OYO Plans to Double Company-Serviced Hotels in India by FY26

IPO-bound global travel tech platform OYO announced ambitious plans to double its company-serviced hotels in India, aiming to increase their booking revenue share from 22% to 44% by the end of the current financial year (FY26). The hospitality giant, known for its innovative approach to budget and mid-segment accommodations, is focusing on expanding its premium property portfolio across India to drive profitability and enhance guest experiences. 

Currently, OYO runs over 1,300 company-managed hotels across India, with brands like Townhouse, Townhouse Oak, Capital O, Palette, and SUNDAY. The plan is to expand to 1,800 hotels and reach over 300 cities, up from 124. 

• OYO to double company-serviced hotels in India to 1,800 by FY26 ahead of IPO
• OYO eyes 44% booking revenue from premium managed hotels with 2.7x higher occupancy
• IPO-bound OYO expands in 300+ cities, targets profitability with top-rated Townhouse brands

OYO is targeting popular spots like vacation destinations, religious sites, and business hubs, including places like Mohali, Faridabad, Jalandhar, Cuttack, Asansol, Darjeeling, Mangalore, Kollam, Port Blair, and others. This growth is all about teaming up with property owners in high-demand areas for long-term success.

These company-managed hotels, which started in FY23, began with less than 2% of OYO’s booking revenue but have quickly become its fastest-growing segment globally. Varun Jain, OYO’s Chief Operating Officer, shared that this expansion is a big part of the company’s 2025 plans for India, focusing on profitability and creating great experiences for guests. These hotels score a 4.6 rating from customers, higher than OYO’s overall 4.0 average, and they see 2.7 times higher occupancy rates, with 1.3 times more guests coming back.

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As OYO prepares for its initial public offering (IPO), expected to be filed between August and September 2025 with a listing by March 2026, it’s working with big banks like Citi and Goldman Sachs and talking with major shareholder SoftBank, aiming for a $6-7 billion valuation. This expansion shows OYO’s commitment to transforming India’s hospitality scene while growing its global reach.