In the next five-year period, Apeejay Surrendra Park Hotels plans to double their key count from over 4,400 to 5,400. Vijay Dewan said that the company’s asset-light portfolio has a goal of 500 new keys per year. Dewan said that the hotel group will also increase its own properties business.
The company has 880 keys planned for Pune, Kolkata Visakhapatnam Navi Mumbai and Jaipur. Apeejay’s portfolio had 35 hotels with 2,394 total keys as of March 31, this year.
It has also recently signed an agreement to acquire 60 service apartments under Zillion Hotels & Resorts at Juhu in Mumbai at INR 2.1 billion ($24.5 million) for 90% of the stake. Apeejay is planning to convert these 60 service apartments into an 80-room hotel with a rooftop bar, Dewan added.
The hotel chain will now enter the Mumbai market. Mumbai has been a missing link in the growth plan of our hotel chain. He said that it has always been the goal of his to be in every metropolis across the country.
Growth Drivers
Dewan said that the Indian hospitality industry is “entering into a super cycle over a long period of time.” He stated that segments such weddings, spiritual tourism, MICE. wildlife tourism The expansion of the hospitality sector will be crucial.
During its last financial year the company has also entered into the heritage luxury segment, with two properties in Patiala: the Ran Baas Palace and the Lotus Palace Chettinad.
Dewan claims that the average rate of rooms (ARR) has also increased. Ran Bass recorded an average room rate (ARR) of INR 24,099 ($281) in the quarter January-March.
Dewan also added that “both the palace hotels will see higher ARRs at the company levels as they stabilise in this year.”
Apeejay said two of his hotels, Malabar in Fort Kochi and Purity in Vembanad Lake, are also high ARR projects.
Dewan believes that the leisure industry in India has a high potential. In India, the leisure business is experiencing a greater demand-supply imbalance. Looking at the demand-supply imbalance in India, we can see that demand will grow by 10.6% and supply at around 8%. Leisure destinations, however, have a greater demand-supply gap,” he said.
Focus on Smaller Cities and Multiple Brands
In addition, the expansion of the company is dependent on Tier-2 and 3. Dewan stated that “the hospitality business is strongly emerging in India’s Tier-2 towns and 3 cities. Most of our asset light expansion takes place in these areas.”
He said that the company had two brands to grow in these areas – Zone by The Park and Zone Connect by The Park. The Zone brand is an important social catalyst, and is designed for young Indians who are looking to stay at boutique hotels that are affordable.
The company will look for ways to invest in these areas.
Dewan explained that Apeejay’s strategy is to not only have hotels across business destinations, but also build a pan India presence. Dewan said, “We are the leading business player at the moment but as we move on we want to become strong players and differentiated in the leisure sector.”
Financials in a Glimpse
- Revenue: In 2024-25 the company’s revenues will increase 9% annually to INR 6 billion ($73.8million). The revenue for the fourth quarter increased by 16%, to INR 1.77billion ($20.7m).
- EBITDA: Apeejay’s EBITDA for the year was INR 2.25 billion ($24.49 million), a 6% increase compared to last. This figure increased by 21% on a year-on-year basis for the third quarter to INR 610 millions ($7.14million).
- Profit after Tax The company reported a 22 percent increase in profit after taxes for the past financial year, which was INR 880 million ($9.8 millions). The surge in profits was even greater during the last quarter, with a 44% increase year-on-year. Profits after tax were INR270 million ($3.16million).
Apeejay Surrendra Park Hotels Chairman and Executive Director of Skift India Forum
Priya Priya Paul, the Executive Director and Chairperson of Apeejay Surrendra Park Hotels, spoke at Skift India Forum March 2025. Watch the complete conversation by clicking on the image above.
