Omaxe has announced its dedicated hospitality business vertical with plans to develop 19 hotels spread over nearly 5 million sq. ft. across five states in the next 4-5 years. The company proposes to invest approximately Rs. 6,200 crore over the next 4-5 years, subject to project-specific, regulatory, and other necessary approvals, as well as market conditions, to develop hospitality assets across high-growth urban centres, pilgrimage destinations, and transit corridors. The hospitality developments will be integrated with Omaxe's existing ecosystem of townships, mixed-use developments, commercial destinations and urban infrastructure projects. 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. 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). This expansion will strengthen Omaxe's recurring revenue portfolio by creating hospitality destinations that complement its existing developments. The portfolio will cater to multiple demand segments, including business travel, leisure tourism, destination weddings, MICE (Meetings, Incentives, Conferences and Exhibitions) and religious tourism. The hospitality portfolio will comprise midscale and upscale branded hotels, luxury and premium flagship properties, high-capacity pilgrimage hotels, and branded serviced apartments and extended-stay studios. Each asset will be developed in line with the tourism profile and demand dynamics of its respective market. 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 stabilization. |