New Delhi: Indian conglomerate Dharampal Satyapal Group (DS Group), known for brands including Rajnigandha and Catch, is increasing its investment in the hospitality sector to Rs 1,500 crore as its initial target to double room count will be achieved ahead of schedule, according to Vice-Chairman Rajiv Kumar.
Dharampal Satyapal Group (DS Group), which on Wednesday announced a new hospitality project in partnership with Marriott International under the 'W Hotels' luxury brand near the Indira Gandhi International Airport here in the Capital, is also scouting for brownfield acquisitions and also looking to expand in North East India, Kumar told PTI in an interview.
"Last year, we said by 2029 we will invest Rs 1,000 crore and make our (room) inventory from 1,000 to 2,000. Maybe, we (will) do it before time," he said, sharing how the group's expansion in the sector has progressed.
He further said, "If we complete our target in 2028, then we have to expand further to 2029 because 2029 we (DS Group) will complete our 100 years, and that's a big day for us. So we would like to expand our target."
Considering the demand and the way the group is expanding, the investment in the hospitality sector will be increased to Rs 1,500 crore from the initially planned Rs 1,000 crore, Kumar added.
DS Group currently has six hospitality properties -- Namah Nainital, Namah Jim Corbett, Radisson Blu Guwahati, InterContinental Jaipur, Renaissance Bengaluru and Holiday Inn Express Kolkata.
Explaining why the group is keen on accelerating expansion in hospitality, he said there is significant headroom for growth in the country, as there are approximately 0.27 hotel keys per 1,000 people compared to the global average of 2.2, and India's hotel penetration rate is roughly one-tenth of the global standard.
"India is the most happening place now across the globe... So we are very actively searching for new places and expanding it," he noted.
On the contribution of the hospitality segment to the group's total revenue, he said, "It is currently about 3-4 per cent, and we expect it to remain like that as other segments are also growing."
Kumar said the group is working with consultants to find the right places for hospitality projects to cater to different segments, including leisure, religious and business travellers in different parts of the country.
Citing the example of the North East region, he said, "The business is in Guwahati, Assam. People land there, take a break, and then go to Imphal, Shillong, Arunachal Pradesh... So we are searching for places for hotels and resorts."
On the immediate room addition for FY27, he said, including the W Hotels brand project in the capital, which has 200 rooms, a total of 375 rooms will be added.
The group has earmarked an investment of Rs 400 crore on the 'W Hotels' property in the Capital that is scheduled to open in September 2027.
DS Group Business Head, Hospitality, Nathan Andrews said, "The Aerocity area continues to demonstrate exceptional demand and RevPAR growth, making it the ideal location for a globally recognised brand that combines unmatched connectivity with long-term value for Delhi NCR."
Marriott International Senior Vice President, South Asia, Kiran Andicot said, "As Marriott International continues to expand our hospitality options in India to meet the evolving needs of both guests and owners, the signing of our first W Hotels in Delhi NCR is set to introduce a bold new expression of luxury to this dynamic, high-energy market."
