Arihant Superstructures announces MTHL hospitality venture, aims for Rs 3,000 cr

Property to profits: Arihant Superstructures Limited, a listed real estate developer, is set to venture into the hospitality business with a focus on creating annuity income. The company plans to develop 30 lakh sq ft of real estate near Mumbai Trans Harbour Link (MTHL) and the upcoming Navi Mumbai International Airport, projecting a revenue of Rs 3,000 crore, according to Ashok Chhajer, Chairperson and MD of Arihant Superstructures.

Hospitality in Panvel

As part of its hospitality foray, the company's initial project, World Villas and Club 10 gymkhana in Navi Mumbai's Panvel area, will include a 221-key hotel on 9 acres and a sports club and gymkhana on 10.5 acres. The gymkhana aims to generate revenue through membership fees, food and beverage sales, entertainment, and sports venue sales. The hotel, positioned as a venue for weddings, corporate events, and room rentals, is expected to require an investment of Rs 250 crore.

Out of the total construction, 10 lakh sq ft will be dedicated to annuity businesses, including the hospitality sector. Arihant Superstructures aims to achieve 15 per cent to 20 per cent of its revenue from the annuity business over the next three to five years, while continuing its focus on residential, retail, and commercial construction.

The company is currently active in the affordable and luxury housing segments in areas such as Navi Mumbai, Panvel, and Karjat. Chhajer mentioned the company's focus on a plotted residential villa project in Navi Mumbai spanning over 100 acres.

Market-driven pricing

Anticipating steady growth in the Navi Mumbai residential real estate market, Chhajer attributes a 5 per cent price increase to the Mumbai Trans Harbour Link. Despite the future operational Navi Mumbai airport, the company plans to keep price rises minimal to avoid negatively impacting homebuyer sentiment.

While the company currently has no immediate plans to enter the Mumbai real estate market, Chhajer expressed openness to opportunities arising from the ongoing infrastructure upgrades in Mumbai, including metro projects, MTHL, Coastal Road, and the Bandra-Worli Sea Link.

With a track record of delivering over 12,000 homes across 60 projects, Arihant Superstructures currently has a pipeline of over 2,000 units under construction, totalling more than 18 lakh sq ft.