NEW DELHI: Riding a buoyant hotel market and a shortage of room supply, fast-moving consumer goods conglomerate Dharampal Satyapal (DS) Group is raising its hospitality investment commitment by 50% and accelerating plans to expand through acquisitions and new developments.
In FY27, the group's hospitality arm plans to raise its hospitality investment commitment to a total of ₹1,500 crore from the ₹1,000 crore announced in 2024, after deploying or committing roughly 60% of the original allocation. The company is pursuing a mix of acquisitions—primarily brownfield assets—and greenfield projects, with a particular focus on distressed properties.
“We will up our investment to ₹1,500 crore considering the demand (for the hotel sector),” Rajiv Kumar, vice-chairman of DS Group, told Mint.
A key part of that expansion is the redevelopment of the former Uppal’s Orchid hotel near Delhi’s Aerocity into a 200-room W Hotels property. DS Group is investing about ₹400 crore in the project, including land costs. The hotel is expected to debut in the second half of 2027 and will be the first W Hotel in Delhi-NCR and only the second property in India under Marriott International's luxury W Hotels brand.
“We are seriously opportunistic (about the business). We are identifying greenfields as well as big takeovers and are quite close in different places,” Kumar added.
Growth ambitions
The company, which entered hospitality in 2000, currently operates about 1,000 rooms across six hotels. While hospitality contributes only 3-4% of DS Group's overall revenue of roughly ₹10,000 crore as of FY25, the group expects the business to emerge as a larger growth driver over the next few years.
Kumar said hospitality revenue is expected to double by 2028.
The portfolio includes Namah Nainital, Namah Jim Corbett, Radisson Blu Guwahati, InterContinental Jaipur, Renaissance Bengaluru and Holiday Inn Express Kolkata. The group also owns hospitality and food retail brands such as L’Opéra and Le Marché.
DS Group is targeting 10-12 operating hotels by FY29 while doubling room inventory over the next three years.
“We have visibility on around 1,500 rooms in the pipeline. With a few more acquisitions, we could easily touch 2,000 rooms,” said Nathan Andrews, business head of hospitality at DS Group.
Growth is expected to come from both acquisitions and expansions at existing properties. The company is adding 85 rooms at Radisson Blu Guwahati and 65 rooms at Holiday Inn Express Kolkata.
It is also investing in the Renaissance Bengaluru hotel, which it acquired through the insolvency process for about ₹300 crore in 2023. The property is undergoing renovations scheduled for completion by October 2026.
Andrews said the company remains open to partnerships. “We continue to be brand agnostic and look at what works best in a particular market.”
Industry tailwinds
The expansion comes as India's hotel industry enjoys one of its strongest cycles in recent years, driven by rising domestic travel, steady corporate demand and limited supply additions in the premium segment.
According to HVS Anarock, nationwide occupancy stood at 63-65% in 2025, while average room rates rose to ₹8,500-8,700. Revenue per available room (RevPAR) climbed to ₹5,400-5,600, exceeding both year-ago and pre-pandemic levels, as rising travel demand continued to outpace new supply in several markets.
Andrews said the current upcycle still has room to run despite questions about its durability.
“We expect it to continue to be steady and profitable. There is still a significant gap between pre-covid international arrivals and current levels, and that will further support demand,” he said.
DS Group is evaluating opportunities across tier-I and tier-II cities, leisure destinations and religious tourism markets. Kumar said destinations such as Varanasi are under consideration, while the Northeast has emerged as a priority investment region.
Unlike urban business hotels, projects in the Northeast are likely to focus on eco-resorts and leisure-oriented developments.
“Our focus is also on the North-East now. For leisure, there are a lot of opportunities,” Kumar said.
The company joins a growing list of firms expanding hospitality portfolios amid strong demand and constrained supply. Hotel owners including Chalet Hotels, SAMHI Hotels and Sattva Group have added assets in recent years, while developers such as Prestige Group, Brigade Group and DLF have increased investments in hotels and branded residences following the post-pandemic travel rebound.
According to HVS Anarock, India's organized hotel inventory exceeds 200,000 rooms and is projected to approach 350,000 rooms by FY30. The sector recorded more than 64,000 hotel keys signed in 2025, up 35.7% from the previous year, underscoring continued investor interest in the sector.
