Luxury travel meets HNI wealth strategy: The Villa economy in India decoded

The End of the Hotel Room: Inside India's Private Villa Luxury Boom

Luxury travel is quietly undergoing a reset. For a growing tribe of travellers, indulgence is no longer about hotel lobbies, identical rooms, or packed breakfast buffets. It’s about space, privacy, thoughtful design, and the feeling of living well—even on holiday. Few companies illustrate this shift better than Isprava Group.

 

Speaking to Business Standard on how Indian luxury travel is evolving, Dhimaan Shah and Nibhrant Shah, Co-CEOs of the Isprava Group, say today’s affluent—and increasingly aspirational—traveller wants more than a place to sleep. They want a home with a pool, a chef who adapts to their tastes, service that feels intuitive, and the freedom to stay longer without friction.

 

 

What is the Isprava Group—and why does it matter?

 

Isprava sits at the intersection of luxury real estate and hospitality. On one side, it develops high-end second homes and villas in lifestyle destinations like Goa, Alibaugh, Kasaul, Coonoor and Phuket. On the other, it operates these homes as professionally managed luxury stays when owners are not in residence.

 

This dual model allows Isprava to control not just how homes are built, but also how they are lived in, maintained, and experienced.  Isprava villas start at about Rs 7 crore and go all the way to Rs 50 crore for estates on large tracts of land. 

Peak periods deliver higher rates and stronger returns, while leaner periods balance out across the year

 

Its hospitality platforms include:

• Lohono Stays, India’s largest super-luxury villa rental platform
• Lohono Luma, a newer “accessible luxury” brand offering the Lohono experience at lower price points

 

Together, they manage 275+ villas across 12 Indian and 5 international destinations, from Goa and Alibaug to Bali, Phuket, and Italy’s Lake Garda.

 

How does the revenue model work?  

At Isprava Group, the revenue-sharing model is designed to let villa owners earn from their homes without giving up control or taking on operational stress. Owners retain full ownership and personal use of their villas, while Isprava manages the property end-to-end when it is rented—covering pricing, marketing, guest experience, staffing, housekeeping and preventive maintenance. Rental income generated is shared between the owner and the platform ( usually 70-30), with the exact split varying by location, property type and seasonality rather than a fixed percentage. 

 

A separate maintenance fee ensures consistent upkeep and asset protection, preventing wear and tear that often accompanies high-occupancy short-term rentals. The result is a professionally run hospitality asset that generates sustainable income while preserving the villa’s long-term value and lifestyle appeal. 

"We operate on a revenue-sharing model for rental sales and a villa maintenance fee where Lohono manages the property end to end. This includes onboarding, pricing, marketing, guest experience, staffing, housekeeping, and maintenance, relieving the homeowners from day-to-day operational concerns. 

 

Before onboarding, we share revenue projections based on historical data, seasonality, and comparable homes. These projections are meant to provide indicative guidance. Owners who partner with us typically value brand strength, consistency, and professional execution.

 

Maintenance and asset upkeep are central to the model. Preventive care and regular quality checks ensure the home remains guest-ready and retains long-term value," noted the founders.

 

For international properties, Isprava works with trusted local partners to manage regulatory, staffing, and operational requirements, while Lohono oversees brand standards and pricing strategy. 

Unlike selling, revenue sharing model preserves optionality. Owners retain full ownership and personal use of their home, while generating income when it is not in use. Lohono ensures that villas remain impeccably maintained, actively used and financ

 

From ultra-luxury to “accessible luxury”

 

At the top end, Lohono Stays caters to travellers seeking fully serviced, one-of-a-kind homes. While average room rates may look modest on paper, villas typically host groups—translating to ₹60,000 to ₹2 lakh per night for an entire home, complete with villa attendants, chefs, and bespoke experiences.

 

"Each home on the Lohono Stays platform is highly curated and designed to global standards. We then layer on a full stack service solution which includes highly trained villa attendants, anytime F&B, top class chefs and several other unique experiences. Our average ARRs in Lohono Stays are around INR 15,000 per night (this can be as high as INR 30,000 per night in select properties) which translates to an average stay of Rs 60,000 per night (which can go up to Rs 2,00,000 a night in select properties)," said Dhimaan Shah. 

 

But Isprava noticed a growing gap in the market.

 

“There’s a large segment of travellers who want the Lohono standard—design, reliability, privacy—but don’t necessarily want the very top end every time,” the founders explain. That insight led to Lohono Luma.

 

Inside Lohono Luma

 

Lohono Luma villas usually start at around ₹25,000 per night and are typically 3-bedroom private pool villas located within gated communities. Guests get privacy along with shared amenities like landscaped gardens, fitness zones, work pods, and recreational spaces.

 

The service is more community-led than bespoke, but still professionally managed—making it especially appealing for families, groups, and longer stays.

 

“Exclusivity for us isn’t just price-led,” the founders say. “It’s about discipline, curation, and consistency. Luma changes the format, not the intent.”

 

Why villas are winning over hotels

 

Post-pandemic travel habits have shifted decisively. Instead of frequent short breaks, travellers are choosing fewer but longer, more immersive holidays. Villas naturally lend themselves to this style of travel.

