11 hours ago
Atmosphere Living Plans Expansion into Branded Serviced Residences, Says CEO Sandeep Ahuja, ET HospitalityWorld
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ETHospitalityWorld
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'We have already signed about 2,000 keys of serviced residences, serviced apartments and hotels which will be delivered over a period of three years,' said Sandeep Ahuja , global CEO of Atmosphere Living , a fairly new vertical of Atmosphere Core , a hardcore luxury hospitality company which operates ultra luxury resorts in Maldives, Sri Lanka and Living earlier this month had announced the partnership for a one million square feet premium residential and retail project with Manodev Realty across Dubai. Apart from that the company has projects signed for serviced apartments in key urban centres in India like Gurugram, Mumbai and Bengaluru; and a combination of branded serviced residences and hotels proposed in key leisure destinations in the country like Rishikesh, Puri, Mussoorie and Mashobra.'It's a western concept and a new asset class altogether in India. The market is just about to take off as affluent Indians are looking at a differentiator in traditional real estate investments,' Ahuja added that being a luxury hospitality player all along, the company thought of leveraging that positioning and creating a differentiated product in the residential real estate of branded residences with five-star services for the felt that affluent Indians were looking beyond just design and furniture and fixtures when they decide to invest in their first or second home, and service experience with a brand promise was something they are serious about.'We feel hospitality will become a very important part of the offering to that set of customers. That's why we call ourselves hospitality-backed real estate,' he said that they would be investing themselves as well as partnering with real estate developers in projects to manage hospitality places like Rishikesh, Mashobra, Puri and Mussoorie, the company would be investing in greenfield projects, while in other locations they would be partnering with real estate developers, he a buyer perspective, Ahuja said that there would be two models available—one was the sale and lease back model, where investors do not occupy the property and instead get a share of revenue from the rental and the other for self-consumption where the company would provide five-star hospitality said that most of the company's own projects were currently in different stages of design and project the concept was new, Ahuja said that it presented a lot of opportunities for affluent investors to be part of fractional ownership of hotels and large hospitality projects.'We are creating a new asset class and democratising the ownership of hotels. Instead of somebody who has a lot of money and owns the entire hotel, we are offering it to individuals who can afford to buy one unit out of say 200 units,' he asked about the returns for investors in such projects, Ahuja said that buyers could expect seven to eight percent return in the initial years and it could further climb up to 10 percent as asset evolves.'The base remains the same and over time it increases as the rental values and hospitality values increase. So, the buyers' returns keep increasing year on year. But in the base value, one can look at around 7-8 percent returns to start with,' he said that in Rishikesh, Mashobra, Mussoorie, which were high ARR markets as far as hospitality is concerned and therefore investors could expect higher returns on their investments from the very beginning of said that most of their projects were mix-use with components of a hotel and residential real estate, which would help them monetise the latter upfront to fund the hotel development at least asked about capital available and earmarked for the proposed projects, Ahuja said that the company had committed Rs 500 crores already and would look at raising more money as they sign up more projects.
