Rhythm ResiTel is working on the "condotel" concept in India, combining real estate with hospitality

Rhythm ResiTel, a player in the real estate and hospitality sectors, has announced partnership with Aveda Kumarakom, a boutique luxury resort in the Lake Vembanad area of Kerala. Rhythm ResiTel is working in India on the “condotel” concept, which is already popular internationally, that juxtaposes real estate and hospitality to allow investors to own individual resort suite units.  The ResiTel asset class offers a fusion of resort ambience with real estate ownership where individuals can own resort suite units as a convenient property investment yielding long term secured returns. The company has previously executed this business model at their 84-unit all suite resort at Lonavala which has been developed, owned and operated by the company since 2012. 

The Aveda Kumarakom luxury resort is situated in the backwaters of Kerala, with a view of Lake Vembanad. Built between 2012 and 2015, the property showcases Kerala-style architecture and offers combination of studios, cottages and villa suite units. The property is currently being upgraded and will become operational under Rhythm’s brand and management effective July 1, 2022. Rhythm will recover its investment in Aveda via their innovative ResiTel business model under in a win-win mutually beneficial proposition for all stakeholders concerned. 

Individuals can 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. The suite would form part of the resort’s rental pool and 50% of gross room revenue will be shared with the ResiTel unit owner as regular income on an ongoing basis. In addition, the suite owners can avail the unit for 30 days of vacation each year, without the hassle of maintenance fees. 

Vaibhav Jatia, Managing Director, Rhythm ResiTel, said, “The hospitality sector has faced a lot of challenges recently and there are many distressed resort properties where the owner / management is finding it difficult to maintain operations. As a part of this industry, we are committed to contributing value by investing in such properties and preventing their closure. At the same time, we are also adding value to the property itself 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.”