Oravel Stays (OYO Rooms) Unlisted Shares
Oyo to expand to 300 cities by FY26, eyes doubling booking revenue
Business Standard
2 min read
OYO Plans to Double Company-Serviced Hotels and Booking Revenue Share by FY26 Ahead of IPO.
Expert Analysis :
Hotel Portfolio Growth: OYO currently operates 1,300+ company-serviced hotels and targets 1,800 by FY26, up from around 900 in FY25.
FY26 Expansion Strategy: IPO-bound OYO plans to double booking revenue from company-serviced hotels from 22% to 44% and expand presence from 124 to 300+ cities.
Current Portfolio: OYO currently operates 1,300+ company-serviced hotels under brands like Townhouse, Capital O, Palette, and Townhouse Oak.
Targeted Expansion Locations: OYO is focusing on high-demand leisure, pilgrimage, and business cities, including Mohali, Darjeeling, Port Blair, Vapi, and more across India.
Strategic Focus for 2025: OYO’s expansion aligns with its 2025 strategy to boost profitability by enhancing guest experience and service quality.
Performance Metrics: Company-serviced hotels have a 4.6 customer rating (vs. 4.0 average), 2.7x higher occupancy, and 1.3x greater repeat customer rate.
Initial Contribution: Introduced in FY23, company-serviced hotels initially contributed less than 2% to OYO’s booking revenue.
OYO’s hotel expansion aims to double high-margin revenue share and enhance profitability, crucial for investor confidence before its IPO.
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