Adani Group Bets Big on Hospitality Sector With Major Expansion Plans

The Adani Group is gearing up for a significant expansion into the Indian hospitality market, with ambitious plans to develop one of the country's largest hotel portfolios, according to a Times of India report on December 20. This move represents a strategic shift for the conglomerate, leveraging its rapidly growing airport and real estate businesses to compete with established players like the Tata Group's Taj, ITC Hotels, and the Oberoi chain.

The group intends to develop more than 60 hotels across India, primarily connected to the airports it operates and the extensive real estate projects it controls. Jeet Adani, a director at Adani Group, stated that the sheer size of this planned portfolio would rank it among the largest in the nation.

Navi Mumbai is central to this hospitality push, as the group is developing a new international airport there along with substantial surrounding real estate. The plans include approximately 15 hotels in Navi Mumbai alone, demonstrating the scale of the group's ambition and its confidence in the future demand for business travel, events, and leisure stays in the region.

Rather than operate hotels under its own brand, the Adani Group intends to partner with international hotel operators for property management. This approach allows the group to concentrate on asset development while relying on established global brands for operations, distribution, and customer loyalty.

The hospitality expansion is part of a broader strategy to transform Adani-operated airports into multi-use urban centers. These hubs will include retail spaces, food and beverage outlets, convention centers, and entertainment venues alongside passenger terminals. This "city-side" development aims to decrease reliance on aeronautical revenues, such as landing and parking fees, which currently account for approximately half of airport revenues. The group anticipates this share to decrease significantly to around 10% as non-aeronautical businesses, including hotels, lounges, retail, and events, become more prominent. The goal is to reposition airports as commercial districts rather than solely transport facilities.

Large convention and event infrastructure is a key component of this strategy. The Adani Group plans to develop a major convention center in Mumbai and a smaller arena with a 25,000-seat capacity in Navi Mumbai. These facilities are designed to attract exhibitions, corporate events, and large gatherings, which will generate consistent demand for nearby hotels, restaurants, and transportation services.

This strategy mirrors a global trend in airport-led urban development, where airports serve as economic anchors for entire districts. Reliance Industries’ Jio World Convention Centre in Mumbai’s Bandra Kurla Complex, which opened in 2022, has already illustrated the potential of large, integrated event spaces. Adani’s plans suggest a similar ambition to build interconnected ecosystems directly linked to airports.

Acquisitions also play a role in the group's hospitality roadmap. The Adani Group has expressed interest in acquiring 88 assets of the Sahara Group, including the Sahara Star hotel in Mumbai, a prominent property near the airport. Separately, the group has secured creditors’ approval to acquire assets of the Jaypee Group, which include five hotels in northern India. These deals would enable Adani to expand rapidly by incorporating existing properties into its portfolio.

Despite the envisioned size of the hotel business, the group does not plan to spin it off into a separate company. Real estate assets will remain with Adani Realty and Adani Properties, while airport-linked developments will stay within the airport business. To ensure coordination, a unified management team has been established to maximize value across both verticals.