Restaurant India News: The Residency Hotels Eyes 500 New Rooms with Rs 600 Crore Investment Plan

The Residency Hotels has announced plans to invest between Rs 500 crore and Rs 600 crore over the next three years to develop three luxury hotels across South India, as the hospitality group accelerates its expansion strategy in domestic and international markets.

The proposed investment will support the development of hotels across Tier I, Tier II and Tier III cities in South India, adding between 450 and 500 rooms to the company's portfolio. The expansion is part of the group's efforts to strengthen its presence in markets where it currently has limited or no footprint.

Rohit Ravi, Managing Director of The Residency Hotels, said, “An investment of about Rs 500 crore to Rs 600 crore has been earmarked for developing properties in new locations where we currently do not have a presence. The hotels will be located in Tier I, II, and III cities across South India and will collectively add 450-500 rooms.”

The Residency Hotels, the hospitality division of Chennai-based Appaswamy Real Estates, currently operates eight properties across Tamil Nadu and Puducherry, including hotels in Chennai, Coimbatore, Karur and Rameswaram.

The announcement comes as the company advances two hospitality projects in Mysuru and continues work on its second resort development in the Maldives. The international project is being developed in partnership with Marriott and will feature between 90 and 100 villas. According to the company, the property is currently under construction and is scheduled to open in 2027.

Ravi said, “The property, which is currently under construction, will be inaugurated in 2027.” The company recently expanded its luxury portfolio with the launch of The Residency Signature, a 191-key hotel and convention centre in Madurai. Developed with an investment of approximately Rs 450 crore, the property is positioned to cater to leisure travellers, business guests, weddings and MICE-related demand.

Ravi noted that the Madurai property is expected to benefit from increasing activity in the destination wedding and meetings segment, along with growing industrial development in southern Tamil Nadu.

Highlighting the market opportunity, he said, “About one lakh to 1.5 lakh foreign tourists visit Madurai every year. Moreover, rapid industrialisation is taking place in Virudhunagar and Thoothukudi districts, including shipping-related projects, creating tremendous business opportunities for us. We will also introduce two robots for restaurant services at the Madurai property.”

The latest expansion plans reflect growing confidence among hospitality operators in emerging travel markets, supported by rising domestic tourism, expanding MICE demand, infrastructure development and increasing interest in premium accommodation offerings across India.