Olive Hospitality has announced plans to develop approximately 2,000 branded hotel rooms across key cities in Andhra Pradesh, marking a significant push to strengthen hospitality infrastructure in the region. The development will span major destinations including Visakhapatnam, Tirupati, Vijayawada, and Guntur.
MoU to Boost Tourism Infrastructure
The company has signed a memorandum of understanding (MoU) with the Andhra Pradesh Tourism Authority to support the development of hospitality infrastructure and encourage private sector investment. The partnership aims to accelerate the growth of branded hotel supply across high-potential travel circuits in the state.
As part of the agreement, the tourism authority will facilitate approvals and clearances, provide access to land parcels in designated tourism zones, and extend incentives under the Andhra Pradesh Tourism Policy 2024–2029. It will also assist in investor outreach to attract further participation in the sector.
USD 55 Million Investment and Job Creation
The proposed development is expected to attract investments of around $55 million from third-party owners and investors. In addition to boosting infrastructure, the initiative is projected to generate nearly 700 jobs, contributing to local employment and economic development.
Leadership Perspective
Kahraman Yigit, Co-founder and CEO of Olive Hospitality, highlighted the state’s growing importance as a tourism destination. He noted that Andhra Pradesh is witnessing strong growth across multiple travel segments and that the company aims to build a network of branded hospitality assets to make travel more seamless, predictable, and scalable for both travellers and investors.
Expansion Momentum and Growth Plans
Olive Hospitality, part of the Embassy Group, has already expanded to over 100 hotels across India and achieved operational break-even. The company expects to turn profitable in the next financial year, supported by a strong pipeline and steady performance of existing assets.
It currently reports an annual run rate of $12.1 million from operational properties and has a secured development pipeline worth over $50 million. To further accelerate growth in the budget and mid-market segments, the company is also exploring the induction of a minority investment partner.
Long-Term Vision
Founded in 1993, Embassy Group continues to scale its hospitality ambitions, targeting a portfolio of 1,000 hotels in India by 2030, along with global expansion plans. As part of its innovation-led strategy, Olive recently introduced its AI-driven, remote-operated hotel brand, Open Hotels, further diversifying its offerings.
The Andhra Pradesh development marks a strategic step in Olive Hospitality’s expansion journey, aligning with the state’s efforts to position itself as a key tourism and hospitality hub in India.
