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By Manu Vardhan Kannan
Published on June 21, 2025
India’s branded alternate vacation market has reached a valuation of USD 483.7 million in 2024, according to a new study by Axon Developers in collaboration with SKYE, a hospitality and tourism consulting firm. The segment has jumped by 46.8% from 2023, when it stood at USD 329.6 million—marking one of the fastest-growing trends in the Indian tourism landscape.
The sharp rise comes at a time when travellers are increasingly choosing immersive and authentic holiday experiences over traditional hotel stays. Instead of standardised rooms and conventional itineraries, many prefer personalized getaways that reflect local culture, food, and natural surroundings—a demand being met by the burgeoning short rental and villa market.
In 2024 alone, India added over 550 new branded rental villas, taking the total count to 1,711. Over the next five years, that number is projected to cross 5,000, with the overall market value forecasted to hit USD 1,560.7 million by 2029, growing at a CAGR of 26.4%.
Sharing insights on this evolving trend, Ankit Kansal, MD of Axon Developers, stated:
“The nature of tourism is transforming. People are no longer satisfied with just ticking landmarks off their lists. With urban fatigue and hectic lifestyles, today’s travellers are seeking authentic, nature-centric experiences. That’s where private villas and farmhouses with bespoke services come into play—offering a level of customization that mainstream hotels simply cannot match.”
Another key trend fuelling the surge is the growing interest in offbeat travel trails, especially as mainstream destinations become overcrowded. Areas such as the Konkan coast, Himalayan valleys, Nilgiris, and Sahyadris are attracting travellers looking for serene, less-explored escapes. In many such regions, traditional hotels are scarce, and vacation villas, bungalows, and farmhouses are stepping in to meet the demand.
The vacation rental space has also caught the attention of hospitality giants. IHCL’s Ama Stays & Trails crossed 250 private properties as of January 2025, while ITC’s Storii brand is actively expanding into states like Uttar Pradesh, Himachal Pradesh, and Goa.
“This indeed is a watershed moment for India’s alternate hospitality segment,” said Ms. Taran Chabra, Director of SKYE Hospitality.
The ripple effects of this growth will extend beyond tourism. According to Kansal,
“Sectors like real estate, aviation, and F&B are bound to benefit. Notably, the demand for second homes and vacation properties will see an uptick. While weekday occupancy for villas averages around 30–40%, weekend occupancy often peaks at 80–100%, pushing average occupancy to ~50%. This makes it a lucrative leasing option for second home owners.”
With branded villas becoming mainstream, and major players doubling down on this segment, India’s alternate vacation market is clearly poised for a new era of growth—one that is personalized, sustainable, and driven by experience over excess.
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By Hariharan U
Published on October 31, 2025
The much-awaited second edition of Manotsava – India’s National Mental Health Festival is returning to Bengaluru this November at The Lalit Ashok. Organised by the National Institute of Mental Health and Neurosciences (NIMHANS) and the National Centre for Biological Sciences (NCBS) in collaboration with Rohini Nilekani Philanthropies (RNP), the festival promises two days of meaningful conversations, interactive sessions, and creative engagement around the theme of mental well-being.
This free and open-to-all event brings together experts, researchers, and the general public to explore how mental health connects to our everyday lives. From genetic research, psychedelics, and gut microbiome science to more relatable themes such as workplace burnout, parenting, aging, maternal health, and technology’s influence on mental well-being, the festival will touch on it all.
Visitors can look forward to an array of experiences, including panel discussions, keynote talks, workshops, stalls and exhibits, discussion circles, and live music performances. For families, there’s even a dedicated children’s zone, ensuring an inclusive and engaging atmosphere for all ages.
Manotsava isn’t just an event, it’s a movement to bring mental health into public spaces, making conversations about the mind as normal and open as any other aspect of life.
