Oravel Stays Limited (OYO) Unlisted Shares

OYO (PRISM) is one of the world’s largest technology-enabled hospitality platforms, operating an asset-light hotel business model across 35+ countries through franchise, management and revenue-sharing partnerships. As of 9MFY26, the company operated 293,554 storefronts under 43 brands, spanning hotels, vacation homes and listings. OYO is transforming from a budget hotel aggregator into a full-stack hospitality and hotel technology platform through its PRISM technology, company-serviced hotels and premium brand expansion.

Global Hospitality Industry

The global hospitality industry includes hotels, resorts, vacation homes, serviced apartments and hospitality services, and was valued at US$11.3 trillion in CY25. The industry is projected to reach US$13.6 trillion by CY30, growing at a 3.7% CAGR, driven by rising travel demand and supported by the gradual shift from unorganised hotels to organised hospitality platforms.

Indian Hospitality Industry

The Indian hospitality industry was valued at ₹4.1 trillion in CY25 and is projected to reach ₹7.4 trillion by CY30, registering a 12.4% CAGR. With around 227,000 hotel storefronts and nearly 92% of hotels remaining unorganised, India offers a significant long-term opportunity for organised hotel chains and technology-enabled hospitality platforms such as OYO.

Business Profile

As of 9MFY26, OYO operated 293,554 storefronts, comprising 24,303 hotels, 124,668 vacation homes and 144,583 listings across 35+ countries under a portfolio of 43 hospitality brands. The business operates through three verticals—Hotels, Homes and Listings—with key brands including OYO, Sunday, Townhouse, Palette, Clubhouse, Belvilla, DanCenter, Motel 6, Studio 6, Checkmyguest and MadeComfy. In addition to accommodation services, OYO offers Weddingz, Workspaces, Tours & Events, Insurance Facilitation, Food & Beverage and other value-added hospitality services.

METRIC:

Storefront Portfolio

As of 9MFY26, OYO operated 293,554 storefronts, up from 231,529 in FY25, comprising 24,303 hotels, 1,573 India company-serviced hotels, 124,668 homes and 144,583 listings.

Storefronts by Category (9MFY26 vs FY25)

• Hotels – 24,303 vs 22,628
• India Company-Serviced Hotels – 1,573 vs 1,053
• Homes – 124,668 vs 119,849
• Listings – 144,583 vs 89,052

Storefronts by Geography (9MFY26 vs FY25)

• India – 14,937 vs 13,484
• United States – 2,087 vs 1,929
• Europe – 269,251 vs 208,901
• SEAME & International – 7,279 vs 7,215

The company’s storefront network has expanded at a 20%+ CAGR since FY23, led by strong growth in European listings, Indian hotels, and the expansion of its company-serviced hotel portfolio.

Gross Booking Value (GBV)

OYO’s Global Gross Booking Value (GBV) increased from ₹10,176 crore in FY23 to ₹22,946 crore in 9MFY26, driven by strong growth in hotel bookings, rapid expansion of company-serviced hotels and international business.

GBV by Category (9MFY26 vs FY25)

• Hotels – ₹18,907 Cr vs ₹11,542 Cr
• India Company-Serviced Hotels – ₹1,346 Cr vs ₹818 Cr
• Homes – ₹3,896 Cr vs ₹4,562 Cr
• Listings – ₹144 Cr vs ₹175 Cr
• Global GBV – ₹22,946 Cr vs ₹16,279 Cr

GBV by Geography (9MFY26 vs FY25)

• India – ₹2,732 Cr vs ₹3,512 Cr
• United States – ₹12,023 Cr vs ₹4,713 Cr
• Europe – ₹4,039 Cr vs ₹4,737 Cr
• SEAME & International – ₹4,153 Cr vs ₹3,317 Cr

The Hotels segment remained the largest contributor to GBV, accounting for over 82% of total bookings in 9MFY26. Geographically, the United States emerged as OYO’s largest GBV market following the acquisition of G6 Hospitality (Motel 6 & Studio 6), while the rapid growth in India Company-Serviced Hotels highlights the company’s strategic shift towards a more managed hospitality platform.

Indian Business

India generated a Gross Booking Value (GBV) of ₹2,732 crore in 9MFY26, accounting for around 12% of OYO’s global GBV. The Indian business contributed ₹1,127 crore to operating revenue during the period, representing 16.2% of the company’s total revenue. While India remains OYO’s largest operating market by brand presence, the company’s revenue and GBV are increasingly diversified across international markets.

