Mall developer Phoenix Mills is set to significantly expand its hospitality business, with plans to triple its portfolio by adding four new hotels through an investment of over ₹3,500 crore, according to people familiar with the matter. Once completed, the expansion will take the company’s portfolio from about 600 rooms to nearly 1,800.

 

The group is already working on a 400-room Grand Hyatt at its MarketCity property in Bengaluru. This premium hotel, designed with a focus on events, is expected to be completed in FY27–28 with a capital expenditure of around ₹1,000 crore.

 

Pipeline of new hotels

 

On a recent investor call, managing director Shishir Shrivatsava explained that the Grand Hyatt is aimed at positioning itself as one of the most prominent hotels in Bengaluru, with strong occupancy and performance metrics. He pointed out that comparable hotels in the same area have achieved healthy revenue and Ebitda margins, offering confidence in the project’s potential.

 

In addition to the Grand Hyatt, Phoenix Mills has lined up more projects. Construction is expected to begin soon on another 300-room hotel in Phase 3 of Phoenix MarketCity in Bengaluru. A similar 300-room property is being planned at Phoenix Citadel in Indore, which is currently in the planning stage.