OYO's revenue mix in FY24 consisted primarily of accommodation services ($412 million, 63.8% of revenue) and commission and booking fees ($161 million, 25% of revenue). The remainder came from tour packages, events, cancellation fees, and insurance services.

Despite flat revenue, OYO achieved profitability in FY24 with a net profit of $27 million, a significant turnaround from a $154 million loss in FY23. This shift was driven by substantial cost reductions, improved unit economics, and the elimination of minimum guarantees to hotel partners in favor of pure revenue-sharing arrangements.

Looking ahead, OYO projects FY25 operating income to exceed $800 million, with Q4 FY25 revenue reported at approximately $250 million, indicating 60% year-over-year growth. The acquisition of G6 Hospitality (Motel 6) is contributing meaningful revenue, adding approximately $33 million in its first quarter under OYO.

OYO is valued at approximately $2.5 billion based on its June 2024 funding round of $175 million, including $100 million from founder Ritesh Agarwal. This represents a 75% decrease from its peak valuation of $10 billion in 2019.

The company has raised approximately $3.5 billion in equity funding since inception in 2013. SoftBank Group remains the dominant investor with a 47% stake, while founder Ritesh Agarwal holds approximately 33%. Other investors include Microsoft, Airbnb, Sequoia India (now Peak XV Partners), Lightspeed Venture Partners, and Didi Chuxing.

A secondary stake sale in late 2024 reportedly valued the company at around $3.9 billion, suggesting a modest uptick as financial performance improved. OYO secured a $660 million term loan in 2021 and has been working to refinance this debt, which could improve its annual interest costs by approximately $15-17 million by reducing rates from 14% to 10%.

OYO operates a hospitality platform that standardizes and franchises previously fragmented budget accommodations. When a small hotel joins OYO, the property undergoes standardization to meet minimum quality benchmarks—clean linens, reliable Wi-Fi, air conditioning, and consistent service—and displays OYO branding on its exterior.

Travelers use OYO's mobile app or website to search and instantly book rooms, with the assurance that any OYO-branded property will meet basic quality standards at affordable rates. The booking process is seamless, with options to filter by location, price range, and property type. After booking, guests receive digital check-in capabilities and 24/7 customer support.

For hotel owners, OYO provides a comprehensive technology suite called "OYO OS"—a cloud-based property management system that handles everything from online distribution to dynamic pricing. This system connects the property to multiple booking channels, adjusts room rates based on demand patterns, manages inventory, and processes payments. Small hotels that previously lacked digital capabilities gain access to sophisticated yield management algorithms similar to what large hotel chains use.

OYO has diversified its offerings beyond basic budget rooms to include multiple brands targeting different segments: OYO Townhouse for mid-scale urban hotels, Palette Resorts for leisure destinations, OYO Vacation Homes for holiday rentals in Europe, and recently, the premium "Sunday" brand for upscale properties. The company also operates specialized services for business travelers through Collection O and SilverKey branded properties.

The technology backbone supporting these operations includes a dynamic pricing engine that adjusts rates based on local demand patterns, a loyalty program (OYO Wizard) that offers members discounts and benefits, and digital tools like contactless check-in that have become particularly valuable following the pandemic.

OYO operates an asset-light franchising model with a technology backbone, combining elements of a hotel chain, tech platform, and marketplace. Hotel owners join the OYO network, paying commission fees ranging from 20-30% of booking revenue in exchange for branding, technology systems, and access to OYO's customer base.

The company follows a primarily B2C go-to-market strategy, acquiring customers through its mobile app and website, while also employing B2B2C tactics by listing properties on third-party OTAs like Booking.com and MakeMyTrip to reach a broader audience. OYO emphasizes direct bookings to maximize margins, with approximately 80% of bookings now coming through its own channels versus industry competitors who average closer to 50%.

OYO's cost structure has evolved significantly since 2020. The company dramatically reduced fixed costs by shrinking employee headcount from 17,000 in 2019 to around 1,300 by 2023—a 90% reduction achieved through automation and by pulling back from intensive operations in markets like the U.S. and China. Major cost components include lease rentals and service fees (50% of total expenditure), employee benefits (13%), interest payments, and marketing.

