What is OYO’s new strategy for growing hotel bookings?
OYO, THE INDIAN hotel technology firm, aims to increase booking revenue from company-serviced hotels to 44 per cent from 22 percent by the end of the current financial year. The share of company-serviced hotels in its portfolio is also set to double, expanding from 124 cities to over 300 across India.
OYO is led by CEO Ritesh Agarwal, who also serves as chairman of G6 Hospitality, the parent company of the Motel 6 and Studio 6 brands.
“The program is in line with OYO’s strategic focus for 2025 in the India market, which aims to drive profitability by enhancing the overall guest experience,” said Varun Jain, OYO’s chief operating officer. “These hotels record a higher customer rating of 4.6 compared to the overall average of 4. Their occupancy rate is also 2.7 times higher than that of other hotels.”
The company introduced company-serviced hotels in the 2023 fiscal year, initially contributing less than 2 percent of booking revenue. Since then, the segment has become OYO's fastest-growing business globally, OYO said in a statement.
At present, it operates more than 1,300 company-serviced hotels in India under its brands Townhouse, Townhouse Oak, Capital O, Palette and SUNDAY.
OYO is expanding its company-serviced model in leisure cities, pilgrimage destinations and business corridors, where demand is stable and property owners are open to long-term partnerships. Cities include Mohali, Faridabad and Jalandhar in the north; Cuttack, Asansol, and Darjeeling in the east; Mangalore, Kollam, Port Blair and Kasaragod in the south; and Bhilwara, Vapi, Junagarh and Jalgaon in the west.
The company plans to add 500 hotels at religious centers across India to support the government’s programme to promote spiritual tourism. It added more than 3,500 corporate clients in the 2024–25 fiscal year, a 20 percent year-over-year increase.
Agarwal and G6 Hospitality’s new CEO Sonal Sinha recently spoke with Asian Hospitality about leadership and the key to success.
