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Treebo Hotels says it has achieved EBITDA breakeven in December last year, co reported adjusted EBITDA of Rs 1.65 cr for the month

Hospitality chain Treebo Hotels said on Thursday that it achieved EBITDA break-even in December last year.

The company said it reported an adjusted EBITDA (adjusted for ESOP expenses) of Rs 1.65 crore in the month.

The company also announced that it achieved an annualised revenue runrate (ARR) of $82 million in the same month.



Treebo said it represents a 130% year on year growth on the $36 million ARR that it registered in December 2021.

Sidharth Gupta, co-founder of Treebo, said this EBITDA breakeven is a 'defining moment' in the company's journey.

"We feel like we are graduating from being a startup, which is often thought of as a licence to be perpetually loss-making, to a real business," he said.

"What makes this milestone truly special is that it comes in the backdrop of the devastating pandemic which brought the entire travel industry to its knees. To have recovered from that period and registered profitability is a feat that fills us all with immense pride," he added.

Treebo works on a tech-enabled “manachised” model, a hybrid of management contracts and franchising, whereby customers get access to properties at affordable prices. The company said it has a portfolio of 850 properties and roughly 20,000 keys across over 120 cities at the end of 2022.

“We have always operated with solid unit economics. We have been profitable post all variable and semi variable expenses for a long time now. That, combined with a culture of strong cost discipline and growing scale, allowed us to hit EBITDA breakeven," Gupta said.

"Many of the decisions we took long back, including building a strong brand on the back of high quality experience, ethical business conduct with our franchisees, and investing in growth and development of our people, have held us in a good stead through thick and thin, and have helped us reach this milestone,” Gupta added.

Treebo also recently announced a master franchise partnership with Radisson Hotel Group to launch a new brand called Park Inn & Suites by Radisson in the mid-tier segment. The company has already announced the first sign-up under that brand - a 91-room property in Guruvayur, Kerala.

Treebo was founded in 2015 by Sidharth Gupta, Rahul Chaudhary, and Kadam Jeet Jain. In 2021, it announced a strategic partnership and investment from Accor Hotels.

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