The company would build five resorts, having 500 keys, at locations easily accessible from Bengaluru.

BENGALURU-BASED realty firm Ferns Estates & Developers has forayed into hospitality business and will invest Rs 700 crore over the next three years to construct five resorts in Karnataka and Tamil Nadu, its top official said.

The company has already delivered 23 real estate projects comparing 15 million sq ft area. It is developing 3.3 million sq ft area across four projects, one of which is in partnership with Prestige group.

"We are entering into resort and leisure hospitality through new company 'Rosetta by Ferns' as there is a huge opportunity in this business. We are introducing luxury timeshare as well," said Jai Sreedhar, Joint MD and CEO, Ferns Estates & Developers.

The company would build five resorts, having 500 keys, at locations easily accessible from Bengaluru, he added.

The construction of the first resort, spread over 100 acre and 100 rooms, in Sakleshpur has started and the facility would open in September 2019.

The second 50-acre resort would be built in Chikkaballapur having 60 keys.

"The three resorts at Coorg, Bandipur and Yercaud are at the planning stage. All the five resorts will be company-owned and company-operated," Sreedhar said.

On investment, he said the total construction cost would be Rs 700 crore for these five projects. This excludes the cost of the land that was bought long ago.

The construction cost would be met through internal accruals and membership fee.

"In the first phase, we will make 5,000 members," said Sreedhar. The company would restrict the sale of club memberships to 50 per cent of the available inventory to ensure the probability of getting a confirmed accommodation.

He said the company's objective is to develop properties at short distances from Bengaluru and other key cities in South India.

It has also launched the Club Rosetta holiday membership. This is a highly differentiated and flexible point-based membership programme, compared to conventional timeshare holidays available in the market.

Errol Fernandes, CMD of Ferns Estates & Developers as well as Rosetta by Ferns, said: "Our expertise in developing premium gated communities over the years has enabled us to seamlessly marry real estate with hospitality."