Apeejay Surrendra Park Hotels to Lease and Operate Four Properties Across Goa and Himachal

14 Jul 2025 , 09:06 AM

Apeejay Surrendra Park Hotels Ltd has entered into a Memorandum of Understanding (MoU) with Katsons Hotel and Developer Pvt Ltd and Ved Parkash Kataria to lease and manage four leisure properties across popular tourist destinations Goa, Manali, Shimla, and Dharamshala.

The lease agreement spans 12 years and covers a total of 138 rooms. According to the company, the room count is split as follows: 42 rooms in Goa, 24 each in Manali and Shimla, and 48 in Dharamshala. All four properties will be brought under the company’s existing hospitality brand.

As per the terms of the MoU, the properties in Goa and Dharamshala are expected to become operational within 60 days of signing the definitive lease agreements. The Manali and Shimla locations are anticipated to open within 90 days.

The company said this move fits into its broader plan of expanding into high-demand, experience-driven destinations. The Goa property is expected to deepen its position in the premium coastal hospitality segment, while the Himachal properties will help it tap into the fast-growing hill station market in North India.

Earlier in May, Managing Director Vijay Dewan shared that the group intends to add approximately 250 keys as part of its upcoming expansion roadmap.

One of the significant milestones in that direction was the acquisition of a 90% stake in Zillion Hotels and Resorts. This is located in Juhu, Mumbai. The deal was valued at ₹209 crore. This deal involves converting the existing property into an upscale boutique hotel with 80 rooms and a rooftop bar.

The company has maintained an impressive track record over the past decade, consistently reporting occupancy rates above 90%, with the exception of the two pandemic years. It aims to maintain this benchmark going forward.

Average room rates (ARR) are also projected to see double-digit growth, aided by strong demand and positive trends across the hospitality sector.

Looking ahead to FY26, the company is eyeing a 100 to 200 basis point improvement in margins. This is expected to be driven primarily by higher ARRs, especially at its palace and premium category hotels, which should help improve profitability.

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