A key structural differentiator is OYO's vertical integration of operational control with an asset-light ownership model. Unlike traditional hotel franchisors that provide primarily branding and standards, OYO actively intervenes in operations through its technology platform while avoiding capital-intensive real estate ownership. This hybrid approach allows for rapid scaling while maintaining quality control.

The business model's vulnerability lies in its dependence on network effects—more hotels attract more customers, which in turn attracts more hotels. If quality falters or hotel partners become dissatisfied, this virtuous cycle can quickly reverse. To address this risk, OYO introduced "Company Serviced Hotels" in 2023, where it directly manages properties to ensure service quality, which has shown improved guest ratings.

Post-pandemic, OYO pivoted from "growth at all costs" to sustainable unit economics by eliminating minimum revenue guarantees to hotel partners, implementing stricter quality controls, and focusing on profitable markets rather than rapid geographic expansion. This shift has enabled the company to achieve profitability despite a smaller overall footprint.

OYO's most direct competitors are other budget hotel networks that follow similar asset-light franchising models. FabHotels and Treebo in India operate on comparable revenue-sharing models, but at much smaller scale—each with fewer than 1,000 hotels compared to OYO's network of 175,000+ properties. Treebo has differentiated by pivoting partially toward a SaaS model, selling hotel management software ("Hotel SuperHero") to independent hotels not under its brand.

In Southeast Asia, RedDoorz operates approximately 3,000 hotels using a franchise model similar to OYO's. Like OYO, RedDoorz standardizes small hotels, provides a central booking platform, and charges commission on room revenue. The key difference is geographical focus—RedDoorz concentrates specifically on Indonesia and neighboring markets, allowing for deeper local relationships but limiting overall scale.

These competitors generally position themselves on stricter quality control and more selective property onboarding than OYO, which historically prioritized rapid inventory growth. However, OYO's superior technology and larger customer base typically drive higher occupancy rates for its properties—OYO reports 78% occupancy versus competitors' 49%, a significant advantage for hotel owners evaluating which platform to join.

OTAs like Booking.com, MakeMyTrip, and Expedia represent both distribution partners and competitive threats to OYO. These platforms offer hotel owners an alternative route to market without surrendering branding or operational control, typically charging 15-20% commission without the standardization requirements OYO imposes.

The key distinction is that OTAs provide only distribution while OYO delivers a branded experience with operational involvement. For hotel owners, the decision often hinges on whether OYO's promise of increased occupancy and operational support justifies the higher commission and brand surrender. For customers, OYO offers reliability and consistent standards, while OTAs provide broader selection and potentially lower prices.

OYO has maintained a complex "coopetition" relationship with major OTAs, listing its properties on their platforms while simultaneously trying to drive direct bookings. A notable example was OYO's relationship with MakeMyTrip in India, which drew regulatory scrutiny after competitors FabHotels and Treebo alleged preferential treatment and exclusionary practices that limited their visibility on the platform.

Established hotel chains like Wyndham, Choice Hotels, and Accor compete with OYO primarily in economy and mid-scale segments. These companies have decades of operational expertise and strong loyalty programs, but their franchise requirements are typically more stringent and their technology infrastructure less agile than OYO's.

Newer entrants like Sonder represent a hybrid approach between traditional hotels and short-term rentals. Sonder leases apartment buildings or boutique hotels, standardizes them with modern design, and offers them through both direct channels and OTAs. Unlike OYO's pure franchise model, Sonder initially took on property leases, making it more asset-heavy but giving it tighter control over the guest experience.

OYO's acquisition of Motel 6 in 2024 places it in direct competition with established economy hotel chains in North America. The success of this integration will determine whether OYO can effectively merge its tech-forward approach with traditional franchise operations at scale in Western markets.

OYO's most significant TAM expansion initiative is its $525 million acquisition of G6 Hospitality (Motel 6 and Studio 6 brands) in 2024. This transaction instantly gives OYO control of approximately 1,400 franchised motels across the United States and Canada—roughly 120,000 rooms—dramatically increasing its North American footprint after previously struggling to gain traction in these markets through organic growth.

