Mahindra Holidays to invest Rs 1,500 cr on expansion

Mahindra Holidays & Resorts India Ltd plans to invest up to Rs 1,500 crore in the next three years in expansion, including room additions and resort acquisitions, according to company MD and CEO Kavinder Singh. The company is also considering launching a new upscale brand for managing resorts, through which it would also look to further grow its Club Mahindra memberships. ”We are on a growth path. We have added 1,000-odd rooms in just about two and a half years,” Singh told PTI. At present, Mahindra Holidays & Resorts India Ltd (MHRIL) has a total of about 4,700 rooms across 86 resorts — 74 in India and 12 internationally, he added. When asked about future expansion, he said, ”For us, we have to add resorts, that’s the business we are in. We have a plan to easily add 1,200 to 1,500 rooms in about three years’ time and that will happen at an estimated capital expenditure of about Rs 1,200 crore to Rs 1500 crore, which is sanctioned by the board”. Among the major expansion projects, Singh said around 185 rooms are being added at the company’s resort at Kandaghat in Himachal Pradesh at an investment of Rs 200 crore, while another 60 rooms would also be added to the Puducherry resort, entailing an investment of another Rs 60-70 crore. The company will also be investing Rs 250 crore in developing a new beach-facing resort with about 240 rooms at the Ganpatipule area in Maharashtra, he said, adding MHRIL has already identified land for the project. ”We have plans to break ground in at least two more locations as we move into the next year,” he added. On inorganic growth strategy, Singh said, ”The idea is to keep building resorts and keep leasing resorts. We obviously look at acquisition targets. There are acquisition targets for resorts, for Club Mahindra. ”If we find a good resort, in a good location at the right price, we do look at resorts buying. We are always in the market to look for a good property for our members.” Singh said MHRIL is also