MUMBAI, Feb 25: Hospitality group Treebo Hotels plans to expand the number of properties to 850 in the next 12 months, a top official said.
The group has forayed into the premium segment by launching ‘Treebo Select’ brand.
“We are bullish on expansion and in the next 12 months are looking at a total of 850 properties across the country. For this expansion we are looking at opportunities in top 20 cities, leisure destinations, pilgrimages, and small business towns,” Treebo Hotels co-founder Sidharth Gupta said.
Similarly, with the size of the company growing by 2.5 times more in next 12 months after the expansion, Gupta said, the revenue is also likely to increase in a similar proportion.
Founded in 2015, Treebo Hotels currently has an inventory of 7,500 rooms and 350 hotels in over 70 cities.
The company, which mainly operates in the budget segment with Rs 1,800-2,000 room tariff, has also forayed into the premium segment by launching ‘Treebo Select’ brand.
He said, ‘Treebo Select’ is a premium brand offering providing better amenities and services in the price range of Rs 2,500-5,000 per night.
“Our expansion plan also includes 40 properties in top 20 cities across the country under the ‘Treebo Select’ brand,” Gupta added.
He said some Treebo Hotels will be upgraded to ‘Treebo Select’ as these properties have existing facilities and can easily be converted to premium category.
The company enjoys an average 75 per cent occupancy across all its properties, he said.
“We are bullish and this segment is going to witness explosive growth with growing economy as well aspirations of people wanting to travel,” he said.
When asked about how the company will fund this, Gupta said, as the organisation follows asset-light franchise model, there will be no major investment requirement.
Last year in August, the Bengaluru-based Treebo Hotels had raised USD 34 million (Rs 220 crore) in its Series C funding round.
The investment was led by Hong Kong-based investment firms Ward Ferry Management and Karst Peak Capital. Existing investors SAIF Partners, Matrix Partners India and Bertelsmann India Investments also participated in the round.
Talking about venturing into the luxury segment in future, he said, the company is not actively thinking about it.
On overseas expansion, Gupta said, the company is currently focused in the domestic market for the next couple of years and will take a decision on this afterwards. (PTI)
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