DS Group Hospitality Expansion in Northeast India

Guwahati, Dec 9 (PTI) The DS Group, a FMCG conglomerate and multi-business corporation, is exploring greenfield hospitality projects in the Northeast but is unlikely to venture into the super-luxury category at present, a top company executive said on Tuesday.

Nathan Andrews, business head of the group's hospitality segment, said the company is looking at projects that can be completed within four to five years and align with the "price point" of each location.

"The strategy for Northeast is to develop ‘quick to market' projects, which are ready in four to five years. We are looking more into greenfield projects in the region," Andrews told reporters here.

He said the group is scouting for suitable sites in Kaziranga (Assam) and Shillong, among other locations.

Regarding the proposed Kaziranga project, Andrews said feasibility studies were crucial, as the national park remains shut for six months every year and accessibility remains a challenge.

"Kaziranga National Park remains closed for six months. One also has to travel nearly four hours by road from the nearest airports to reach the area," he said.

The group currently has a single property in the region, the Radisson Blu hotel in Guwahati, often called the ‘gateway to the North East'.

Citing the market dynamics in Guwahati, Andrews said pricing has a natural limit.

"People are willing to pay up to a point in the hospitality sector in Guwahati, specifically. The point is going up and now coming close to the market cost and product," he said.

In such a scenario, Andrews expressed apprehension that Guwahati is not ready for super-luxury category of hotels.

"It might be difficult to sustain properties that come with Rs 15,000-20,000 per night packages in the near future in the region," he said.

With nearly a dozen leading hoteliers lining up to open shop in the city, the DS Group top executive said many of them are coming up with ‘boutique hotels', which have a better chance at capturing the market.

The DS Group, in the hospitality business since 2000, currently encompasses six properties in its hospitality portfolio, including Radisson Blu here.

Andrews said the group's growth strategy involves pan-India expansion through asset management and brand partnerships, targeting high-growth Tier I and Tier II cities, and capitalising on the opportunity in domestic and international tourism with a mix of city and resort properties.

The company plans to significantly expand its room inventory, aiming to double its current room count by 2029, with an investment of Rs 1,000 crore over the next few years, funded through internal resources and strategic partnerships.

"While focusing primarily on luxury and mid-scale hotels, DS Group aims to have 10–12 hotels in its portfolio within the next three years, including new developments in the North and East and a stronger presence in the Northeast," Andrews said. PTI SSG





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