Rhythm Hospitality takes over Aveda Kumarokom luxury resort

Rhythm Hospitality, a leading player in the real estate and hospitality sectors, has announced a partnership with Aveda Kumarakom, a boutique luxury resort in the Lake Vembanad area of Kerala. Rhythm Hospitality is pioneering the unique ResiTel© concept in India, already popular internationally, that juxtaposes real estate and hospitality to allow individuals 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 Kumarokom luxury resort is situated in the picturesque backwaters of Kerala, with a sublime view of Lake Vembanad. Built between 2012 and 2015, the property showcases the exquisite beauty of Kerala-style architecture, and offers combination of studios, cottages and villa suite units. Due to excessive debt and overleverage on the asset at the time of construction and the business disruptions caused due to the pandemic, Aveda was classified as a Non-Performing Asset by the secured lender and risked facing bankruptcy proceedings under SARFAESI. Rhythm Hospitality’s investment came in at just the right time in order to settle Aveda’s indebtedness under a mutually agreeable One Time Settlement (OTS) with the lender thereby ensuring business continuity for all stakeholders concerned & avoidance of bankruptcy proceedings. The property has also been upgraded and has already 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 which individuals can own resort suite units within the property and earn long term secured rental returns in a win-win mutually beneficial proposition for all stakeholders concerned. Discussing the transaction, Vaibhav Jatia, Managing Director, Rhythm Hospitality, said, “The hospitality sector has faced a lot of challenges recently, and there are many distressed resort properties where the owner and 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.” Rhythm Hospitality has pioneered the ResiTel© model with its first project, an 84-all suite luxury resort property in Lonavala in Maharashtra, followed by an upcoming property in Matheran. Aveda Kumarakom in Kerala will be its third asset with Rhythm’s portfolio, and has started to welcome its loyal patrons and guests from July 1, 2022 onwards.