By IANS,
Chennai : Mahindra Holidays and Resorts will expand its presence countrywide, investing Rs.250 crore, and set up resorts in Sri Lanka, said a top company official.
“Within India we will be adding new resorts across the country. We will be adding around 500 units to our stock,” Managing Director Ramesh Ramanathan told reporters here Thursday.
“The cessation of internal conflict in Sri Lanka has made the island nation attractive for us. The time is right and we are identifying locations in Sri Lanka while the headquarters will be in Colombo. We are looking at resorts near the beach and at other places.”
While the structure of Sri Lankan entity – joint venture or a wholly owned subsidiary- is yet to decided, Ramanathan said one has to form a company in Sri Lanka to purchase land there.
He said the company is planning to promote its flagship brand Club Mahindra in Sri Lanka.
“Mahindra Holidays has over 110,000 members and Sri Lanka will be an attractive destination for them,” he added.
Inside India, the company is planning to introduce the concept of fractional ownership of villas.
“Under fractional ownership, we will build and sell bungalow’s measuring around 3,500 sq.ft to 8-12 persons. Each owner will be eligible for a specified period of stay at the villa that will be built near our resorts. We will get a regular revenue from maintenance of that property as well as capital appreciation at the time of selling the ownership,” Ramanathan said.
According to him, fractional villas will be luxurious and will be fully furnished and work on the project will commence next fiscal.
“Our land bank size is around 400 acres across India,” he said.
According to Ramanathan the blended average subscription revenue per person is around Rs.275,000 this year up from Rs.250,000 earned last year.
He said the company weeded out several dormant members for non-payment of subscription.
Ramanathan said the company will be going aggressive in promoting Homestays across the country.
Under this, Mahindra Holidays will select households in various tourist spots who are interested in letting out a room in their home and also provide food to the guests.
“We will get a commission on the rent and an enrollment fee from the household. However, marketing will be done by the company,” Ramanathan said.
He said Mahindra Holidays offers Homestays in 47 locations in 15 states.