Atmosphere Core pledges ₹700 crore to transform AP tourism landscape
A massive transformation is underway in the hospitality sector of neighboring Andhra Pradesh, marking a new era for travel in the region. In a move that signals strong confidence in the state's economic potential, the renowned luxury hospitality group, Atmosphere Core, has committed to a staggering investment of ₹700 crore. This capital infusion is set to develop ultra-premium hotel properties across three key cities: Visakhapatnam, Tirupati, and the capital region of Amaravati.
For the state government led by Chief Minister N. Chandrababu Naidu, this partnership validates their strategy to convert coastal and scenic belts into thriving tourism clusters powered by private enterprise.
Speed of Business Attracts Investors
According to Souvagya Mohapatra, the Managing Director for India, Nepal, Bhutan, and Sri Lanka at Atmosphere Core, the decision to invest heavily was driven by the state's proactive governance. He emphasized that while "ease of doing business" is standard, Andhra Pradesh offers the "speed of business."
"The administration acts swiftly, which is vital for projects of this magnitude," Mohapatra noted. He further highlighted the state's unique geographical diversity—ranging from pristine beaches and waterfalls to lush hill stations and heritage sites—describing it as a complete package that few other Indian states can rival.
Project Timelines and Locations
Formal agreements have already been inked between the hospitality giant and the state government. The roadmap for execution is aggressive:
· Tirupati: Construction on a 150-key luxury property is scheduled to commence in January 2026, with a completion target of 2.5 years.
· Visakhapatnam: A 200-key super-premium beachfront resort will begin development as soon as land allocation is finalized.
· Amaravati: A 120-key upscale hotel will follow once land registration is complete.
Mohapatra projects that the facilities in Tirupati and Visakhapatnam will be fully operational by 2029, significantly boosting the high-end inventory in these popular destinations.
Infrastructure and Future Expansion
The confidence to deploy such large capital also stems from the state’s rapid infrastructure upgrades. Mohapatra pointed out that the expansion of airports and road connectivity is crucial for bringing in high-spending tourists. Furthermore, the presence of global tech giants like Google in the state signals a maturing economic ecosystem.
The company isn't stopping at these three cities. Following encouragement from the Chief Minister, the group is actively scouting additional locations in Rajahmundry, Araku Valley, and potential island sites near Bejjiroda. "I will be touring the state extensively over the next six months to identify more opportunities," Mohapatra stated.
Job Creation and National Growth
Beyond infrastructure, this initiative is a major employment driver. The upcoming projects are expected to generate over 1,000 direct and indirect jobs for the local population.
On a national scale, Atmosphere Core is on a rapid growth trajectory. The company is poised to hit its target of signing 25 properties by next month, well ahead of its initial 2025 deadline. This includes a massive 500-key luxury project in Kolkata, further solidifying their footprint in Eastern India.
