The real estate player Embassy Group has introduced an asset-light management business- Olive Residences under its co-living brand Olive by Embassy. Under Olive Residences, the Bengaluru-based company would be taking up the existing residential buildings and hotels in partnership with owners for a performance-based management fee that would lay a direct competition with Oyo. Alongside, these buildings would also provide both short-term as well as long-term stays.
“This is a far more scalable model, unlike greenfield built-to-suit models. We will take a maximum of 60 days to churn around a building and have it operational,” says Aditya Virwani, COO, Embassy Group.
Adithya is aiming to have around 100 properties up and running under this scheme by the end of next year. Alongside, the company claims that this model would elevate the returns for building owners by 30-40 percent higher as compared to other operators.
In addition to basic amenities, the model also offers rooftops and lounging areas and it also provides a city-centric Olive club for all the members with facilities such as a swimming pool, bars, gyms, and other recreational facilities.
As of now, the Olive Residence has launched its first property in Bengaluru for immediate occupancy as one BHK residence and two other properties would be available to occupy in the next three months.
Kahraman Yigit, co-founder and CEO, Olive by Embassy says, “At the moment we will stick to the six metro cities and depending on growth trajectory will take it to other geographies." He adds, “Having a primary residence and access to multiple escape locations will be a welcome change, adding to a fun and exciting lifestyle for the young millennials. To ensure a fair and reasonable pricing mechanism, the pay as you go system ensures that our residents only pay for the amenities used, with no hidden charges.”
The Olive Residence units would be priced at Rs 16,500 onwards. A twofold membership approach, allows one to choose their primary residence located in the city and gain access to member partner escape locations.