Company-Serviced Hotels

Since FY24, OYO has accelerated its transition from a franchise-led hotel aggregator to a managed hospitality platform through its Company-Serviced Hotels model, where hotel operations are managed by professional operators to improve service quality, occupancy and customer experience.

The contribution of Company-Serviced Hotels to India’s Gross Booking Value (GBV) increased from 2.6% in FY24 to 23.3% in FY25 and further to 49.3% in 9MFY26. During the same period, the number of India Company-Serviced Hotels expanded from 4 in FY23 to 1,573 in 9MFY26, highlighting OYO’s strategic shift towards a more operationally managed hospitality business.

Indian Business Revenue by Customer

• Family, Leisure, Pilgrimage & Events – 39%
• Corporate & Business – 18%
• Others – 43%

The Indian customer mix is diversified across leisure, religious tourism, business travel and other travel segments, reducing dependence on any single customer category while benefiting from India’s growing domestic travel demand.

REVENUE :
OYO generated ₹6,941 crore of revenue from operations in 9MFY26, compared with ₹6,253 crore in FY25, representing a growth of approximately 11%.
Revenue Break-up (9MFY26 vs FY25)

• Sale of Accommodation Services – 55% vs 61%
• Commission from Bookings & Royalty Income – 32% vs 25%
• Other Operational Revenue – 8% vs 7%
• Rental Income – 2% vs 3%
• Cancellation Income – 1% vs 1%
• Value-added Services – 1% vs 0.3%
• Sale of Tours, Packages & Events – 1% vs 1%
• Food & Beverage – 0.4% vs 0.5%
• Subscription Income – 0.1% vs 0.1%

Revenue Break-up by Geography (9MFY26 vs FY25)

• United States – 27.1% vs 19.9%
• Europe – 23.6% vs 26.5%
• India – 16.2% vs 20.1%
• United Kingdom – 5.4% vs 9.7%
• Other Markets – 27.7% vs 23.9%

Financial Metrics

OYO continued to improve its profitability in 9MFY26, supported by operating leverage, a higher share of franchise and royalty income, and better cost efficiencies.

• Revenue as % of GBV – 25% vs 38.41% (FY25)
• Gross Profit as % of GBV – 44% vs 19.19%
• EBITDA% of GBV – 27% vs 5.86%
• EBIT Margin – 62% vs 7.43%
• PAT Margin – 78% vs 3.92%

Despite a decline in Revenue as a percentage of GBV, reflecting the company’s increasing shift towards an asset-light, franchise-led business model, profitability improved significantly. EBITDA, EBIT and PAT margins expanded on account of a better revenue mix, higher operating leverage and improved cost discipline.

Leverage Metrics

The company has significantly improved its leverage profile over the last few years, supported by higher profitability and debt reduction.

• Net Leverage Ratio improved to 6x in 9MFY26 from 12.3x in FY23.
• Debt Service Coverage Ratio (DSCR) improved to 1x from 0.38x over the same period, reflecting a stronger ability to service debt obligations.
• Interest Coverage Ratio stood at 6x in 9MFY26, remaining below 1x, which continues to be a key monitorable risk despite the improvement in operating performance.

Key Acquisition – G6 Hospitality

In 2024, OYO acquired G6 Hospitality, the operator of Motel 6 and Studio 6 across the United States and Canada, for US$525 million. The acquisition marked OYO’s entry into the North American economy hotel segment and significantly strengthened its international presence. As of 9MFY26, G6 Hospitality contributed approximately 52% of OYO’s Global Gross Booking Value (GBV), making it the company’s largest business by booking value and a key driver of future growth.

IPO Details

The proposed OYO IPO comprises a fresh issue of equity shares worth up to ₹6,650 crore, with no Offer for Sale (OFS) by existing shareholders. The company intends to utilize ₹4,987 crore of the net proceeds towards the repayment and prepayment of borrowings, while the balance will be used for general corporate purposes. The OYO IPO date and OYO IPO price are yet to be announced, subject to regulatory approvals and market conditions.

Issue Structure

• QIB – 50% (including Anchor Investors)
• NII / HNI – 15%
• Retail Investors – 35%
• Employee Reservation – Separate from the net issue