Mahindra Holidays shares zoom 7% on plans to expand into leisure hospitality business with ₹1,000 crore investment

This comes after its board of directors approved a foray into the luxury leisure hospitality segment as a new line of business with an initial investment of ₹1,000 crore, which shall be carried out through a wholly owned subsidiary.

It also unveiled its vision to become India’s number one leisure hospitality player.

The stock was trading 4.48% higher at ₹337.95 per equity share at around 12:16 pm.

The scrip has gained nearly 9% over the last five days and more than 1% over the month. However, it has declined about 5% in the past six months. On a year-to-date basis, it has lost above 8%.

While the share reached a 52-week low of ₹259 on April 7, 2025, it touched a year’s high of ₹394.50 apiece on December 5, 2024.

The company’s board of directors approved entering into ‘leisure hospitality’ as a new line of business which will be carried out by its wholly owned subsidiary, Mahindra Hotels and Residences India Ltd, under the brand name “Mahindra Signature Resorts”.

Mahindra Holidays will make an initial investment of ₹1,000 crore towards capex and seƫting up of this business in Mahindra Hotels and Residences India Ltd. Furthermore, it plans to scale the brand to 2,000 keys by FY30.

“Entry into the leisure hospitality business will add scale and diversity to the existing business portfolio and will help us attract fast-growing categories and customers in the overall tourism sector,” it stated.

In a separate regulatory filing on Wednesday, the company revealed two key elements to achieve its goal of becoming the number one leisure hospitality player in the country.

This includes scaling the core with enhanced member experience and launching “Mahindra Signature Resorts” for the luxury leisure market, it stated.

To scale the core with enhanced member experience, the hospitality firm plans to accelerate inventory addition to reach 10,000 keys by FY30, along with launching Keystone, a privileged access program with “premium” benefits such as concierge services, coupled with flexible and simple membership plans.

It has also planned the premiumisation of its resort portfolio, along with rebranding “Club Mahindra” to “Club M”.

Commenting on the development, Manoj Bhat, MD & CEO of Mahindra Holidays, said: “For almost three decades, Mahindra Holidays has shaped how Indian families holiday, which gives us a competitive edge. The demand for experiential holidays is rising swiftly due to increasing affluence.”

“We recognize 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,” Bhat added.

MHRIL has a total market capitalisation of ₹6,854.44 crore, as of November 20, 2025, according to data on the NSE.