# OYO **Source:** https://geo.sig.ai/brands/oyo **Vertical:** Travel & Hospitality **Subcategory:** Budget Hotel Chain **Tier:** Growth **Website:** oyorooms.com **Last Updated:** 2026-04-14 ## Summary India's largest budget hotel chain with $696M revenue FY2025 and first profitable year (₹623Cr net profit); $3.47B raised; 1M+ rooms at peak in 80 countries; OYO's dynamic pricing and digital check-in technology deploys across franchisee-managed properties. ## Company Overview OYO (Oravel Stays Limited) is a global budget hospitality company founded in 2013 by Ritesh Agarwal in Gurugram, India. OYO operates a technology-powered franchise and leasing model, partnering with independent hotel owners to standardize rooms and services under the OYO brand. At its peak, OYO operated over 1 million rooms across 800+ cities in 80 countries, making it one of the world's largest hotel chains by room count. Core offerings include OYO Rooms (budget hotels), OYO Townhouse (midscale), and Collection O (upscale).\n\nOYO's competitive advantage lies in its technology stack: dynamic pricing algorithms, digital check-in, and property management tools deployed across franchisee properties. The company underwent significant restructuring between 2020 and 2023, reducing headcount, exiting unprofitable markets, and shifting from a capital-heavy lease model to a lighter franchise and management contract approach. OYO also acquired Motel 6 and Studio 6 U.S. brands, as well as European vacation rental assets.\n\nOYO achieved its first profitable year in FY2024 and extended profitability in FY2025, reporting revenue of approximately $696M and net profit of ₹623 crore. Parent company PRISM filed confidentially for an IPO targeting a $7–8B valuation and ~$742M capital raise, expected to list on Indian exchanges. Total funding stands at $3.47B from investors including SoftBank and Airbnb. ## Frequently Asked Questions ### Is OYO profitable? Yes. OYO achieved its first net profit in FY2024 (₹229.6Cr) and extended profitability in FY2025 (₹623Cr net profit on ~$696M revenue), a significant turnaround after years of heavy losses following its high-growth phase. ### What is PRISM and how does it relate to OYO? PRISM (formerly Oravel Stays Limited) is OYO's holding company, which has diversified beyond budget hotels to include vacation rentals, U.S. motels (Motel 6, Studio 6), workspaces, and events. PRISM filed for an IPO targeting $7–8B valuation in 2025. ### Does OYO operate outside India? Yes. OYO operates in 80+ countries including the United States (Motel 6, Studio 6), Europe (Belvilla vacation rentals), and Southeast Asia. International operations represent a growing share of total revenue. ### What is OYO and how does its hotel model work? OYO is a hospitality company that partners with independent hotels and property owners — providing them with OYO's brand, technology platform, standardised operating procedures, and customer acquisition infrastructure in exchange for a revenue share, allowing small independent hotels to upgrade their quality and visibility without the capital investment of a full brand conversion, while OYO scales its room inventory without owning or building hotel properties. ### What markets does OYO operate in and where is it strongest? OYO was founded in India and built its largest presence there before expanding aggressively into Southeast Asia, Europe, Latin America, and the United States — with India remaining its largest market by property count, and OYO having established significant footprints in markets including Malaysia, Indonesia, UK, and the US under different brand identities including Motel 6 management partnerships and vacation rental brands. ### How does OYO use technology to manage its hotel network? OYO provides partner hotels with its property management system, a revenue management tool that dynamically adjusts room pricing based on demand signals, a central reservations system, and a quality assurance audit application — creating a technology layer that standardises operations across thousands of independently owned properties and provides OYO with data visibility into each hotel's performance without physically managing every property. ### What is OYO's approach to budget travellers and price positioning? OYO positions its properties as affordable, standardised accommodation for budget travellers who want reliable basics — a clean room, functioning WiFi, hot water, and air conditioning — at low price points, targeting domestic business travellers, budget tourists, and guests in smaller Indian cities who previously had limited options between unbranded guesthouses and expensive business hotels. ### What challenges has OYO faced in its rapid growth? OYO experienced significant challenges during its rapid international expansion including accusations from hotel partners of aggressive revenue share renegotiations, reports of property quality inconsistency, difficulty managing operational standards across a huge and geographically dispersed property portfolio, substantial financial losses, and workforce reductions — leading to a refocus on profitability and core markets after its high-growth phase and delayed IPO plans. ## Tags b2b2c, global, platform, marketplace, mobile-first, emerging-markets, asia-pacific, startup, ai-powered --- *Data from geo.sig.ai Brand Intelligence Database. Updated 2026-04-14.*