Mahindra Holidays is now working on two greenfield projects in Himachal Pradesh’s Theog and Maharashtra’s Ratnagiri.
Mahindra Holidays & Resorts India Ltd. believes that in order to meet its goal of adding more rooms, it will need to increase its capital expenditure to Rs 2,000 crore during the upcoming fiscal year. “We have roughly Rs 835 crore in capital expenditures scheduled to be completed in the next year or two, with the goal of increasing the number of rooms from 5,000 to 10,000 in the next six years. Kavinder Singh, managing director and chief executive officer of Mahindra Holidays and Resorts India Ltd., stated, “We are aiming to increase the capex to approximately Rs 2,000 crore in the next year (FY25).” He stated that the goal is to swiftly increase “our run rate of room additions,” which is presently between 370 and 400.
This quarter, we observed occupancies that were rather robust, ranging from 84 to 85%. And we would have most likely achieved 90% in December. A considerable uptake has been observed, according to Singh. At the moment, it is working on two greenfield projects: one in Theog, Himachal Pradesh, and one in Ratnagiri, Maharashtra. “We also have an expansion project in Himachal Pradesh and a few other projects…” According to him, Mahindra Holidays has experienced a notable uptick in new members. According to Singh, they have seen a 17% increase in member additions year over year and anticipate that momentum will continue. “There is a lot of action taking place to make sure that the member additions keep pace with the inventory additions,” he stated.
“We have started to move extremely fast in terms of greenfield projects, expansion of existing resorts, leasing and acquisitions.” This year, according to Singh, is a turning moment for supply creation. “In India, the leisure market is very underserved.” He claims that in comparison to places like Bangkok and Dubai, there are just 28,000 leisure rooms in India. “We will be increasing them to 5,000-7,000 keys, with significant amount of capex outlay,” Singh explained. He stated the business doesn’t need to borrow. “We have Rs 1,176 crore cash available with us and are very confident on maintaining occupancy.”
Next year, the major in hospitality hopes to build more than 400 rooms. “And this is a momentum that will continue for at least 5-10 years,” Singh explained. Singh stated that the public-private partnership approach is advantageous for both the corporation and the state government. “The government wants us to make new places popular because it is necessary for the state and the country. And we’re accomplishing that goal while also having the chance to build resorts more quickly in more recent locations.” According to him, they collaborate extensively on PPP models with state governments. “With a Rs 1,000 crore investment, we have an MoU with the Uttarakhand government.
Along with the government of Odisha, we have also identified four parcels of land close to Chilika Lake, and we have also been granted land. As a result, the PPP models show a lot of activity.In the Janjehli Valley of Himachal Pradesh, their recently opened hotel “is doing extremely well,” he said.