Raho Hospitalities: Raho to launch first homestay cluster in Coorg by mid-June; Targets 5 clusters by 2027, ET HospitalityWorld

Time of India

23-05-2025

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ETHospitalityWorld
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Emerging hospitality startup Raho Hospitalities is preparing to launch its first operational cluster of experiential stays in Coorg by mid-June 2025, marking a significant step in its mission to reimagine non-urban, design-driven accommodations under Rs 5,000 per night budget.Co-founded by Simona Mohan , who is also the COO of the hospitality start up, with two fellow entrepreneurs, the Bengaluru-based company is building a 'mass premium and experiential' homestay brand focused on offering standardised, nature-connected stays in India's most scenic, culturally-rich regions , removing the current unpredictability in traditional homestay products.'We realised how difficult it is to find inspiring, safe, and affordable stays in sub-5,000 rupees budget in key leisure destinations— especially for solo travellers and women,' said Mohan, herself an avid traveller, sharing the motivation behind setting up a homestay startup in 2022.Along with two of her friends she started the first pilot in Coorg by converting a cottage with two rooms as a homestay. The initial thinking was to invest in homestays. But realising the capex heavy model was not scalable, they changed the model quickly to low capex cluster model In the new model, they handhold the home owners with design, architecture and construction support and then take the assets on a profit sharing model with the owners.Raho's first homestay cluster is being developed at Siddhapur village in Coorg, comprising 11 properties and 46 rooms. Five of these units are already operational, with the remainder expected to go live in the next few weeks.The company follows a hub-and-spoke model, with properties located within a 30-minute radius of a central operations hub. This enables efficient staffing, central supply chains, and scalable guest service — a departure from fragmented homestay experiences common in leisure destinations.'We believe in going deep rather than going wide. This helps keep staff-to-room ratios efficient, maintain service quality, and reduce overheads.'She said that most of the home owners they work with were those who already burnt their fingers running homestays themselves at some point of time because of low occupancy and inconsistent income. Raho helps them to reimagine the product with standardised local architecture, design, and other standardised services to make it a win-win.Unlike the generally perceived homestays, where the hosts stay at the unit itself and use their spare capacity for guest accommodation, Raho Homestays are exclusive guest accommodations fully managed by a professional team.With the Coorg homestay cluster ready to go online fully, the Raho team has already started planning for further expansion of the cluster model. Mohan said that they are currently working on a few more homestay cluster proposals in Chikmagalur and Wayanad, two very important nature-based destinations in south India.'We want to focus in south India for the first few clusters before exploring opportunities in other regions,' said Mohan. She said that they have a target of five Raho homestay clusters by the end of 2027.'We're targeting destinations with high tourist footfall but fragmented accommodation supply. Wayanad and Chikmagalur are next in line after Coorg,' Mohan confirmed.From a product design perspective, Mohan said that Raho homes would be designed to cater to urban mindful travellers who want to unwind and reconnect with nature and culture. Raho homes will be designed spaces with fast and free wi-fi with dedicated work spaces, pet friendly with a personalised host.When asked about funding and investments, Mohan said that they are in talks for a series A round to drive the company forward. They had earlier secured a seed capital from Campus Fund.