Olive by Embassy, a multi-brand hotel technology operations platform owned by Embassy Real Estate Group, aims to be profitable in the first quarter of 2024.
talking Business lineKahraman Yigit, co-founder and CEO of Olive by Embassy, explains how the brand started out as a co-living brand and has now transformed into the Embassy’s full-fledged hospitality arm.
“We will have service units, budget hotels, mid-range hotels, vacation rentals and villas, which we already have in Goa. Then we want to launch a four-star hotel brand ourselves,” he explained.
The company currently operates four brands – Olive Life, Olive Zip, Olive Hotel and Villas by Olive – ranging from co-living and budget accommodation to luxury resorts, hotels and villas.
Additionally, it recently developed its first custom-built project in Bangalore, designed with Olive’s core design philosophy in mind, keeping in mind that it offers the comfort of a home with the flexibility of a hotel. The company is exploring launching more such properties in the future. “Our first custom project will go live in the next few weeks,” he added.
development potential
Explaining the huge growth potential of the Indian market, Yigit compared the United States with a population of 300 million and 5 million hotel rooms, while India with a population of 1.4 billion only has 1.5-1.6 million branded rooms. “This significant expansion opportunity highlights the company’s ambitious plans.”
The company currently operates in two cities, Bengaluru and Goa, with 1,764 keys and plans to add 4,485 more keys in the next 6 to 12 months, including entering new markets such as Mumbai and Hyderabad. “These are safety pipelines that are being built or refurbished. So over the next few months, most of them will come online.”
Yigit also noted that Olive has successfully become a hotspot in the cities where it operates, with approximately 900 rooms currently operating and nearly 1,500 guests staying per night. The company claims to be on a profitable track on paper and expects to be profitable soon, stressing that a large number of beds is not a prerequisite for success in the industry.
In terms of financial performance, Olive reported total annual revenue of Rs 50-60 crore and is expected to earn around Rs 135 crore based on the business it has acquired or signed in its pipeline. “We are targeting Rs. 500 crore turnover from our portfolio with upcoming new projects and signed projects,” the CEO noted.
In addition, the upcoming product launch will require an expansion of the workforce, increasing the number of employees from about 250 currently to 400.
