FabHotels franchiseis one of India’s fastest-growing budget hotel chains, offering standardized, affordable, and quality stays across major cities. If you’re passionate about hospitality and looking for a lucrative business opportunity, starting a FabHotels franchise could be a great move.
In this blog, we will cover:
- How much does a FabHotels franchise cost?
- How much profit can you make?
- How to apply for a franchise?
Let’s get started!
Table of Contents
Why Choose FabHotels Franchise?
Founded in 2014, FabHotels has rapidly expanded its presence across India with 1000+ partner hotels in 70+ cities. The brand focuses on delivering affordable yet premium experiences, backed by strong tech, centralized operations, and brand loyalty.
Benefits of a FabHotels Franchise:
Trusted and established brand – Strong digital presence and loyal customer base.
Centralized booking engine – Strong visibility across platforms like FabHotels.com, OTA apps (MakeMyTrip, Goibibo, etc.).
High occupancy support – Technology-driven yield and pricing management.
No brand fee or franchise fee – Only a share of revenue model.
Comprehensive support – From training, tech setup to operations & guest services.
FabHotels Franchise Cost & Investment
FabHotels follows a unique partnership model rather than a traditional franchise. You can convert your existing hotel or invest in a new property under their brand.
Here’s a breakdown of the estimated investment:
| Franchise Model | Investment (INR) | Space Required |
| Conversion Model (Existing Hotel) | ₹10-20 lakhs* | 10-40 Rooms |
| Lease & Operate Model | ₹30-50 lakhs (Setup + Interiors) | 15-50 Rooms |
Investment covers renovation, branding, tech setup, and interiors.
Other Costs to Consider:
• Property Lease or Ownership
• Renovation & Furnishing: ₹1-2 lakhs per room
• Staffing: ₹1-3 lakhs/month
• Operational Utilities: ₹50,000 – ₹1,50,000/month
• Software, Booking, PMS Setup: Included by FabHotels
• Marketing & Guest Engagement: Included in partnership model
FabHotels Franchise Profit & Earnings
Earnings in the hotel business depend on occupancy rate, location, room inventory, and pricing. Here’s a rough estimate for a 25-room hotel:
| Revenue Source | Estimated Monthly Revenue |
| Direct Bookings | ₹3-6 lakhs |
| OTA Bookings (MMT, Goibibo) | ₹4-8 lakhs |
| Corporate Tie-ups & Events | ₹1-3 lakhs |
Profit Calculation:
• Average Room Rate (ARR): ₹1,500 – ₹2,500
• Occupancy Rate: 70-85%
• Gross Profit Margin: 60-70%
• Net Profit Margin: 20-25% (after rent, salaries & utilities)
• Break-even Period: 18-30 months
Example Calculation:
• Total Investment: ₹25,00,000
• Monthly Revenue: ₹7,50,000
• Monthly Expenses: ₹5,00,000
• Annual Net Profit: ₹2,50,000 × 12 = ₹30,00,000
• ROI: 120% per year
ROI Calculator
Your ROI will be displayed here.
How to Apply for a FabHotels Franchise?
Steps to Get a FabHotels Franchise:
- Submit Inquiry – Visit the official franchise page: FabHotels Franchise Enquiry.
- Initial Screening – The FabHotels team will assess your property or interest.
- Site Visit & Proposal Discussion – Location suitability, number of rooms, and expected ROI are discussed.
- Agreement Signing – Finalize MoU and revenue-sharing terms.
- Renovation & Branding – FabHotels assists in standardization, interiors, and branding.
- Launch Your Hotel – Go live as a FabHotel partner and start welcoming guests!
Pros & Cons of Owning a FabHotels Franchise
Pros:
No franchise fee – Pay only based on bookings
Backed by a strong brand & OTA integrations
Central support in marketing, tech & guest experience
High occupancy and revenue potential
Cons:
Requires upfront investment for renovation/interiors
Hotel location matters significantly
Daily operations need trained staff and attention to service
FAQs – Frequently Asked Questions
What is the total investment for a FabHotels franchise?
Investment can range from ₹10-50 lakhs depending on property size and condition.
Is there a franchise fee?
No. FabHotels follows a revenue-sharing model instead of a traditional franchise fee.
Can I convert my existing hotel into a FabHotel?
Yes, the conversion model is one of FabHotels’ most popular options.
How long does it take to launch a FabHotels outlet?
Typically, 1-3 months depending on renovation and setup time.
Conclusion: Is FabHotels Franchise a Good Investment?
FabHotels offers a low-risk, high-return hospitality partnership for property owners and investors. With its tech-driven approach, brand strength, and operational support, it is one of the most accessible and profitable hotel franchises in India.
If you’re ready to turn your property into a thriving hospitality business, apply for a FabHotels franchise today!
