Mahindra Holidays to Expand with 1,000 New Rooms by March 2026: MD & CEO Manoj Bhat
Feb 2: Mahindra Holidays & Resorts India Ltd (MHRIL) is set for a significant expansion, planning to add 1,000 new rooms by March 2026 to cater to surging demand, according to Managing Director and CEO Manoj Bhat.
The company, which operates 5,698 rooms across 126 resorts under its flagship brand Club Mahindra, is aggressively expanding its footprint with 15 new destinations over the next five quarters. The move aligns with the Union Budget 2025-26’s focus on tourism, including plans to develop the country’s top 50 tourist destinations and boost connectivity, reinforcing the sector’s growth trajectory.
“In just the first nine months of this fiscal, we have already added 371 rooms—surpassing last year’s total addition. From January 2025 to March 2026, we plan to introduce another 1,000 rooms,” Bhat told PTI.
The expansion marks a 17-18% increase in capacity, signaling the company’s aggressive push to meet growing demand. In FY25 alone, MHRIL has launched resorts in nine new destinations. Major greenfield projects include a 236-key property in Ganapatipule, Maharashtra, and a 157-room resort in Theog, Himachal Pradesh. Additionally, brownfield expansions are underway at Kandaghat (Himachal Pradesh) and Jaipur.
With a long-term goal of reaching 10,000 rooms by FY30, Mahindra Holidays remains optimistic about sustained industry momentum.
Strong Demand Outlook
Bhat emphasized that demand remains robust, with no signs of slowing down. In Q3 FY25, occupancy rates stood at 84.2%, exceeding last year’s figures, driven by new resort additions and growing consumer interest in premium holiday experiences.
He noted that infrastructure improvements and enhanced road connectivity have made travel easier, encouraging shorter but more frequent vacations, a trend that benefits MHRIL’s business model.
Budget 2025-26: A Boon for Tourism
The latest Union Budget reinforces tourism growth by prioritizing infrastructure, investments, and job creation. Bhat highlighted key initiatives such as:
- State-government collaborations to develop top 50 tourist destinations
- Skilling programs to strengthen the hospitality workforce
- Enhanced connectivity through road, rail, and air networks
These measures are expected to attract higher investment, create jobs, and boost local economies, further cementing MHRIL’s expansion strategy.
Additionally, revised tax slabs under the new income tax regime will increase disposable income, potentially leading to higher consumer spending on travel and leisure.
“With stronger purchasing power and an industry primed for expansion, we see a bright future for tourism and hospitality,” Bhat concluded.
(PTI)