Bengaluru-based Olive by Embassy, the hospitality and co-living arm of Embassy Group, plans to roll out its franchisee business model by next calendar year, its co-founder and Chief Executive Officer (CEO) Kahraman Yigit told Moneycontrol.
"Currently, we have the tech-backed support system and the ability to manage properties remotely, which makes the franchisee model highly scalable. We are planning to include about one lakh keys by 2030 out of which about 30 per cent will be managed in-house and the rest will be franchisees," Yigit said. This will enable the company to foray into Tier-II and III cities and to expand its portfolio in India, he added.
The company is also looking at international brand partnerships amid its ambitious expansion plans. "We are in talks with large corporate houses for strategic tie-ups as local business operating partners. The idea is to bring international brands on the lines of the partnership between Embassy Group and We Work. The move will also allow us to tap into different segments in India," he said.
Olive has several verticals, such as Olive Life (co-living), Olive Hotel, Olive Zipp (express hotels) and Olive Villa (short-stay premium properties).
"The company is foraying into six cities namely Mumbai, Delhi-National Capital Region (NCR), Hyderabad, Chennai, and Goa. In Mumbai, Olive has an asset in Dadar, a premium project, where work will begin soon. In Hyderabad, though we have a good pipeline, the operations are yet to start,” Yigit said.
Last fiscal, the company clocked a 76 per cent uptick in revenue to Rs 51 crore.
Olive has 55 co-living centres and hotel properties, which account for 2,688 keys. By the end of the current fiscal, ending March 31, 2025, it plans to add another 5,000 keys to the tally.
Olive Hotel has 25 operational properties and 1,402 keys. Olive Life, which targets students and young professionals in Tier-I, II and III cities, has nine properties with 431 keys.
Similarly, Olive Zip has 20 properties and 839 keys, providing budget-friendly daily stay for travellers. Villa by Olive offers luxurious experiences to guests in leisure destinations. In this category, it has a solitary property and 16 keys.
The Embassy Group holds a 70 percent stake in Olive, while the remaining is shared between co-founders Yigit and Dhruv Kalro.
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