Vasily Khlyudov was born on February 16, 1841, into the family of Alexei Ivanovich Khlyudov, a textile factory owner. He graduated from the Petropavlovsk School in Moscow and then studied natural and medical sciences at Moscow State University. He also studied chemistry for two years at Heidelberg University. Khlyudov was musically gifted, playing the piano and organ, and spoke three languages.

After receiving an inheritance, Vasily invested a significant portion in purchasing and developing land in the Sochi area in 1892. He collected unique botanical specimens, ordering plants from around the world, and hoped for abundant harvests from 120 desyatins of orchards where he grew Crimean apples, pomegranates, and olive trees. However, his plans did not materialize, and the estate "Razdolnoe" had to be sold due to losses.

On the remaining land near the sea, Khlyudov began to create a park and built a two-story dacha in the Art Nouveau style in 1896, designed by architect Lev Kekushev. The park was completed on July 1, 1898, and became the first urban park in Sochi, known as Khlyudovsky Park.

In 1898, he donated an organ made by Friedrich Ladegast to the small hall of the Conservatory, which was later transferred to the M.I. Glinka Museum of Musical Culture.

In 1909, Khlyudov sold the dacha to Maria Fedorovna Zolina, the wife of a provincial secretary. Soon, construction began in the park for the first resort and sanatorium complex in Russia, "Caucasian Riviera," proposed by Minister of Agriculture Alexei Yermolov. The complex, designed by architect Vasily Ion, initially included two hotel buildings, and by 1913 it was expanded to four buildings with 250 places. The complex featured a theater for 600 people, a power station, and a water supply from mountain springs.

Due to his trustfulness, Khlyudov fell victim to fraud, investing funds in the Joint Stock Company "Steel," which promised to develop deposits near Lake Ladoga. However, this turned out to be a scam, and he lost significant funds.

After business failures, Khlyudov became interested in spiritualism, the interpretation of the Gospel, and published brochures on these topics. He also had interests in metallurgy, medicine, biology, endocrinology, gardening, and astronomy. Vasily was a merchant of the First Guild, a board member of the Yegoryevsk Paper Spinning Factory, and a hereditary Honorary Citizen.

Vasily Khlyudov passed away on March 25, 1913, in Moscow. He bequeathed all his property to his wife and donated the house on Khlyudov Lane for a children's hospital.

On April 1, 2004, a bust monument to Khlyudov was unveiled in the "Riviera" park in Sochi, created by sculptors Evgenia Peshkova and Alexander Tikhomirov, in gratitude from his descendants.