Bloom Hotels, a prominent player in the hospitality sector, has announced remarkable financial results for the fiscal year ending March 2024, showcasing a revenue of ₹250 crore. This figure represents a significant increase from ₹49 crore recorded in FY22, marking an impressive fivefold growth over the past two years. The hospitality chain’s performance reflects a robust recovery and expansion strategy, with a year-on-year revenue growth of 73.6% compared to ₹144 crore in FY23.
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The revenue increase reflects the effective operational strategy of the company, comprising various hotel brands like Bloom Hotel, Bloom Hub, BloomSuites, and Bloomrooms. The major revenue contributor was room rentals, amounting to 85.2%, which themselves grew by 79% from ₹119 crore in FY23 to ₹213 crore in FY24. Food and beverage services brought in the remaining ₹33 crore, while other allied services added ₹4 crore to the revenue. Altogether, Bloom Hotels’ overall revenue was supported by ₹8 crore interest on deposits to reach ₹258 crore.
It does not only show revenue growth but also shows impressive increases in profitability. Bloom Hotels earned a profit of ₹14 crore for FY24 and more than doubled its profit from previous years. Profits are due to effective cost management and operational efficiencies, such that the return on capital employed improved to 6.25% and the EBITDA margin reached 10.08%.
Despite this exceptional growth, Bloom Hotels suffered from some drawbacks. An important one was lease cost, which accounted for the greater part of its expenses. A 79% rise in cost of lease rent amounted to ₹77 crore and formed part of 31.5% of the costs of Bloom Hotels. Bloom Hotels had signed several operating leases wherein the period of such leased hotels ranges from 5 to 44 years of company-owned leased hotels with revenue-linked lease agreements also.
Employee benefits and commissions for agents also registered significant growth, increasing by 58% to ₹60 crore and 78% to ₹16 crore, respectively. Overhead costs such as advertising, legal fees, and food and beverage expenses added up to ₹244 crore in FY24, up from ₹144 crore the previous year. However, the company’s ability to improve its expense-to-revenue ratio, reducing it to ₹0.98 from ₹1.00, indicates a positive trend in operational efficiency.
Presently, Bloom Hotels runs over 50 establishments across key locations like Mumbai, Pune, Udaipur, Jaipur, and the National Capital Region. The growth trajectory of the company is further supported by a huge investment made, where the company managed to raise about ₹362 crore (about $45 million) from Samena Capital that now holds a majority stake in the company.
In a competitive landscape, Bloom Hotels has outperformed its peers like Treebo Hotels and FabHotels, which reported operating revenues of ₹88.6 crore and ₹224 crore, respectively, in FY23. Both the competitors have not yet released their financial results for FY24.
In conclusion, Bloom Hotels’ FY24 financial performance shows a strong recovery and strategic expansion in the hospitality industry. With a solid revenue base and increased profitability, the company is well-positioned for future growth, continuing to enhance its offerings and operational efficiencies in a competitive market.
