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Budget hotels chain FabHotels has raised $25 million in a Series B funding round led by Goldman Sachs, a top company executive said. FabHotels works on an asset-light model, partnering small hotels under a franchise model to provide standardized services. FabHotels has more than 225 franchise hotels in over 20 cities, including Mumbai, the National Capital Region (NCR) and Bengaluru, Aggarwal said. The firm typically partners with budget hotels having 20-40 rooms. According to Aggarwal, the business has seen robust operating metrics so far. “Our occupancy is 85% plus and average daily rate (ADR) is Rs2,000-plus, which is the highest within this segment,” he said. FabHotels is following Chinese examples like Home Inn and China Lodging, which have built billion-dollar budget hotel chains. Read original article |
