Rhythm Hospitality Private Ltd., through its brand Rhythm ResiTel, said it will reopen Aveda Kumarakom, a luxury resort in the Lake Vembanad area of Kerala on a 20-year lease agreement with the property owner.
Rhythm said it had invested ₹9.1 crore which was utilised towards one-time settlement of dues to lenders of the property.
The resort, built between 2012 and 2015, offers combination of studios, cottages and villa suite units. Currently being upgraded, it will become operational under Rhythm’s brand and management from July 1.
Rhythm said it will recover its investment in Aveda via its ResiTel business model under which individuals are allowed to purchase resort suite units within the property in the same way one would purchase an apartment within a residential building or a villa within a gated community.
Vaibhav Jatia, managing director, Rhythm Hospitality Private Ltd., said, “The hospitality sector has recently faced several challenges and many owners of distressed resort properties are finding it difficult to maintain operations. As a part of this industry, we want to create value by investing in such properties and preventing their closure."
"At the same time, we are also adding value to the property by refurbishing it as necessary, ensuring higher profitability through robust control on the operations as well as positive socio-economic impact by retaining jobs that would have otherwise been lost,” he added.
The company said it had previously executed this business model at its 84-unit all-suite resort at Lonavala which has been developed, owned and operated by it since 2012.
