Overview
OYO is an Indian-founded hospitality business associated primarily with budget accommodation and independently owned hotels. Its proposition is to combine a recognisable consumer brand with online distribution, revenue-management technology and operational support. For guests, the intended benefit is easier discovery and booking of affordable accommodation; for owners, it is access to demand and systems that may be difficult to build independently.
The business is best understood as a network of accommodation partnerships rather than a chain owning most of its buildings. Franchise, management and other commercial agreements have featured in its development. Consequently, an OYO opportunity should be assessed through the specific local agreement, not assumptions drawn from the brand name alone.
History and growth
Ritesh Agarwal founded OYO in 2013, building the business from India’s fragmented budget-hotel market. Its early approach involved working with existing properties to improve basic standards and make rooms bookable through digital channels. Expansion was supported by substantial external investment, with SoftBank among its prominent backers.
OYO subsequently entered markets across Asia, Europe and the Americas. Its growth extended beyond budget hotels into holiday accommodation, including the acquisition of Amsterdam-based @Leisure Group in 2019. Rapid expansion also brought restructuring and disputes with some hotel partners. The pandemic intensified pressures across the accommodation sector, prompting a greater emphasis on costs and operating efficiency. In 2024, OYO completed its acquisition of the Motel 6 and Studio 6 businesses from Blackstone, significantly broadening its US presence.
Global footprint
India remains central to OYO’s identity and hotel network, while its international development has included Southeast Asia, Europe and the United States. The group’s geographical reach is not synonymous with the footprint of hotels carrying the OYO name: holiday-home businesses and separately branded hotel chains also contribute to its wider accommodation portfolio.
OYO reported around 18,000 hotels in its network at the end of March 2024. That is a dated reference point, not a current property count, and it predates the completion of the Motel 6 and Studio 6 acquisition. Published totals can measure hotels, homes, listings or rooms, making comparisons difficult. A single country count is similarly unhelpful without specifying which businesses and accommodation categories are included.
How the franchise model works
OYO generally works with owners of existing accommodation rather than requiring every partner to develop a new hotel. Depending on the market and contract, participation can include brand affiliation, access to booking channels, property-management tools, pricing support and assistance with operating standards. Owners typically retain responsibility for the underlying property and important elements of day-to-day delivery.
The financial relationship may involve commissions, revenue-sharing or other contractual charges. There is no single worldwide OYO franchise package that can safely be applied to every property. Responsibilities for staffing, maintenance, guest complaints, promotions and rate-setting need to be established in the agreement. Owners should also distinguish an OYO-branded partnership from opportunities under separately operated group brands, whose franchise systems and requirements may be different.
Investment and requirements
A universal OYO franchise fee and total investment range are not publicly disclosed. Property condition, location, size and the type of agreement can materially affect the cost of joining. Prospective franchisees should request the applicable franchise disclosure documents, where available or required, alongside a complete written schedule of fees and property-improvement requirements.
An existing hotel may need spending on signage, furnishings, bathrooms, connectivity, safety measures or other changes before operating under the brand. These costs are separate from ongoing charges and normal hotel expenditure. A proposal should identify who funds each improvement, the timetable for completion and any recurring technology, distribution or marketing costs. Working-capital needs also depend on seasonality, payroll, utilities and the timing of booking settlements.
What franchisees should consider
The central commercial question is whether additional demand and operating support justify the full cost of affiliation. Occupancy alone is an incomplete measure: room rates, channel charges, discounts, refunds and operating expenses all influence the amount left with the owner. Property-level evidence from comparable hotels is more informative than network-wide claims about performance.
Contract clarity is especially important around pricing authority, promotional participation, payment reconciliation, service obligations and termination. OYO has faced publicly reported disputes with some hotel partners over payments and contractual arrangements; these should not be assumed to describe every relationship, but they reinforce the importance of checking local experience. Discussions with existing and former partners can help establish how support and dispute resolution work in practice.
Competitive landscape
OYO competes with independent hotels, online accommodation platforms and established economy hotel networks. Relevant branded comparisons include ibis, Super 8, Days Inn, Red Roof Inn and Quality Inn. Their direct relevance varies by country, property type and guest segment; none offers an identical business model across all markets.
Established hotel franchisors often emphasise reservation systems, loyalty programmes and standardised brand requirements. OYO’s distinguishing emphasis has been bringing fragmented accommodation supply into a technology-supported network, frequently through conversion of existing properties. Owners comparing alternatives should examine local brand recognition, distribution reach, conversion costs and operational flexibility. The strongest competitor may be remaining independent while using booking platforms and third-party hotel software.
Outlook
OYO’s long-term prospects depend on balancing network growth with dependable guest standards and sustainable relationships with property owners. Budget accommodation provides a large potential market, but individual hotels remain exposed to local competition, labour costs, maintenance requirements and fluctuations in travel demand.
The addition of Motel 6 and Studio 6 expanded the group’s exposure to an established US economy-hotel franchise system. It also made distinctions between the group’s businesses more important for prospective partners. For an individual owner, the practical assessment remains local: the proposed contract, the condition of the property, evidence of demand and the quality of support available in that market.
OYO franchise: frequently asked questions
How much does an OYO franchise cost?
A universal OYO franchise fee or total investment range is not publicly disclosed. Costs depend on the market, agreement and condition of the hotel, including any required improvements. Prospective partners should request the applicable franchise disclosure documents, where available or required, and a written breakdown of initial charges, recurring fees and property-upgrade obligations.
How many OYO hotels are there?
OYO reported around 18,000 hotels in its network at the end of March 2024. This is a historical figure and predates completion of its Motel 6 and Studio 6 acquisition. Group-wide accommodation totals may also include holiday homes or other listings, so they should not be treated as counts of OYO-branded hotels.
Who founded OYO and where is it based?
Ritesh Agarwal founded OYO in India in 2013. The business is headquartered in Gurugram, also known as Gurgaon, in Haryana. It developed from a focus on India’s independent budget hotels into an international accommodation business, with hotel partnerships, holiday-accommodation operations and separately branded hotel businesses.
Does OYO own the hotels in its network?
OYO’s core model is based on partnerships with accommodation owners rather than ownership of most hotel buildings. Depending on the market, it uses franchise, management or other commercial arrangements. Property ownership, staffing responsibilities, operating control and financial obligations should therefore be checked in the specific agreement offered to the hotel owner.
Can an existing independent hotel join OYO?
Working with existing hotels is central to OYO’s model, although acceptance depends on local availability and property requirements. An owner may need to make improvements and adopt specified booking, technology or service processes. The proposal should explain eligibility, required expenditure, pricing authority, ongoing charges and the division of responsibilities between OYO and the owner.
Latest OYO news
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Figures are approximate and based on publicly reported information as of March 2024. Franchise costs and terms change; prospective franchisees should obtain the brand’s current disclosure documents and take independent legal and financial advice. Profile updated October 2026.