OYO to Expand through Franchise route


OYO logoGurugram-based hospitality startup OYO has shifted its business model from hotel aggregation to franchise. OYO now runs pure-play franchise business allowing hotel partners to run under the OYO brands.

OYO had introduced franchise model in May last year. “In the last two years, we have evolved our business to 100% exclusive franchise, manage or operating. We do not anymore do hotel aggregation and have become a full-scale hospitality company,” OYO CEO Ritesh Agarwal said.

As per the company, the hotels that were part of the hotel aggregation model have now been converted into the franchise. OYO’s plan to shift from hotel aggregation to franchise model came mainly to reduce its operational costs and to improve serviceability, the company stated.

Founded by Ritesh Agarwal in 2013, OYO currently operates over 70K rooms in 230 cities in India, Malaysia, and Nepal. The company has also opened a new tech development centre at Telangana to support the technical expertise.

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