Why Are Resorts a Smart Investment Opportunity?
The growing demand for staycations and workcations is driving the development of urban and holiday resorts, making resort investments an attractive opportunity. In this article, we explore why investing in resorts is a lucrative option.
The Evolving Hospitality Landscape Post-COVID
Similar to all property asset types, the hospitality industry has also changed drastically post-COVID-19. Traveler preferences have been completely different since March 2020. The Indian and international traveler mindset gap is diminishing due to rising affordability, demographic changes, and more flexibility in workplace policy.
With restrictions on travel and the general use of remote work, domestic tourism has become more popular. Most travelers now opt to explore places within India, making last-minute plans for trips.
Emerging Trends Fueling Resort Investments
Several key hospitality trends are shaping the industry, making resorts a promising investment opportunity:
1. Workcations
With remote work becoming the norm, many professionals are relocating from urban dwellings to scenic rural destinations. Workcations typically involve longer stays (7–10 days), allowing travelers to balance work and leisure while exploring multiple destinations.
2. Staycations
Short getaways (1–2 nights) within 100 km of major cities have become popular among individuals and corporate groups. The demand for these quick escapes continues to rise, further boosting the resort sector.
With increasing occupancy rates (70%–75%) and luxury resort average room rates (INR 12,000–15,000 per night), resorts—both urban and holiday destinations—are proving to be strong investment assets. Before COVID-19, leisure travelers accounted for only 25%–30% of urban resort demand. Now, they make up 50%–60%, primarily due to the limited international travel in recent years.
Even as global travel resumes, the demand for resorts is expected to grow significantly over the next 1–3 years.
Key Drivers of Resort Investment Growth
1. Weekend Getaways & Staycations
With unpredictable travel restrictions and last-minute vacation planning, urban resorts have gained popularity as convenient getaway options. These resorts provide luxury amenities without the hassle of flight or train bookings.
Unique resort themes—such as wellness, golf courses, riverside locations, or beachside retreats—are attracting more guests. Pet-friendly resorts offering dedicated activities and facilities for pets are also gaining traction.
2. The Need for Collaborative Spaces
With companies embracing hybrid work models, the demand for unique meeting spaces has surged. Urban resorts are preferred over traditional city hotels for corporate team meetings, board discussions, and brainstorming sessions, often booked as day events with conference and dining facilities.
3. Corporate Events & Retreats
Urban resorts near major cities are now the top choice for corporate events, conferences, and team-building retreats. Companies seeking hassle-free, short-term stays (1–2 nights) are increasingly choosing resorts for their business gatherings.
4. Destination Weddings
Resorts have become the preferred venue for destination weddings, surpassing traditional banquet halls and business hotels. Wedding groups (typically 150–250 guests) often book resorts for two-night stays, complete with elaborate catering and multiple event spaces.
5. The Rise of Workcations
Many companies are shifting toward hybrid work models, allowing employees to work remotely for part of the week. This flexibility has led to a surge in demand for long-term stays in scenic locations near Tier 1 and Tier 2 cities.
Popular destinations like Goa, Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, and Pune are expected to witness continued growth in workcation-friendly resorts.
The Future of Resort Investments
Resort development is expanding across Tier 1, Tier 2, and key tourist destinations. Developers are now adapting to evolving traveler preferences by offering:
- Family-friendly resorts with enhanced experiences for children and senior citizens
- Pet-friendly amenities catering to travelers with pets
- Innovative ownership models, such as sale-and-leaseback arrangements and timeshare memberships
- Managed second homes or vacation properties within 200–300 km of major cities, targeting HNIs, UHNIs, and NRIs
Eko Privilege: Your Partner in Resort Investment
AtEko Privilege, we specialize in evaluating resort investment opportunities. Our team conducts comprehensive feasibility studies and business planning for hospitality projects. Whether you're a property owner seeking a strategic hotel operator partnership or an investor looking for high-yield opportunities, we can help you make informed decisions.
Frequently Asked Questions (FAQs)
1. Why are resorts considered a smart investment opportunity?
Resorts offer high occupancy rates, increasing demand for staycations and workcations, and attractive average room rates, making them a lucrative investment option.
2. How has COVID-19 impacted resort investments?
The pandemic shifted travel preferences, boosting domestic tourism, staycations, and workcations, leading to increased demand for resorts in urban and holiday destinations.
3. What are the key trends driving resort investments?
Emerging trends such as workcations, staycations, corporate retreats, and destination weddings are fueling the demand for resorts, making them profitable investments.
4. What is the average occupancy rate of resorts in India?
Luxury resorts in prime locations maintain occupancy rates of around 70%–75%, ensuring steady revenue for investors.
5. Why are urban resorts gaining popularity?
Urban resorts offer quick getaway options, corporate event spaces, and unique themes like wellness and pet-friendly stays, attracting a diverse clientele.
6. Are destination weddings boosting resort investments?
Yes, resorts have become the top choice for destination weddings, with large group bookings, extended stays, and premium event services driving revenue.
7. What makes workcation-friendly resorts a good investment?
With hybrid work models rising, professionals seek long-term stays in scenic destinations, creating sustained demand for resorts near Tier 1 and Tier 2 cities.
8. What factors should investors consider before investing in a resort?
Investors should evaluate location, market demand, occupancy trends, unique amenities, and investment models like sale-and-leaseback arrangements.
9. Which locations in India offer the best resort investment opportunities?
Popular investment locations include Goa, Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, and Pune, where tourism and corporate travel drive demand.
10. How can Eko Privilege help with resort investments?
Eko Privilege provides feasibility studies, business planning, and investment insights to help investors make informed resort investment decisions.
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