Grand Continent Hotels has signed a Memorandum of Understanding (MoU) with The Luxuria Group, marking a strategic step toward a long-term lease and hotel operating agreement, as the company accelerates its asset-light expansion play in high-demand pilgrimage and cultural markets.
The MoU, disclosed in an exchange filing, outlines a proposed 72-room hotel development in Varanasi, located at Plot No. B-27/93 D, Mohalla Durgakund, Arazi No. 106, Gram Bhadeni Pragna Dehat, Tehsil & District Varanasi. Once commercial terms are concluded, Grand Continent Hotels will lease and operate the property under its flagship brand, “Grand Continent.” Planned facilities include a lobby, reception, gym, and dedicated car parking, built to support both leisure and group-driven occupancy linked to spiritual tourism.
Grand Continent Hotels confirmed the MoU is valid for six months, during which the parties intend to finalise a 10-year lease, rental or leave-and-license agreement, or a similar arrangement offering long-term operating control while optimising capital deployment.
From an industry standpoint, the move strengthens B2B-managed hotel traction in non-metro markets where branded operators are increasingly partnering with real estate and investment groups to scale operations without direct ownership.
The company enters this phase with strong fundamentals. Consolidated net profit for FY25 grew 160.8% to INR 10.64 crore, while revenue rose 132.5% to INR 72.62 crore, reflecting demand resilience and operational scale-up in its core businesses of hotel ownership, operations, and third-party hotel management.
Source:Business Standard
