On 31 March 2025, Nara Lokesh, the IT and HRD Minister, initiated the construction of Varun Bay Sands (VBS), a private tourism venture by Varun Group, along Beach Road. This upscale hotel project replaces the former Taj The Gateway Hotel, an iconic structure of Visakhapatnam, which was demolished last year to make way for the new development.
Prabhu Kishore, the head of Varun Group, shared a personal connection to the site, recalling dining at the original Taj Hotel in the 1990s. “Now, we’re transforming that very location into Varun Bay Sands,” he said, adding that the group plans to invest Rs 1,600 crore across various projects over the next three years.
Nara Lokesh expressed his enthusiasm, as well, stating that the structure is poised to become a national landmark.
The Varun Bay Sands development includes Taj Varun Beach, a five-star hotel with sea-facing rooms, Varun Hub, tailored for multinational companies and featuring India’s first sky office at 278 feet above sea level, and Varun Nest, a serviced apartment complex designed to generate rental income for owners. Take a look at how the property would look:
Sustainability is a key focus, with features like double-glazed glass to cut down heat and UV exposure, alongside extensive green spaces. To reduce construction-related disturbances, a small on-site concrete plant will be used, eliminating the need for frequent heavy truck traffic. The project is anticipated to boost the local economy by creating numerous jobs and increasing government revenue.
At a media briefing held last year at Taj The Gateway Hotel in Visakhapatnam, Varun Hospitality representatives highlighted that the replacement would have eco-conscious design and innovative technology aimed at lowering its environmental impact. Prabhu Kishore, Chairman and Founder of Varun Group, revealed that the redevelopment concept, modeled after Singapore
’s Marina Bay Sands, has been in the works since 2018. Spanning three acres and comprising three towers, the Rs 500 crore project is slated to break ground between September and October of next year, with the hotel’s completion targeted for the end of 2028.Stay tuned to Yo! Vizag website and Instagram for more city and news updates.
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