Araiya Hotels ultimately aims to expand to 40 properties over the next five years, founder Amruda Nair told Mint exclusively on the sidelines of hospitality conference HICSA 2025. Nair is the granddaughter of CP Krishnan Nair who established The Leela Group.
As part of the expansion, Araiya Hotels has tied up with Pune-based real estate company Blue Billion to develop three greenfield sites in Maharashtra, Gujarat, and Rajasthan. One of the other planned properties is a tented resort in Mount Abu, Rajasthan, under the Araiya brand, which will open in 2026. An additional conversion project in the state will be announced shortly.
The company is working with developers on greenfield projects – entirely new hotel projects – which it helps shape from the ground up. It also partners with them to rebrand and manage existing properties.
While Araiya Hotels has been nimble in expanding its business, it is picking up pace only now, Nair said. The company works on an asset-light hotel, tapping both greenfield and existing properties. Under the asset-light approach, companies run hotels through management contracts instead of owning them, allowing for capital-efficient growth without investing in them.
The company’s brands include Soul by Araiya, Araiya, Essence by Araiya and the Araiya Anthology collection. The Araiya Palampur is located in Kangra Valley in Himachal Pradesh. Kinwani House in Uttarakhand is set to open in May as part of its Anthology collection. Another hotel will be in Gir in Gujarat, which will open this month.
Nair, drawing from her Leela heritage and past ventures like the Middle East-based Aiana Hotels, told Mint the legacy insight and entrepreneurial agility is helping her scale up the company in a highly competitive market.
Once at the helm of Hotel Leelaventure Ltd, the Nair family ceded control as mounting debt led to a series of asset sales. In 2019, the company’s key properties in New Delhi, Bengaluru, Chennai and Udaipur were sold to Brookfield Asset Management in a ₹3,950 crore deal. While the Leela brand is owned by Brookfield and now known as Schloss Bangalore Ltd, the family retains ownership of its Mumbai hotel.
New-age hotel companies
Like Araiya, a new wave of hotel companies such as Alivaa Hotels, Brij Hotels, Signum Hotels and Cygnett Hotels have joined the hotel management business in the past few years, adopting asset-light and more flexible models for quicker growth.
Alivaa, backed by Ananta Capital, has signed about half a dozen properties within a year of its existence and aims for 50 in five years by leasing hotels instead of owning them. Brij focuses on luxury stays under 30 rooms and plans to scale from nine to 50 hotels through revenue-share deals.
Signum, which pivoted to operating leases post-pandemic, is expanding in India and abroad and recently tied up with Wyndham Hotels. Cygnett is expanding its 25-property portfolio in tier-II cities. These companies appeal to first-time owners seeking returns without the rigid terms of legacy chains.
Under Nair’s Soul by Araiya brand, the company is developing resorts in Dharamshala, Ambardi, Tapola (New Mahabaleshwar), and Avas. In Kerala, a property in Paithalmala is scheduled to open in Q4 of 2025.
A new hotel in Dehradun under this brand and two others—an existing safari destination and a greenfield property—are expected soon, Nair said.
“I see immense potential for discovery in India, which will be the cornerstone of our growth strategy rather than merely focusing on scaling,” said Nair. “Our hotel flag in Jawai or a plantation in the Northeast would be a natural extension.”
Spirituality and wellness
The company’s expansion strategy revolves around specialist circuits that include hill stations, wildlife destinations, spiritual routes, and heritage locations. The company plans to manage its growing footprint through a cluster management structure, supported by regional sales offices in Mumbai, New Delhi, Gujarat and Punjab.
Spiritual travel is emerging as a key theme.
“Unique experiences are coming and these blend spirituality with wellness. It will help us effectively attract the younger domestic travellers seeking more meaningful holidays,” Nair said.
The Gir hotel combines wildlife with visits to the Somnath temple, while its Palampur caters to travellers going to Baijnath temple and Tashi Jong monastery.
The company aims to deliver boutique lifestyle stays with a focus on distinctive design, hyper-local experiences, personalised service, and a close connection to local culture.
“Our insights as hotel owners have enabled us to connect with first-time hotel owners who may not have hospitality as their core business,” said Nair. “Although our meticulous selection process may slow us down, we are confident that we will achieve our goal of 40 properties within the next five years.”
India’s organised hotel sector is expected to cross 300,000 rooms by 2029, with over 100,000 rooms likely to be added, driven by growth in religious tourism, rising income levels, and major infrastructure developments, according to the India Hotel Market Review 2024 by Horwath HTL.
As per the report, hotel operators could respond to shifts in consumer behaviour by pushing for higher occupancy levels, aiming to increase the current 68-70% rates to 80% or more in key business hubs.
