India’s newest resorts are popping up where you least expect them

Boutique resorts and companies that manage properties are chasing projects just outside big metros or within half a day’s drive, fuelled by a post-pandemic surge in domestic travel, investor appetite, and state-led infrastructure-building blitz. Tariffs, at times, can go as high as ₹12,000 for a day.

While most such properties are still unbranded, affiliations are in the works as hospitality majors like Radisson Hotels and Wyndham eye the opportunity, besides smaller peers such as Araiya Hotels and Resorts, Brij Hotels, Evolve Back and Tamara Resorts. 

“Many of these owners are looking for properties that are, in the future, going to become branded hotels,” said Navneet Nagpal, principal consultant at Gurugram-based Spectra Hospitality Services. “None of them want to develop these resorts and take the headache or risk of running them.”

Branded hotel supply is around 200,000 rooms, according to hospitality consultant Hotelivate’s ‘Trends & Opportunities’ October report. Of this, around 70,000 rooms—or roughly 39%—were in the upscale to luxury category, including resorts. 

Also read | Boutique resorts with celebrity chefs: For the uber-rich bored with luxury stays

Smaller independent and unbranded resorts haven’t been captured yet. Industry estimates suggest there are more than 1,000 properties, and counting. It is betting that travel-hungry Indians will seek to explore lesser-known corners of the country as demand continues to surge after the pandemic.

“Over the last few years, we’ve seen a clear shift in traveller preferences, with growing interest in offbeat and lesser-explored destinations,” said Nikhil Sharma, managing director and chief operating officer-South Asia at Radisson Hotel Group. The group has launched new properties in Khopoli and Pavna in Maharashtra, and Saputara in Gujarat, and is preparing to open another in Mansowal, Punjab.

Sharma cited increased traction due to the “unique combination of nature, cultural richness, and proximity to major urban centres” for choosing these places. “For many travellers, the idea of a quick yet immersive escape—without navigating the crowd and chaos of more commercial locations—is becoming more appealing.”

Infra, ROI draw investors

Good roads and accessibility make them ideal weekend escapes, as they lie within a three- to five-hour drive from major metros.

“One of the primary drivers is the viability of these investments,” Sharma said. “With real estate and operational costs often being more favourable in tier II and III cities, the return on investment becomes highly attractive.”

Wyndham is now opening properties in places like Kainchi Dham in Uttarakhand, Omkareshwar in Madhya Pradesh and Nakodar in Punjab, bringing these off-beast destinations on the hospitality map.

Concept Hospitality, which operates The Fern brand of hotels, is opening a resort in Jambughoda Wildlife Sanctuary, and the Little Rann of Kutch in Gujarat.

Read this | Luxury resorts increase rates up to 60% for long weekends in August; staycation in city to get cheaper

Last year, Mint reported that smaller hotels were coming up in towns like Sivasaa, Rewa, and Mhow. That trend has now evolved. With full-scale resorts entering these markets, average room rates are rising to upwards of ₹10,000– ₹12,000 at many of these locations—and in some cases, even twice that range, depending on the experience on offer.

Spirituality and travel

Delhi-based couple Ankita and Aditya Johari, who are in their late 30s, now prefer travelling to lesser-known locations. “We like to hit the road whenever we can and we’re now exploring towns at a 3-5 hour drive to be able to see new places,” said Aditya. “We’ve been to Jaipur, Agra and the other usual suspects in Himachal Pradesh. This is unexplored territory.”

The number of travellers like the Joharis is growing as India’s per capita income rises, prompting hospitality brands to tap into new customer bases beyond the traditional metro hubs.

While travel spending nearly halved to $4 billion in 2020 during the pandemic, it has since bounced back. According to Statista, the figures climbed to $10 billion by 2022 and are projected to reach $11 billion in 2025.

Domestic travel is being driven by the 35- to 45-year-olds, who want to combine spirituality and wellness while holidaying, said Amruda Nair, founder of Araiya Hotels and Resorts, told Mint. “Meditation, sound healing, forest bathing are some of the themes we are seeing at our properties.”

Also read | Airport looks, resort styles goad retailers to stock up on vacation wear

Araiya has planned a tented resort in Mount Abu in Rajasthan, which will open in 2026. Its other resorts are coming up in Ambardi, Gujarat; Tapola or new Mahabaleshwar in Satara; and Avas in Alibaug.

Spectra is working on projects in Tehri, Uttarakhand; Mukundra, Rajasthan; Chikhli, Gujarat; and Choral near Indore and Tadoba, Maharashtra, besides the outskirts of Hyderabad, Bangalore, Ahmedabad, Kolkata; Valpoi in Goa, and Gir forest near Junagadh (away from Sasan). 

Brand discussions for all these projects are on, said Nagpal of Spectra Hospitality. His firm is working on about a dozen such projects, and the work has tripled in the past year to not just scout for but help build boutique hotels in these locations.

“The growth is coming in the form of two locations—one is areas within a one to two hours driving distance of bigger metros; and another set of hotels that are 3–5 hours away,” he said. “Thol, for instance, outside Ahmedabad is one such area where activity is growing.”

New models

This growth is driven by new constructions and the sale and leaseback model–where investors can back a property, offering quicker returns to the owner. Nagpal cited the example of a 28-villa property in Rishikesh, Narendra Nagar, where a luxury resort is coming up under this model.

“The development cycles are becoming better with some local state governments incentivising these properties to give better terms for infrastructure loans for up to 20 years,” Nagpal said. “Owners of these properties also now are confident that since there is a strong demand, they can look at a return of capital invested within 4–6 years and on the back of year-round occupancies of about 50–60% with average room rates upwards of ₹8,000–9,000 a night and that’s giving them a lot of incentive to build.”

And read |  Travel startups and indulgent Indians: A match made over dream destinations and luxury escapades

Holiday service providers that put together bungalows and other similar listings have also seen a growing interest. Vacation rental brand StayVista tied up with Marriott International in 2023 to remarket its villa properties, while Indian Hotels Company Ltd-backed amã Stays & Trails now has a portfolio of 250 bungalows.