Mahindra Holidays & Resorts India to add 850 rooms in FY26
Mahindra Holidays & Resorts India Plans Massive Expansion: 850 New Rooms in FY26
Table of Contents
Ambitious Expansion Plans
Mahindra Holidays & Resorts India Ltd (MHRIL) has unveiled its ambitious expansion strategy for FY26, with plans to add 850 new rooms to its portfolio. This significant expansion follows the company’s successful addition of 520 rooms in FY25, marking a substantial increase in their growth trajectory.
Key Expansion Highlights
The planned 850-room expansion will be strategically implemented throughout FY26, with additions scheduled across all quarters from Q1 to Q4. This expansion will bring MHRIL’s total room count to approximately 6,500-6,600 rooms under their flagship brand Club Mahindra.
Investment Strategy and Capex
According to Managing Director and CEO Manoj Bhat, the company’s capital expenditure for FY26 could potentially double from the ₹300 crore spent in FY25. This increased investment will support both new room additions and the renovation of existing resorts.
Investment Focus Areas
- New room construction and development
- Renovation of existing resort properties
- Infrastructure enhancement
- Quality improvement initiatives
Growth Trajectory and Targets
The company has demonstrated strong growth in recent quarters, with resort revenues showing impressive increases of 12% in Q3 and 14% in Q4 of FY25 for the domestic business. This positive momentum is expected to continue throughout FY26, with a particular focus on profitability growth.
Recent Performance Metrics
MHRIL’s current portfolio comprises 5,800 rooms under Club Mahindra, with consistent revenue growth and improving profitability metrics indicating strong market performance and operational efficiency.
Occupancy and Revenue Outlook
The company projects robust occupancy rates of 83-85% for FY26, supported by strong travel trends including increased frequency of travel, shorter vacation breaks, and a rise in driving holidays. Despite the significant increase in room inventory, occupancy percentages are expected to remain stable.
Vision for 2030
MHRIL has set an ambitious target of reaching 10,000 rooms by FY30, with planned investments of up to ₹4,500 crore over the next three to four years. This expansion strategy reflects the company’s confidence in the growing Indian tourism and hospitality sector.
Strategic Growth Vision
The company’s expansion plans are aligned with the increasing demand for quality vacation experiences in India, positioning MHRIL to capitalize on the growing domestic tourism market while maintaining its leadership in the vacation ownership segment.
Published on May 4, 2025
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