SaffronStays hits 1,000-keys milestone, aims 5,000 rooms by 2029

SaffronStays, has crossed a major milestone with 1,250 rooms currently under management, marking significant growth in the vacation home segment. The company has been expanding at an impressive rate, achieving over 45 per cent compound annual growth (CAGR) in gross revenues over the past four years, doubling every two years. For FY 2024, SaffronStays reported its first fully cash-profitable year, generating a gross revenue of Rs 66 crore and a PBT of Rs 60 lakhs.

“Alternative accommodation is no longer alternative; rather, it's a mainstream phenomenon,” summarises Tejas Parulekar, Founder of SaffronStays.

The company attributes its success to a focus on premium product offerings, technological innovation, and expansion into new markets like Rajasthan and Goa. With the hospitality industry growing at 15 per cent annually, SaffronStays has outpaced this growth, benefiting from the increasing demand for homestays and bed-and-breakfast setups, which are filling the gap between supply and demand in the sector. This gap has been further fueled by India’s consumption-led economic growth.

“We expect to cross the Rs 100 crore annual revenue milestone in FY25, with a healthy profit margin, reaching the 400-home mark,” says Devendra Parulekar, Founder of SaffronStays. “With the deep adoption of technology, world-class processes, and industry-leading talent, the company has achieved operating leverage, where incremental growth in homes and revenues now adds to the bottom line, while costs grow at a much lower rate.”

Looking ahead, SaffronStays plans to grow its portfolio to over 5,000 rooms by 2029, aiming for Rs 500 crore in annual revenue and targeting a healthy eight to nine per cent EBITDA margin. To fund this expansion, the company plans to raise five to seven dollar million.