Rs. 515 cr hotel projects to come up in 3 places in state
The state govt approves four major hotel projects under its Tourism Policy 2024–2029, offering fiscal incentives to boost private investment in key tourist destinations
Vijayawada: The state government approved four major hotel projects worth Rs 514.8 crore under the Tourism Policy 2024–2029, offering fiscal incentives to attract private investment in the hospitality sector and strengthen key tourist hubs across the state.
The State Investment Promotion Board (SIPB) cleared proposals for premium hotels in Amaravati, Srisailam and Araku Valley, recommended by the State Investment Promotion Committee (SIPC).
In Amaravati, two large-scale projects will come up with a combined investment of Rs 376.96 crore. Southern Globe Hotels and Resorts Limited will develop a 4-star Courtyard by Marriott with an outlay of Rs 176.96 crore, creating 600 jobs (300 direct and 300 indirect). Daspalla Amaravati Hotels Pvt. Ltd. will build a 4-star Daspalla Hotel with an investment of Rs 200 crore, providing 400 direct jobs.
Incentives for both projects include 100 per cent net SGST reimbursement for 10 years, capital subsidy up to Rs 10 crore, stamp duty reimbursement, electricity duty exemption for five years, and industry-rate tariffs for utilities. Both projects must be completed within 24 months.
In Srisailam, Sri Venkateshwara Lodge Pvt Ltd will invest Rs 83 crore to establish a 3-star Hilton Garden Inn, generating 500 jobs. Alongside fiscal incentives, the firm will receive an additional 1 per cent capital subsidy for early completion within two years under the Speed of Doing Business initiative. The endowments department will facilitate smooth construction through logistic and movement clearances.
In Araku Valley, VSK Hotels and Resorts LLP will set up an eco-luxury resort at a cost of Rs 55.84 crore, creating around 200 jobs. The promoter, belonging to a Scheduled Tribe, has obtained local permissions under the PESA Act.
All four ventures qualify as Large Tourism Projects, with incentives aligned to the State’s 2024–2029 Tourism Policy aimed at building ‘anchor destinations’ and improving hospitality infrastructure.
Officials said the approvals are expected to enhance Andhra Pradesh’s tourism competitiveness, attract both domestic and international visitors, and promote sustainable regional development through employment and private investment.
