Rosetta by Ferns CMD Errol Fernandes says they would be following an asset-light model with 25% own properties and 75% leased or managed properties.
Luxury resort operator Rosetta by Ferns, which is eyeing an inventory of 500 keys (rooms) by 2028, has started scouting for properties in Kerala and Tamil Nadu.
“Currently, we have a 128 key luxury resorts in Sakleshpur, Karnataka. Very soon, we will be foraying into South Goa, followed by Waynad and Ooty apart from expanding in Karnataka,” said Errol Fernandes, CMD in an interview with The Hindu.
As per the plan, Rosetta would be adding 100 keys each year over the next five years.
The Bengaluru-based firm is scouting for land in Bandipur, Waynad, Kabini and Ooty either for outright purchase, lease or management and has initiated talks. Ooty will become operational in FY25 and Wayanad resort by end 2024.
“Going forward, we would like to follow an asset-light model. At the end of the day, it will be 25% our own property and 75% leased or managed by us,” he said.
A five-star hotel will come up in South Goa by October with 100 keys and a boutique in Chikkaballapur by December 2024 with 60 keys. Resorts or villas will come up in Coorg, Kolar and Sakleshpur.
“We are the only player in the organised sector from the South to combine real estate with leisure living. Our plan is to build resorts along with holiday homes (villas) about three hours or 200 km from the main cities. Hence, we have chosen places such as Bandipur, Kabini, Waynad, Ooty and Coorg,” he said.
Rosetta will offer two sets of choice for its customers. Either they can buy timeshare for ₹5 lakh or exclusive villas for ₹1.5-5 crore.
“Right now, the occupancy rate in Sakleshpur is 55% and once it touches 75%, we will add another 76 keys there. We have acquired a huge property in Saklespur for the second property to house 50 villas,” he said.
Asked about the funding, he said that it would be met through internal accruals and borrowings. “We might approach private equity [players] once we touch 500 keys. IPO might happen after we cross 1,000 keys,” he said.
Mr. Fernandes also said they were developing gated communities spread across 37 lakh sq. ft in Karnataka, apartments of 30 lakh sq. ft and office space of 13.5 lakh sq.ft in Bengaluru.
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