Leading hotel brands like IHCL, Marriott, Hyatt, IHG and Radisson are actively exploring new projects across the state, says an expert. Photo: File | Photo credit: G. Moorthy
Tamil Nadu’s luxury hospitality sector is witnessing a strong growth phase, fueled by strong economic expansion, industrial growth and rising travel demand. Chennai, in particular, has emerged as one of the top-performing hotel markets in the country, with industry experts predicting the addition of over 2,000 new rooms in the next two to three years.
“Several major hotel projects are in the pipeline for Chennai, including new Marriott and Ritz-Carlton properties. There are also strong indications that Singapore-based luxury brand Raffles could enter the city. Chennai is expected to add around 1,500 to 2,000 new luxury hotel keys in the next three to four years,” said managing director VS Waish. He said the demand comes from strong growth in the office and manufacturing segments. He also pointed out that room rates have increased by around 15-20%.
“Average room rate (ARR) saw strong growth, growing nearly 11% year-on-year to ₹7,800-8,000,” said Mandeep S. Lamba, President and CEO (South Asia), HVS ANAROCK. “As of August 2025, Tamil Nadu had more than 13,600 branded hotel keys, with a healthy supply of nearly 3,900 more keys expected by 2030. Chennai leads the upcoming offering with more than 2,600 keys, followed by Hosur, Salem and Coimbatore,” he said, adding that, “Septernai, in particular, has been an outstanding performer. In 2025, the city achieved one of the highest occupancy levels among the country’s major hotel markets and recorded occupancy rates between 74% and 76% during the period, an increase of more than 3% year-on-year.”
Developers are responding with renewed focus and leading hotel brands like IHCL, Marriott, Hyatt, IHG and Radisson are actively exploring new projects across the state, Mr. Lamba pointed out.
Brigade Hotel Ventures Limited (BHVL) is currently developing three properties in Chennai – Grand Hyatt Chennai ECR (200 rooms), JW Marriott Chennai OMR (250 rooms) and Courtyard by Marriott Chennai World Trade Center (45 rooms).
“While Courtyard by Marriott Chennai World Trade Center is in the interior fit-out phase and we expect to launch the hotel by the end of next year. The other two hotels are currently in the design phase and progressing steadily,” said Manoj Agarwal, COO, Hospitality, Brigade Hotel Ventures Limited. Currently, BHVL operates one hotel in Tamil Nadu — Holiday Inn Chennai OMR IT Expressway, which has 202 rooms.
Suma Venkatesh, Executive Vice President, Real Estate & Development, IHCL, said, “For over five decades, IHCL has had a strong presence in Tamil Nadu, starting with Taj Coromandel, the first luxury hotel in the state. Today, our portfolio comprises 32 hotels, including 15 under development across our brand, that appeal to heterogeneous market segments.” Recently, IHCL announced the signing of the Taj Hotel at ECR in Chennai, Tamil Nadu. This is a green field development. The group is collaborating with MGM Healthcare on this project.
Published – 09 Nov 2025 19:04 IST
