OYO Targets INR 1,550 Cr EBITDA in FY25 Boosted by G6 Hospitality Acquisition

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:

  • Net Profit: INR 1,100 Cr
  • EBITDA: INR 2,000 Cr
  • Contribution from G6 Hospitality: INR 690 Cr
    This underlines the long-term value the acquisition is expected to unlock.

• 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

  • OYO reported its first-ever annual profit of INR 229.5 Cr in FY24, a sharp turnaround from a loss of INR 1,286.5 Cr in FY23.
  • In Q3 FY25, net profit jumped nearly 6x to INR 166 Cr, compared to INR 25 Cr in Q3 FY24.
  • Quarterly revenue also grew 31% to INR 1,695 Cr, from INR 1,296 Cr in the previous year’s corresponding quarter.

• 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.