Tribe Student Accommodation and CoLiving is embarking on an expansion initiative, venturing into new markets with a hybrid hospitality approach aimed at bolstering its co-living offerings across Pune and Indore. The company, which currently operates nearly 500 beds in Mumbai and Pune, is set to broaden its geographical footprint in Pune while also entering the burgeoning Indore market, with ambitious plans to add 4500 beds by the year 2026.
Citing a report by JLL India, which forecasts a 17% Compound Annual Growth Rate (CAGR) for the co-living market in India over the next five years, Tribe seeks to secure a significant share of this expanding market segment.
Tribe’s strategic vision encompasses an extended target audience, catering not only to students but also to corporate professionals, leisure travellers, and individuals seeking flexible accommodation durations. The company has adopted an earnings-centric business model, steering clear of the expenditure-heavy approach commonly seen in the hospitality sector, and has consistently achieved profitable growth over the years. Noteworthy is Tribe’s remarkable customer retention rates, surpassing 50%, leading to consistently high occupancy rates ranging from 85% to 95% throughout the year, well above the industry average of 64%.
As part of its growth strategy, Tribe will implement a hospitality operator model (OPM Model), a revenue-sharing arrangement designed to optimize revenue and property utilization in collaboration with real estate partners.
Reflecting on the expansion plans, Tribe Stays’ Founders, Yogesh Mehra and Shantam Mehra, emphasized the shift towards a sustainable revenue model that benefits both landlords and the company, fostering transparent and mutually beneficial partnerships. The focus remains on maximizing property potential while providing customers with a superior living experience.
Tribe’s Chief Marketing Officer, Aman Mehra, highlighted the escalating demand for short-term stays in the Rs 3000-5000/night range across various customer segments. Tribe’s commitment to flexibility, quality, and community-oriented design, coupled with advanced technology integration, sets it apart in the market, catering to a youthful demographic with distinct preferences.
The company intends to utilize fresh capital for property expansion, technological enhancements, and operational optimization, targeting an expansion to 5000 beds within the next 18-24 months across key cities like Pune, Mumbai, Goa, Hyderabad, Delhi, Gurgaon, Indore, and Bangalore, along with popular travel and religious destinations such as Ayodhya, Kerala, Manali, and Dehradun.
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By Proptechbuzz
By Ravi Kumar
