Scent of success

After Airbnb made inroads into the market, several other operators popped up. SaffronStays boasts a diverse portfolio of villas, with over 278 properties spread across various desirable locations such as Kodaikanal, Lonavala, Alibaug, and across the states of Himachal Pradesh, and Goa. The company offers homeowners opportunities to monetise their properties, which may otherwise be white elephants, even as they retain control and privacy. It’s a win-win for the aggregator as well as the homeowner. Often these private villas can work as brand ambassadors for the destination itself. For example, when actor Siddhant Chaturvedi (lately seen in the movie Kho Gaye Hum Kahan) posted about his “easy-breezy experience” at SaffronStays Ahilya Waters by Kosha Villas earlier this year, Lake Pawna got an image makeover. From a trekking destination, it has evolved and offers a more luxurious vacay, where you can enjoy infinity pools and relaxing massages.  

The debut of branded villas

You know the villa vacay is a trend that has come to stay when IHCL, South Asia’s largest hospitality brand, also gets on board with it. In February 2019, IHCL introduced amã Stays & Trails, their branded luxury homestays. A collection of plantation bungalows, heritage villas, colonial houses, havelis, and charming residences as private getaways were launched in response to evolving guest needs for local, immersive, and authentic experiences. amã Stays & Trails began its journey with nine heritage bungalows and has rapidly expanded to 146 bungalows with 51 under development in idyllic locations including Kodaikanal, Munnar, Coonoor, Chikmagalur, Alleppey, Darjeeling, Manali, Lonavala, Madh Island, Alibaug, and across Goa, among others.

 Sumit Bazaz, Vice President, amã Stays & Trails, says, “The growth of this segment is proof that Indian hospitality is evolving as consumers opt for new formats in leisure travel. amã is one of several business engines that IHCL has been pushing for growth. By providing a platform for house owners to open up their homes to travellers, amã offers an opportunity to monetise an idle asset and convert it into a profit-making business managed by IHCL. While amã looks to expand to many more properties, it will be selective and will continue to be positioned in the luxury branded homestay offering.” 

In 2023, Homes & Villas by Marriott Bonvoy announced the launch of its curated collection of premium and luxury home and villa rentals, of which there are 10,000 across the world in 700 leisure destinations. In the first phase, it will launch rental homes in destinations such as Goa, Alibaug, Lonavala, Mahabaleshwar and Kasauli, and Ooty, Pawna, Coorg, Conoor, Rishikesh, Udaipur, Jaipur and Chandigarh will be launched in the next phase. Jennifer Hsieh, Vice President, Homes & Villas by Marriott Bonvoy said at the launch, “We have been looking at the Indian market, thanks to the potential it offers in the travel and housing markets. Luxury private home rentals are the topmost choice for travellers in India, given the ease, bespoke experiences and facilities they offer. These are spaces for people to spend quality time with their loved ones but also facilitate remote working for professionals.”

The biz buzz

What is the investment required to build a substantial base of villas as compared to opening a multiple-key hotel? Bazaz of amã says, “Having identified the need for branded and differentiated products in this unstructured market, we will continue to add to the portfolio to offer unique and off-set destinations. Growth in this segment is driven primarily by management contracts without any capital deployment by IHCL. The overarching strategy is to develop properties within driving distance of existing hotels to share management, resources, and the costs.”

According to Devendra Parulekar, Founder, SaffronStays, “A lower capex budget, flexibility in the look and feel (though premium in consistency), and the potential to transact (sale and leaseback) means easier solutions to build a multi-cluster villa development as against a multi-key traditional resort. Organised operators in the villa space further fortify the belief of developers alongside the large surge of demand for villa acquisitions across key markets in the state of Goa, and other leisure markets such as Alibaug, Lonavala, Kasauli, Ooty, etc.”

