Archive · 12 Sep 2026
Andhra Pradesh Approves 16 Star Hotels With ₹5,000 Crore Investment
Andhra Pradesh has approved 16 new star hotels.
Together, they are expected to provide 980 rooms.
The projects represent an investment of ₹5,000 crore.
Work has already started on six hotels.
The state wants private companies and the government to work together on tourism projects.
Officials also want to decide how to use the Rushikonda Palace buildings.
A tourism minister said the buildings may mainly be used for hospitality.
The government also hopes to develop places such as Araku, Lambasingi and Borra Caves as popular tourist destinations.
Permissions have been granted for 16 star hotels across Andhra Pradesh, totaling 980 rooms and ₹5,000 crore in investment.
Tourism Minister Kandula Durgesh said construction has begun on six hotels, which are expected to open soon.
The state is promoting tourism projects through public-private partnerships after granting the sector industrial status.
A cabinet sub-committee recommended using the Rushikonda Palace facility mainly for hospitality, with a final decision expected by month-end.
The government is seeking proposals for hospitals, resorts and MICE centers on the 1.5 acres at Rushikonda not covered by Coastal Regulation Zone restrictions.
- Who
- Andhra Pradesh Tourism Minister Kandula Durgesh and the state government announced the projects.
- What
- Permissions have been granted for 16 star hotels, with 980 rooms and ₹5,000 crore in planned investment.
- When
- The announcement was made on Friday; a final decision on the use of the Rushikonda facility is expected by the end of the month.
- Where
- Across Andhra Pradesh, including the Visakhapatnam region and Rushikonda.
- Why
- The government aims to expand tourism, attract investment and develop destinations through public-private partnerships.
- Approved hotels
- 16 star hotels
- Planned capacity
- 980 rooms
- Planned investment
- ₹5,000 crore
- Construction status
- Work has begun on six hotels
- Rushikonda land
- About 7.5 of nine vacant acres are subject to Coastal Regulation Zone restrictions
- Remaining land
- Expressions of Interest have been invited for hospitals, resorts and MICE centers on about 1.5 acres
- Potential major project
- The Leela Group has expressed interest in establishing a seven-star hotel in Andhra Pradesh