Luxury resort investment refers to the modern real estate trend whereby investors own luxurious resorts that earn their income based on professional management and value appreciation over time. This method of earning money through luxury property differs from other conventional methods by combining ownership, passive income generation, and luxurious benefits.
With the rapid growth of the luxury travel market and experiential tourism in India, more investors are turning their attention to resort investments as opposed to other property options like residential and commercial units. High-end hotels in places like Rajasthan, Goa, Uttarakhand, and Udaipur have witnessed increasing interest among investors based on the continued growth in tourism, destination weddings, wellness tourism, and brand hospitality.
How Does It Work?
An investor purchases a hospitality unit (e.g., villa, suite, or apartment) in a luxury resort. The purchase is followed by leasing back the unit to the resort manager for professional management; known as the Sale and Lease Back (SLB) Model.
This means that:
- The property owner has the ownership rights
- The hospitality brand will be responsible for management of operations in the property
- Revenue is generated from tourists using the property
- Investors earn returns either as fixed returns on investment, revenue shares, or hospitality income
What makes resort investments an ideal way of earning money is the fact that the investor does not have to deal with any management aspects since the hospitality company runs the entire system while offering the investor an opportunity to earn from a professionally managed asset.