Chalet Hotels Limited has approved the development of a 330-room luxury hotel along with approximately 36,255 sq ft of commercial and retail space at Madhapur in Hyderabad. According to the company's disclosure, the estimated investment required for the development is approximately ₹6,328 million (₹632.8 crore), including security deposit. The decision was taken at the company's Board meeting held on February 23, 2026. This represents the company's third major property in the city, adding to their existing portfolio which includes the famous Westin Hyderabad Mindspace.
The proposed hotel will be developed as part of a building premises that will be availed on a warm shell lease model. The Madhapur location is strategically positioned very close to the bustling Hitec City area, providing easy access to work hubs and shopping centers. As reported by CNBC TV18, upon completion, it will become the company's third hotel in Hyderabad. The project is scheduled to be completed by FY2029, with the company clarifying that there is currently no existing capacity at the proposed site, indicating this will be a greenfield development. The hotel will cater to international business travelers and leisure seekers, with the integrated retail space showcasing local and global brands to create a lively atmosphere for guests.
The ₹6.3 billion investment will circulate through the Hyderabad economy, supporting local businesses from furniture to food supply chains. According to the Department for Promotion of Industry and Internal Trade (DPIIT), large hospitality projects stimulate the local supply chain significantly. The project is expected to attract more direct international flights to the city, with better lodging leading to better connectivity. The hotel will host massive corporate events and serve as a top choice for grand Indian weddings, bringing people from all over the world to Hyderabad. The tourism board expects a rise in high-net-worth visitors, who contribute significantly to the state's revenue. The project aligns with the government's 'Visit India' initiatives and follows national building codes ensuring safety and longevity.
According to the company's disclosure, the total investment required for the development will be financed through a combination of internal accruals and debt. The company stated that the project is aligned with its broader investment and expansion strategy. The proposed capacity addition comprises around 330 rooms along with commercial and retail space spread across nearly 36,255 sq ft. The project will follow the latest sustainability norms and modern travelers' preference for eco-friendly luxury options. By following national building codes, the project ensures safety and longevity while attracting more direct international flights to the city.
Shares of Chalet Hotels closed at ₹862.35 on the BSE, down 0.47% for the day. The stock traded with a net turnover of ₹665.23 lakh during the session, with the stock hitting an intraday high of ₹873.75 and a low of ₹820.05. The market reaction suggests investor response was mixed to the expansion announcement, with the stock closing lower despite the significant investment commitment. The leadership at Chalet Hotels emphasized that Hyderabad is a key market with immense potential for luxury growth, positioning this project as a long-term commitment to the state of Telangana and a vote of confidence in India's tourism future. Additionally, the company has disclosed receiving a ₹39.56 crore property tax notice from Greater Bengaluru Authority for its Whitefield hotel complex, though management maintains all taxes have been paid regularly and attributes the notice to a system glitch.
