Mindspace REIT Secures ₹350 Crore Pre-Lease for Hyderabad Property with Chalet Hotels for Luxury Hotel Development
Mindspace Business Parks REIT Secures 530,000 sq. ft Pre-Lease for Luxury Hotel Project
Mindspace Business Parks REIT, a leading Grade A office asset owner and developer, has announced a significant pre-lease agreement with Chalet Hotels Ltd for a 530,000 sq. ft mixed-use building at its Mindspace Madhapur campus in Hyderabad. The development, which involves an investment of ₹350 crore, is expected to be completed by the end of FY28.
The upcoming project will feature a 330-room hotel, along with ancillary commercial space, and will be developed through Mindspace REIT's special purpose vehicle, K. Raheja IT Park (Hyderabad) Ltd (KRIT). Chalet Hotels, backed by K Raheja Corp, will undertake interior fit-outs and operationalization of the hotel and related facilities.
Mindspace Madhapur, one of Hyderabad's largest integrated business park campuses, spans over 13 million sq. ft of premium office space and already houses three Westin-branded hotels and the Inorbit Mall. The upcoming project will be the third hotel within the campus.
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This development reflects Mindspace REIT's strategy of creating long-term value by strengthening the ecosystem within its existing business parks through high-quality, complementary uses. The partnership with Chalet Hotels combines the REIT's development and asset management capabilities with a proven hospitality platform, providing meaningful revenue visibility and enhancing the attractiveness of Mindspace Madhapur for occupiers.
Key Highlights:
- ₹350 crore investment for the development
- 530,000 sq. ft pre-lease agreement with Chalet Hotels Ltd
- Expected completion by the end of FY28
- 330-room hotel and ancillary commercial space
- Development through KRIT, a special purpose vehicle of Mindspace REIT
Mindspace REIT's portfolio comprises 31.9 million sq. ft of completed area, 3.6 million sq. ft under construction, and 3.5 million sq. ft of future development potential, across five integrated business parks and nine standalone office assets. Net operating income rose 29% year-on-year to ₹671 crore in the December quarter.
Investor Takeaway
Investors should consider the potential for increased demand for luxury hotels in Hyderabad.
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