 

At Lohono, 15–20% of revenue now comes from long-duration stays, a significant jump from pre-COVID years. Drivers include growing discomfort with pollution and density in metro cities, increased flexibility in work arrangements, and lifestyle changes. Families and professionals are choosing to spend extended periods in destinations like Goa, Alibaug, or the hills.

 

Isprava has also seen strong demand from corporates, particularly for senior executives and international travellers spending longer durations in India. 

 

Hotels, the Isprava leadership argues, struggle to offer this blend of space, flexibility, and emotional comfort.

 

Goa hasn’t cooled—luxury demand is holding firm

 

While Goa has seen softness in budget and mid-range short-term rentals, demand at the luxury end remains resilient. Repeat guests, destination weddings, celebrations, and corporate retreats continue to anchor bookings.

 

Additional revenue from curated experiences, food and beverage offerings, and on-ground events helps smooth seasonality, reducing dependence on peak holiday weeks.

 

For villa owners, a different ownership equation

 

For high-net-worth individuals, owning a luxury villa can be as much a burden as a pleasure. Left vacant, homes deteriorate. Self-managed rentals demand time, staff, and hospitality expertise.

 

Isprava’s model removes that friction. Villas are managed end-to-end—from staffing and maintenance to pricing, marketing, and guest experience. Rental income is shared, with margins varying by destination, season, and property type.

 

Crucially, owners retain full personal use of their homes.

 

“A villa should first be a home, not a hotel room,” the founders emphasise. “When you protect lifestyle value, income becomes sustainable—and appreciation follows.”

 

Lifestyle asset first, returns next

 

• Isprava positions luxury villas as multi-layered assets: 
• A lifestyle home to enjoy
• A professionally monetised asset when unused
• A long-term appreciating property, maintained to high standards

 

Rather than chasing high occupancy, the focus is on pricing integrity, preventive maintenance, and a discerning guest profile—a strategy that protects both yield and asset value.

 

Where luxury travel is headed next

 

Beyond Goa, Alibaug, and Lonavala, demand is building in hill destinations like Coonoor, Mussoorie, Coorg, Kasauli, and Srinagar, as well as in Kerala’s wellness-driven markets. Internationally, destinations such as Bali, Phuket, and Lake Garda support longer, more immersive stays, often spanning one to two weeks or more.

 

"Our destination strategy is closely aligned with the evolving preferences of India’s HNIs and UHNIs, both as travellers and as second-home buyers. Affluent Indians are travelling more frequently, but with far greater intentionality. Holidays today are increasingly experience-led, with a clear shift towards premium, customised journeys that prioritise depth, authenticity and personalisation over sheer frequency.

 

This evolution is fuelling demand for experiential, long stay travel, where privacy, space and a strong sense of place take precedence over traditional hotel formats. 

We focus on destinations that function both as aspirational travel markets and viable lifestyle locations. Places like Goa and Alibaug work because they attract repeat leisure travel while also supporting extended stays and second-home ownership. International destinations such as Bali, Phuket, and Lake Garda reflect similar patterns. 

Infrastructure is critical. We look for strong air connectivity, reliable civic services, and destinations that already have cultural or lifestyle relevance. Equally important is the depth of demand, not just popularity.

 

Our approach is to go deep rather than wide. We prefer building meaningful presence in fewer markets where we can consistently deliver quality, rather than mere expansion," said the founders.

 

As a result, the focus is on destinations that function equally well as aspirational travel markets and sustainable lifestyle locations. 

 

"Hill destinations such as Coonoor, Mussoorie, Srinagar, Kasauli and Coorg are seeing growing interest for longer stays and lifestyle travel yet lack professionally managed luxury villas. Kerala also offers significant potential due to its wellness, culture, and global appeal, but remains underdeveloped in contemporary villa hospitality. Regions like the North East and Kashmir are still early-stage but show strong long-term promise as connectivity improves and traveller preferences evolve," said Shah. 

Key points: 

Lohono Stays remains Isprava Group’s super-luxury villa platform, offering highly curated, fully serviced private villas with average group spends ranging from ₹60,000 to ₹2 lakh per night.

 

Lohono Luma was launched as an “accessible luxury” entry point, offering private pool villas starting at around ₹25,000 per night, without diluting the brand’s design, privacy or service ethos.

 

Isprava currently manages over 275 villas across 12 Indian and 5 international destinations, including Goa, Alibaug, Lonavala, Bali, Phuket and Italy’s Lake Garda.

 

Destination selection is driven by long-stay demand, lifestyle viability and infrastructure, with a preference for markets that work both as travel hotspots and second-home locations.

 

The operational model is based on revenue sharing, with Isprava managing villas end-to-end—covering pricing, marketing, staffing, housekeeping and preventive maintenance.

 

Luxury villa demand in Goa remains resilient, even as budget and mid-range rentals soften, supported by repeat guests, weddings, corporate offsites and curated experiences.

 

Post-COVID, longer stays now contribute 15–20% of total rental revenue, driven by remote work flexibility, lifestyle shifts and demand from corporates and senior executives.

 

Isprava positions luxury villas as integrated lifestyle assets, prioritising owner use first, sustainable rental income second, and long-term value appreciation through disciplined asset care.