February 2 – Mahindra Holidays & Resorts India Ltd (MHRIL) is set to expand its footprint significantly, adding 1,000 new rooms by March 2026 to cater to the rising demand for leisure travel. The company’s Managing Director and CEO, Manoj Bhat, announced this ambitious expansion plan, reinforcing MHRIL’s commitment to growth.
With its flagship brand, Club Mahindra, currently operating 5,698 rooms across 126 resorts, the company is set to introduce 15 new destinations over the next five quarters. Bhat emphasized that the Union Budget 2025-26, which prioritizes the development of India’s top 50 tourist destinations and enhanced connectivity, will further accelerate growth in the tourism sector.
“In the first nine months of this fiscal alone, we have added 371 rooms—already surpassing last year’s full-year addition. Between January 2025 and March 2026, our goal is to add another 1,000 rooms,” Bhat told PTI.
Expansion at a Strong Pace
The new capacity addition represents a 17-18% growth in MHRIL’s room count, reflecting a rapid expansion strategy. The company’s ongoing projects include a 236-room resort in Ganapatipule, Maharashtra, and a 157-room property in Theog, Himachal Pradesh. Additionally, brownfield expansions are underway in Kandaghat, Himachal Pradesh, and Jaipur.
MHRIL aims to increase its total room inventory to 10,000 by FY30, positioning itself as a dominant player in the leisure hospitality space.
Strong Demand Outlook
Bhat remains optimistic about future demand trends, stating, “We expect the current momentum to continue well into Q4 and beyond. There’s no indication of demand slowing down.”
In Q3 FY25, the company’s occupancy rate stood at 84.2%, slightly higher than the same period last year. The addition of new destinations has also contributed to sustained growth.
With affluent travelers willing to prepay for holidays and improved road connectivity encouraging frequent short breaks, MHRIL is confident about sustained expansion.
Boost from Union Budget 2025-26
Bhat welcomed the government’s continued focus on infrastructure, tourism, and employment generation, stating that initiatives like:
- Collaborations with state governments to develop top 50 tourist spots
- Enhanced connectivity and workforce skill development
… will attract more investments, create jobs, and boost local economies.
Additionally, the revised tax slabs under the new income tax regime are expected to enhance disposable income, leading to higher consumer spending and sustained industry growth, he noted.
With these strategic moves, Mahindra Holidays is well-positioned to capitalize on the booming travel sector, reinforcing its leadership in India’s hospitality industry.
(PTI)
