Mahindra Homestays, the hospitality arm of Mahindra Holidays and Resorts India Limited (MHRIL) intends to augment the capacity of lodging units marketed under its banner. There are plans to have 500 to 700 homes under the purview of Mahindra Homestays thereby scaling the inventory to 2,000 rooms by end of 2010. Currently, Mahindra Homestays has 250 homes in 15 holiday destinations across India.

“Capacity building is easier with homestays and though the concept is still at its nascent stage, we perceive that there are around 3,000 odd homes in India, which can help fill the void in this segment. The focus will be to expand in gateway cities and business locations apart from tourist friendly holiday destinations,” Vimla Dorairaju, Business Head, Mahindra Homestays.

Mahindra Homestay’s are differentiated in the following categories – Palaces, Heritage, City based, Plantation and Rural. The Average Room Rates (ARRs) are around Rs 2,500 for these homestays with facilities at par with three-star category hotels and above.