Sangu Chakra Hotels Announces ₹400 Crore Expansion to Double Room Inventory.

Sangu Chakra Hotels Pvt Ltd, known for its Sangam Hotels brand, has announced an ambitious ₹400 crore expansion plan to double its room inventory over the next 4–5 years. The company aims to meet rising demand in key Tamil Nadu destinations by developing new properties in Tiruchi, Rameshwaram, and Chennai.

Celebrating its 50th anniversary in the hospitality industry, Sangam Hotels currently operates four properties across Tamil Nadu, including two under the Marriott brand in Tiruchi and Madurai. These properties offer a combined room inventory of about 290 rooms.

The group is set to open a 125-room hotel in downtown Tiruchi, marking its second property in the city. The land registration for this project is expected to be completed in February, with construction set to begin soon and completion targeted within two and a half years. While the brand affiliation is still under discussion, Marriott is a frontrunner due to its synergy with the group’s existing operations.

In Rameshwaram, the group is developing a 130-room luxury resort on a 30-acre beachfront property. The resort aims to elevate the pilgrimage town into a leisure hotspot, showcasing its pristine beaches and shallow waters perfect for water sports and marine tourism.

“Post-COVID, we’ve seen a surge in demand for leisure destinations, and Rameshwaram’s beaches are among the best in Tamil Nadu,” said C Murali Krishnan, Executive Director of the group.

Additionally, Sangam Hotels is planning a business hotel in South Chennai to cater to corporate travelers, with a land deal expected soon. The group sees immense growth potential within Tamil Nadu before considering expansion into other states.

V Vasudevan, Managing Director of Sangu Chakra Hotels, explained the group's preference for owning land to maintain creative control over property development but mentioned openness to asset-light models such as management contracts for city hotels.

The post-COVID recovery has been strong, with occupancy rates averaging 75–80% and average room rates (ARRs) rising from ₹5,000 to ₹7,500–8,000. Revenue has tripled since the pandemic, rising from ₹45 crore to an estimated ₹150 crore this fiscal.

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

Founded in 1975 by philanthropist and transport entrepreneur R Krishnaswamy Reddiar, Sangam Hotels started as a modest 28-room property, catering to foreign tourists visiting Thanjavur, Tiruchi, and nearby areas. It quickly established itself as a premier choice for dignitaries and leaders, becoming a favorite venue for hosting former Chief Ministers and Presidents of India.

HBL