Sobha Group Ventures into Hospitality Sector, Plans to Expand Operations in the U.S.
Sobha Reality, the real estate giant that has been the insignia of success in both the Indian and West Asian real estate markets, is now eyeing the U.S. market. Additionally, the company is all set to venture into the hospitality sector with the establishment of at least eight hotels.
In an interview with BusinessLine, Company Chairman outlined their plans, stating, “We are embarking on a journey into the hospitality sector, with plans to construct a portfolio of at least eight hotels, each with an investment of around $80 million, amounting to around $700 million.”
The company plans to establish two hotels in India, with Kochi and Ahmedabad to get one each, a couple of hotels in Dubai, and the remaining would be established across Europe. “After we complete eight projects, I will stop investing my money and instead only be a manager. We will not put our money into physical assets.”
Sobha Group”s current Dubai business valuation stands at a whopping Rs.38,000 crore, with an annual revenue of $400 million from India. According to Menon, Dubai business valuation may reach $5 billion soon, and Indian operations have the potential to hit $1.5 billion. Menon also disclosed that the company is endeavouring to repeat their success in the U.S. market as well, and with this, they could add a market share of $10 billion.
The company has already constituted a team for the U.S. operations while yet to procure a plot of land. The company plans to draw $10 billion in revenue from the U.S. market within a decade. Considering the size of the market, the company has appointed three CEOs for the U.S. market, headquartered in Texas. The company has set Texas as the primary market to penetrate its operations initially.
Moreover, the Group has also established its investment arm, Sobha Investments, with a substantial commitment of $2 billion in investments over two years.
Once the process is complete, Sobha will operate across four distinct business verticals: real estate, hotels, allied businesses, and strategic investments, “forging a path toward a more dynamic and resilient future,” Menon added.
