Adani Group Eyes Large-Scale Entry into India’s Hospitality Sector

The Adani Group is preparing to enter India’s hospitality sector with plans to build a large hotel portfolio, according to a Times of India report.  

This is linked to airports and real estate projects operated by the group. The hotels are planned as part of developments already underway rather than as standalone projects. 

More than 60 hotels are planned across India. Most of these will be located near airports run by Adani Group or within large real estate parcels controlled by the group. 

Navi Mumbai to See Major Build-Out 

Navi Mumbai is expected to account for a major share of the planned hotels. The group is developing a new international airport in the region along with surrounding real estate. Around 15 hotels are planned in Navi Mumbai alone. 

These properties are expected to serve airport users, business travellers, events and short-stay demand linked to commercial activity around the airport. 

Hotel Operations to be Outsourced 

The Adani Group does not plan to operate hotels under its own brand. Instead, it intends to appoint international hotel operators to manage the properties.  

Ownership of the hotels will remain with the group, while operations and bookings will be handled by external partners. 

Most hotels are planned as new developments. One exception is the Sahara Star hotel near Mumbai airport’s Terminal 1, which is being considered for acquisition. 

Lower Share of Aeronautical Revenue 

The hospitality plans form part of an effort to reduce dependence on aeronautical income at Adani-operated airports. Aeronautical revenue currently contributes close to 50% of total airport income. 

The group expects this share to decline to around 10% as non-aeronautical activities expand. These include hotels, retail outlets, food and beverage spaces, lounges and event venues. Airports are being developed with commercial facilities alongside terminals. 

Event infrastructure is also planned. A large convention centre is proposed in Mumbai, while Navi Mumbai is expected to have a smaller venue with a capacity of about 25,000. 

Read More: Adani Group to Restructure Debt, Refinancing Existing Bank Loans with Longer-Tenure Funding! 

Conclusion  

The proposed hotel portfolio is aligned with the group’s airport and real estate expansion. Hospitality assets will remain integrated within current businesses rather than being structured as a separate entity. 

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