One of the most versatile, albeit less talked-about, developers in India, Omaxe has been sneaking its way into townships, malls, and commercial complexes without ever establishing a dedicated hotel arm. That changes now. The company has initiated a separate division for the hospitality sector and given it a legitimate number, approximately Rs. A total of 6,200 crore over the next four to five years, with plans to develop 19 hotels in almost 5 million sq. ft. of space in five states.
The significance of the wager isn't just the amount being wagered; it's exactly where the cash is being spent. Of the 19 hotels, 12 of them have landed in Uttar Pradesh, which is a good indicator of where Omaxe believes the next wing of Indian travelers is coming from. Two hotels are planned for Ayodhya and Vrindavan, three for Lucknow, and one in each of the following locations: Prayagraj, Ghaziabad, Gorakhpur, and Kaushambi (also planned for Ayodhya). The announcement also reflects the growing interest in property in Vrindavan as tourism and infrastructure continue to expand across the region. The rest of the hotels are divided into four categories: Delhi, Faridabad, Ujjain, and a cluster of hotels in Punjab (Chandigarh, Amritsar, and Ludhiana).
The topline amount of crores is not the real story here; it's the split of more ups than downs. Ayodhya and Vrindavan are not selected due to the popularity of these places; rather, they are selected because the number of pilgrims going to both places has been increasing steadily, and at present there is no place that is close to these two places to meet the demand for branded high-capacity accommodation in both these towns. People who have ever been on a tour of Vrindavan during Janmashtami or Holi know this firsthand. There simply hasn't been an increase in supply to match, and that's what Omaxe seems to be picking up the bill for.
The biggest initiative announced involves a 158-key Gateway Hotel, IHCL's 50.4-acre integrated development in Dwarka that was launched in partnership with the Delhi Development Authority. Omaxe is also collaborating with the Uttar Pradesh State Road Transport Corporation in the area of transit-linked hotel infrastructure, which makes perfect sense with the amount of intercity travel that now flows along the better highway and expressway routes as opposed to the rail-only route.
Managing Director Mohit Goel explained that it is a continuation of their existing township and mixed-use strategy, and it was time to make it a reality after the connectivity and increased religious tourism were realised. It's a reasonable book for the time. Travel times to various towns, which were once seen as remote, have been reduced continuously in recent years in various ways, such as infrastructure projects like the Jewar airport, upgraded expressways, and renovations of pilgrim corridors across UP, and it takes a year or two for the hospitality sector to follow.
The portfolio is designed to appeal to more than one type of traveller. Omaxe is going to build a blend of mid-scale and upscale branded hotels, some luxury flagships, and high-capacity pilgrimage hotels in towns like Ayodhya and Vrindavan, as well as branded serviced apartments for extended durations, business travel, weddings, and MICE events. That spread is important, as a single hotel format is not very successful across a market as diverse as Delhi, the city, and a pilgrimage town in a country that is no longer rural.
Financially, Omaxe is expecting the vertical to be able to pull in nearly Rs. Once it's up and running, it will generate 1,000 crore annually, though, as with any project on this scale, that depends on the occupancy and the timing of its execution, as well as the regulatory approvals that come with it. The company claims it has already reached advanced discussions with domestic and international hotel operators on branding and management partnerships, which will be formalised once deals are inked.
Especially for a market like Vrindavan, this is something to keep an eye on. When a major branded developer is willing to invest in two hotel properties there, there's a strong indication of where organised hospitality investment is going next, and it doesn't happen often without the surrounding land values and infrastructure following along.
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