Royal Palms India's Ambitious Hotel Expansion Plan
Royal Palms India is set to make a substantial investment of ₹2,400 crore in the hospitality sector over the next two years, focusing on establishing four- and five-star hotels across major Indian cities.
Mumbai Hotel Development Strategy
The company's initial focus is on Mumbai, where they plan to develop four distinct luxury hotels:
- One three-star hotel
- One four-star hotel
- Two five-star hotels
Dilawar Nensey, Joint Managing Director of Royal Palms India, highlighted that these developments will significantly increase the city's room capacity. By 2010, they aim to add approximately 3,000 rooms, representing about 30% of Mumbai's total hotel rooms.
Investment and Land Acquisition
The investment for the Mumbai project is particularly noteworthy, with Nensey emphasizing that the cost excludes land prices. The company strategically plans to construct these hotels on their own land in Goregaon East. This expansion will help address Mumbai's current shortage of around 3,000 rooms per day.
Expansion Beyond Mumbai
Royal Palms is actively exploring opportunities in Hyderabad and Kolkata, planning to invest approximately ₹1,400 crore in these cities. Their development strategy includes:
- One three-star hotel in Hyderabad
- One four-star hotel in Hyderabad
- One five-star hotel in Hyderabad
- Similar hotel configurations in Kolkata
The proposed hotels in Hyderabad and Kolkata are expected to provide around 1,000 additional rooms, further strengthening the company's hospitality portfolio.
Current Portfolio
Currently, Royal Palms India operates:
- 2 hotels in Mumbai
- 3 hotels in Hyderabad
- 3 hotels in Kolkata
With these planned expansions, the company is positioning itself as a significant player in India's growing hospitality real estate market.