Although there are still a considerable number of owners trying to get out of their timeshares ever year, many timeshare companies these days are on their way to expansion. One of these is the Mahindra Holidays & Resorts India (MHRIL) which will launch three more resort brands to cover the entire gamut of leisure travelers across different age and income groups.
The said company is launching resorts in premium, uber-premium and budget categories. Under the uber-premium fractional ownership category, there are around 3,000-3,500 sq ft villas which will be built adjacent to Mahindra’s existing resorts. Under a timeshare perpetuity-basis, there will be around eight to 12 people who could own the villas for an upfront amount and a regular maintenance fee.
According to Ramesh Ramanathan, managing director of MHRIL, the first such gated community will come up at Coorg in Karnataka in the next financial year. He added that another premium resort brand is expected to come up this year and a budget vacation ownership brand will be launched within the next 18 months.
Under the flagship brand Club Mahindra, there are four resorts, with a total of 500 rooms which are under construction. Ramanathan further stated that these resorts are coming up in Tugi near Lonavala, Coorg, Ranthambore and Gir in Gujarat. The total investment on these projects will be Rs 250 crore which will be partly funded from the proceeds of the IPO and rest from internal accruals.
On the other hand, Club Mahindra is also planning to enter Sri Lanka and Malaysia. In Sri Lanka, it will either float a new company or enter a joint venture to set up vacation resorts. The company, which is part of Mahindra Homestays, will also tie up with more homestay operators to have a total of around 2,000 rooms within two years. At present, it collaborates with owners of 258 homes and has 738 rooms at 47 locations in 15 states.