France is the most visited country in the world. Last year 82 million tourists went on holiday there and in the current financial climate Brits are abandoning far-flung destinations in favour of hopping across the Channel. Lodge St Germain, a new hotel retreat in Languedoc, in the South of France, plans to make the most of this by offering an alternative to destinations such as the Dordogne and the Riviera.

The lack of short-term rental property in the region makes it a ripe location for a holiday development. Alex Charles, co-founder of the property website creme-de-languedoc.com, says: “Traditionally the Languedoc has outperformed most of France. We are still having a high number of inquiries concerning mid-market properties, but buyers are cutting their budgets and making more cautious offers. If the UK sinks into a recession then investors will look to France for a safe investment; it is low risk because of the legal framework.”

Lodge St Germain, right, is within easy reach of Montpellier, Nîmes, the Camargue and the Mediterranean coast. The 79-room, eight-villa project sits on a gentle slope amid wooded hills. The view from the hotel is of vineyards and olive groves setagainst two dramatic peaks, Pic St-Loup and L'Hortus. The land is dotted with wild thyme and rosemary, which scents the air, and fig, plum and ancient mulberry trees surround the spa and villas.

Andrew Whittaker, the company's chief executive, bought the 15th-century manor house and its 140 acres from a Belgian couple in 2005. The project will be a small cluster of buildings when complete. Few other houses are visible and the nearby villages are of the type that have one tabac that closes in the afternoon. A roofless 12th-century chapel remains hidden in a small copse on-site; it will stay unrestored and host small concerts, dinners or yoga classes.

Lodge St Germain will open in 2010; everything will be completed at the same time, so no guests will be faced with building work. The body of the hotel is in the manor house, which encloses a courtyard, pictured, and has huge barn-like areas that will become a bar, a library and a sitting room. The restaurant terrace features an old olive press and is well-placed to catch the sunset; food will be supplied almost entirely by local farmers. The spa, which is accessed by a submerged entrance, above right, will be run by Payot, the French haut skincare brand. There will be stables on-site and decks amid the trees for private picnics or spa treatments. The eight villas and the terrace of hotel rooms will have a wooden slatted outer shell for insulation, under which solar bars will be hidden to generate electricity.

Whittaker is personally involved in every aspect of the design and planning of the hotel, which is one of very few to be accepted into the Small Luxury Hotels guide before being built. Originally from New Zealand, he worked in the City for ten years before moving to Languedoc with his French wife, Sofy, with whom he has three children. “This area of France is very busy along the coast and in certain pockets, but there is plenty of rural land in the middle that is beautiful and unspoilt,” he says. “I wanted to do something that would become part of the local community and use all the incredible local resources here.”

Whittaker has established fruitful relationships with neighbouring vineyards and farms, as well as the nearby gliding club, a local ecologist who now works on the project and the top restaurants in the surrounding area.

Backing for the hotel comes from an international bunch of investors, a couple of whom Whittaker has roped in from his days as a hedge fund manager. As for the buyers, “all three so far have been won over by the atmosphere at the property and the idea of a stylish retreat. Of course they want to make money, but they want somewhere to come back to and feel part of.” He realised that people craved a sense of membership and belonging as an antidote to the anonymity of city living: “Many buyers will be city dwellers who want to pop over for a quiet weekend or to take some time out.”

Under the French leaseback scheme, buyers receive a VAT refund of 19.6 per cent. They will own the freehold to their apartment or suite and will lease it back to the hotel for 11 years; the annual rental return is a percentage of the hotel's revenue, with a return of 5 per cent guaranteed in the first two years. Owners also receive a supply of own-label wine and olive oil, and can stay at the resort whenever they like, at preferential rates.

The sense of calm at the lodge is enhanced by the surrounding Natura 2000 zone, created to protect a pair of rare Bonelli's eagles that nest near by.This safeguard, plus Whittaker's thorough approach, should mean that the site will retain its original charm.

FAST FACTS

Location: 13km (8 miles) from Sommières; 30km from Montpellier; 55km from the Camargue coast; 57km from Nîmes.

Hotel facilities: spa, library, herb garden, horseriding, art and cookery courses, tree-houses, kids' club.

Local activities: Château Puech-Haut vineyard, gliding, ballooning, walking, rock climbing, beaches, medieval towns, Saturday market.

Prices: from €155,500 (£124,000) for a 28 sq m (300 sq ft) room to €362,000 for 65 sq m villa.

Schedule: phase 1 of sales (rooms) now open; phase 2 (villas) opens this month; building starts January 2009 and completes summer 2010.

Contact: 020-7183 3829 www.lodgestgermain.com

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