OYO to Double Company-Serviced Hotels and Booking Revenue by FY26
Expansion Targets Profitability, IPO Readiness, and Wider Market Presence
Strategic Focus on Company-Operated Hotels
Hospitality major OYO is scaling up its company-serviced hotels, such as Townhouse, SUNDAY, and Capital O, to drive higher revenue and customer satisfaction.
- The company plans to double booking revenue from these properties—from 22% in FY25 to 44% by FY26.
- These hotels are directly managed by OYO, which claims they maintain over twice the occupancy rates compared to franchise-operated ones.
Massive Expansion Plan Across India
As part of the strategy, OYO aims to:
- Expand its company-serviced portfolio from 1,300+ to 1,800 properties
- Extend reach from 124 cities to nearly 300, targeting leisure hubs, pilgrimage destinations, and business corridors
- Key cities include Mohali, Faridabad, Jalandhar, Cuttack, Asansol, and Darjeeling
These efforts align with the company’s India-focused strategy for 2025, which prioritizes guest experience enhancement as a path to profitability, according to COO Varun Jain.
Company-Serviced Hotels: A Fast-Growing Revenue Driver
First launched in FY23, company-serviced properties contributed less than 2% of OYO’s booking revenue initially.
- Their share has since surged to 22%, and OYO now seeks to double this share by FY26.
- The direct control allows OYO to standardize service quality, improve operational margins, and boost guest retention.
IPO Plans Back in Motion
OYO’s expansion coincides with its preparations for an IPO targeted for Q4 FY26:
- The company plans to file draft IPO papers by August–September 2025 and is seeking a valuation of $6–7 Bn.
- It has tapped Citi, Goldman Sachs, Jefferies, ICICI Securities, and Axis Capital to lead the process.
- This marks OYO’s third IPO attempt, following withdrawals in 2022 and 2024, reportedly after SoftBank’s intervention.
Financials Signal Growth Trajectory
On the performance front:
- Net profit surged 172% YoY in FY25 to INR 623 Cr, up from INR 229 Cr in FY24
- Revenue rose 20% YoY, hitting INR 6,463 Cr from INR 5,388.7 Cr
Brand Overhaul in the Works
In a branding move tied to the IPO, CEO Ritesh Agarwal announced plans to rename OYO’s parent company, Oravel Stays Limited.
- He invited suggestions via X, offering INR 3 Lakh and a meeting opportunity for the selected name, aiming to position the brand as a global entity born in India.
