Mall developer Phoenix Mills is looking to triple its hospitality portfolio with four new hotels with an investment of over Rs 3,500 crore, sources in the know said. The expansion will take its portfolio to 1,800 keys from about 600 currently.
The company has a 392-key St Regis in Mumbai and a 189-key Courtyard by Mariott in Agra.
Phoenix Mills is currently developing a 400-key premium hotel, Grand Hyatt, at its MarketCity mall in Bengaluru. This is expected to be completed in FY27-28 with a capex of Rs 1,000 crore, the sources said.
“The company looks to be a diversified player with doubling mall space and growing its office properties,” one of the sources said.
An email sent to the company did not elicit any response.
Pipeline of new hotels
“With a 400-key Grand Hyatt focused on events, we plan to establish ourselves as one of the most renowned hotels in Bengaluru and perhaps with very high performance focus on strong occupancy and areas. The case study of a similar hotel in the same micro market gives you an idea of the healthy revenue and Ebitda margins achievable,” managing director Shishir Shrivatsava said in a recent investor call.
Sources said the company plans to develop another 300-key hotel in Phase 3 of Phoenix Marketcity, Bengaluru, where it is looking to start construction soon. Phoenix Citadel Indore will also see another 300-key hotel, which is currently at the planning stage, they said.
The company has also acquired an 11-acre land parcel in Thane near Mumbai in FY24 and the project is expected to have another premium hotel.
Diversification beyond retail
The hospitality sector recorded a 12.9% yearly rise in revenue per available room (RevPAR) in the second quarter of 2025, with a sequential growth of 10 %, according to a JLL report. Bengaluru led the performance with a 29.4% RevPAR surge, aided by rate optimisation.
St Regis saw a 13% growth in ARR (average room rate) and an 11% growth in RevPAR in Q1FY26, and there was a 5% ARR growth and a 19% growth in RevPAR in Courtyard by Mariott, Agra, according to the investor presentation. It also launched Gourmet Village at Phoenix Palladium in Mumbai in July, which is a food & beverage and experiential hub.
In the investor call, Shrivastava said the hotel product has been designed based on their learnings at St Regis, Mumbai, and the designs have been optimised to yield the highest revenue per square foot.
According to Motilal Oswal Financial Services, the company is also looking to more than double its mall portfolio and office portfolio fourfold by FY30.
“Further expansions are underway at Phoenix Palladium (0.35 million sq ft) expected to be launched by FY26-27. With the acquisition of 22.1 acre in Coimbatore and Chandigarh Mohali in FY25, Phoenix is set to more than double its portfolio by FY30,” it added.