IndiGo Parent, Accor To Acquire Majority Stake In Treebo Hotels

Aviation giant IndiGo’s parent InterGlobe Aviation and French hospitality major Accor have announced a partnership to acquire a majority stake in budget hotel chain Treebo Hotels.

In a statement, Accor, which is an existing investor of Treebo, said that the two companies will “jointly invest” in and become the largest shareholder in the hospitality startup. However, it didn’t provide the financial contours of the deal.

The French company claimed that the combined strength of Accor and Treebo will create India’s third-largest hospitality player with over 30,000 rooms.

As part of the pact, Treebo will also take the “lead” to develop Accor’s two hotel brands – Ibis and Mercure – in India through a master licence agreement.

“Accor’s brands will leverage Treebo’s state of the art technology to tap into India’s vast unbranded hotel market and accelerate growth. The combined Accor and Treebo portfolio will create India’s third-largest hospitality player, with over 30,000 rooms,” the statement said.

As part of the partnership, Accor said that Treebo has reached an agreement with various property owners to sign 10 new Mercure properties in the country to scale up the company’s expansion in India.

Meanwhile, Accor said that it will aim to set up 300 hotels in the country under its various brands as part of its partnership with InterGlobe. The “strategic collaboration” between Accor and InterGlobe will look to cater to customers across “all segments” and bring together all their assets and development and management businesses in the country to form “one autonomous, integrated platform”.

“… By aligning with our long-term successful and trusted partner InterGlobe and bringing together the best of hospitality, tech and entrepreneurship in India, we are unlocking unprecedented growth potential in one of the world’s most exciting travel markets,” said Accor CEO and chairman Sébastien Bazin.

Founded in 2015 by Sidharth Gupta, Kadam Jeet Jain and Rahul Chaudhary, Treebo is a budget hotel chain that claims to operate more than 1,000 hotels across 120+ cities.

The startup has raised $85 Mn in funding to date and counts the likes of Z47, Elevation Capital, Ward Ferry and Bertelsmann as investors. It competes with the likes of OYO, FabHotels, among others.

The announcement comes two years after cofounder . Prior to that, another .

As per filings accessed from Tofler, Treebo’s consolidated net loss surged nearly 15% to INR 28.1 Cr in FY24 from INR 24.5 Cr in the previous year. Revenue jumped 23% to INR 109 Cr during the fiscal under review from INR 88.6 Cr in FY23.

The post appeared first on .