Leela Palaces Rescues Centaur Srinagar with Major Revamp as Delhi Airport Property Nears End
In a significant development for India's hospitality sector, one of the two remaining Centaur Hotels has secured a new lease on life under a prominent luxury brand, while the other faces an imminent demise. The Leela Palaces, Hotels and Resorts has acquired the Centaur Srinagar, a scenic property located on the banks of Dal Lake, for a period of 60 years. This move marks a dramatic turnaround for the hotel, which was previously operated by Hotel Corporation of India, a subsidiary of the former state-owned Air India.
Contrasting Fates of the Last Centaur Properties
The revival of Centaur Srinagar stands in stark contrast to the plight of the other remaining Centaur Hotel at Delhi Airport. That property is languishing in its final six years of operation, with more than half of its 378 rooms currently unusable. It is scheduled for demolition after March 2032, following a government decision in December 2019 that allowed the dilapidated 1982-era structure to remain functional until that date. Post-demolition, the area will be repurposed for expanding airport facilities.
With no capital expenditure planned due to the short remaining timeframe for recovery, the once-iconic Delhi hotel, remembered for its distinctive glass lifts and central hall, is described as akin to a terminally ill patient awaiting its end.
Leela's Ambitious Plans for Srinagar Property
Anuraag Bhatnagar, Leela's whole-time director and CEO, revealed ambitious plans for the Centaur Srinagar takeover. The company is investing Rs 300 crore in a comprehensive capital expenditure project, making it the largest hospitality sector initiative currently underway in Kashmir. Extensive renovation work is already in progress at the site.
The property, which originally featured 220 rooms, will reopen by the end of next year as a Leela-branded hotel with 170 larger, more luxurious rooms. In an innovative first for the location, Leela will also introduce branded houseboats, enhancing the unique hospitality experience in Srinagar.
Strategic Vision Amid India's Luxury Boom
Bhatnagar emphasized that India is at the beginning of a multi-decadal cycle of luxury growth. He noted that the 7 crore households currently targeted by luxury players are expected to triple by 2030. While demand for luxury hospitality is growing at double-digit rates, supply additions in this segment remain limited, creating significant opportunities for expansion.
Leela currently operates 13 properties across India and anticipates increasing this number to 23 by March 2030. The acquisition and transformation of Centaur Srinagar represent a strategic step in this growth trajectory, leveraging the rising demand for premium travel experiences in picturesque destinations.
The contrasting stories of these two Centaur Hotels underscore broader trends in India's hospitality industry, where strategic investments in prime locations are driving renewal, while outdated infrastructure in high-demand areas faces replacement to meet evolving needs.
