OYO, the hospitality giant, is aiming to achieve an EBITDA of INR 1,550 Cr in FY25, surpassing its earlier target of INR 1,200 Cr.
Founder Ritesh Agarwal attributes this growth to the recent acquisition of US-based G6 Hospitality, which alone is expected to contribute INR 350 Cr to EBITDA.
Strategic Acquisition of G6 Hospitality
In December 2024, OYO acquired G6 Hospitality (owner of Motel 6 and Studio 6) for $525 Mn (approx. INR 4,580 Cr) in an all-cash deal.
This acquisition enhances OYO’s presence in the North American market and sets the stage for “premiumisation” of the Motel 6 brand, already well-established in the US.
Promising FY26 Financial Projections
Ritesh Agarwal projects a strong FY26 performance, targeting:
Townhouse Hotels Leading Domestic Growth
In India, OYO’s flagship Townhouse hotels are a key revenue generator.
These properties are witnessing double-digit monthly growth, reflecting robust demand and effective market positioning.
Focus on Spiritual Tourism & Indian Market Leadership
OYO is tapping into India’s booming spiritual tourism sector as a strategic growth area.
The company aspires to become India’s leading hospitality provider, focusing on quality, profitability, and market coverage across all customer segments.
Global Expansion Strategy
Since its inception in 2012, OYO has scaled its operations to 35+ countries, including Europe, Southeast Asia, and North America.
In India alone, OYO manages 10,000+ properties, showcasing its vast domestic footprint.
IPO Pressure & Investor Sentiment
Despite its global success, OYO has twice deferred its IPO plans.
Investors, including Mizuho Financial Group, are now pushing for a public listing by October 2025, as the company faces a $383 Mn debt repayment deadline.
Profitability Milestones Achieved
The Road Ahead
With a strong comeback, strategic acquisitions, and a renewed focus on both domestic and international markets, OYO is gearing up for sustained long-term growth.
However, it must balance investor expectations and regulatory challenges as it prepares for a potential IPO.