FIVE Holdings Founder Kabir Mulchandani on Yoga, Ice Baths, and Becoming A Billionaire Entrepreneur FIVE Holdings will be worth around USD$2 billion when it lists on the stock market in 2025. The company's founder credits the success to his own changed lifestyle.

By Anil Bhoyrul

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

FIVE Holdings

Kabir Mulchandani is a changed man. We are in the dining area of his private office at the flagship FIVE Palm Jumeirah, and the founder of the multi-billion dollar FIVE Holdings doesn't want to talk too much about the numbers. "Ice baths, that's the key," he says. Ice baths? "Yes, at the same time every day, wherever I am, whatever I am doing. It helps focus the mind, and keep me feeling young and healthy." The ice baths – and a fair amount of yoga – are clearly working.

FIVE Holdings is becoming known as a 'Disneyworld for adults.' The 1,700 rooms across four properties are going to be part of USD$2 billion IPO next year.

Founded by Kabir Mulchandani, FIVE Holdings has redefined traditional hospitality and entertainment in the region with disruptive flair, capturing the glamour and vibe of Dubai. Acclaimed for its 'Global Sustainable Entertainment Ecosystem' that fuses high-energy, musically driven immersive entertainment with homegrown dining venues and eco-conscious luxury hospitality, FIVE Holdings excels in delivering distinctive guest experiences as a result.

He has over 3,000 employees, and some pretty spectacular hotels: FIVE Palm Jumeirah, FIVE Jumeriah Village, FIVE LUXE and FIVE Zurich in Switzerland, Destino Five Ibiza and El Hotel Pacha in Spain, Pacha Ibiza nightclub, FIVE MODE and The Pacha Collection Fashion Lines; and a range of other assets including Toy Room clubs and WooMoon Storytellers.

The brand also encompasses FIVE music, a joint venture with The Warner. The numbers are also impressive. FIVE Holdings' occupancy rate for the nine months ending September 2024, stood at 86%. From 2019 to end of September 2024, total revenue experienced a substantial growth of approximately 239%, increasing from AED451 million to AED1.5 billion. In Q3 2024, FIVE Holdings' hospitality segment achieved remarkable results with revenue reaching AED507 million and EBITDA totaling AED187 million. This represents a substantial 156% increase in revenue as well as EBITDA compared to Q3 2023, when revenue was AED198 million and EBITDA was AED73 million.

In nine-months ended 30th September 2024, the first complete season in which The Pacha Group properties were fully operational following the acquisition, the Company achieved a total revenue of AED409 million, marking a robust 14% increase compared to AED359 million during the same period last year. The EBITDA amounted to AED155 million, representing an 11% improvement from AED140 million in nine-months ended 30th September 2023.

But what makes Mulchandani all the more unique is his increasing focus not just on living a healthy ice-bath inspired lifestyle himself, but a huge focus on employee wealth fare. By that, he doesn't just mean adding nice juice machines, but making a lot of the more junior ones seriously wealthy next year. Mulchandani says, the company's stock market listing isn't being done for the usual purposes of fund raising and expansion. "We are all in this together, we don't really need to do an IPO for money or growth. We are generating a significant amount of cash. The real reason is the employee stock option program. I have moved $200 million worth of my shares to be given to the employees. This was done after the bond," he said earlier in 2024.

Which means that approximately 10% of the company is being handed to staff – every- one from the front desk to the CEO. "I think this will give them a sense of ownership," Mulchandani explained at the time. What it will also do, he says, is create "around 50" new millionaires in Dubai, all of them staff, working at various levels in the company.

And it all comes back to his way of life today. Yoga, sustainability and philanthropy are the buzz words. "I am able to find calmness and solutions. I am in my zone. I don't think I've felt this good, especially since the last two years," he said recently.

It has been quite a journey, but FIVE has now carved out a unique market for itself. The secret of his success? "What we've been able to do exceptionally well is entertainment hospitality. This is a Disneyworld for adults. Alongside that fundamental journey, we've also built a highly sustainable product. When we started in 2017 it was just about making it work. You have all these super strong competitors with huge market share, so you look at what space nobody is in. And nobody was in this space. The way we designed our hotel, with a lot of F&B, was always for entertainment. But I don't think even we estimated how strong our story could become."

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Lifestyle

Dubai Bling Season 3 Review: Come Back Kris Fade; All is Forgiven

Multiple personalities, handbags and egos are back for more.

Growth Strategies

Go Greek Yogurt Launches in Saudi Arabia

Operating at The Esplanade, Panorama Mall, Al-Faisal University, 1364 Mall, and Al Faisaliah Mall, Go Greek Yogurt is redefining mindful indulgence in the Kingdom.

Career

The 9 Most In-Demand Professional Certifications You Can Get Right Now

Want to boost your qualifications but not sure which certificates to pursue? Check out these in-demand professional certifications to pick your path.

Growth Strategies

Editor's Note: Does Anyone Need To Go To University Anymore?

GEMS Education has opened one of the world's most expensive schools in Dubai. But will any of the students want to carry on their education after?