hospitality chains to manage these hotels, the company said.
Investment to be deployed in phases
The investment is proposed to be deployed in phases over the next 4–5 years. Based on the current business assumptions and subject to project execution, occupancy levels, market conditions, regulatory approvals and other relevant factors, the hospitality business has the potential to generate approximately Rs. 1,000 crore in annual revenue upon stabilisation, the company noted.
Among the key projects is a 158-key Gateway Hotel by IHCL at The Omaxe State, the company’s 50.4-acre integrated destination in Dwarka, New Delhi, which is being developed under a Public-Private Partnership (PPP) model with the Delhi Development Authority (DDA). Omaxe will also develop transit-oriented hospitality infrastructure in Uttar Pradesh through its PPP projects with the Uttar Pradesh State Road Transport Corporation (UPSRTC), the company said.
The company said, “This expansion will strengthen Omaxe’s recurring revenue portfolio by creating hospitality destinations that complement its existing developments.”
“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,” said Mohit Goel, Managing Director, Omaxe Ltd.
The portfolio will cater to multiple demand segments, including business travel, leisure tourism, destination weddings, MICE (Meetings, Incentives, Conferences and Exhibitions) and religious tourism, as per the filing.
“Omaxe is currently in advanced discussions with leading domestic and international hospitality operators for branding and management partnerships. Formal announcements regarding operator partnerships will be made upon finalisation of definitive agreements,” it noted.
