• Accor and InterGlobe are acquiring a majority stake in Treebo, forming India’s third-largest hospitality player with 30,000+ rooms.
  • Treebo will lead the development of Accor’s Ibis and Mercure brands in India under a master license agreement.

In a major shake-up of India’s hospitality landscape, InterGlobe Aviation, the parent company of IndiGo, and French hospitality giant Accor have joined forces to acquire a majority stake in Treebo Hotels, a budget hotel chain with a presence in over 120 Indian cities.

The joint investment will make InterGlobe and Accor the largest shareholders in Treebo, although financial specifics of the deal were not disclosed. Accor, already an existing investor in Treebo, stated that this collaboration will result in India’s third-largest hospitality player with a combined portfolio exceeding 30,000 rooms.

As part of the pact, Treebo will lead the development of Accor’s Ibis and Mercure brands in India through a master license agreement. Treebo has also signed agreements with various property owners to open 10 new Mercure hotels across the country.

A Unified Platform for Hospitality Growth

The partnership will bring together the development, management, and assets of both companies under a single, integrated platform aimed at serving all customer segments. Accor plans to set up 300 hotels in India under its various brands as part of this strategic alliance with InterGlobe.

“Accor’s brands will leverage Treebo’s state of the art technology to tap into India’s vast unbranded hotel market and accelerate groiwth,” the company said in a statement.

Treebo’s Journey and Financials

Founded in 2015 by Sidharth Gupta, Kadam Jeet Jain, and Rahul Chaudhary, Treebo has raised $85 Mn from investors including Z47, Elevation Capital, Ward Ferry, and Bertelsmann. Despite its scale, Treebo reported a net loss of INR 28.1 Cr in FY24, a 15% increase from the previous year, while revenue rose 23% to INR 109 Cr.

Cofounders Jain and Chaudhary exited their operational roles in 2023 and 2021, respectively. Treebo continues to compete with players like OYO and FabHotels in India’s growing budget hotel segment.

Edited by Harshajit Sarmah