The aggregators identify leisure destinations that have strong feeder markets at a drivable distance from major cities. “We can grow in world-class tourist markets such as Goa and Udaipur, which consistently witness strong demand. Being a profitable organisation, we prefer casting deep as against going wide and setting up shop in regions in a way that adds maximum value to all our stakeholders,” says Parulekar. “We see an opportunity for multi-cluster villa projects that would allow us to target segments not typically acquirable through the traditional 3-5 key inventories. Given the quick evolution of our segment, we also recognise the need to evolve our experiential offerings, whether this means offering lessons in horse riding, kayaking, and surfing,” he says.

Several developers are getting into the space, too. The most prominent among these are brothers Nibhrant and Dhimaan Shah, whose luxury real estate company Isprava presently has 40+ ongoing projects and has so far developed 150+ luxury homes across Goa, in the Nilgiris, Kasauli, and Alibaug. Their group company Lohono Stays helps homeowners get a return on their investment by making luxury villas available for short stays to guests at a super-premium price. Lohono Stays curates and manages over 100 properties in India spread across locations in Goa, and spots like Alibaug, Jaipur, Srinagar, Corbett National Park, Sultanpur, Ooty, Shimla, Bhimtal, Kasauli, Lonavala, Karjat, Mahabaleshwar, Mussoorie, and Coonoor, and over 200 properties internationally in destinations such as Phuket, Bali, Koh Samui, and countries such as Sri Lanka, and the Maldives. There is a unique highlight in every individual home, whether it’s a tempting gazebo by the pool or an age-old banyan tree with a charpoy laid underneath. Also, the skilled concierge can offer guests exceptional gourmet and entertainment experiences. 

From all accounts, some luxury villas and homeowners are veering towards collaborating with a villa marketing and management company, eschewing the big boys or the mega hospitality brands. Some villa owners we spoke to in Goa, on conditions of anonymity, have cited reasons such as high branding fees to very small returns for the owners. “One of the big boutique brands wants a R1 crore sign-up fee and long-term lock-ins. But the projected takeaway for the owner over the next three years is just R1 crore. The expenses and the fixed costs are also to be borne by the homeowner. While big brands have the power of reach and sales offices, the smaller villa rental brands can offer you similar reach if their social media game is on point. If the property has potential, it is better to go with a smaller villa and home rental management and marketing company, which offer great services and fairer terms, and also look after your property,” they advise.

A new model makes a mark

Experience is everything

Guests at private villas expect drool-worthy design, high-end fittings and fixtures, luxurious amenities and scrupulous maintenance, just as they would in their own homes. But what they value is an experience that’s authentic, local, and exclusive. Aesthetics and a feel-good factor are paramount for discerning travellers. The villa experience is largely design-driven. For example, at Aranayam, a group of privately owned villa properties in Assagao, design and sustainability are the primary focus. Each limited-edition residence adheres to biophilic design principles and is crafted using planet-friendly materials, showcasing timeless aesthetics and exquisite craftsmanship in collaboration with artisans from across India. Varun Maheshwari, Co-founder, Aranayam, says, “We embrace sustainability in the form of solar energy utilisation, biodigester tanks, and electric vehicle charging stations. These conscious measures aim to minimise carbon footprint while fast-tracking ecological conservation, all while ensuring an uncompromisingly luxurious experience.” Their flagship villa boasts a Green Rating for Integrated Habitat Assessment (GRIHA) and features the use of eco-friendly materials such as lime plaster, recycled wood, and terrazzo flooring. 

Curated experiences are another arrow in the villa stays’ quiver. Parulekar observes, “Guests at SaffronStays’ properties enjoy immersive experiences tailored to each location’s unique culture, landscape, and celebration.” Bazaz agrees, “amã bungalows cater to the growing consumer preference for private getaways with authentic, bespoke local experiences such as plantation walks, jeep safaris, birding, guest meals, dedicated in-house service with chefs offering local cuisine.”

 The villa business is booming. There’s improved design and curation, more competitors entering the market, bigger investments being made, and more destinations being served.