Mumbai-based property developer Phoenix Mills is looking to build more hotels to strengthen its hospitality portfolio.

The company currently runs a St Regis property in Lower Parel area of Mumbai and Courtyard by Marriott in Agra.

The company is building a 400-key premium hotel at mixed-use project Marketcity in Bengaluru. It has tied with Hyatt International to manage the hotel under the Grand Hyatt brand, sources said.

“The hotel is expected to get completed by FY28, and the company is expected to spend `600 crore capex on it,” sources said.

A mail sent to the company did not elicit any response.

The company has recently bought a 11-acre land parcel in Thane near Mumbai and while the development mix is not finalised yet, the project is likely to have another premium hotel with 600 keys, sources said. According to ballpark estimates , with interest costs and construction costs, nearly `800 core is required to build such a hotel .

Other Mumbai-based companies such as Oberoi Realty and Tata Realty & Infrastructure are also opening new premium hotels In the city.

Phoenix Mills’ hotel plans assume significance as it is not opening new malls this and the next financial year.

With no new malls by Phoenix expected to become operational in FY25/FY26, a large portion of the growth will be driven by organic consumption growth.

The company is also betting big on office properties to augment its revenues.

Post completion, by FY28 (in phases), Phoenix’s office portfolio is expected to rise about four-fold to 7 million sq ft and can generate a rental income of `1,000 crore by FY28, as against `170 crore expected in FY24, Motilal Oswal said.

The company had earlier shelved plans to get into warehousing. It had bought a land parcel for the same in Haryana.

For Q4FY24, the company reported a 27 % year-on-year growth in total consumption at `2,818 crore. On a like-to-like basis, consumption in Q4 increased by 9% in comparison to the same period last year. Moreover, gross retail collections stood at `791 crore in Q4FY24, recording a growth of 37% over Q4FY23.