OYO To Expand Its Company-Serviced Hotels To Drive Revenue

Hospitality giant OYO is looking to expand its company-serviced hotels like Townhouse and SUNDAY to boost revenue. 

OYO is aiming to increase the booking revenue of such hotels from 22% to 44% in the financial year 2026 (FY26), it said in its statement. 

It further looks to increase the number of company-services properties to 1,800 in the same period and expand its presence to nearly 300 cities across India from 124 cities at present. It includes cities like Mohali, Faridabad, Jalandhar, Cuttack, Asansol and Darjeeling, among others. 

Notably, company-serviced hotels of OYO are directly managed and operated by the hospitality unicorn. OYO claims that these hotels have more than double occupancy as compared to franchise hotels 

It currently operates more than 1,300 such properties in the country that also includes Townhouse Oak, Capital O and Palette. 

“The programme is in line with OYO’s strategic focus for 2025 for the India market, which aims to drive profitability by enhancing the overall guest experience,” said Varun Jain, chief operating officer, OYO. 

The startup introduced these hotels in FY23 which contributed less than 2% to its booking revenue initially. 

“The expansion program will focus on leisure cities, pilgrimage destinations, and business corridors where demand remains strong…,” the statement added. 

Founded in 2012 by Ritesh Agarwal, OYO offers holiday homes, 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.

OYO Expanding Offerings Amid IPO Run

OYO is planning to file its IPO papers between August and September and is in talks with multiple investment banks that said it could garner $6-7 Bn in valuation. The company is targeting a listing in the March quarter of the financial year 2025-26 (FY26).

This marks OYO’s third attempt at going public after shelving its plans in 2022 and 2024. 

The startup has asked five investment banks – Citi, Goldman Sachs, Jefferies, ICICI Securities and Axis Capital – to meet its key shareholder SoftBank next month, as per a Business Standard report. 

While OYO was earlier said to be targeting a listing by October this year, the company extended the timeline to March 2026 post SoftBank’s intervention as per another report by Bloomberg. 

In line with its IPO preparation, Agarwal last week took to X to seek name suggestions for its parent entity Oravel Stays Limited. 

“We’re renaming the corporate brand behind it all. Not the hotel chain, not a consumer product — but the parent company powering a global ecosystem of urban innovation and modern living. We believe it’s time the world had a new kind of global brand — born in India, but built for the world,” said Agarwal. 

Notably, a reward of INR 3 Lakh and a meeting with him have been offered for the selected entry.

On the financial front, OYO’s net profit more than doubled year-on-year in FY25. In a town hall meeting earlier this month, Agarwal claimed that the startup’s net profit jumped 172% to INR 623 Cr in FY25 from INR 229 Cr in the previous fiscal year. 

Its top line grew 20% to INR 6,463 Cr from INR 5,388.7 Cr in FY24.