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Dharampal Satyapal Group (DS Group) has increased its planned investment in the hospitality sector to INR 1,500 crore from an earlier target of INR 1,000 crore as the conglomerate expects to achieve its room inventory expansion goals ahead of schedule. The company announced a new luxury hotel project under Marriott International’s W Hotels brand near Indira Gandhi International Airport in Delhi-NCR and is simultaneously exploring brownfield acquisitions and expansion opportunities across North-East India. DS Group aims to double its room inventory from 1,000 to 2,000 keys before 2029, when the group marks its centenary year. The latest expansion strategy reflects the company’s growing focus on hospitality, supported by rising travel demand, limited hotel penetration in India and increasing opportunities across leisure, religious and business travel segments.
Dharampal Satyapal Group (DS Group) has revised its hospitality investment strategy, increasing its planned outlay for the sector to INR 1,500 crore as it expects to achieve its previously announced room inventory expansion targets ahead of schedule.
The diversified conglomerate, known for brands such as Rajnigandha and Catch, announced on Wednesday a partnership with Marriott International to develop a luxury hotel under the W Hotels brand near Indira Gandhi International Airport in Delhi-NCR. The project forms part of the group's broader hospitality expansion programme, which also includes evaluating brownfield acquisitions and exploring opportunities in North-East India.
Speaking about the company's growth plans, DS Group Vice-Chairman Rajiv Kumar said the group had earlier committed to investing INR 1,000 crore by 2029 and increasing its room inventory from 1,000 to 2,000 keys. However, the company now expects to meet that target before the planned timeline.
According to Kumar, if the inventory target is achieved by 2028, the company intends to further expand its hospitality portfolio ahead of 2029, when DS Group completes 100 years of operations. He added that the strong growth trajectory and demand outlook had prompted the group to raise its planned investment in hospitality to INR 1,500 crore.
DS Group currently operates six hospitality properties across India, including Namah Nainital, Namah Jim Corbett, Radisson Blu Guwahati, InterContinental Jaipur, Renaissance Bengaluru and Holiday Inn Express Kolkata.
Explaining the rationale behind the accelerated expansion, Kumar pointed to the relatively low hotel penetration levels in India. He noted that the country has approximately 0.27 hotel keys per 1,000 people compared with a global average of 2.2 keys, indicating substantial scope for growth in the hospitality sector.
The company is working with consultants to identify suitable locations for future developments catering to leisure, pilgrimage and business travellers. Kumar said the group is actively evaluating opportunities in the North-East, where destinations such as Guwahati serve as transit and tourism gateways for travellers heading to cities and states including Shillong, Imphal and Arunachal Pradesh.
In the current expansion cycle, DS Group plans to add 375 rooms during FY27, including the newly announced W Hotels project. The luxury property near Delhi airport will comprise 200 rooms and is expected to commence operations in September 2027. The group has earmarked an investment of INR 400 crore for the development.
Commenting on the project, Nathan Andrews, Business Head – Hospitality at DS Group, said Aerocity continued to witness strong demand and revenue growth, making it a suitable location for an internationally recognised luxury hospitality brand.
Kiran Andicot, Senior Vice President, South Asia, Marriott International, stated that the agreement would bring the first W Hotels-branded property to Delhi-NCR and expand Marriott’s luxury portfolio in one of India's most active hospitality markets.
Despite the planned expansion, Kumar said hospitality currently contributes around 3–4% of DS Group’s overall revenue and is expected to remain at a similar level as the group's other business verticals continue to grow.
Source - PTI
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