Rhythm ResiTel is a pioneer in the real estate and hospitality industries, reshaping the landscape with its innovative approach to investment and guest experiences. Rhythm ResiTel aspires to align the optimal capital structure with hospitality assets, facilitating scalability and long-term success, with a clear vision and mission. Vaibhav Jatia, the managing director of Rhythm ResiTel, spoke with Asmita Mukherjee about the company’s distinctive offerings and future plans.
He highlighted their vision of creating a scalable future for hospitality assets by attracting the appropriate capital structure. Recognising that hospitality assets demand patient and long-term capital, Rhythm ResiTel leverages the retail networks of High Net Worth Individuals (HNIs) and Non-Resident Indians (NRIs). By providing individual suites within hotels and resorts, Rhythm ResiTel not only attracts the appropriate capital structure, but also offers individuals a lucrative property investment opportunity, yielding a higher return than residential apartments or commercial assets. This strategy permits Rhythm ResiTel to transform the hospitality asset class into a profitable and sustainable enterprise.
The current portfolio of Rhythm ResiTel includes resort properties situated in India’s most picturesque locales. Jatia elaborated on their property portfolio, stating, “We currently own and operate properties in Lonavala, Kumarakom, Kerala, and Gurgaon.” We seek out destinations with favourable demand-supply fundamentals for the hospitality industry. That is, markets where the demand for lodging exceeds the current inventory. Therefore, these would be well-known tourist destinations close to large metropolitan areas, hill stations, or regions where commercial/business growth (such as Gurgaon) ensures a strong long-term demand for hospitality assets.” In addition, he stated that their existing Rhythm brand focuses on the segment of affordable luxury by providing 4-star and 5-star hotels and resorts with excellent banqueting spaces, delectable dining options, rejuvenating spas, fashionable lounges, and engaging activities for children.
Rhythm ResiTel is involved in the development of future initiatives in Maharashtra, Karnataka, and beyond. Jatia highlighted their ventures in Maharashtra’s Matheran and Ganpatipule, as well as Karnataka’s Coorg and Rajasthan’s Udaipur. “We are currently constructing resorts in Matheran and Ganpatipule in Maharashtra, as well as in Coorg and Udaipur in other Indian states. The Matheran project is a collaboration with the State’s tourism department, MTDC (Maharashtra Tourism Development Corporation). Ganpatipule is an emerging tourist destination in Maharashtra’s coastal belt due to enhanced road, rail, and air connectivity. Coorg and Udaipur are well-established leisure destinations in Karnataka and Rajasthan, respectively, and are both popular destinations for family vacations, destination weddings, and corporate MICE activities, according to Jatia.
Individuals who invest in Rhythm ResiTel properties enjoy a hassle-free and enjoyable experience. Individual retail purchasers purchase individual units on a sale-leaseback basis, as described by Jatia. “They are acquiring individual suite ownership via clear property ownership documents. In addition, through the lease back arrangement with Rhythm, they are able to include their units in the resort’s rental pool, thereby generating regular income and allowing them to enjoy their property as a hassle-free, maintenance-free vacation home option.”
Regarding expansion, Jatia stated that Rhythm ResiTel envisions a thrilling future in India and possibly internationally. Rhythm ResiTel is well-positioned to address the repercussions of the COVID-19 pandemic by assisting stressed, financially overleveraged, and underperforming hospitality assets. He stated, “The aftermath of the COVID-19 pandemic has manifested in a number of stressed/overleveraged/nonperforming assets. These are situations in which Rhythm’s ResiTel business model is ideally suited to assist asset owners, lenders, and other stakeholders in alleviating their financial duress. Through the NCLT courts, Rhythm is an active participant in Corporate Insolvency Resolution Process (CIRP) proceedings involving hospitality assets and companies. In such situations, Rhythm invests capital via its balance sheet (both in the form of debt and equity). Additionally, Rhythm partners with international/domestic private equity funds and institutional investors seeking investment opportunities in India’s hospitality sector.