Mahindra Holidays to invest ₹1,000 cr as it enters leisure hospitality

Mahindra Holidays and Resorts India will invest ₹1,000 crore to set up Mahindra Hotels and Residences India and launch its new luxury brand, Mahindra Signature Resorts

Mahindra Holidays and Resorts India, currently operating in the vacation ownership segment, will be initially investing ₹1,000 crore to set up Mahindra Hotels and Residences India — a wholly owned subsidiary, through which it plans to enter the leisure hospitality business. 

 

This new business line will be under the Mahindra Signature Resorts brand, according to a stock exchange filing. The Mahindra group company targets scaling this brand to 2,000 keys by fiscal 2030 (FY30), and is yet to announce if this expansion will be through greenfield or brownfield projects. Entry into the leisure hospitality business will add scale and diversity to the existing business portfolio and will help it attract fast-growing categories and customers in the overall tourism sector, the company said. 

 

 

“For almost three decades, Mahindra Holidays has shaped how Indian families holiday, which gives us a competitive edge,” Manoj Bhat, managing director and chief executive officer (CEO), Mahindra Holidays, said in a statement. “The demand for experiential holidays is rising swiftly due to increasing affluence. We recognise that family extends beyond the traditional sense to encompass meaningful connections and shared experiences. Hence, we are embarking on our two-brand strategy, to gain a leadership position in the leisure market.”

 

Mahindra Holidays and Resorts India’s core business offers family holidays primarily through vacation ownership, in a membership programme (for 10, 15 or 25 years) with select access to other products under Club Mahindra.

 

The company will scale its core business with its inventory addition expected to reach 10,000 keys by FY30, it said. As of September 30, it had 118 resorts across India and other global markets. Its subsidiary, Holiday Club Resorts Oy (HCR) in Finland, a leading vacation ownership company in Europe, has 33 Timeshare properties across Finland, Sweden, and Spain.

 

It is rebranding Club Mahindra as Club M to refresh its identity and reflect these transformations, the filing said. It is also premiumising its resort portfolio and adding a new product called Keystone, revamped with enhanced privileges for members. 

 

Under its vision to become India’s number one leisure hospitality player, the company anticipates three times growth in keys, revenue and four times growth in net profit in this decade, as per its investor presentation.

 

In the July-September quarter, its consolidated net profit rose 47 per cent to ₹16.9 crore year-on-year (Y-o-Y), while total income grew 6.1 per cent to ₹749.5 crore Y-o-Y.