Omaxe shares rise up to 20% on unveiling dedicated hospitality vertical with ₹6,200 crore investment

The stock rose as much as 20% to ₹92.97 per share on the National Stock Exchange (NSE). It settled 8.75% higher at ₹84.26 apiece.

The company intends to invest approximately ₹6,200 crore in the next 4-5 years to develop hospitality assets. This will be subject to project-specific, regulatory, and other necessary approvals, apart from market conditions.

"Of the 19 hotels, 12 will be developed in Uttar Pradesh, including two in Ayodhya, three in Lucknow, one each in Prayagraj, Ghaziabad and Gorakhpur, two in Kaushambi and two in Vrindavan. Omaxe will also develop one hotel each in New Delhi, Faridabad and Ujjain, along with four hotels across Chandigarh, Amritsar and Ludhiana, including two properties in Chandigarh. In total, Omaxe will have a presence across 13 cities in five states over the next 4-5 years," Omaxe said in an exchange filing on Monday.

Among the key projects is a Gateway Hotel, consisting of 158 keys, by IHCL at The Omaxe State, the company's 50.4-acre integrated destination in New Delhi, which is being developed under a Public-Private Partnership (PPP) model with the Delhi Development Authority (DDA).

The property developer will also make transit-orientated hospitality infrastructure in Uttar Pradesh through its PPP projects with the Uttar Pradesh State Road Transport Corporation (UPSRTC).

The hospitality portfolio will serve multiple demand segments, including leisure tourism, business travel, destination weddings, religious tourism and MICE (Meetings, Incentives, Conferences and Exhibitions).

"The hospitality portfolio will comprise midscale and upscale branded hotels, luxury and premium flagship properties, high-capacity pilgrimage hotels, and branded serviced apartments and extended-stay studios. Each asset will be developed in line with the tourism profile and demand dynamics of its respective market," Omaxe said.

The investment is expected to be deployed in phases over the next 4-5 years. The company, as per the current business assumptions and market condition, expects the hospitality business to generate approximately ₹1,000 crore in annual revenue upon stabilisation.

Omaxe is presently in advanced talks with leading domestic and international hospitality operators for branding and management collaborations.