Hyderabad-based Startup Fracspace Launches Business Boutique Hotels Under Fractional Ownership

Unnath Reddy’s story is an interesting one. He has been involved in real estate since he was just 21 years old. 

He was a corporate employee who kept juggling between his desk job and real estate ventures of cafes, service apartments, and restaurants. 

In 2022, Unnath launched Fracspace, a Hyderabad-based property tech startup that operates under the fractional ownership model.

In just two and a half years, the model succeeded and Fracspace managed to offer properties for co-ownership in 15+ locations like Goa, Munnar, Hyderabad, Kerala, Bali, Dubai, and the United States of America.

Now the Hyderabad-based entreporeneur is launching another vertical under Fracspace. It is a business boutique hotel chain called Dreamscape. And of course, it is under the fractional ownership model.

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DREAMSCAPE: OF BUSINESS AND LUXURY

The property tech startup, Fracspace, is launching its first Dreamscape hotel in Banjara Hills, Hyderabad.

“One of the main reasons that I got into the field of real estate was to make the experience of luxury accessible to the middle-class. With Fracspace, we've continued doing that. Our customers now get to become owners of luxury resorts in Goa at the fraction of the total cost. They get to spend some time of the year there as well,” shares Unnath Reddy in an exclusive interview with Startup Pedia. 

“With Dreamscape, we will be taking the same vision of affordable luxury forward,” the Hyderabad-based entrepreneur adds. 

The Dreamscape Banjara has many features that separate it from other hotels and stays in Hyderabad:

1. Located in the heart of the city, this business boutique hotel is perfect for corporates that want to meet for a get-together, a merger, or even a week-long team meeting or project deal. 

2. It houses a combination of 24 deluxe rooms and 7 luxury suites. 

“Each room has been paid special attention to. We haven't just copy-pasted the furniture and structural design. My team and I spent a lot of time working on not just the visual optics of our rooms but also the kind of utilities they'll serve,” says the founder of Hyderabad-based startup Fracspace.

3. Dreamscape Banjara offers an ultra-premium and luxury experience at an affordable price.

“It's simple: we have always believed that luxury should be affordable and accessible. Dreamscape stands out by offering competitive prices for an experience of warmth, comfort, and convenience,” Unnath Reddy highlights.

4. The luxury business boutique hotel has a rooftop restaurant called Ekka.

“It will offer a global cuisine selection for guests to choose from. We understand businesses organize a lot of lunch meetings—this could be the perfect place for them,” entrepreneur Unnath Reddy says. 

5. Apart from the global cuisine restaurant, Dreamscape Banjara comes with a salon, spa, and bath house facility that is spread over 8,000 sq ft.

According to the founder, the luxury business boutique Banjara will offer an end-to-end experience of comfort to its guests. With a dedicated salon, they can get beauty and grooming treatments. At the spa and bath house, they can relax and unwind after long work meetings.

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THE FRACTIONAL OWNERSHIP MODEL

Fracspace’s business boutique hotel chain, Dreamscape, operates under the fractional ownership model. The entire cost of the property has been equally divided between multiple people who are called “co-owners.”

In an earlier interview with Startup Pedia, Unnath Reddy had shared his thoughts on fractional ownership. 

“Real estate, being expensive to invest in, has always remained in the hands of the affluent sections of society. But I wanted to change that. Why should terms like passive income be reserved for only a few? Rental income is a great tool for keeping yourself financially secure. I wanted people to have a taste of the luxury of rental yields, and the pride and security that comes with owning a property,” he had stated.

GROWTH

While Dreamscape has just launched, Fracspace achieved a turnover of Rs 40 crore in FY24. For FY25, the property tech startup is projecting a revenue of Rs 100 crore.

Last year, Unnath Reddy shifted his 46-member team to a resort-type office. Apart from year-on-year growth, Fracspace has received industry-wide recognition.

In December 2024, the property tech startup was selected by Forbes India as one of the 200 companies in the country with global potential. 

“Dreamscape Manikonda is next on this list. This business boutique will have 24 deluxe rooms, 4 suites, and a global cuisine restaurant at the rooftop. It is slated to be launched in April. Our ultimate goal is to expand the Dreamscape hotel chain to 50 business boutiques by 2026,” startup founder Unnath Reddy signs off.

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