The Andhra Pradesh government plans to transform the now-famous Rushikonda Palace into a luxury hotel. The buildings, earlier called white elephants by the state for being underused, will soon find new life through private hospitality partnerships.
Authorities have decided to hand over the property to leading hotel chains for maintenance and development. They also invited public feedback to determine how best to use the existing structures for tourism and economic growth.
Major players like Lemon Tree, IHCL, Mahindra and Marriott have shown strong interest. These companies have already submitted proposals to take over the property and turn it into a high-end tourist destination along the Vizag coastline.
During a recent Tourism Department meeting, the hotel groups presented their plans and shared detailed suggestions on sustainable tourism development. Officials believe this move could significantly boost the state’s hospitality sector.
Visakhapatnam, already known for its beaches, is being developed as India’s AI City and will soon host Asia’s biggest Google data centre. With growing investments, the city is fast emerging as a commercial and business hub.
Turning the Rs 500-crore Rushikonda Palace into a luxury hotel is seen as a strategic step to attract global visitors, create jobs, and generate steady revenue for Andhra Pradesh’s expanding tourism economy.
