Rhythm Hospitality Private Ltd. announced through its Rhythm ResiTel brand the reopening of Aveda Kumarakom, a luxury resort in the Lake Vembanad region of Kerala, under a 20-year lease with the owner.
Rhythm said it had invested £9.1million, which was used to pay one-off fees to the property’s lenders.
Built between 2012 and 2015, the resort offers a combination of studios, cottages and villa suites. It is currently undergoing an upgrade and will be operational from July 1st under the Rhythm brand and management.
Rhythm said it will recoup its investment in Aveda through its ResiTel business model, which allows individuals to purchase resort suite units within the property in the same way one would purchase an apartment in a condominium or a villa in a gated community .
Vaibhav Jatia, Managing Director of Rhythm Hospitality Private Ltd said: “The hospitality sector has faced a number of challenges of late and many owners of distressed resorts are finding it difficult to sustain operations. As part of this industry, we want to create value by investing in such properties and preventing their closure.”
“At the same time, we also increase the value of the property by renovating it where necessary, ensuring greater profitability through robust control of operations, as well as positive socio-economic impact by preserving jobs that would otherwise have been lost,” he added.
The company said it previously implemented this business model at its 84-unit all-suite resort in Lonavala, which it has designed, owned and operated since 2012.