Introduction
A resort is generally a low-density master planned development that usually has a natural or scenic element and recreational amenities along with the accommodation. Development of a successful resort is complex and both cost and time intensive. Resorts are located at tourist destinations or in proximity to metro or a mega city.
A successful resort development is largely designed considering one or all the below offerings for the guests:
- Travel to an established tourist destination or an attractive location
- Break from routine
- Pursue recreational interests – Golf, skiing, water sports, Yoga for an instance
- Facilitate a large corporate event or a meeting or a wedding
Basis the above criteria, positioning of the resort, design, and amenities within the resorts arrived upon. It is imperative for the developers or property owners to evaluate sites that are suitable for development of a resort and subsequently create a concept that is most suitable for the site.
Site selection parameters for a successful resort
- India is a country with diverse culture, rich heritage, and varied natural landscapes. Hence, presence of a natural feature (like beach, hills, snow, desert, river, backwaters), cultural features - local architecture, cuisine & crafts, or presence of a heritage element – a fort or a palace or a colonial bungalow are value-add for a resort development.
- When considering a site, a developer should evaluate how the site feature may affect the requirement for amenities within the resort and how it can be incorporated in the overall master plan. The natural or geographic features when incorporated in the project master plan offers a value-add. The natural waterfall at Ayatana Coorg is an example of a well-planned natural feature. Similarly, the Neemrana Fort Palace has restored and preserved the structures offering the guests a royal experience.
- A few of the other parameters to be considered while evaluating site for the resort development include aesthetic and climatic attributes, the fabric and developments within the neighbourhood, and the availability of services. These factors are likely to influence the concept plan of the resort.
- Foremost point to be evaluated is the type of the location – location for a resort development can range from nascent, emergent, and matured market.
- The preference to develop a resort in a matured market is usually hight, but availability of land and the acquisition cost are likely to be high. Further, the established resorts are expected to pose significant challenge.
- New resort developments in nascent or emergent markets are typically large-scale operations that expand on a natural feature such as a water body, hill with construction of golf – course or elaborate sports or swimming facilities, in some combination to create a wide range of recreational amenities. For an instance, the Lalit Golf and Spa Resort located at Canacun in extreme South of Goa or the Club Mahindra resort at Virajpete in Karnataka and Assanora in North Goa.
- While the nascent and the emerging markets offer a first mover advantage, pioneering these locations present a greater risk than creating a new resort in a matured location. Expansion in the locations backed by Government initiatives should be evaluated.
- The remoteness of the location is likely to impact on the land, development and operating costs. While the cost of land acquisition can be lower, the development costs and operating costs could be high.
- Several factors should be considered in evaluating a potential resort location: the desirability of the location as a resort destination, connectivity to the location, and land and development costs.
- It is important to understand the connectivity of the property in the regional context. Proximity to airport/s, railway stations, and road connectivity will help understand the target audience profile. The connectivity of the property will help the property owner, or a developer understand the product positioning – luxury, upscale, mid segment, target audience profile – Free Independent Traveler (FIT) and Meetings, Incentives, Conference, and Exhibitions (MICE), and thereby develop marketing strategies.
- The concept, design, positioning, and amenities within a resort and marketing strategies of the resort depend on factors such as distance from the metro or a major city and types of available public and private transportation services.
- Post the site selection, the physical attributes of the site have to be carefully evaluated. Some of the key data points to be considered area:
- Topography and slope
- Access from the main road or National or State Highway
- Frontage, shape, and contiguity
- Natural Features / Heritage Structures
- Ecological and Environmental factors
- Availability of utilities – water, power, sewage, and communication services
- The development approval process is one of the most critical aspects in planning any of the real estate product types. For a resort projects in remote locations, study of the prevalent Government Regulations is extremely crucial.
- While selecting a site for a resort or a hotel it is imperative to study:
- Prevalent Zoning Regulations and understand the mandatory pre – development requisites
- Any development restrictions. For an instance, CRZ in case of beach front properties, presence of ecologically sensitive zones or forest areas, presence of rivers or backwaters in proximity to the site or any heritage sites are likely to impact the development potential of the site
- Authorities involved in the approval process
- Cost and Time associated with development approvals
- Information from the study of physical and regulatory attributes of the property helps in preparing concept drawing and layout plans for the development.
The site of a successful resort is usually the one that is marketable, competitive, and capable of supporting a market-based development concept. The key criteria for selecting a site for a resort relate to the overall backdrop, access, physical constraints, the regulatory attributes, and the land acquisition and development costs in relation to the financial returns.
About Meraqi
Meraqi’s Hospitality Real Estate Services’ team advises the owners and investors, by evaluating the market, regulation, and financial feasibility of a hospitality product, identifying the appropriate development mix, property valuation, operator selection, and contract negotiations. We also assist the owners, developers and investors in invest or divest the property, operator tie-up and investment structuring.
