Latest news with #OyoHotels
Skift
2 days ago
- Business
- Skift
Why Oyo Is Doubling Down on Its Company-Serviced Hotels
India's growing purchasing power is driving Oyo towards premiumization, but it's doing it Oyo style. Oyo has said it is aiming to double the share of company-serviced properties in its booking revenue from 22% to 44% in the current financial year. The company that currently operates 1,300 hotels in its serviced segment across 124 cities also plans to expand the portfolio of these hotels to 1,800 properties across 300 cities. These are primarily under its mid-segment brands Townhouse Oak, Capital O and Palette, and premium brand Sunday. The launch of company-serviced hotels in September 2023 marked Oyo's departure from its franchise model. According to Oyo, it will focus on leisure cities, pilgrimage destinations, and business corridors where demand remains strong for the expansion. What is Driving This Decision? In its statement, the hospitality company said that these hotels have double the average occupancy as compared to franchise hotels. These properties also get a higher customer rating, it added. Last December, Oyo said that it achieved 250% growth in this segment within just a year of its launch. Varun Jain, chief operating officer at Oyo said, 'The program is in line with Oyo's strategic focus for 2025 for the India market, which aims to drive profitability by enhancing the overall guest experience.' The company said that the company-serviced hotel segment is Oyo's fastest-growing business segment globally. 'This highlights their higher revenue-generating potential, driven by standardised operations, superior service quality, and enhanced customer experience,' it added. Oyo's Premiumizat
Yahoo
05-05-2025
- Business
- Yahoo
Oyo Hotels postpones IPO for third time
Indian hospitality chain Oyo Hotels has postponed its initial public offering (IPO) for the third time, following opposition from its stakeholder SoftBank Group and amid volatile stock market conditions, as reported by Bloomberg. This marks the company's third attempt at going public since 2021, now potentially looking to debut as early as March with a targeted valuation upwards of $7bn. SoftBank, which holds a significant stake in Oyo that surpasses founder Ritesh Agarwal's more than 30% share, has urged the company to delay the IPO until its earnings improve. The support of the fund is crucial for board approval and to attract investors, as it has been advised not to sell into the IPO. The company is closely monitoring its performance and the broader economic environment to determine the most opportune time for its IPO, according to an Oyo spokesperson. Meanwhile, SoftBank has refrained from commenting on the matter. Agarwal has been keen on a swift IPO to fulfill the terms linked to his restructured $2.2bn loan, which was personally guaranteed by SoftBank founder Masayoshi Son. The loan's first instalment was due in December, but lenders may extend the repayment date if Oyo lists this year. Despite the delay, SoftBank may assist in extending the deadline for Agarwal's loan repayment. The Oyo spokesperson clarified that the founder's financial arrangements are separate from the company and will not influence the IPO schedule. The final decision on the listing will be made by the board, considering the interests of all shareholders. SoftBank's role is complicated due to Son's personal involvement in Agarwal's finances, which enabled the Oyo founder to secure a multi-billion-dollar loan to increase his stake in the company. This loan restructure took place in 2022, with the first payment of $383m still pending. Oyo, which achieved its first annual net profit in the year ended March 2024, is projecting a significant increase in profits to Rs6.2bn ($74m) in the subsequent year. Once one of India's most valuable startups, Oyo's valuation has been impacted by intense competition, although it has returned to profitability. In 2022, the Vision Fund reduced Oyo's valuation on its books to $2.7bn from $3.4bn. In a recent development, Oyo announced the upcoming launch of a dedicated app for its premium and mid-market to premium company-serviced hotels in April 2025. "Oyo Hotels postpones IPO for third time" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Time of India
02-05-2025
- Business
- Time of India
Oyo defers IPO plan again amid turmoil
Oyo Hotels is delaying its plans for an Oct IPO after opposition from SoftBank and a tumultuous turn in the stock market this year. SoftBank has balked at the proposed timing and pressed Oyo to hold off on an IPO until its earnings are stronger, according to people familiar with the matter. This is Oyo's third attempt to go public since 2021, but it faces a grim market with Trump 's tariff policies sapping investor appetite for risk. SoftBank holds a stake in Oyo that is bigger than founder Ritesh Agarwal 's over 30% stake. Without fund's agreement to not sell into the IPO, any listing would face major hurdles. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
