Mumbai, Jan 25 (IANS): Budget hotel chain FabHotels, operated by Casa2 Stays, has reported a 23 per cent spike in its net losses for the financial year ending March 2024 (FY24).

The losses widened to Rs 114 crore, up from Rs 93 crore in FY23, primarily due to a sharp increase in employee benefit expenses, as per its filings.

However, the company’s gross revenue, grew 34 per cent to Rs 552 crore in FY24, compared to Rs 412 crore in the previous year.

FabHotels generated nearly all its revenue - Rs 549 crore - from accommodation bookings under its "FabHotel" and "TravelPlus" brands.

Additional revenue of Rs 3.3 crore came from other sources, while non-operating income, including interest and liabilities written off, added Rs 11 crore, pushing the overall revenue to Rs 563.6 crore for the year, the filing read.

The company’s total expenses increased by 38.5 per cent to Rs 588 crore in FY24, up from Rs 424.7 crore in FY23, according to an Entrackr report.

Accommodation expenses, which account for 74 per cent of the total costs, rose 32 per cent to Rs 435 crore. Meanwhile, employee costs doubled to Rs 92 crore, including Rs 15 crore attributed to non-cash ESOP costs, the report mentioned.

Commission expenses grew modestly by 8 per cent to Rs 27 crore, while other costs totalled Rs 34 crore. Despite the revenue growth, the steep rise in costs led to a net loss of Rs 114 crore, compared to Rs 93 crore in FY23.

FabHotels recorded an EBITDA margin of -19.52 per cent and a return on capital employed (ROCE) of -84.09 per cent.

For every rupee earned in revenue, the company spent Rs 1.06. As of March 2024, its current assets stood at Rs 172 crore, including Rs 94 crore in cash and bank balances.

The company has raised $70 million to date, including $15.6 million in funding led by Panthera Growth Partners in October 2023, which valued the company at $141 million.

FabHotels competes with Treebo and Bloom Hotels in the budget hospitality sector.