OYO, India’s homegrown hospitality giant, has received board approval to proceed with its Initial Public Offering (IPO), marking a significant phase in its journey toward public listing. The company is targeting to file its Draft Red Herring Prospectus (DRHP) in November 2025, making this its third attempt to go public after two previous withdrawals due to regulatory and market challenges. Positioned as a tech-driven travel and hospitality platform, OYO’s IPO is anticipated to be one of the largest in India’s hospitality sector, eyeing a valuation between $7 billion and $8 billion (approximately INR 66,000 crore).
OYO’s Financial Turnaround and IPO Readiness
OYO has demonstrated a strong financial turnaround, shifting from years of losses to sustained profitability. For the fiscal year 2025, the company reported an EBITDA of around INR 1,100 crore and a net profit of INR 623 crore, marking a significant improvement. Projections for FY26 are even more optimistic, forecasting profit after tax of INR 1,100 crore and EBITDA climbing to INR 2,000 crore. This financial strength, underpinned by an EBITDA margin of 17–18%, is bolstered by global operations that contribute about 78% of revenues, spanning the US, Europe, Southeast Asia, and the Middle East.
OYO has been proactive in preparing for the IPO by reducing its debt burden with an INR 1,650 crore debt buyback, anticipated to save about INR 125–145 crore annually. It has also made strategic acquisitions such as Motel 6 and Studio 6 in the US, and France’s Checkmyguest, which are expected to add over INR 2,000 crore in EBITDA. Moreover, the company is expanding into premium hotel segments with brands like SUNDAY, Palette, and Townhouse O, alongside Townhouse Cafe QSRs, aiming to boost margins and diversify its offerings.
Rebranding and Corporate Identity Shift
Ahead of the IPO, OYO is undergoing a significant rebranding exercise, reshaping its corporate identity beyond the familiar OYO Hotels brand. The parent company, currently known as Oravel Stays Ltd, will be renamed to reflect its evolution from a hospitality-centric business to a global urban innovation ecosystem. This rebranding initiative is led by founder and CEO Ritesh Agarwal, who has publicly invited the community and creative minds worldwide to suggest a modern, scalable, and culturally neutral new name. While the core consumer-facing brands such as OYO Hotels, OYO Vacation Homes, and OYO Workspaces will retain their identities, the parent brand will symbolize OYO’s broader ambitions and expanding portfolio of services.
The new corporate brand is also expected to support the launch of a dedicated app for OYO’s premium hotels, signifying the company’s pivot to capturing the mid-market and premium hospitality segments. This strategic move aligns with global trends favoring premium accommodations and strengthens OYO’s position as a tech-driven platform catering to evolving customer demands.
Global Expansion Strategy
OYO maintains a strong international presence, with over 22,700 hotels and 119,000 homes in more than 35 countries. The vast majority of its revenues—about 78%—come from international markets including the United States, Europe, Southeast Asia, and the Middle East. This global footprint is a core component of its valuation and attractiveness to investors. OYO’s ongoing global expansion includes the scaling up of company-serviced hotels—properties that OYO manages directly to ensure consistent quality.
In India, OYO plans to expand its company-serviced hotel count from around 900 in FY25 to 1,800 by FY26, while increasing its presence from 124 to over 300 cities. This expansion targets leisure destinations, pilgrimage sites, and business hubs such as Mohali, Faridabad, Jalandhar, Cuttack, Asansol, Darjeeling, Mangalore, Kollam, Port Blair, and others. The focus on company-serviced hotels, including mid to premium brands like Townhouse, Capital O, Palette, and SUNDAY, aims to double booking revenue share from 22% to 44% by FY26, leveraging higher customer ratings, better guest experiences, and repeat bookings.
IPO Market Valuation and Industry Context
The anticipated IPO valuation for OYO is set between $7 billion and $8 billion, which translates to a price band of roughly INR 70 per share, with an EBITDA multiple of about 25–30 times. While this valuation has drawn mixed reactions, with some analysts citing steep multiples compared to traditional listed hotel chains, supporters highlight OYO’s technological innovation, diverse global assets, and debt reduction strategy as justification. The IPO is poised to be a landmark event in India’s tech-driven hospitality sector and a major milestone for the country’s startup ecosystem.
Summary
OYO’s upcoming IPO reflects a broader transformation from a budget hotel aggregator to a global tech-enabled hospitality and urban living platform. With a clear financial turnaround, aggressive global expansion, strategic acquisitions, and a corporate rebranding effort, OYO is positioning itself for a successful public debut. The rebranding aims to unify its diversified offerings under a global parent identity, while premium expansions and technological innovations are set to fortify its market position. As the company targets its IPO filing in November 2025 with robust investor interest, OYO stands at the cusp of a new growth chapter as a publicly listed global hospitality powerhouse. This comprehensive narrative outlines OYO’s IPO journey, financial health, strategic moves, rebranding, and global expansion plans—providing valuable insights for investors, industry watchers, and travel sector enthusiasts.
