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Update: Startup hotel chains compared: Who leads on scale and profitability in India?

Entrackr · 21h ago

Medial

Startup hotel chains compared: Who leads on scale and profitability in India? A comparison with other startup hotel chains in the segment such as Treebo Hotels and Bloom Hotels highlights how the three players stack up in terms of scale, profitability, and cost structure. Budget hospitality chain FabHotels recently received approval from SEBI to proceed with its initial public offering (IPO). As the company prepares to tap the public markets, we take a look at startup hotel chains such as Treebo Hotels and Bloom Hotels on scale, profitability, and cost structure. However, FabHotels’ current model and revenue recognition approach make it not directly comparable with these peers. In terms of scale, FabHotels GTV stood at Rs 716 crore majorly from TravelPlus in FY25, while Bloom Hotels and Treebo reported an operating revenue of Rs 344 crore and Rs 128 crore during the same period. On the spending side, Bloom Hotels recorded the highest rent expenses at Rs 63 crore, whereas rent costs for Treebo Hotels stood at Rs 1 crore. With regards to employee benefit, FabHotels spent Rs 96 crore, followed by Bloom Hotels at Rs 86 crore and Treebo at Rs 71 crore. Treebo also reported the highest commission payouts at Rs 39 crore, compared to Rs 28 crore for FabHotels and Rs 21.5 crore for Bloom Hotels. Advertising expenses ranged between Rs 11 crore and Rs 28 crore across the companies. Overall, the total expense of FabHotels stood at Rs 730 crore, significantly higher than Bloom Hotels at Rs 337 crore while Treebo Hotels’ total expense stood at Rs 170 crore. In the first half of the ongoing fiscal year (H1 FY26), FabHotels reported operating revenue of Rs 400 crore with net profits of Rs 32 crore during the six-month period ending September 2025. On the bottom line, FabHotels reported a net loss of Rs 6.3 crore with an EBITDA loss of Rs 5 crore. Treebo Hotels recorded the steepest losses among the three, with a net loss of Rs 36 crore and EBITDA loss of Rs 35.2 crore. In contrast, Bloom Hotels emerged as the only profitable company with a net profit of Rs 15.2 crore while posting the highest EBITDA of Rs 61.5 crore in FY25. In terms of liquidity, FabHotels reported the highest current assets at Rs 191 crore, including Rs 95.5 crore in cash and bank balances. Bloom Hotels followed with current assets of Rs 119 crore, with Rs 29 crore in cash. Treebo reported Rs 30 crore in current assets, with Rs 9 crore in cash and bank balances.