Luxury hotel projects flock to tourist hubs, elude Amaravati
At the recent Andhra Pradesh Tourism Conclave – Tech AI 2.0, the Andhra Pradesh Tourism Development Corporation (APTDC) signed 82 MoUs worth 10,329 crore, of which 47 were for hotel projects. However, only one of these was for Amaravati, while the majority targeted high-footfall destinations such as Vizag, Tirupati, and coastal areas like Suryalanka and Rushikonda.
Tourism department officials clarified that earlier MoUs with marquee hotel chains for Amaravati are still active.
As many as 17 major hotel groups are expected to invest in the capital region, though progress has been slow.
"Investors are reluctant to develop star hotels in the Amaravati region due to the govt's proposed three-year deadline, which mandates a firm to start the project and complete boundary wall construction within one year of land allocation, and complete hotel development within three years. Although the three-year deadline norm is not officially in place for hotels, since the govt mandated the same deadline for various state and central govt institutions that were allocated land in Amaravati, investors in the hospitality industry fear that the same rule would apply to hotels as well, making them hesitant to invest," a top player in the AP hospitality sector told TOI.
The representative added that relaxing the deadline and ensuring visible progress on government complexes in Amaravati could help restore investor confidence.
Meanwhile, the state is actively promoting coastal tourism, offering investors more flexibility and fewer regulatory hurdles. Seaplane and cruise tourism initiatives are being rolled out along the coast, with hotel and resort projects encouraged in beach destinations like Machilipatnam and Suryalanka.
In Vijayawada, marquee brands like Marriott and Radisson are reportedly in talks to establish 200-key hotels. "Radisson is in talks to set up its hotel towards the Kanuru stretch, while Marriott is expected to develop a star hotel near the Ramavarappadu Ring or towards the airport stretch," the representative added.
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