Apeejay Surrendra Park Hotels Ltd has signed a Memorandum of Understanding (MoU) with Katsons Hotel and Developer Pvt Ltd and Ved Parkash Kataria to lease and operate four leisure properties located in popular tourist destinations—Goa, Manali, Shimla, and Dharamshala.
The 12-year lease deal covers a total of 138 rooms, with the distribution being 42 rooms in Goa, 24 each in Manali and Shimla, and 48 in Dharamshala. All properties will operate under the company’s established hospitality brand.
As per the MoU, the company plans to make the Goa and Dharamshala properties operational within 60 days of finalizing the lease agreements, while it aims to open the Manali and Shimla locations within 90 days.
The company stated that this strategic move aligns with its broader vision of expanding into high-demand, experience-driven destinations. The company aims to strengthen its presence in the premium coastal hospitality segment through the Goa property, while it plans to tap into the rapidly growing hill station tourism market in North India with its properties in Himachal Pradesh.
In May, Managing Director Vijay Dewan of Apeejay Surrendra Park Hotels revealed the group’s plan to add around 250 keys as part of its future expansion strategy.
One of the major steps in that direction was the acquisition of a 90% stake in Zillion Hotels and Resorts, located in Juhu, Mumbai. Valued at ₹209 crore, the deal also includes plans to transform the existing property into a high-end boutique hotel, complete with 80 rooms and a rooftop bar.
Over the past decade, the company has demonstrated a strong performance, consistently achieving occupancy rates above 90%, except during the two pandemic-affected years. It now aims to sustain this high benchmark in the coming years.
Strong market demand and favorable trends in the hospitality sector are expected to drive double-digit growth in Average Room Rates (ARR).
Looking ahead to FY26, the company is targeting a 100 to 200 basis point increase in margins. Higher ARRs, especially across the company’s palace and premium category properties, are likely to drive this improvement and significantly boost overall profitability.
