MADC Invites Bids for Shirdi Airport Hotel Plot

The Maharashtra Airport Development Company Ltd (MADC) has invited bids to lease a 3.70-acre plot near Shirdi International Airport for the development of a five-star-category hotel with at least 100 rooms, a convention or business centre and other hospitality facilities.

MADC Floats Tender for Hotel Plot Near Shirdi Airport

The Maharashtra Airport Development Company Ltd has invited bids for a 3.70-acre land parcel located near Shirdi International Airport in Maharashtra. The plot measures approximately 14,973 square metres and will be offered on a long-term lease for the development of a five-star-category hotel.

According to the tender document, the minimum lease premium has been fixed at ₹3,000 per square metre. Based on the total plot area, the reserve lease premium works out to approximately ₹4.49 crore.

The proposed development is intended to strengthen the hospitality infrastructure around Shirdi, one of Maharashtra’s major religious tourism destinations. The project is also expected to create additional accommodation and business facilities near the airport.

3.70-Acre Plot to Be Leased for 49 Years

The tender provides for an initial lease tenure of 49 years. The lease may subsequently be extended for another 49 years, subject to MADC’s prevailing policy and approval from its board.

The successful bidder will also be subject to a 15-year lock-in period. This condition is designed to ensure that the selected developer remains committed to the project for a substantial period after taking the land on lease.

In addition to the one-time lease premium, the developer will have to pay annual lease rent. The first year’s lease rent will be calculated at 5% of the total lease premium, with the amount increasing by 5% on a compounded basis from the beginning of each financial year.

Minimum 100-Room Five-Star Hotel Required

The central requirement of the tender is the development of a minimum 100-room five-star-category hotel.

The project must also include a convention centre or business centre with conference facilities. These requirements indicate that the proposed property is intended to serve not only religious tourists but also business travellers, corporate groups, conferences and other organised events.

The tender also identifies several additional facilities as desirable components of the project. These include a meditation, yoga or naturopathy centre, service apartments and a multi-facility gymnasium.

Developers can propose additional components as part of their plans, although any such additions would be subject to MADC’s approval.

Why Shirdi Is Attractive for Hotel Development

Shirdi is a major religious tourism destination in Maharashtra and is best known for the Sai Baba temple. The destination attracts devotees from across India as well as international visitors.

The tender document estimates that Shirdi has a floating population of approximately 1 lakh people per day. During weekends and festivals, that number can rise to around 1.3 lakh to 1.5 lakh people per day.

Such visitor volumes create substantial demand for accommodation, particularly during periods when hotels in the town and surrounding areas experience higher occupancy.

The proposed five-star hotel near the airport could add premium accommodation capacity while also providing facilities for conferences, business meetings and wellness-oriented visitors.

Shirdi Airport Connectivity Supports the Project

Shirdi International Airport began operations on October 1, 2017. According to the tender document, the airport currently has air connectivity with Delhi, Hyderabad, Chennai, Bengaluru, Indore and Ahmedabad.

Night landing operations also began at the airport in March 2024, increasing the operational flexibility of the facility.

Airport connectivity is an important consideration for hotel development because it can make a destination more accessible to travellers from cities outside the immediate region.

For Shirdi, the combination of religious tourism and air connectivity provides a potential customer base for hotels catering to visitors seeking accommodation close to the airport and the pilgrimage destination.

Hotel Will Be Developed Outside the Airport Area

The proposed plot is located outside the airport area and falls within a mixed-use zone. MADC, which is a Maharashtra government undertaking and the state’s nodal agency for airport and aviation infrastructure development, has earmarked two plots totalling nearly four acres for the proposed hotel development.

The specific tender, however, covers a 3.70-acre parcel measuring around 14,973 square metres.

The location near the airport could allow the project to serve travellers who want convenient access to air transport while also remaining within reach of Shirdi’s religious and tourism facilities.

FSI Fixed at 1.5 for the Plot

The basic permissible floor space index, or FSI, for the plot is 1.5.

FSI determines the total floor area that can be constructed relative to the size of the land parcel. The permitted FSI will therefore influence the overall scale of the hotel and associated facilities that can be developed on the site.

However, the developer cannot automatically use the permitted development potential without meeting applicable aviation requirements.

The tender requires the successful bidder to obtain the necessary height clearance from the Directorate General of Civil Aviation, Airports Authority of India or another competent authority, as applicable.

The consumption of the permitted FSI will remain subject to the required height clearance. This condition is particularly relevant because the project is being developed close to an airport.

Developer Must Complete Project Within Specified Timeline

The selected developer will be required to make substantial progress on the project within the timeframe specified by the tender.

The developer must complete at least 25% of the permissible FSI and operationalise the hotel within four years of obtaining the occupancy certificate.

This requirement is intended to ensure that the leased land is used for the proposed hospitality project rather than remaining undeveloped for an extended period.

The successful bidder will also have to furnish a performance security of ₹1 crore.

Eligibility Conditions for Bidders

MADC has specified experience and financial requirements for companies seeking to participate in the tender.

Bidders must have experience in developing and operating a star-category hotel with at least 150 keys. In the hotel industry, a “key” generally refers to a hotel room or accommodation unit.

This means the tender is aimed at experienced hospitality developers or operators rather than entities without a track record in managing sizeable hotels.

Financial eligibility is another major requirement. Bidders must have recorded a minimum turnover of ₹200 crore during the last three financial years.

