Andhra Pradesh attracts major luxury tourism investment


Atmosphere Core has announced one of Andhra Pradesh’s largest recent hospitality investments, committing INR 700 crore to develop three major luxury hotel projects in Tirupati, Visakhapatnam, and Amaravati. This aligns strongly with the state government’s mission to transform key coastal and hill regions into high-potential tourism clusters supported by private sector growth. Officials see this as a strategic partnership that will accelerate tourism development while enhancing the overall visitor experience across the state.

Managing Director Souvagya Mohapatra highlighted that Andhra Pradesh impressed the company with both its tourism diversity and its speed of governance. He stated that beaches, hills, waterfalls, forests, and heritage sites make Andhra Pradesh a complete tourism package. The ease and speed of doing business encouraged the company to formalise plans quickly, leading to multiple MoUs already signed with the state government for the three upcoming luxury projects.

With agreements now in place, Atmosphere Core is preparing to begin execution. Construction of the Tirupati luxury hotel will start in January 2026, with completion expected around 2029. The Visakhapatnam beachfront project, planned as a global-scale luxury development, will commence once land allocation is finalised. Meanwhile, the Amaravati project will begin after registration is complete. All three hotels are planned as large greenfield developments featuring premium and ultra-luxury designs.

Government-led improvements in connectivity, including airport expansion and enhanced road networks, are a major confidence driver for the company. Mohapatra noted that strong access is essential for tourism growth, and Andhra Pradesh is investing heavily in future-ready infrastructure. Furthermore, rising technology investments in the state have created an appealing investment climate that signals long-term economic potential for global hospitality chains.

Atmosphere Core’s engagement in Andhra Pradesh extends beyond the initial three locations. The Chief Minister has encouraged exploration of destinations like Rajahmundry, Araku Valley, Vizianagaram, Bobbili, and Bejjiroda island. Mohapatra plans to survey these regions and expand further if conditions meet the brand’s standards. The three confirmed properties will include 150 keys in Tirupati, 200 keys in Visakhapatnam, and 120 keys in Amaravati, collectively creating over 1,000 jobs.

The company is simultaneously expanding across India, Sri Lanka, and Nepal, and is on track to meet its target of 25 hotel signings by December 2025. Upcoming openings include a 500-key luxury hotel in Kolkata, with phase one launching in January. Its three brands—OZEN, Atmosphere, and OBLU—are growing across major tourist destinations such as Goa, Udaipur, Darjeeling, Guwahati, and Kalimpong.



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