The U.S. economy hotel market represents a multi-billion dollar opportunity with higher average daily rates than OYO's core Asian markets. While budget motels in the U.S. typically charge $50-70 per night compared to $20 in India, the operating costs are also higher, creating both revenue and margin potential. OYO plans to add 150+ new Motel 6 locations in 2025 beyond the existing network, leveraging the established brand while implementing its technology stack to improve operational efficiency.

In Europe, OYO is pursuing expansion through its vacation rental business rather than hotels. Following acquisitions like @Leisure Group (which brought brands like Belvilla and DanCenter into the OYO portfolio) and Direct Booker (adding 3,200 properties in Croatia), OYO now manages tens of thousands of holiday rentals across the continent. The European vacation rental market represents a substantial opportunity as OYO competes with local property managers and potentially Airbnb in this segment.

The Middle East has emerged as another growth region, with OYO citing rapid expansion in markets like UAE and Saudi Arabia. The latter's Vision 2030 initiative to boost tourism creates opportunities for budget accommodation providers as the country develops its hospitality infrastructure. OYO's familiarity with emerging markets positions it well to capitalize on these trends.

OYO is systematically moving upmarket with brands like Townhouse (mid-scale urban hotels), Palette (resorts), and most recently "Sunday" (premium hotels). This "relative premiumization" strategy allows OYO to capture more wallet share from travelers who graduate from budget accommodations to 3-star and 4-star properties, significantly expanding its addressable market beyond the $30/night segment to include $80-100/night rooms.

The Sunday brand, launched in 2023 as a joint venture with SoftBank, targets the premium segment with 4-5 star hotels. OYO is aiming for 100 Sunday properties globally by the end of FY26. By moving into higher-tier accommodations, OYO can improve margins while leveraging its existing customer base and distribution capabilities.

OYO is also tapping into specialized travel segments, particularly religious tourism in India. The company has added 500 hotels across 12 major pilgrimage destinations, with searches for Ayodhya (site of the Ram Temple) increasing 39% year-over-year on the OYO platform. Religious tourism in India is projected to generate $59 billion in revenue by 2028, representing a massive opportunity aligned with OYO's strengths in secondary and tertiary markets.

OYO's launch of Oravel Travel Solutions (OTS) signals its entry into the corporate travel market. This platform allows businesses to manage employee accommodation bookings with centralized billing, policy enforcement, and reporting capabilities. OYO has onboarded 15,000 corporate accounts and more than 10,000 travel agents, providing a steady source of weekday demand that complements leisure bookings on weekends.

In the first half of 2023, OYO saw 20% revenue growth after adding approximately 2,800 corporate clients. The company positions its portfolio of standardized accommodations at competitive rates as an attractive option for cost-conscious businesses, particularly in secondary cities where major international chains have limited presence.

This B2B expansion extends OYO's reach beyond individual travelers to capture volume business from enterprises. By targeting high-demand business cities like Bangalore and Chennai with company-serviced hotels tailored to corporate needs, OYO can tap into the business travel lodging market worth billions annually in India alone.

Hotel partner relations: OYO's aggressive expansion created friction with many small hotel owners who accused the company of unilateral contract changes, payment delays, and predatory pricing practices. Public protests and lawsuits from hotel owners alleging that OYO failed to honor minimum guarantee payments or imposed new fees highlighted significant partner distrust. While OYO has addressed some issues by shifting to pure revenue-sharing models, maintaining healthy relationships with property owners remains essential to prevent inventory loss and reputational damage.

Quality control challenges: As a franchisor of tens of thousands of rooms, OYO has limited direct control over on-the-ground service quality, resulting in inconsistent guest experiences. During its rapid scaling phase, service quality often lagged behind growth, leading to customer complaints about cleanliness, check-in issues, and overbookings that damaged brand perception. While OYO's recent push to directly manage more hotels aims to combat this issue, maintaining uniform quality at scale remains an ongoing challenge that could erode customer trust and loyalty.

Financial leverage and restructuring: OYO faces significant pressure from creditors regarding its $660 million term loan, with lenders reportedly demanding repayment of $383 million if the company doesn't complete an IPO by October 2025. This debt burden creates financial vulnerability despite improved operational performance, as evidenced by substantial interest payments of $100 million in FY24. While OYO is working to refinance this debt at more favorable terms, its financial structure requires careful management to maintain the positive momentum of its business turnaround.