IPO Bound OYO Aims to Double Company-Serviced Hotel Revenue by FY26

IPO bound OYO has announced it will scale up its company-serviced hotel model in India during the current financial year. These properties, operated directly by the company, are expected to contribute 44% of Oyo’s total booking revenue by the end of FY26, up from 22% at present.

1,800 Hotels Targeted by Year-End

At present, OYO manages around 1,300 company-serviced hotels. As per a news report, the company has plans to increase this number to 1,800 by the end of the financial year. These hotels include brands such as Townhouse, Townhouse Oak, Capital O, Palette, and SUNDAY, which fall under the mid to premium category.

OYO’s Expansion Across Cities

The company-serviced segment currently spans 124 cities. OYO plans to increase this coverage to over 300 cities across India. The expansion will include locations such as Mohali, Faridabad, Jalandhar, Cuttack, Asansol, Darjeeling, Mangalore, Kollam, Port Blair, Kasaragod, Bhilwara, Vapi, Junagarh, and Jalgaon.

As per news reports, the focus is on areas with consistent demand, particularly in leisure, religious, and business travel zones, where hotel owners are open to longer-term operating agreements.

Read more: OYO Plans Fresh IPO Attempt, Seeks $6-7 Billion Valuation!

Company Serviced Hotels Segment Introduced in FY23

OYO first introduced the company-serviced hotel model in FY23. Initially, the segment contributed less than 2% to the company’s overall booking revenue. Since then, its share has grown steadily.

OYO’s Financial Performance 

In FY24, OYO posted a net profit of ₹229 crore, its first since launch. This comes after eight straight quarters of positive adjusted EBITDA. The profit followed reductions in general and administrative expenses, along with lower marketing spend. The company expects net profit to increase to ₹1,100 crore by FY26, according to projections shared by founder Ritesh Agarwal.

Conclusion

OYO is increasing its focus on directly managed properties in India. The company-serviced hotel model is to expand both in scale and geographic reach in FY26, with a higher contribution to total bookings compared to previous years.

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