The tender also requires an earnest money deposit of ₹50 lakh from bidders.

₹4.49 Crore Is the Minimum Lease Premium

The reserve lease premium has been calculated at ₹3,000 per square metre for the approximately 14,973-square-metre plot.

That results in a minimum lease premium of roughly ₹4.49 crore for the entire parcel.

The figure represents the minimum premium specified in the tender rather than the complete cost of developing the proposed hotel. The successful developer would additionally need to finance construction, hotel interiors, equipment, staff facilities, services and other project-related expenses.

The developer would also be responsible for the annual lease rent and the applicable escalation specified in the lease conditions.

Convention Centre Could Expand the Hotel’s Customer Base

The requirement for a convention or business centre is an important part of the proposed development.

A hotel with conference and event facilities can potentially serve several types of customers beyond individual tourists. Corporate meetings, conferences, seminars, private functions and organised groups can generate demand during periods when pilgrimage-related accommodation demand may vary.

For a destination such as Shirdi, combining hospitality with conference facilities could broaden the commercial use of the property.

The proposed meditation, yoga or naturopathy centre could also complement the destination’s religious and wellness tourism profile.

Shirdi’s Large Visitor Footfall Creates Hospitality Demand

The tender document’s estimate of around 1 lakh people in Shirdi’s daily floating population highlights the scale of visitor movement in the destination.

Weekend and festival traffic can increase substantially, reaching an estimated 1.3 lakh to 1.5 lakh people per day.

Such fluctuations can create periods of particularly strong demand for hotel rooms. A new five-star property would add premium accommodation to the existing hospitality market and could cater to visitors looking for higher-end facilities.

The property’s location near the airport could also make it relevant to travellers arriving by air, particularly those coming from the cities connected directly to Shirdi.

Airport Growth and Hospitality Infrastructure

The proposed hotel project reflects the relationship between aviation infrastructure and surrounding commercial development.

As airport connectivity expands, demand can emerge for hotels, restaurants, conference facilities, transportation services and other businesses around the airport.

Shirdi’s airport has been operating since 2017 and now has connections to several major Indian cities. The introduction of night landing operations in 2024 also expanded the airport’s operating capabilities.

The proposed hotel therefore forms part of a wider opportunity to develop hospitality infrastructure around an established airport serving a major tourism destination.

What the MADC Tender Means for Shirdi

The proposed development could add a new premium hotel option to Shirdi’s hospitality sector while bringing conference and business facilities closer to the airport.

The long lease period provides a substantial operating horizon for a developer, although the project comes with several conditions covering construction, hotel operations, financial eligibility, lease payments and regulatory clearances.

The requirement for a minimum 100-room five-star hotel also sets a defined scale for the development. Additional facilities such as service apartments, wellness centres and gyms could further expand the property’s potential uses if approved by MADC.

Key Challenges for the Selected Developer

Although the location offers access to a major religious tourism market and an operating airport, the developer will need to meet several regulatory and financial requirements.

Obtaining the necessary height clearance will be particularly important because of the property’s proximity to Shirdi International Airport. The developer will also need to comply with applicable construction and aviation requirements before fully using the permitted FSI.

The project also carries a significant long-term financial commitment because of the 49-year lease, annual rent and 5% compounded annual escalation specified in the tender.

In addition, the developer must meet the required hotel experience and ₹200 crore turnover threshold, reducing the pool of potential bidders to established hospitality players with sufficient financial and operational capacity.

What Happens Next

MADC’s tender process will determine the developer that ultimately takes the plot on lease. The successful bidder will then be required to proceed with the proposed five-star hotel project while meeting the tender’s development, operational and regulatory conditions.

The project is planned around a minimum 100-room hotel, supported by a convention or business centre and potentially complemented by wellness, service apartment and fitness facilities.

With Shirdi attracting a large daily floating population and the airport providing connectivity to several major Indian cities, the development is positioned around both religious tourism and broader hospitality demand.

Frequently Asked Questions

What land has MADC offered for the Shirdi hotel project?

MADC has invited bids for a 3.70-acre plot measuring approximately 14,973 square metres near Shirdi International Airport.

What is the reserve price for the Shirdi hotel plot?

The minimum lease premium is ₹3,000 per square metre, resulting in an approximate reserve lease premium of ₹4.49 crore for the entire plot.

How long will the land be leased?

The initial lease tenure is 49 years, with a possible extension of another 49 years subject to MADC’s prevailing policy and board approval.

What type of hotel must the successful bidder develop?

The successful bidder must develop a minimum 100-room five-star-category hotel along with a convention centre or business centre with conference facilities.

What additional facilities are proposed for the hotel?

The tender lists meditation, yoga or naturopathy facilities, service apartments and a multi-facility gymnasium as desirable components. Additional facilities may also be proposed subject to MADC approval.

What are the eligibility requirements for bidders?

Bidders must have experience developing and operating a star-category hotel with at least 150 keys and must have recorded minimum turnover of ₹200 crore during the last three financial years.

How many visitors does Shirdi receive?

The tender document estimates Shirdi’s floating population at around 1 lakh people per day, rising to approximately 1.3 lakh to 1.5 lakh during weekends and festivals.

Which cities are connected to Shirdi Airport?

According to the tender document, Shirdi Airport has air connectivity with Delhi, Hyderabad, Chennai, Bengaluru, Indore and Ahmedabad. Night landing operations began in March 2024.