Sinclairs Hotels Shifts Focus to West Bengal with Udaipur Exit

Jyoti Rathi - Kolkata Bureau Jun 25, 2026 1,400 Views

Sinclairs Hotels Limited will close its Udaipur property on June 30, 2026, as it refocuses on its core hospitality portfolio in West Bengal. The company plans to invest ₹50 million in its Kalimpong and Chalsa resorts, aiming to expand its total room inventory to 700 by fiscal year 2027.

KOLKATA — Sinclairs Hotels Limited (SINCLAIR.NS) has announced that it will cease operations at its Udaipur, Rajasthan property effective June 30, 2026. This strategic withdrawal is part of a broader corporate realignment intended to concentrate the company’s capital and management resources on its core operational stronghold in West Bengal and the Northeastern region of India.

The decision follows a period of portfolio review by the company’s board. While Sinclairs Hotels has actively pursued growth in Rajasthan over recent years to tap into the wedding and events market, the company is now recalibrating its growth trajectory toward its established properties in Darjeeling, Kalimpong, Siliguri, Burdwan, and the Dooars.

Strategic Realignment and Expansion Plans

For Sinclairs Hotels, the move represents a return to its operational roots. Management has indicated that with recent infrastructure advancements and improved connectivity in West Bengal and Sikkim, the region is poised for a significant surge in tourism. The company currently operates five properties in West Bengal and one in Sikkim, and it views these as the primary drivers for its next phase of growth.

In its latest investor communications, the company highlighted plans to invest approximately ₹50 million to enhance facilities at its Kalimpong and Chalsa properties. These improvements are specifically designed to capitalize on the increasing demand for destination weddings and corporate events. Furthermore, the company is conducting viability studies to add over 100 new rooms across its Kalimpong, Chalsa, and Burdwan locations as it works toward an ambitious target of 700 rooms by the end of fiscal year 2027.

Financial Context and Operational Focus

The decision to exit the Udaipur unit comes after a fiscal year marked by "normalization" in profitability. For the fiscal year ending March 31, 2026, Sinclairs reported revenue of ₹592.39 million, reflecting a steady performance despite wider industry pressures. However, the company faced margin compression due to higher depreciation, finance costs, and the initial overheads associated with new leased properties—including those in the Udaipur region.

By divesting from underperforming or non-core assets, the company aims to optimize its balance sheet and enhance its return on equity. According to recent regulatory filings, the company maintains a strong focus on "asset-right" growth, favoring properties acquired on long-term lease to maintain financial discipline and minimize capital intensity.

Official Sources

Quote Section

"According to officials, the company is realigning its portfolio to focus on high-growth regions where it maintains a deep operational presence. Organizers stated that the focus for the upcoming fiscal year will be the rapid expansion of facilities in West Bengal and the North-East to meet the rising demand for premium events and hospitality services."

Why It Matters

For stakeholders, this pivot signals a move toward consolidation and cost-efficiency. By reducing its exposure to volatile markets outside its core territory, Sinclairs Hotels is streamlining its operations to improve its EBITDA margins. The focus on West Bengal allows the company to leverage its existing infrastructure and brand loyalty in a region currently benefiting from significant government-led tourism and connectivity infrastructure projects.

Key Facts at a Glance

Operational Change: Discontinuation of Sinclairs Udaipur operations effective June 30, 2026.
Strategic Focus: Expansion and modernization of properties in West Bengal and the Northeast.
Expansion Target: Aims to increase room inventory to 700 keys by FY27.
Investment Plan: Allocated ₹50 million for wedding and event infrastructure at Kalimpong and Chalsa.

FAQ

Why is Sinclairs Hotels closing the Udaipur property? The exit is part of a portfolio realignment strategy aimed at concentrating resources on the company's core West Bengal and Northeast India properties, where it sees higher growth potential and operational synergy.

How will this affect the company's room inventory? While the company is closing the Udaipur unit, it is actively seeking new lease-based acquisitions in West Bengal and Sikkim to reach its target of 700 rooms by FY27.

What is the company's growth outlook for West Bengal? The company expects rapid growth in West Bengal due to recent infrastructure initiatives and government-led tourism projects, positioning its five existing properties in the region to capture increased footfall.

Source: Sinclairs Hotels IR, BSE Limited