- Olive expanded to more than 100 hotels across the country.
- Its annual run rate is $12.1 million from operational properties.
- It formed a partnership for Spark by Hilton.
OLIVE HOSPITALITY EXPANDED to more than 100 hotels across the country. The company reached operational break-even and expects to post profits next fiscal year.
It reports an annual run rate of $12.1 million from operational properties and a secured pipeline of $50.6 million, according to businessline. The company is seeking a minority partner to support expansion in the budget and mid-market segments.
Olive, the hospitality arm of Bengaluru-based real estate firm Embassy Group, is led by co-founder and CEO Kahraman Yigit. It has 4,472 keys signed across 20 cities in 10 states, with 2,178 keys operational in metros and tier-2 and tier-3 markets such as Tirupati, Mathura, Rajkot and Nashik.
“We are strictly focusing on the budget and mid-segment… the opportunity there is enormous and that is the need of the hour in India,” Yigit said. “The more we bring these properties live in different geographies, the more it fuels our presence and corporate business.”
The company operates a multi-brand platform comprising Olive Hotel for business and leisure stays, Spark by Hilton in partnership with Hilton and Open Hotels, an AI-enabled soft brand that onboards existing properties with limited capital expenditure.
Yigit highlighted the partnership for Spark, calling it a key step toward becoming a multi-brand hospitality company.
“Spark is an entry-level premium economy brand and we feel that it makes sense from a CapEx, ROI and product-positioning perspective in the India market,” he told The Economic Times.
Olive follows an asset-light model under which property owners invest in the assets while the company provides technology, design and operations. It operates 57 hotels with additional properties under development and has expanded its development team from eight to 32 employees across India in six years. It diversified into a multi-brand management platform, with Open Hotels driving growth.
“We are an asset-light operator; we bring technology, design and operating expertise while owners invest in the asset,” Yigit said. “Demand for organized corporate-grade hotel supply remains strong, particularly in tier-2 and tier-3 towns.”
The company reported room rate growth of about 15 percent over the past year, driven by business, leisure and spiritual travel and infrastructure expansion.
“We are looking to bring on a strategic minority partner who will add capabilities and know-how,” Yigit said. “We are prioritizing strategic value over funding.”
Accor Ltd. and InterGlobe Enterprises are considering a public listing for their joint hotel venture, which plans to open 300 properties by 2030. The venture has shifted focus from premium and midscale to luxury properties.
