Embassy to compete with Oyo as it rolls out asset light business model

Targeting the millennial audience, real estate player Embassy Group has rolled out an asset light management business named Olive Residences under its co-living brand Olive by Embassy.

Under Olive Residences, the Bengaluru-based company will be taking up existing residential buildings and hotels in partnership with owners for a performance-based management fee, which puts it in direct competition with Oyo. These buildings will provide both short-term and long-term stay options.

“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,” said Aditya Virwani, COO, Embassy Group, who aims to have around 100 properties up and running under this model by the end of next year. The company claims this model will allow it to maximise returns for building owners by 30-40 per cent higher than other operators.

Apart from basic facilities including rooftops and lounging areas there will be a city-centric Olive club for all the members with facilities such as gyms, swimming pool, bars and other recreational amenities. Olive Residences has launched its first property in Bengaluru, available for immediate occupancy as 1BHK residences and two more properties to be ready in the next three months. Olive Residences will take up residential buildings and hotels under a management agreement in in central locations of metro cities, across India. “At the moment we will stick to the six metro cities and depending on growth trajectory will take it to other geographies,” said Kahraman Yigit, co-founder and CEO, Olive by Embassy.

Olive Residence units will be priced starting at Rs 16,500 onwards. With a twofold membership approach, one can choose their primary residence location in the city and gain access to member partner escape locations. “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,” said Yigit.