Casa2 Stays-owned budget hotel chain, FabHotels, experienced a 48% growth in income during FY23 to Rs 219 crore, up from Rs 148 crore in FY22, according to its annual financial statements filed with the Registrar of Companies. It also managed to decrease losses by 16.7% to Rs 5 crore in FY23, down from Rs 6 crore it incurred in FY22.
Revenue from bookings accounted for 75% of its total operating collection, reaching Rs 164 crore in FY23. The remainder of its income came from sales and marketing fees. Non-operating activities also contributed Rs 12 crore to the company’s income.
Cost of accommodation represented 59% of FabHotels’ overall expenditure, which rose by 30.8% y-o-y to Rs 140 crore in FY23. Various other expenses, including employee benefits, commissions, website development, and legal/professional fees, led to a total cost increase of 47.5% to Rs 236 crore.
The company’s ROCE and EBITDA margin improved to -33% and -1.7% respectively, while on a unit level, it spent Rs 1.08 to earn a rupee in FY23.
Having raised $65 million across rounds, FabHotels holds a valuation of around $141 million. Major shareholders include Accel, Goldman Sachs, and Panthera Growth Partners, along with co-founders Vaibhav Aggarwal and Adarssh Mnpuria.
FabHotels, which currently runs 600 properties across 50 Indian cities, competes with the likes of Oyo and Treebo, along with other mid-segment independent chains. Oyo, headed for an IPO, recorded a revenue of `5,464 crore in FY23, with losses standing at `1,286 crore. Meanwhile, Treebo Hotels, backed by Accor, reported an income of `89 crore and a loss of `3.6 crore in FY23.