Highlights
Treebo Hotels Achieves ₹100 Crore Revenue Milestone Amidst Rising Losses
Treebo Hotels, a premium-budget hotel chain, has successfully surpassed the ₹100 crore revenue mark for the fiscal year ending March 2024. However, this achievement is accompanied by a 17% increase in losses, which have now reached ₹488 crore.
Revenue Growth
According to the consolidated financial statements lodged with the Registrar of Companies, Treebo Hotels reported a 22.5% increase in operational revenue, rising from ₹89 crore in FY23 to ₹109 crore in FY24.
- Income from accommodation services, derived from leased and managed properties, constituted 95% of the overall operational revenue, which grew 22.3% to ₹104 crore in FY24 from ₹85 crore in FY23.
- The remaining revenue was generated from the sale of products and subscription services.
- Additionally, the company recorded ₹7.22 crore as other income (non-operating), resulting in total revenue of ₹116 crore for FY24, an increase from ₹94 crore in FY23.
Expenditure Overview
Treebo’s overall expenditure reflected a significant focus on employee benefits, which accounted for 41% of total costs, rising by 7% to ₹59 crore in FY24. Other significant changes in expenditure included:
- Advertising costs surged by 70%, reaching ₹17 crore.
- Commission expenses rose by 48%, amounting to ₹43 crore in the previous fiscal year.
- Overall operational costs, including materials, legal, technology, travel, and other overheads, increased by 22% to ₹144 crore in FY24 from ₹118 crore in FY23.
Financial Performance
Due to rising advertising and commission expenses, Treebo’s losses expanded by 16.7% to ₹28 crore in FY24, up from ₹24 crore in the previous year. The company’s Return on Capital Employed (ROCE) and EBITDA margin were reported at -540% and -18.1%, respectively. At a unit level, Treebo spent ₹1.32 to generate ₹1 in revenue during FY24.
Current Assets and Funding
The total current assets of Treebo stood at ₹34 crore, which included cash and bank balances of ₹7 crore from the previous fiscal year.
As per data from various startup intelligence platforms, Treebo has raised ₹566 crore (approximately $70 million) in funding from various investors, including Accor, Elevation Capital, Matrix Partners, and Bertelsmann. The company’s latest significant funding round, amounting to $16 million, took place in June 2021.
Market Competition
Treebo is in direct competition with Bloom Hotels and FabHotels. In FY24, Bloom Hotels reported a remarkable 73.6% increase in operational revenue, reaching ₹250 crore, alongside a profit of ₹14 crore. FabHotels, on the other hand, noted ₹224 crore in operational revenue for FY23, but its FY24 annual report has yet to be filed.