Our popular DeepBrief series brings you a deep dive into Olive by Embassy—a next-gen community living in India built for young working professionals and students—and all that you need to know about the platform through a Q&A with Kahraman Yigit, Co-founder and CEO of Olive.
Yigit speaks about the popularity of the hybrid hospitality model in India and discusses the launch and growth of Olive by Embassy. He highlights the brands under Olive’s portfolio and outlines how each brand caters to different segments.
He emphasizes how the brands have built their identity as a hospitality tech operating platform and underscores the role of technology in enhancing the guest experience.
Yigit also discusses the company’s growth strategy, its CSR activities, and the marketing mix and communication approach. He also addresses how Olive plans to enter new markets and the factors that contribute to the selection of these locations. Read on.
Kahraman Yigit is the Co-founder & CEO of Olive, the co-living and hospitality wing of the Embassy Group. He brings 20 years of global real estate development and operations expertise with hands-on experience in all critical phases of the development process, from the inception of the concept through to realization.
Over the past decade, Kahraman pioneered the purpose-built student housing market in Turkey, bringing together a number of institutional investors. He was educated at Gordonstoun School in Scotland and holds a Bachelor of Science in Business Administration from Bryant University in Rhode Island, USA.
Give us an overview of Olive by Embassy’s journey since its introduction in 2019. Why did you launch Olive, and how has the brand kept pace with the growth objectives set at launch?
We began our journey within India’s co-living market in 2019. Our focus was on offering tailored living solutions to match the evolving preferences of India’s millennials, Gen Z, and urban newcomers.
In March 2021, we seized the opportunity to revitalise underperforming hotels, transforming them into hybrid accommodations. The inauguration of our first short-stay property in Bengaluru’s central business district marked a major milestone in our expansion strategy.
In our inaugural year, Olive witnessed a 300% growth rate – this underscored our initial growth objective and market acceptance. Presently, our portfolio has 1,050 keys with an 80% occupancy rate. Additionally, we have 2,250 keys signed and 6,000 keys in the pipeline.
The last few years have been marked by robust portfolio expansion, where we have effectively doubled our portfolio by identifying and capitalising on market opportunities.
What are Olive’s business model, offerings, footprint, and main target audiences?
Olive revolves around management contracts, where we earn a percentage of revenue and gross operating profit. This setup aligns our interests with those of property owners, motivating us to boost revenue and maintain operational efficiency.
We’re a versatile hospitality brand offering various tailored stay options, including:
- Olive Life: Our co-living solution is designed for the modern, mobile workforce and students.
- Olive Zip: A budget hotel option that combines affordability with quality.
- Olive Hotel: Catering to travellers seeking a blend of comfort and convenience.
- Villa by Olive: Managed luxury villas offering an exclusive and upscale living experience.
Our hybrid hospitality model combines hotels, co-living, coworking spaces, members’ clubs, wellness facilities, and dining options, all in one place.
Currently, we have a presence in the markets of Bengaluru and Goa. Expansion plans include Maharashtra, Andhra Pradesh, Telangana, and other popular leisure destinations.
Our primary audience is millennials and Gen Z, who are known for their preference for flexibility, technology integration, and community living. However, our approach varies based on location: near IT parks, we target corporates and business travellers, while near colleges, our focus shifts to students.
How does Olive’s growth strategy contribute to its current presence, and what are the key milestones in terms of the number of keys and accommodation options?
Our growth strategy has been a blend of market responsiveness, portfolio diversification, and technological innovation. This approach has played a crucial role in establishing our market presence.
Our approach also includes reaching out to different market segments with a range of offerings. Olive Life, Olive Zip, Olive Hotel, and Villa by Olive each cater to different customer needs, allowing us to capture a wider audience.
What is the size of the sub-sector in which Olive operates, and how does Olive rank in comparison with its contemporaries in terms of both rank and growth?
The co-living and hybrid hospitality sub-sector in India, which Olive operates in, has been experiencing significant growth. While the exact size of this sub-sector is dynamic and influenced by market trends, it is clear that the demand for flexible, community-based living solutions is on the rise, especially among the younger demographic.
