Mindspace REIT Pre-Leases 5.3 Lakh Sq Ft at Mindspace Madhapur to Chalet Hotels for ₹350 Crore Luxury Hotel
Mindspace REIT Pre-Leases Madhapur Campus for First Ritz-Carlton Hotel in Hyderabad
Mindspace Business Parks REIT has pre-leased a 5.3 lakh square feet building at its Hyderabad campus to Chalet Hotels to develop a luxury hotel. The project in Mindspace Madhapur involves an investment of Rs 350 crore by the REIT and is expected to be completed by the fourth quarter of FY28.
Hotel Configuration and Development Structure
The mixed-use project will comprise a 330-key luxury hotel along with ancillary commercial space, subject to final design approvals and statutory clearances. This will be the first Ritz-Carlton in Hyderabad, Telangana, developed by Chalet Hotels and Mindspace Business Parks REIT, both part of K Raheja Corp.
Under the agreement, the REIT's asset SPV will construct the building envelope, while Chalet Hotels will manage interior fit-out, operations and hotel management. The mixed-use project will be undertaken through Mindspace REIT's asset special purpose vehicle, K Raheja IT Park (Hyderabad) Limited (KRIT).
Strategic Expansion of Madhapur Campus
Mindspace Madhapur is Hyderabad's largest grade A integrated business campus — spanning over 13 million square feet of IT and ITeS office space. The campus already houses two Westin-branded hotels and an Inorbit Mall. The luxury hotel development will be the third on-campus hotel to enhance the integrated business ecosystem.
The move is aimed at diversifying the tenant mix across global capability centres (GCCs), information technology-enabled services (ITeS), and sectors such as technology, pharmaceuticals, oil and gas, data centres and hospitality.
Connectivity and Infrastructure
Connectivity of the micro-market has improved with the recently opened Durgam Cheruvu cable bridge, aimed to reduce travel time between Madhapur and Jubilee Hills by 15-20 minutes, strengthening the connect of HITEC city and the financial district with the rest of the city. A one km long skywalk opened in April 2022 connects the Raidurg metro station to the Raheja Mindspace campus.
K Raheja Corp's Commercial and Hospitality Portfolio
K Raheja Corp is a property developer in India with interests in commercial and residential projects, malls and hospitality across multiple cities in the country. It owns the brands Mindspace, Commerzone, Crossword Bookstores and Shoppers Stop, and is the second largest commercial developer in India.
K Raheja Corp promotes Chalet Hotels – a high end hotel chain in India with established global brands such as Sheraton, Westin and JW Marriott. The K Raheja Corp owns/co-owns 12 hospitality offerings in India with a comprehensive portfolio of 3500+ keys. Within this portfolio, Chalet Hotels Limited oversees an asset portfolio comprising 10 hotels, totaling 3,052 keys.
Management and Strategic Rationale
Ramesh Nair, chief executive officer and managing director, K Raheja Corp Investment Managers, stated: "This development reflects our strategy of creating long-term value by strengthening the ecosystem within our existing business parks through high-quality, complementary uses. By partnering with Chalet Hotels, we are combining our development and asset management capabilities with a proven hospitality platform. The long-tenure structure with built-in escalations provides meaningful revenue visibility, while the addition of luxury hospitality further enhances the attractiveness of Mindspace Madhapur for occupiers."