Andhra Pradesh’s renewed effort to position itself as a key tourism destination is generating considerable interest. Luxury hospitality group Atmosphere Core has announced one of the state’s biggest investments in premium hotels in recent years. The company plans to launch three major luxury projects in Tirupati, Visakhapatnam, and Amaravati, with a whopping investment of INR 700 crore.
For the Chandrababu Naidu Government, this investment supports its plan to turn AP’s coastal and hill areas into effective tourism clusters backed by private funding.
Souvagya Mohapatra, Managing Director for India, Nepal, Bhutan, and Sri Lanka at Atmosphere Core, mentioned that the decision came quickly after evaluating the state’s offerings. “What attracted us is not only the ease of doing business but also the speed of business. The government is moving fast, and the tourism options in Andhra Pradesh are incredibly strong,” he said. He expressed, “There are beaches, hills, waterfalls, greenery, and ancient sites. What is not in Andhra Pradesh? It is a complete tourism package. Only a few states can offer such diversity.”
Atmosphere Core has already formalised plans through multiple signed MoUs with the Andhra Pradesh government. Mohapatra added, “We have signed MoUs for all 3 projects. 1 project has been assigned to us, and 2 more will follow shortly.” He highlighted that the rapid government response was a major factor in building confidence. “The government’s response has been extremely quick. That is crucial for large tourism investments,” he said.
With the MoUs finalised, the company is moving quickly toward execution. Construction on the Tirupati luxury hotel will start in January 2026 and is expected to take about two and a half years to complete. The Visakhapatnam project will begin once land allocation is confirmed, while the Amaravati project will commence once its registration is complete. Mohapatra anticipates that both Tirupati and Visakhapatnam will be ready by 2029, with Amaravati following the same timeline after the land transfer. “By 2029, Tirupati and Visakhapatnam should be ready. Amaravati will follow the same timeline once the land is handed over.”
The company plans large properties for each location, including a significant hotel by the sea in Visakhapatnam. “We want to build a truly super luxury hotel there, something on a global scale,” he said.
A key reason for the company’s positive outlook on Andhra Pradesh is the government’s initiative to expand airports and improve road connections throughout the state. Mohapatra stated that these improvements build the confidence sought by large hospitality chains. “They are enhancing airports and building connectivity rapidly. Tourism cannot grow without access, and the government recognises that clearly.” He also pointed out that significant technology investments in the state have created a favourable environment. “When Google invests heavily in a state, it attracts other investors. It sends a strong message that the ecosystem is developing.”
Atmosphere Core’s involvement in Andhra Pradesh goes beyond the three announced locations. Chief Minister Chandrababu Naidu has encouraged the group to explore sites like Rajahmundry, Araku Valley, Bobbili, Vizianagaram, and an island near Bejjiroda. Mohapatra plans to assess these areas personally. “In the next 6 months, I will travel across Andhra Pradesh. 3 hotels are confirmed, but I want to increase our presence in the state. If the locations suit our needs, we will expand further,” he said.
Mohapatra shared that Atmosphere Core’s AP portfolio will include three sizable greenfield hotels; a 150 key luxury property in Tirupati, a 200 key super premium beachfront hotel in Visakhapatnam, and a 120 key upscale development in Amaravati.
Atmosphere Core’s upcoming hotels in Andhra Pradesh will create over 1,000 employment opportunities, both direct and indirect.
Atmosphere Core is also expanding across India, Sri Lanka, and Nepal. The company had aimed to sign 25 properties by the end of 2025, and Mohapatra said it would reach that target next month. “For a new brand, signing 25 properties in 3 years is impressive. But we have done it. Now the challenge is making it happen,” he said.
Mohapatra pointed out that Andhra Pradesh stands out because it not only invites investments but also actively builds the necessary infrastructure for long-term tourism growth. “The government is committed to tourism. They want global luxury brands and large hotels. They see tourism as a strong economic driver. That clarity simplified our decision,” he said.
As mentioned by Mohapatra, Atmosphere Core had announced a target of 25 hotel signings by December 2025 and is now on track to achieve that number by next month. “We will sign our 24th and 25th properties soon. 16 projects are already under various stages of construction across India, Sri Lanka, and Nepal,” Mohapatra said. “Of these, 17 are greenfield and 8 are brownfield developments,” he added.
Among the company’s major upcoming openings is a 500 key luxury property in Kolkata under the Atmosphere brand. The first phase, with 235 rooms, will open in January, and the full inventory will be operational by September 2026. The company’s three brands; OZEN, which is ultra-luxury; Atmosphere, which is upper luxury; and OBLU, a younger resort-focused line are expanding into key destinations including Goa, Pune, Nagpur, Jaipur, Udaipur, Jaisalmer, Darjeeling, Kalimpong, Kolkata, and Guwahati.
“We are expanding aggressively across India,” Mohapatra said. He added that the company is now shifting focus from signing properties to executing them.
Atmosphere Core currently operates in India, Sri Lanka, and Nepal, and its India portfolio is expected to grow significantly over the next five years.