What sets us apart from our competitors is our unique business model and portfolio. Our approach to combining technology with personalised living experiences has positioned us favourably in terms of both growth and market penetration.
Elaborate on Olive’s future plans for growth and any untapped opportunities or potential areas for innovation that Olive is exploring?
Looking ahead, we are focused on several growth plans and exploring untapped markets and opportunities. One key area is the organisation of the unorganised hotel sector. We believe there is a lot of potential in transforming and elevating standards in this segment, especially in high-air-traffic cities and prominent leisure hot spots such as Goa, Himachal Pradesh, Kerala, and Rajasthan.
These places aren’t just good business opportunities because of their high average room rates, but they also fit perfectly with our idea of providing a variety of quality living experiences.
In terms of innovation, Olive is all about using technology to enhance operational efficiency and the guest experience. This includes integrating advanced hotel management systems, implementing AI and IoT applications in property management, and making it easy to connect with our guests through digital platforms. These innovations are aimed at streamlining our operations and offering a more seamless living experience.
Provide an overview of Olive’s brand portfolio, including Olive Life, Olive Zip, Olive Hotel, and Select Olive. How do these brands cater to different segments, and what unique features define each?
We crafted Olive’s brand line-up to cater to a wide range of customer preferences and needs. As we grew, we understood that travellers, regardless of their identity, resonated most with distinct yet personalised experiences. Our goal is to offer options that suit every mood, desire, and budget:
- Olive Life is our co-living brand, ideal for the younger demographic who values community living, flexibility, and affordability. This brand is particularly popular among students and young professionals.
- Olive Zip offers budget hotel accommodations, combining cost-effectiveness with comfort. This brand appeals to price-conscious travellers who do not want to compromise on quality.
- Olive Hotel is our standard hotel line, providing a blend of luxury and convenience for travellers who seek a more traditional hotel experience.
- Villa by Olive represents our premium segment, offering managed luxury villas. These villas are designed for travellers seeking exclusivity and high-end amenities with a personalised touch.
Each brand in our portfolio has its own unique features and offerings, ensuring that we’ve got something for everyone, whether you’re watching your budget or aiming for the lap of luxury.
How does Olive market itself to its various TGs? What media mixes do you use? Any memorable campaigns?
We have utilised a holistic and multifaceted marketing approach, making sure to connect with our diverse audience in meaningful ways. Our campaigns are designed to resonate with our target demographics, emphasising the stand-out features of each of our offerings, from the community-centric approach of Olive Life to the luxury experience of Villa by Olive. Our strategy involves a mix of online and offline channels.
Online, we make the most of online travel agents, Google AdWords, social media platforms, and YouTube to engage with our digital-savvy audience. We also use email marketing for targeted communications.
Offline, digital billboards play a significant role in our marketing mix, offering high visibility in strategic locations.
Our main goal is to craft compelling and impactful content that mirrors the innovative and dynamic identity of our brand. We believe in engaging our audience authentically across various channels to make a lasting impression.
How does Olive plan to enter new markets, and what factors contribute to the selection of these locations?
We like to dive deep into new markets with an approach guided by thorough market research and analysis. Here are the key things that help us decide where to set up shop:
- Market Demand: Understanding the specific needs and preferences of potential customers in a region through retail data analysis.
- Economic Indicators: Analysing factors such as local employment rates, economic growth, and urban migration trends. This gives us a good sense of the market.
- Real Estate Dynamics: Assessing the availability and cost of suitable properties.
- Competitive Landscape: Evaluating the presence and performance of competitors.
- Regulatory Environment: And, of course, considering local regulations and compliance requirements.
Our expansion process often involves collaborating with local partners and leveraging their market knowledge. Reputation definitely matters. Therefore, we rely on references from existing landlords, ensuring a reputation-based approach to growth.
Olive operates in a hybrid hospitality stay format, accommodating both short-term and long-term guests. How has this dual-format strategy contributed to Olive’s success, and are there specific challenges or advantages associated with it?
The hybrid hospitality stay format is a cornerstone of Olive’s existence. This dual-format strategy allows us to cater to a wider audience, from transient travellers to long-term residents.
By offering flexible accommodations, we meet the needs of various customer segments, enhancing our market appeal and occupancy rates. The hybrid strategy blended with the management agreement model resulted in 100% increase in owners return.
