OYO To Clock INR 1,550 Cr EBITDA In FY25: Ritesh Agarwal

SUMMARY

While OYO was initially targeting INR 1,200 Cr EBITDA for FY25, G6 Hospitality will contribute an additional INR 350 Cr to its bottomline, founder Agarwal said

OYO acquired G6 Hospitality, which owns budget lodging chains Motel 6 and Studio 6, for $525 Mn (around INR 4,580 Cr) in an all-cash transaction in December 2024

Townhouse accounts for 50% of OYO’s India business and is growing by double digit percentage growth monthly, the CEO said

Hospitality giant OYO is on track to clock an EBITDA of INR 1,550 Cr in the ongoing fiscal year (FY25), helped by its recent acquisition of US-based G6 Hospitality, founder Ritesh Agarwal said.

Speaking at the ‘TiEcon Mumbai 2025: Dhandha First’ event today, Agarwal said that while the travel tech major was initially targeting an EBITDA of INR 1,200 Cr for the full fiscal year 2024-25, G6 Hospitality will contribute an additional INR 350 Cr, pushing OYO’s total EBITDA to INR 1,550 Cr.

OYO acquired G6 Hospitality, which owns budget lodging chains Motel 6 and Studio 6, for $525 Mn (around INR 4,580 Cr) in an all-cash transaction in December last year.

While Motel 6 is already a household name in the US, OYO plans to further strengthen its presence and “premiumise” the brand.

This comes days after Agarwal said he expects the hospitality unicorn to clock a net profit of INR 1,100 Cr in the next fiscal year. He estimated that G6 Hospitality will contribute INR 690 Cr to the company’s overall EBITDA of INR 2,000 in FY26.

OYO currently earns half of its domestic revenue from its flagship ‘Townhouse’ hotels, which are growing by double digits monthly, according to Agarwal.

The company is now aiming to become a leading player in the Indian hospitality industry. “… (We want) to be the best in terms of quality in every segment we function in and be the best in profitability,” said Agarwal.

Besides, the company also sees the Indian spiritual tourism market as a significant growth driver in the future, he added.

Founded in 2012 by Agarwal, OYO offers holiday homes, casino hotels, coworking spaces, budget hotels, corporate stays, and more. The startup has raised about $4.5 Bn in funding to date and counts the likes of SoftBank Group and Microsoft among its backers.

It manages more than 10,000 properties across India and has expanded its presence to over 35 countries, spanning Europe, Southeast Asia, and North America.

However, amid this explosive growth, OYO has faced regulatory and legal challenges in key markets, has had to restructure loans and withdraw draft papers for its initial public offering (IPO) twice.

Reports surfaced earlier this month that Agarwal is under pressure from investors, including Mizuho Financial Group, to take OYO public by October. With the deadline for $383 Mn debt looming, the company has fast-tracked its IPO plans.

The hospitality startup saw an impressive turnaround last year, reporting its first ever annual profit of INR 229.5 Cr in FY24 against a loss of INR 1,286.5 Cr in FY23.

Inc42 reported in February that OYO’s net profit jumped nearly 6X to INR 166 Cr in Q3 FY25 from INR 25 Cr in the year-ago period. Revenue zoomed 31% to INR 1,695 Cr during the quarter from INR 1,296 Cr in Q3 FY24.