OYO has announced a major initiative to expand its presence across key religious sites in India by adding 500 hotels. This move aligns with the Indian government’s efforts to enhance spiritual tourism and will target well-known pilgrimage hubs such as Ayodhya, Varanasi, Haridwar, Prayagraj, Puri, Mathura, Vrindavan, Amritsar, Ujjain, Ajmer, Nasik, and Tirupati.  

A) Ayodhya: The Centerpiece of Expansion  

Ayodhya, home to the recently inaugurated Ram Temple, will be the focal point of this expansion. OYO plans to launch over 150 hotels in the city, recognizing the growing need for quality accommodations as pilgrim numbers surge. Ayodhya has witnessed a 39% year-on-year increase in search activity on the OYO app, making it the most sought-after religious destination for New Year holidays. Additionally, the first anniversary of the Ram Temple’s consecration ceremony on January 22, 2025, is expected to draw thousands of visitors.  

B) Strategic Expansion in Other Pilgrimage Sites  

Beyond Ayodhya, OYO aims to establish a strong presence in other prominent religious destinations. Plans include adding 100 hotels in Varanasi, followed by 50 hotels each in Prayagraj, Haridwar, and Puri. With booking requests for the Maha Kumbh festival already exceeding existing inventory in Prayagraj, this expansion seeks to address the growing demand for accommodations. Additional properties will be introduced in other significant spiritual locations, ensuring a balanced distribution of resources.  

C) Focus on Quality and Guest Experience  

OYO’s expansion will predominantly feature properties under its ‘company serviced’ category, signifying direct operational involvement to maintain a superior guest experience. This hands-on approach underscores the company’s commitment to delivering quality and comfort for pilgrims and travelers visiting these spiritual hubs.  

D) Insights from OYO Travelopedia  

OYO’s decision to prioritize spiritual tourism is supported by findings from its Travelopedia 2024 report, which highlights the rising popularity of destinations like Puri, Varanasi, and Haridwar. These sites are emerging as top choices for travelers seeking meaningful spiritual experiences, further validating the company’s expansion strategy.  

E) Collaboration with State Tourism Departments  

Varun Jain, COO of OYO India, emphasized the company’s collaboration with state tourism departments to better understand local priorities and requirements. By identifying strategic locations for new hotels, OYO aims to cater to the evolving needs of religious travelers, including preferences for less-explored pilgrimage destinations and seasonal travel trends.  

F) Confidence in Local Growth  

Local hospitality players like Vijay Kumar Singh, owner of Shri Balaji Hospitality Ltd, are also optimistic about the growth potential in cities like Ayodhya. Singh, who initially operated three hotels in the city, now plans to add 10 more in 2025, citing the increasing influx of visitors and the government’s focus on infrastructure development as key motivators.  

G) Contribution to India’s Religious Tourism Sector  

OYO’s expansion aligns with the government’s vision of bolstering the religious tourism sector, which is projected to generate $59 billion in revenue by 2028 and create 140 million jobs by 2030. By offering high-quality accommodations, OYO aims to contribute significantly to this thriving sector, ensuring a seamless experience for pilgrims across India’s spiritual landscape.