Olive is described as a hospitality tech operating platform. Could you elaborate on the role of technology in enhancing the guest experience, and what technological features or innovations have been well-received by Olive’s guests?
We have embraced our identity as a hospitality tech operating platform, integrating several technological features to elevate both the guest experience and operational efficiency.
Some of our key tech integrations include:
- Zoom Rooms Virtual Receptionist: This allows remote check-ins and interactions with guests across different properties. When guests enter a lobby, they can converse with a virtual receptionist via a Zoom kiosk. This receptionist, located onsite or remotely, processes payment and facilitates guest entry, often providing instructions for obtaining a physical key from on-site security or sending access codes over a WhatsApp chatbot or email for a contactless experience.
- Digital Door Locks: We’re currently testing digital door locks on our properties, enhancing the contactless entry experience.
- Video Analytics with Staqu’s JARVIS: We have onboarded Staqu’s AI-powered video analytics tool, JARVIS, to streamline operations. JARVIS integrates with existing CCTV systems to monitor compliance with SOPs, detect intrusions in real-time, manage crowds, and ensure cleanliness. This not only facilitates remote property management but also improves our situational awareness and operational efficiency.
- AI-Enabled Note-Taker from Zoom: This is a feature that transcribes customer conversations and allows Olive to analyse feedback and continually upgrade services. This tool helps identify guest pain points and augment the overall guest experience.
What kind of CSR activities does Olive engage in, and how does Olive market itself to its target audiences? Could you provide insights into the campaigns and media channels used?
Olive is committed to corporate social responsibility. This aligns with our mission to strengthen community and sustainability. We implement eco-friendly practices and promote sustainable living.
Our marketing strategies for our target audiences are multi-dimensional, leveraging both digital and traditional media. We use a combination of online advertising, social media engagement, and email marketing, along with offline channels like digital billboards, for a broader reach.
Olive also strongly supports Embassy Group’s overall CSR vision and mission to build a sustainable ecosystem and actively contribute to the social, economic, and environmental development of the communities in which we operate.
Embassy Group advocates for the idea that education empowers the next generation and lays the foundation for a more equal India. Through the community outreach initiatives of the Group, we provide over 9,000 students in 73 government and rural schools with a safe learning environment through holistic educational and health interventions, teaching-learning resources, skill development, providing infrastructure solutions, and much more.
We blend innovative learning support and programmes in English, math through computers, life skills, sports, and other subjects and skills into the existing school schedule. We then boost this by engaging in extracurricular activities, from education trips and summer camps to talent development and inter-school competitions.
We also target the full educational lifecycle, from early childhood to joining the workforce. Our early childhood projects and an alumni programme guarantee that each student receives the help they need for a smooth transition period before joining and after leaving school.
Since 2012, Embassy Group has been actively working in the Bettahalasuru Panchayat in North Bengaluru, which comprises 10 villages. The EcoGram Project, which is an initiative by The Anonymous Indian Charitable Trust (TAICT) and funded by Embassy, aims to address issues of irresponsible disposal of garbage and depletion of soil and water in the Bettahalasuru Panchayat.
The focus of the project is to create a model Gram Panchayat and lay a strong foundation for any future growth by building processes and infrastructure for sustainable waste management, soil quality, and water conservation.
What are Olive’s vision and mission, and how does the company work towards achieving them? In what ways does Olive align with its mission, and how does it aspire to become the next-gen living community in India?
Olive’s vision is to revolutionise the hospitality industry through innovation, technology, and service excellence. Our mission is to provide exceptional living experiences, blend hospitality with cutting-edge technology, and cater to the diverse needs of our guests.
We work towards these goals through:
- Continuous Innovation: Regularly updating our offerings and integrating the latest technologies.
- Guest-Centric Approach: Focusing on creating memorable and personalised experiences for our guests.
- Strategic Expansion: Expanding our footprints in key markets to increase accessibility.
- Sustainability Initiatives: Implementing eco-friendly practices and promoting sustainable living.
Olive aspires to be the next-gen living community in India by continuously evolving to meet the changing needs and preferences of our guests, setting new standards in the hospitality industry.
