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Tribe Student Accommodation and CoLiving has announced its expansion by introducing the hybrid hotel segment with a view to establishing more co-living spaces in Pune and Indore. Tribe currently has nearly 500 beds in Mumbai and Pune. Tribe will not only expand its geographical presence in Pune and enter the Indore market, but will also add 5,000 beds by 2026. The country’s lifestyle market is expected to grow at a compound annual growth rate of 17% over the next five years to reach nearly $40 billion, and Tribe plans to capture a significant share of this market.
Under this, Tribe also aims to expand its target group to corporates, leisure travelers or professionals looking for flexible stay times. In its growth journey to date, Tribe has followed a profit-making model rather than a cash-burning model, and has grown profitably over the years. Tribe found that some of the highest retention rates in India are over 50%, putting overall occupancy rates well above the hotel industry norm of 64%. Tribe currently has an average year-round occupancy rate of 85-95%.
As part of this, Tribe will offer a hotel operator model (OPM model). This is a standard revenue share model where Tribe will partner with real estate players everywhere and build institutions that will increase revenue and overall property utilization.
Talking about the expansion, Yogesh Mehra and Shantam Mehra, founders of Tribe Stays said, “We found that fixed rent plus capex and opex rarely worked in the hotel industry and was not sustainable in the long term. We decided to move purely to an OPM model to provide Provide landlords with higher yields and build a long-term sustainable business. We want a win-win situation for all parties involved and a collaborative relationship with landlords. We want to be as transparent as possible. In our next expansion, we want to create a Profitable model for all. The idea is to maximize the monetization potential of the property and provide customers with a great place to call home. As we lead this growth, we have a strong focus on financial and We are open to cooperation in the real estate sector.”
Talking about the market potential, Aman Mehra, chief marketing officer, Tribe Stays, said, “The demand for short-term stays is in rupees. Prices are skyrocketing at 3,000-5,000 per night – from corporates and customers. We want Tribe to be as flexible as possible to meet this demand. We have seen short-term and long-term occupancy rates at our hotels reach over 90%. “One day to one year” is our philosophy moving forward. We want to be driven by great technology and centered around design, quality and community. Take into account the young target market. Tribe is unique in design and experience compared to any existing player in the space. “
Tribe aims to deploy new capital for real estate expansion, technology and commercial operations. Tribe plans to launch in Pune, Mumbai, Goa, Hyderabad, Delhi, Gurgaon, Indore and Bengaluru as well as Ayodhya, Kerala, Manali, Dehradun in the next 18-24 months and other tourist/religious destinations to expand to 5,000 beds.
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