Leisure Hotels are looking for alternatives, to diversify into hostels, resitels

Leisure Hotels Group, the Dehradun-based hotel company, is diversifying into the hostel and resitel segments as it seeks to unlock the potential of the alternative and long-stay accommodation sectors, while executing a plan to expanding into its core hotel segment, said a senior business executive.

Leisure’s hostel – low cost budget accommodation with budget beds and rooms under the Bedz brand – will be set up in Rishikesh by the end of this year.

Aimed at backpackers and long-term travelers visiting the Himalayan foothills region in search of adventure, wellness or pilgrimage, Bedz will compete with Zostel, one of the largest chains of hostels in India, said Vibhas Prasad, director of Leisure Hotels. Commercial standard.

“India has innovated with youth hostels. But lately most of the action has shifted to co-working and co-living spaces, and hostels are not getting that attention, ”said Prasad. Existing hostels in Rishikesh normally charge between Rs 250 and Rs300 per bed per night, but Leisure is looking to raise the stakes, he said.

Leisure plans to charge Rs 800 to 900 for beds per night and Rs 2,000 to 3,000 for bedrooms and create the concept of community living. It will be based on the dynamic pricing model and determined by demand on a particular day.

“With an attractive food and drink outlet, it can become a bustling place for anyone visiting Rishikesh,” said Prasad. The second hostel will see the light of day in Jaipur, but it will follow a franchise model similar to that of Zostel.

According to travel portal, India is one of the fastest growing markets in terms of adding alternative accommodation platforms. Out of a total of 880,000 listings in India, more than 140,000 are in the “alternative accommodation” segment, PTI reported in May 2019, citing a senior executive at the company.

The alternative accommodation segment covers homestays, hostels, apartments, villas, cabins, treehouses, boats, and guesthouses, among others.

The properties – villas or apartments developed by Leisure under the resitel concept – will be open for sale and transfer of ownership. The purchaser will benefit from 30 days which can be consumed by him or his family or friends, in addition to the rent which he would benefit from for 15 years according to the lease contract.

The buyers of these properties would be wealthy Indians living in the country or abroad and willing to own a second / vacation home. It is not an investor-driven model and there is no guaranteed return on the property one buys, but the buyer will get a 4% return when the property is re-let, Prasad said.

Leisure will develop sites in Bhimtal, Nainital, Rishikesh and Naukuchiatal. He will begin construction at a few of these locations over the next two months.

Meanwhile, the group which currently operates 27 boutique properties with around 875 rooms in India plans to invest 160 crore rupees to add nine properties across the country by the end of 2021.

These will include properties in Goa and Greater Noida, as the company aims to expand beyond Uttarakhand. While some of the aforementioned properties are owned by Leisure, a few are jointly owned and managed by the company and the others are simply managed by it in key leisure destinations.

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