Mahindra Holidays shares in focus on Rs 1,000-crore leisure hospitality foray

Shares of Mahindra Holidays and Resorts India Ltd. are in focus today after the frim said has received board approval for a significant move into the leisure hospitality sector, with a planned investment of approximately ₹1,000 crore through its subsidiary, Mahindra Hotels and Residences India Ltd.

Shares of Mahindra Holidays closed 2.99% lower at ₹323.50 on Wednesday against the previous close of Rs 333.30.  The stock has declined 13% year-to-date. Market cap of the firm stood at Rs 6,530 crore. 

The new venture will launch a high-end brand, Mahindra Signature Resorts, expanding the company's focus beyond vacation ownership and aiming to penetrate the rapidly growing luxury hospitality segment in India. The company also introduced a comprehensive transformation strategy targeting leadership in the country's leisure space.

Key components of this strategy include increasing total inventory to 10,000 keys by FY30, the establishment of Keystone— a new privileged access programme offering concierge services and simplified membership plans— and a premium upgrade to its existing resort portfolio. In addition, Club Mahindra will be rebranded as Club M, aligning with the refreshed corporate identity.

The new luxury brand is set to scale up to 2,000 keys by FY30. Manoj Bhat, MD and CEO of Mahindra Holidays, stated: "For almost three decades, Mahindra Holidays has shaped how Indian families holiday, which gives us a competitive edge. With rising affluence and the growing demand for experiential travel, our two brand strategy positions us to lead the leisure segment."