Accor is in advanced discussions for an up to USD 40 million investment in Treebo Hotels. The potential investment is expected to give Treebo Hotels a post-money valuation of USD 205-240 million.
Treebo Hotels has so far raised USD 57 million across rounds from a cohort of investors, a list that includes marquee venture capital firms SAIF Partners and Matrix Partners India, and Bertelsmann India Investments, the domestic investment arm of German company Bertelsmann.
Thirty-six months from the closing date of the transaction, Accor will also have the option of acquiring Treebo Hotels. Over the last 12 months, Treebo Hotels has been expanding its suite of products as well. Treebo Hotels operates more than 500 properties, spread across 90 cities in India, with 10,500-11,000 rooms under management.