Inside Visakhapatnam's Rushikonda Luxury Waterfront Makeover

The Andhra Pradesh government has attracted strong interest from major domestic and international hospitality players for the redevelopment of the Rushikonda buildings in Visakhapatnam, with multiple proposals submitted to transform the beachfront property into a high-end tourism destination.

A Cabinet sub-committee convened at the Secretariat to review the bids and assess options for repurposing the structures, which were built under the previous government. Officials said the emphasis is on balancing public access with long-term revenue generation, and a final call will be taken after scrutinising the bidders’ track records, financial capabilities and operational expertise.

Key Highlights

• Beachfront Rushikonda site in Visakhapatnam draws bids from IHCL, Leela, Atmosphere Core
• Nearly 9-acre redevelopment planned with luxury stays, wellness, and public spaces
• Project aims to balance premium tourism with community access and cultural elements

Among the prominent groups that have responded are Indian Hotels Company Ltd (IHCL) of the Tata Group, Atmosphere Core, The Leela Group and HEI Hotels and Resorts. IHCL has outlined a comprehensive mixed-use hospitality development, proposing luxury villas, wellness and spa facilities, convention and banquet infrastructure, multiple dining venues and a clubhouse. The plan also incorporates cultural and community-facing elements such as art galleries, handicrafts markets, exhibition spaces and heritage archives.

Atmosphere Core’s proposal focuses on an ultra-luxury, low-density resort concept, with a limited number of premium rooms, destination dining, wellness facilities and a museum. The Leela Group has pitched a heritage-led luxury resort model aimed at creating a marquee property with strong brand positioning and revenue potential. HEI Hotels and Resorts has proposed a more business-oriented hospitality format, including art lounges, business centres and international-standard conference facilities overlooking the coastline.

The redevelopment, spread across nearly nine acres, is envisioned to include luxury accommodation, landscaped open spaces, infinity pools and direct beach access, subject to regulatory approvals.

Also Read: IHCL to Debut Taj Varun Beach Hotel in Visakhapatnam

Officials said the government received over 1,500 expressions of interest, including around 250 detailed proposals. The initiative is expected to reposition Rushikonda as a flagship tourism hub for Visakhapatnam.