Mahindra Holidays and Resorts has shared the following –
- The company had 2.8 lakh members as of December 2022.
- It will add 2,100 more rooms in the next five to six years with an investment of around Rs 1,800 cr
- At present, the company has 4,900 keys inventory across 119 properties; 60 per cent of them are owned properties and the rest leased.
- It will add 600 keys to take inventory to 5,500 by FY25 and an additional 1,500 over the next 3-4 (after FY25), taking the total to 7,000.
- Above additions exclude the lease additions of which the Company has not finalised the growth plans.
- Of Rs 1,800 cr, Rs 750 crore worth work is already on for greenfield and brownfield projects. It includes a new Rs 250 crore property in Ganapati Phule, Maharashtra, and expansion of existing properties in Pondicherry and Goa.
- The key focus area for greenfield development will be the Konkan coast across Maharashtra and Karnataka, apart from Gujarat, Andhra, Odisha and Bengal coasts and also Delhi-NCR.
- The Company is pursuing a new business model of public-private partnerships with the state governments.
- Company is already started running a 20-key boutique resort at Jhanjheli near Baddi with the Himachal government.
- An agreement has been signed with the Maharashtra tourism department to run a 100-key resort in Harihareshwar near Alibaug.
- The Company has also signed up for a 50 acre land parcel in Madhya Pradesh for a PPP project.
As against 2100 room addition plan over the next 5-6 yrs, the MD has now informed that they intend to double rooms to 10,000 (i.e., addition of 5000 instead of 2100) in the next 6-7 yrs.
He informed that the Company previously took 25-26 yrs to double to current 5,000 rooms. However, now given the sector tailwinds, expansion will be much faster.
Companies typically start planning for exponential growth during good times and prune them as the situation normalises.