Mahindra Holidays & Resorts cuts adex by 26.4% to Rs 156.7 crore in FY25

Mahindra Holidays & Resorts India Ltd has slashed its sales and marketing expenditure by 26.4% in fiscal 2025 year-on-year, whereas total expenses grew by 5.3% to Rs 1,275.3 crore in the same period. The sales and marketing expenses came down sharply from Rs 212.3 crore in 2023-24 to Rs 156.7 crore in 2024-25, the company mentioned in its FY25 annual report.

According to the hospitality giant, the standalone profit after tax (PAT) grew by 11% in the fiscal year 2025 due to the cut in ad spend and rising prominence for leisure travel, spiritual tourism, destination weddings, and conferences at offbeat locations.

Club Mahindra's standalone profit soared to Rs 200 crore in FY25 compared to Rs 180.6 crore in the year-ago period. The revenue from resorts surged by 8% to Rs 396 crore in fiscal 2025, while total income stood at Rs 2,910 crore.

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In FY25, Mahindra Holidays focused on expansion by adding 520 room units at both international and domestic destinations. The Mahindra Group's hotel chain added seven new resorts in Bharatpur –Rajasthan, Pavagadh – Gujarat, Mysuru – Karnataka, Patkote –Uttarakhand, Chumbi – Sikkim, Agra – Uttar Pradesh, and Dindi –Andhra Pradesh, respectively, bringing the total to 125 resorts and 5,847 rooms.

The company aims to open 10,000 units by 2029-30, according to Manoj Bhat, MD & CEO of Mahindra Holidays. In fiscal 2026, Mahindra Holidays is planning to add 600-plus rooms in Ganpatipule (Maharashtra) and Theog (Himachal Pradesh), Puducherry, Jaipur, and Kandaghat, respectively.

"In 2025-26 alone, over 400 rooms will undergo enhancements," Bhat mentioned in the report.

CP Gurnani, Chairman of Mahindra Holidays, has expressed optimism regarding the rapid growth of the travel and tourism industry, with the sector contributing 9.1% (approx) to India's GDP in 2025.

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"Rising disposable incomes, increasing air passenger traffic, and growing preferences for experiential travel have fuelled the momentum," Gurnani added.

Notably, the Centre allocated Rs 2.5 lakh crore for infrastructure, including tourism-linked projects in the union budget last year. According to HVS ANAROCK Research, India’s hospitality sector closed 2024 with nationwide occupancy levels of 63-65%, average room rates (ARR) between Rs 7,800-8,000 and revenue per available room in the range of Rs 5,000-5,200--an increase of 27-29% over pre-COVID benchmarks.

India ranked 39 among 119 countries on the World Economic Forum’s Travel and Tourism Development Index 2024 from 54th position in 2021.