Several leading hotel and hospitality groups have submitted proposals to the Andhra Pradesh government to redevelop the Rushikonda buildings in Visakhapatnam into world-class tourism and luxury hospitality destinations. The proposals aim to transform the structures built during the previous government into vibrant beachside attractions that combine tourism, culture, and premium accommodation.
A Cabinet sub-committee met at the Secretariat to review the proposals and discuss the best way to utilise the properties for public benefit while also generating steady revenue for the State. The committee said a final decision would be taken after assessing the capability and experience of the participating firms.
Among the major bidders are IHCL of Tata Enterprises, Atmosphere Core, The Leela Group, and HEI Hotels and Resorts. IHCL has proposed a large-scale mixed-use hospitality project with villas, swimming pools, wellness centres, and convention facilities. The plan includes banquet halls, dining outlets, a clubhouse, and spaces for public events. Cultural facilities such as art galleries, handicrafts markets, and exhibition halls have also been suggested, along with museums and heritage archives.
Atmosphere Core has proposed converting the complex into an ultra-luxury resort with limited premium rooms, destination dining, a museum, and wellness facilities. The Leela Group has focused on positioning the site as a heritage-inspired luxury resort that offers a high-end guest experience while enhancing brand value and revenue potential. HEI has suggested developing art lounges, business centres, and global conference venues with scenic views.
The redevelopment is planned across nearly nine acres with luxury rooms, villas, landscaped gardens, infinity pools, and direct beach access, subject to regulatory approvals. Officials revealed that the government received over 1,500 responses, including detailed proposals from 250 entities. The project is expected to redefine Rushikonda as a landmark tourism destination in Visakhapatnam.
