The Rise of Oyo’s Elite 1,800: Why These Hotels Are Changing the Game

Image Source: Dr Sajeev Dev

OYO is making waves in the hospitality sector by doubling down on its company-serviced hotels, aiming to transform both its business model and guest experience. The company plans to expand its portfolio of company-serviced hotels from 1,300 to 1,800 properties, increasing its presence from 124 cities to over 300 across India by FY26. This bold move is designed to double the segment’s contribution to OYO’s booking revenue from 22% to 44%, signaling a major shift in strategy toward higher-margin, premium offerings.

Key Highlights:

Superior Performance: OYO’s company-serviced hotels, operating under brands like Townhouse, Townhouse Oak, Capital O, Palette, and SUNDAY, consistently outperform franchisee properties. They boast customer ratings of 4.6 (versus an average of 4.0) and enjoy occupancy rates 2.7 times higher than other hotels.
Strategic Expansion: The expansion targets high-demand markets such as leisure destinations, pilgrimage centers, and business corridors. Cities like Darjeeling, Port Blair, Mangalore, and Vapi are on the growth radar, with a special focus on supporting India’s spiritual tourism boom.
Profitability and Loyalty: The company-serviced model, introduced in FY23, quickly became OYO’s fastest-growing segment. It delivers superior service standards, leading to stronger guest loyalty and a repeat customer rate 1.3 times higher than other segments.
Data-Driven Growth: OYO leverages advanced analytics to identify high-potential locations and optimize inventory, ensuring consistent quality and guest satisfaction.

This aggressive expansion underscores OYO’s commitment to profitability, operational excellence, and delivering memorable stays, setting a new benchmark in the Indian hospitality landscape.

Sources: Hospitality Biz India, Financial Express, Economic Times