Leading hotel and hospitality groups are interested in Rushikonda buildings

Leading Hospitality Groups Present Proposals to Government for Rushikonda Beach Palace

From Our Correspondent

Amaravati: The Andhra Pradesh government has moved a step closer to deciding the future of the controversial Rushikonda buildings in Visakhapatnam. Leading hotel and hospitality groups have already presented detailed proposals before the Cabinet sub-committee, outlining plans to transform the structures into luxury hospitality hubs, premium tourist attractions, beachfront villas and cultural centres.

The committee, which met at the secretariat on Tuesday, said it will take a final decision after evaluating the capabilities of the companies and ensuring that the chosen model benefits the public and generates revenue for the state. The meeting also discussed how Hyderabad’s Falaknuma Palace has been repurposed without compromising its heritage value.

It may be recalled that the luxuriously built facility was intended to serve as a residence-cum-camp office in Visakhapatnam for Y.S. Jagan Mohan Reddy when he was Chief Minister. The government now intends to make use of this facility for tourism purposes. The following are the proposals submitted by various hospitality groups.

IHCL–Tata Group proposals

  • Convert the Kalinga Convention Block into modular meeting rooms and banquet halls.

  • Develop the Vijayanagara Club House into a spa, yoga deck, gym, mini-theatre and F&B outlets.

  • Turn Vengi Block–1 into a cultural centre with art galleries, craft studios, handicrafts market, festival spaces and exhibition halls.

  • Reconfigure Vengi Block–2 to house natural history galleries, historical archives and rotating exhibitions.

  • Create themed gardens such as Suryavanam, Chandravanam and Taravanam, along with an Olympic-sized infinity pool overlooking the beach.

  • Develop 200–250 standard and deluxe rooms, villas with pools, F&B spaces, spa and fitness facilities on the adjacent 9-acre parcel.

  • Seek CRZ clearances, direct beach access, and permission for beautification and recreation zones on surrounding government land.

Atmosphere Group suggestions

  • Transform the existing buildings into a high-end luxury hospitality centre.

  • Add 30 guest rooms along with a curated museum.

  • Set up two specialty restaurants designed to offer destination dining experiences.

  • Develop the area as a resort and wellness destination.

  • Revamp the adjoining 9 acres to cater to leisure and business travellers with gym, wellness and lifestyle facilities.

The Leela Group proposals

  • Position Rushikonda as an ultra-luxury heritage-inspired destination offering premium experiences.

  • Develop the 9-acre parcel into a luxury resort with a multi-market strategy to improve occupancy and brand value.

  • Adopt pricing models linked to market demand to maximise average daily revenue (ADR).

  • Build a unique destination that blends heritage, luxury and commercial viability.

HEI Hotels & Resorts plan

  • Optimise existing infrastructure for luxury usage.

  • Convert three units in the Vijayanagara Block into ultra-premium lounges with panoramic views, styled like an arts club.

  • Upgrade the Kalinga Block into a venue for global conferences and large events.

  • Create business centres and office suites in two units of the Vengi Block.

1,517 public responses

The government said it received 1,517 responses from the public after inviting suggestions on future utilisation of the Rushikonda buildings. Of these, only 250 submissions offered concrete proposals, while the remaining 1,267 emails did not specify how the structures should be used.

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