Sangu Chakra Hotels Unveils ₹400 Crore Plan to Double Room Inventory.

Sangu Chakra Hotels Pvt Ltd, also known as Sangam Hotels, has revealed plans to double its room inventory in the next 4 to 5 years with a ₹400 crore expansion initiative. The group aims to meet the growing demand in key Tamil Nadu destinations such as Tiruchi, Rameshwaram, and Chennai.

Celebrating its 50th anniversary, Sangam Hotels currently operates four properties across Tamil Nadu, including two under the Marriott brand in Tiruchi and Madurai, with a total of about 290 rooms.

The group is set to add a second hotel in Tiruchi with 125 rooms. The land registration for this new property is slated for February, with construction expected to begin shortly after. Completion is anticipated within two and a half years. While the brand affiliation is still under discussion, the Marriott Group is considered a likely partner due to its successful collaboration with the group.

In Rameshwaram, the group is developing a luxury resort on a 30-acre beachfront property. The 130-room resort is aimed at attracting both pilgrims and leisure travelers, with a focus on water sports and marine tourism, as the region's beaches are considered some of the finest in Tamil Nadu.

“Post-COVID, we’ve seen an increase in demand for leisure destinations, and Rameshwaram’s beaches offer a unique opportunity,” said C Murali Krishnan, Executive Director of Sangam Hotels.

Additionally, the group is working on a business hotel in South Chennai to cater to corporate travelers. A land deal for this project is expected soon. Sangam Hotels is focused on expanding its presence within Tamil Nadu, with future plans to branch into other states.

Sangu Chakra Hotels prefers owning land to maintain creative control over developments but is also open to asset-light models, such as management contracts for city hotels.

Sangam Hotels has seen significant post-COVID recovery, with occupancy rates averaging 75–80% and average room rates climbing to ₹7,500–8,000, up from ₹5,000 before the pandemic. Revenues have tripled, from ₹45 crore to an estimated ₹150 crore this fiscal year.

The group’s expansion is self-funded, with profits reinvested into the business. Ravi Pillai, Group General Manager, expects 10–15% annual growth, driven by room revenue and food and beverage services.

Founded in 1975 by R Krishnaswamy Reddiar, Sangam Hotels began with a modest 28-room property in Thanjavur, catering primarily to foreign tourists. Over the years, it has grown into a leading hospitality group in Tamil Nadu, hosting numerous dignitaries and leaders, including former Chief Ministers and Presidents of India.

HBL