Casa2 Stays, the parent company of budget hotel chain FabHotels, has reported a 34% increase in gross revenue for FY24, reaching ₹552 crore, compared to ₹412 crore in FY23. However, net losses widened by 23%, driven by a surge in employee benefit expenses.
Revenue Growth and Breakdown
Operating over 600 properties across 50+ Indian cities, FabHotels generated 99.4% of its revenue from accommodation bookings under the &ldquo;FabHotel&rdquo; and &ldquo;TravelPlus&rdquo; brands. Gross revenue stood at ₹549 crore, with an additional ₹3.3 crore from other sources. Non-operating income, including interest on deposits and liabilities written off, contributed ₹11 crore, bringing the total revenue to ₹563.6 crore.
Rising Costs and Financial Pressures
Accommodation expenses, accounting for 74% of total costs, rose by 32% to ₹435 crore in FY24. Employee costs doubled to ₹92 crore, including ₹15 crore in non-cash ESOP expenses. Total expenses surged by 38.5% to ₹588 crore, leading to net losses of ₹114 crore, up from ₹93 crore in FY23.
FabHotels' EBITDA margin was -19.52%, and its Return on Capital Employed (ROCE) stood at -84.09%. The company spent ₹1.06 to earn every rupee of revenue.
Funding and Valuation
To date, FabHotels has raised approximately $70 million, including $15.6 million in a funding round led by Panthera Growth Partners in October 2023, which valued the company at $141 million. Key stakeholders include Accel (21.39%) and Goldman Sachs.
Competitive Landscape
FabHotels faces stiff competition from Treebo and Bloom Hotels. Treebo generated over ₹100 crore in FY24 revenue, while Bloom Hotels saw a 73.6% revenue increase to ₹250 crore and posted a ₹14 crore profit.
As FabHotels navigates rising costs and losses, its performance underscores the challenges in India&rsquo;s competitive budget hospitality sector.
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Source : Startupro.in

Casa2 Stays, the parent company of budget hotel chain FabHotels, has reported a 34% increase in gross revenue for FY24, reaching ₹552 crore, compared to ₹412 crore in FY23

FabHotels' Parent Casa2 Stays Reports 34% Revenue Growth but Widening Losses in FY24