The Indian Hotels Company (IHCL), India’s largest hospitality group, has announced the signing of a new Taj hotel in Pondicherry, further expanding its luxury footprint in South India. The upcoming property will be a greenfield project, developed in partnership with Mr. M.K. Rajagopalan of MGM Healthcare.
Spread across 52 acres, the 180-key Taj Pondicherry will offer panoramic views of the Bay of Bengal. Located on the outskirts of White Town, the hotel will feature an all-day dining restaurant, two specialty restaurants, a bar, and a lounge, bringing together refined gastronomy and timeless elegance.
Guests can unwind with Taj’s signature J Wellness Circle, which offers holistic spa therapies and wellness treatments. The property will also include a gym, swimming pool, and multiple recreational amenities for a complete leisure experience.
Designed to host grand social gatherings, the hotel will feature the largest indoor banquet hall in the region, spanning 10,700 sq. ft., along with exclusive beachfront lawns ideal for weddings and outdoor events.
Commenting on the announcement, Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said,
“Pondicherry has witnessed a steady rise in domestic travel and a rebound in foreign arrivals, reinforcing its position as a key leisure destination. The addition of Taj Pondicherry will cater to the growing demand for large-scale social events in the region. We are delighted to partner with Mr. M.K. Rajagopalan for this project.”
Expressing enthusiasm for the collaboration, Mr. M.K. Rajagopalan, MGM Healthcare, added,
“We are happy to venture into the hospitality sector with IHCL. This hotel will be a landmark destination in the region.”
Known for its French colonial charm, serene beaches, and spiritual ambience, Pondicherry continues to attract travellers from across the world. Popular attractions such as Auroville, Sri Aurobindo Ashram, Pondicherry Museum, Oussudu Bird Sanctuary, and the Puducherry Canyon add to its appeal as a cultural and wellness retreat.
About the Owning Company:
MGM Healthcare is a diversified entrepreneurial venture by Mr. M.K. Rajagopalan, operating three hospitals in Chennai, one in Vizag, and two upcoming projects in Chennai. He also serves as the Chancellor of a renowned university that runs medical colleges in both Puducherry and Chennai.
With this signing, IHCL continues to strengthen its presence across India’s most sought-after leisure destinations, combining luxury, heritage, and hospitality excellence under the Taj brand.
Lemon Tree Hotels Limited has announced the launch of its latest managed property, Lemon Tree Hotel, Morbi, further strengthening its presence in Gujarat, one of India’s most vibrant industrial and business destinations.
Strategically located in the ceramic capital of India, the new hotel caters to both business and leisure travellers. Its prime location offers excellent connectivity to nearby industrial and commercial hubs such as Rajkot and Jamnagar, making it an ideal choice for corporate guests, traders, and tourists visiting the region.
The hotel features 69 well-appointed rooms and suites, thoughtfully designed for comfort and functionality. Guests can savour diverse flavours at Citrus Café, the hotel’s multi-cuisine restaurant serving Indian, European, and Pan-Asian delicacies.
For events and gatherings, the hotel offers extensive banqueting spaces including Tangerine Grand and Tangerine Lawn, which can accommodate up to 400 guests, perfect for business meetings, conferences, and social celebrations.
Additional amenities include a spa, fitness centre, and swimming pool, allowing guests to unwind and rejuvenate after a busy day.
The property also provides convenient access to some of Morbi’s popular attractions, such as Mani Mandir, Green Tower, Wellingdon Secretariat, and Nehru Gate, adding a touch of local charm to every stay.
Commenting on the launch, Vishvapreet Singh Cheema, President of Lemon Tree Hotels, said,
“Morbi is one of Gujarat’s fastest-developing cities, known globally for its ceramic industry and entrepreneurial spirit. With the launch of Lemon Tree Hotel, Morbi, we are delighted to announce the 10th operational property in Gujarat to bring our signature comfort, warmth, and value to both business and leisure travellers visiting this vibrant city.”
With this opening, Lemon Tree Hotels continues to expand its footprint across India, offering exceptional hospitality experiences rooted in comfort, quality, and value.
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