OYO – US Becomes Largest Market as India Contributes Less Than 12% of Revenue

Expert Analysis:

• OYO's latest Updated Draft Red Herring Prospectus (UDRHP) highlights a significant transformation in its business, with India now contributing less than 12% of the company's revenues, while the United States has emerged as its largest market.

• The shift has been driven primarily by OYO's international expansion strategy, particularly its 2024 acquisition of G6 Hospitality, the parent company of Motel 6 and Studio 6, which substantially expanded its North American presence.

• During the first nine months of FY26, OYO's US operations generated a Gross Booking Value (GBV) of ₹12,022.5 crore, accounting for 52.4% of the company's global GBV, making North America its single largest contributor.

• Beyond the US, OYO has strengthened its international footprint through its 2019 acquisition of Leisure Group, while continuing to expand its vacation rental and hospitality businesses across Europe, the Middle East, and Southeast Asia.

• The evolving geographic mix reflects OYO's transition from an India-focused budget hotel chain into a globally diversified hospitality platform, with overseas markets now driving the majority of revenue and booking volumes.

• The international diversification reduces the company's dependence on a single market and provides exposure to multiple travel segments, including economy hotels, extended-stay accommodation, and vacation rentals.

• OYO's stronger global presence also supports its IPO investment thesis, as investors will increasingly evaluate the company as an international hospitality operator rather than solely an Indian travel-tech company.

• The geographical transformation, coupled with improving profitability and a stronger balance sheet, positions OYO to benefit from long-term growth in global travel demand while diversifying business risk across multiple regions.